Challenge
One of the top five radio broadcasters in the United States, Entercom wanted to maximize functionality and workflow automation in its Microsoft Dynamics SL ERP system. Specifically, it wanted to reduce costs,
eliminate manual invoice processing, and improve the visibility and accountability of its accounts payable operation, which was spread over 110 stations in 23 markets, including San Francisco, Boston, Seattle, Denver, Portland, Sacramento and Kansas City.
In its least efficient markets, paper invoices were handled by five to seven people, physically moving paper. By centralizing payable functions, Entercom hoped to save considerable payroll costs, and actually improve accountability, accuracy, data visibility and workflow.
Solution
Metafile began by integrating MetaViewer with Microsoft Dynamics SL at the corporate level, and plans to follow up with a strategic rollout to local offices. Entercom plans to establish 21 scan stations at consolidated business offices, where paper invoices will be scanned into MetaViewer and sent to the corporate office for coding and routing for approvals. There are currently three offices active on the program, with plans for a rapid deployment to the other offices.
With MetaViewer, AP clerks at the corporate office are able to create vendor profiles for companywide use. Using these profiles, MetaViewer locates and extracts specified data from scanned invoices, converting paper to data that can be speed through the system accurately and expeditiously.
Results
“Accuracy has risen and the timeliness of our payments is better,” says Entercom Financial Systems Manager Willis Markuske. “A big benefit to me is, when a vendor calls, we have great vendor history that’s more accurate and consistent than going back to paper file folders, which may be missing documents.”
Metafile is helping Entercom develop an alert system to send emails to staff who may be holding up the workflow to indicate deadlines for
approvals, a methodology that will help identify bottlenecks and improve audit reporting.
Markuske is looking at uses for MetaViewer beyond accounts payable. “We print 1,500, or so, 1099 forms a year, and SL keeps only two years of 1099 information,” he says. “I’m interested in using MetaViewer to capture the 1099s for the appropriate year.”
OpenText / AliTek
From humble beginnings as a search engine research project at the University of Waterloo in Ontario, OpenText incorporated in 1991 and evolved into a world leader in Enterprise Information Management (EIM) known for its highly accurate intelligent data recognition algorithms. OpenText entered the Capture market at the end of 2008 with the acquisition of Captaris Document Technologies (formerly Océ Document Technologies), with a clear focus on the SAP Invoice Management market.
AliTek is a business consulting and systems integration firm that helps clients better use their technology, data and employees more effectively and efficiently through systems integration, process optimization and regulatory compliance. AliTek Consulting uses technology and industry best practices to streamline work steps for your business process, generating efficiencies and profit for years to come. AliTek has been a Premier Partner of OpenText since 2005 and in 2009 became one of the exclusive partners accepted into Open Text’s SAP Competence Partner Program.
Website www.opentext.com
Founded 1991
Headquarters Waterloo, Ontario
Other Locations European headquarters: Grasbrunn, Germany Field offices in AsiaPac and Japan; Canada; Middle East, Europe, Africa (EMEA); Latin America; USA.
Please see: http://www.opentext.com/2/global/company/ company-offices.htm
Number of
Employees Approximately 5,000 globally
Key Clients 90 percent of the Fortune 500 customers Partners / Resellers SAP, Microsoft, Oracle
Awards /
Recognitions OpenText has received the SAP Pinnacle Award every year for the last 5 years Solution Name Invoice Capture Center
Travel Receipts Capture Center Year Introduced Invoice Capture Center - 2008
Travel Receipts Capture Center - 2012 Differentiators
» OpenText is the only capture vendor to provide solutions that are resold by SAP and went through the SAP Premium Qualification process validating the SAP product standards. These solutions include Invoice Capture Center (ICC)
» Integrated knowledge bases for invoices and travel receipts deliver high recognition rates for header fields and line items out of the box. The input for the knowledge base has been derived from millions of unique invoices collected over more than 10 years worldwide. Patented adaptive algorithms add learning with point-and-click teaching for custom optimization.
» OpenText Capture Recognition Engine (formerly RecoStar Professional) established the industry standard and is used by many other capture vendors. » OpenText also provides additional best in class solutions to address archive
storage and records management of the captured meta data associated with downstream business processes.
Installation
OpenText’s ICC solution is installed together with SAP Invoice Management. Simple scenarios are implemented in less than a month, while complex OCR rollouts can take as long as six months, including a user acceptance test phase.
Configuration
ICC provides invoice recognition support for more than 100 countries. Ready-to-run invoice knowledge base provides full out-of-the-box recognition of invoices from 28 countries. Software comes pre-configured with free-form recognition algorithms, combined with preconfigured field cues, keywords, and text-based pattern matching, eliminating the need for templates. Additional fields can be added simply by
configuration which is fully stored in SAP. Document Acquisition
The document lifecycle is controlled in SAP. Paper invoices and travel receipts are visible in SAP directly after scanning. For best results, OpenText recommends presorting invoices into single-page and multiple-page batches, with multi-page invoices
separated by separator sheets or barcodes. This is the only presorting required, with the possible exception of sorting by country, to optimize scanning intelligence. For invoices including supporting documentation, automatic attachment separation function is included. A scan resolution of 300 dpi is recommended, but 200 dpi is acceptable with a good production scanner. TRCC provides for automatic receipt separation and classification. All methods of image capture including mobile are supported.
the knowledge base. This highly sophisticated technology can be taught to recognize a particular class of documents with a single example.
Teaching time – less than five seconds per field – varies according to the number of fields that need to be taught. The software comes configured for all standard invoice fields. Customer-specific fields may be added, either by switching on an optional field, or using a graphical design tool.
Validation/Correction
The percentage of fields requiring manual correction varies from zero to 25 percent, depending on image quality, invoice printing quality, and legibility / recognition of handwritten fields. Most reasonably readable fields, especially those that can be verified against vendor master data, will pass without manual correction. If required manual corrections are accomplished by clicking data from the scanned image. OCR is designed to capture and assure that complete meta data is transferred to the SAP ERP. To assess the accuracy of the meta data, OCR passes the information to SAP Invoice Management which contains all ERP business rules to ensure correct posting. Matching/Error Detection
Software matches scanned data against the ERP master data tables, using intelligent data matching algorithm.
Maintainability
The invoice recognition knowledge base will work for typical invoices as delivered by new vendors. It is normal for typical OCR solutions to require some human intervention due to insufficient confidence level. When this occurs, the OpenText solution provides the user the ability to mark the invoice image for training. OpenText believes strongly in the superiority of interactive “teaching” over unsupervised
“automatic” learning.
Client specific requirements that extend beyond the delivered solution are easily addressed through a combination of interactive teaching and new rules. These extensions can be implemented with minor effort through client internal resources, OpenText Global Services or partners such as AliTek.
Support is available in various packages up to and including a 24 x 7 critical support model. OpenText also provides various training opportunities for partners and clients
Within the OpenText support system, tickets follow a normal classification of bug or enhancement request. Fixes are prioritized by client classification according to their service agreement. Enhancement requests are considered for future version release or service pack.
Pricing
In addition to the volume based purchase price for either the complete Invoice Capture Center or Travel Receipts Capture Center license, OpenText charges annual maintenance fees that vary according to service level.
Within the OpenText support system, tickets follow a normal classification of bug or enhancement request. Fixes are prioritized by client classification according to their
OpenText / AliTek Case Study
Distribution Company Challenge
A large distribution company with over 50 operating locations was processing 10 million invoices a year. The decentralized process included four unique invoice capture systems and AP workflow management solutions. In addition to system variability, the processes at each plant were not centrally directed or supported company infrastructure or change management.
The organization had embarked on a larger business process redesign project that included centralizing all financial systems onto SAP as well as centralizing the accounts payable process. They needed a solution that not only worked seamlessly with the SAP AP solution, but that could handle centralized processing of millions of invoices per year, and support a single structured process for all Invoices.
Solution
AliTek and OpenText partnered to implement a centralized invoice capture and OCR processing solution. A common scanning and invoice data
recognition process was defined coupled with implementation of OpenText Enterprise Scan and Invoice Capture Center (ICC) products to meet the Invoice scanning and recognition needs.
The solution allows vendors to mail, fax, or email invoices to the plant locations or directly to the central AP processing location. Once received, invoices are scanned (if necessary) and archived into the SAP VIM system for processing. The ICC component performs invoice data recognition, processes the metadata to SAP Vendor Invoice Management, and updates the invoice status as a single step in the AP workflow. This Optical Character Recognition(OCR) and Intelligent Document Recognition (IDR) process is supported by a knowledge base of
thousands of invoice formats that come with ICC as well as any invoices specifically trained as part of the implementation. The ICC integration with SAP VIM and use of SAP Master Data for validation of extracted data seamlessly allows invoices to be paid based on preset rules with no additional intervention required. If the invoice does not match the predetermined thresholds for amount, supplier information, or PO number, the invoice is routed to the correct agent for validation or exception
Result
The solution allowed the distribution company to enhance their document ingestion methods and invoice indexing aspects of their AP process. The result was streamlined invoice data capture in SAP and reductions in the cost of invoice processing. The process continues to be evaluated and updated based on business growth and supplier behavior.
» Support for remote or centralized receipt and ingestion of AP invoices into SAP
» Enabled centralized processing of invoices
» Automatic recognition of invoice header data as well as line item data without use of templates
ReadSoft
ReadSoft is a leading global provider of software solutions for Document Process Automation. ReadSoft’s software enables companies to automate document processes such as accounts payable processing, document capture, document sorting, and order to cash. Created in 1991, the company has grown to a
worldwide group with operations in 16 countries on five continents and a network of local and global partners.
ReadSoft’s market strategy includes both direct and channel sales for its SAP and Oracle integrated solutions and a channel-only strategy for its capture products. The company’s objective is to provide its unique experience to the SAP and Oracle segment for companies with annual revenues in excess of $500 million, while leveraging partners to service smaller companies.
Website www.readsoft.com
Founded 1991
Headquarters Helsingborg, Sweden – International New Orleans – North America
Other Locations Amsterdam, Bern, Copenhagen, Frankfurt, Helsingborg, Helsinki, Kuala Lumpur, London, Madrid, Oslo, Paris, Santiago, Sao Paolo, Stockholm, Sydney, Wroclaw – International
New Orleans, Chicago, Raleigh – North America Number of
Employees 542 worldwide Number of
Customers 7,700 total AP automation customers, 10,000 overall customers Key Clients Lockheed Martin, Sony, Time Warner Cable
Partners / Resellers SAP, Oracle, Microsoft, Fujitsu, KnowledgeLake, Hyland Software, Lawson, Basware, Gimmal (ERP-Link),
IFS, Altec, IMB, Accenture, Deloitte, NMS Imaging, Acuite Consulting Solutions, DataBank IMX, DISC, DocuSource, Optiform
Transactions
Processed Annually 2 billion invoices Awards /
Recognitions ERP Executive’s Best of SAP SAPPHIRE® NOW award for Best Green Initiative, ECM Connection’s ACE Award Winner in compliance
Solution Name DOCUMENTS by ReadSoft, ReadSoft Online (SaaS Solution Offering)
Differentiators
» Line-item Data Capture: The DOCUMENTS system can recognize line item data automatically even if line items differ in length or are not symmetrically spaced. Line items may also be read from any and all pages of a multi-page invoice as standard product functionality.
» First to Market: ReadSoft was the first to market a semi-structured capture product. DOCUMENTS, released in 1996 as INVOICES, launched the auto- learning technology that currently enables ReadSoft to support customers with thousands of suppliers.
» High Data Security: ReadSoft Online is built with Microsoft.NET technologies and is run on Microsoft’s cloud, Windows Azure. The underlying infrastructure and related technologies are key factors in
providing a foundation for security for any cloud solution. Industry standards and best practices enable secure communication between client and
server, the same type of security used for online banking transactions. Installation
ReadSoft’s web-based solution, ReadSoft Online, can be installed in minutes. Capture-only solutions, such as DOCUMENTS by ReadSoft can be installed, on site or remote, in one or two weeks. Installation is managed by ReadSoft
consultants or certified partners, following a client-specific procedure developed in a four to eight hour mapping session
Configuration
Although ReadSoft DOCUMENTS comes with a number of preset fields, they can be amended, deleted or appended, to match a client’s workflow. The software uses a proprietary auto-learning process to memorize invoice layouts, extract relevant data and associate that layout with a specific supplier. Data capture is free-form, using advanced logic and learning capabilities. There is also a “teaching” step, in which AP staff verify and tweak automated captures, to make sure that the right data is being extracted and properly identified.
Compatible with all commonly used image formats and data feeds, during configuration it is generally recommended that clients provide a representative sample of documents by layout type, with one of each type being sufficient. Document Acquisition
In addition to any document enhancement performed at the scanner level, DOCUMENTS allows for text-based auto rotation, character smoothing, and other imaging algorithms to ensure an optimal image.
Automatic Learning
ReadSoft DOCUMENTS has always had auto-learning capability, and it has evolved to a high level of accuracy. What little the system doesn’t pick up on its own can be easily taught through human intervention.
Validation/Correction
There is typically no need for human intervention for invoices from repeat suppliers, provided that the source documents are of reasonable quality and scanned at 300 dpi. Many organizations, for their own peace of mind, will check captured data at regular intervals, however, to verify data integrity.
Manual corrections can be performed in seconds by double-clicking the field, “rubber-banding,” or keying the correct information from the scanned image (KFI). Typically only “critical” fields – invoice number, PO number, tax, and total – are visually validated.
Business rules for validation are configurable, with status icons to flag exceptions, and email notification.
Matching / Error Detection
DOCUMENTS uses a color-coded “stoplight” interface in which items in green are given the green light and moved on to be paid without further human intervention. Yellow items may require a second look. And red items are held aside pending corrective action.
Maintainability
Once the solution has been configured, new document formats can be added easily. Auto-learning is unsupervised, with users rarely having to manually append new invoice types. As a global company, ReadSoft offers out-of-the- box functionality that includes the ability to process international invoices in 13 languages – including Chinese, Japanese, and Taiwanese.
Immediate fixes are provided for “showstopper” issues, and enhancements and “nice to haves” are typically delivered through the normal software release cycle. Pricing