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WHY AUTOMATE ACCOUNTS
PAYABLE (AP) INVOICING
Enables electronic workflow functionality to
provide timely invoice information to AP and the appropriate reviewer/approver
Provides for online completion of
payment/check requests and approvals
Provides for handling invoice exceptions
online
Enables P.O. matching functionality
WHY AUTOMATE ACCOUNTS
PAYABLE (AP) INVOICING
Enables a more efficient process for adding
invoice payment information into your records management system
Allows for an efficient paperless electronic
environment.
Eliminates the cost of storage and retention
of paper invoices
Eliminates Staff time needed to receive,
WHY AUTOMATE ACCOUNTS
PAYABLE (AP) INVOICING
Eliminates data entry of invoice information
that will lead to reduced errors
Reduces PO match approval time Reduces vendor calls to the AP team
WHY AUTOMATE ACCOUNTS
PAYABLE (AP) INVOICING
Additional benefits include:
Fewer lost, missing, or duplicate invoices
and payments
Accelerates information exchange
between the vendor and the Port. Vendors will have almost immediate visibility to the payment status of their invoices once
submitted to the Port
Enables multiple options for invoice receipt
including mailbox, email, FAX and/or E-invoice.
WHY AUTOMATE ACCOUNTS
PAYABLE (AP) INVOICING
Expedited Approval – Data in captured invoices can trigger automatic alerts that
immediately notify the appropriate party when a specific action needs to be taken, helping AP offices avoid late penalties. Authorized personnel can review, annotate, or assign the invoices from any location at any time, removing the delay of
interoffice mail and the need to wait for authorized persons to return to the office to render needed approvals.
Ability to Avoid Penalties and Cash in on Discounts – The most effective solutions for
increasing company revenue are those that allow them to pay invoices early. With the proper capture and automated workflow solution, large volumes of invoices and their discount and penalty information can be entered as payables within hours of their receipt, then approved and processed in time to capture all discount
opportunities.
Quick Auditing and Compliance – Automated workflow makes it possible for
authorized users to see exactly where any invoice is in the process, and to track who completed each action and when. Workflow reporting leaves digital trails that show every action related to an invoice, which allows for quick queries of any data
needed.
Integration with AP Systems – Many organizations have valuable data in distinct
systems that are unable to communicate with each other, making the
IS AUTOMATING AP INVOICE PROCESSING
RIGHT FOR MY ORGANIZATION
We know what it costs for our
organization to process an invoice and its reasonable and we are not looking to cut costs
We always pay our vendors on time
Our invoices are reviewed and approved
in less than five days
We capture all early payment discounts
that are available
We love all the paper invoices and
IS AUTOMATING AP INVOICE PROCESSING
RIGHT FOR MY ORGANIZATION
We love storing all the paper invoices in
file cabinets
We always know all our outstanding
liabilities
We never receive duplicate invoices
Our vendor invoices never get lost in the
We never get calls from vendors
THE PORT OF SEATTLE
HOW WE STARTED
Performance Metrics
Port frequently pays vendors after the
invoice payment due date
Jan 12 days; Feb 22 days; Mar 4 days, Apr 13 days = Average over 4 months 13 days
Goal = 5 days before Invoice Due Date
2015 Average AP turnaround 1 day Goal = 3 days or less2015
ISSUES IDENTIFIED
.
• In 2014 The Port of Seattle Processed 38,000 Invoices – 99% of invoices received were paper
• Decentralized receipt of vendor invoices is inefficient. Invoice often mailed to the wrong Port department
• Port has no visibility to outstanding invoices and therefore does not know the true outstanding AP liabilities
• Payment/Check Requests are manual and involve moving paper between Departments and AP.
ISSUES IDENTIFIED
For Invoices associated with PO where goods/services have been received and price/quantity match AP still has to manually process. Vendors often call AP team when they have not been paid timely.
Because there is no visibility of the invoice to the AP team, in order to help the vendor, AP must first determine who in the organization the vendor provided the goods and/or service to
PROCESS IMPROVEMENT GOALS
Centralize vendor invoice transmittal location & Port receipt.
Provide multiple options for invoice receipt email (preferred method)
US mail, vendor portal and e-Invoice.
Immediately scan & electronically capture invoice data upon receipt. Provide online completion of payment requests for all Port
departments.
Implement electronic workflow review/approvals for all invoices and
payment requests.
Allow straight- thorough Invoice Processing via 2-way/3-way PO
matching
PROCESS IMPROVEMENT GOALS
Strengthen payment information & status access –
electronic and immediate, Port-wide.
Improve payments management -- shift from reactionary to
responsible payments handling.
Ensure timely payment of Port obligations -- consistent with
contract payment terms.
Provide readily accessible and complete Accounts Payable
liability information.
Allows for an efficient & responsive electronic paperless
WHERE ARE WE TODAY ?
• Documented our current invoice payment process
• Applied a “Limited Lean focus” to our current processes to identify areas to improve
• Expanded the Scope:
• PO matching to allow for straight through PO invoice processing
WHERE ARE WE TODAY ?
• Implemented the COR360 test system in early March 2015
• To learn about the system
• Explored if we could add
combo-chartfield edits in COR360 – too complex but we have a work around
• Explored PO invoice processing
WHERE ARE WE TODAY ?
Finalize Vendor Invoice Information Requirements and alert
vendors/Port departments
Finalize new AP Invoice Processing and Approval Policies
Work with each Port Department to document their
Workflow Approval process
Develop and implement the to/from interface files
Communication Plan
