ACCOUNTS PAYABLE AUTOMATION

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ACCOUNTS PAYABLE AUTOMATION IMMEDIATE IMPACT
ENTERPRISE WIDE
BasWare Enterprise Purchase to Pay
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Agenda
About BasWare The issues with manual,
paper-based systems Why automate? Why get
started now? Q A DEMO Elements of invoice
automation
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About BasWare
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About BasWare

• A Global Leader in Enterprise Purchase to Pay
  solutions
• Purchase Management, Invoice Automation and
  Document Archiving Solutions
• More than 1,500 customers and 450,000 users in 21
  countries
• Established in 1985
• Public company with rapid and profitable growth
• AAA D B Rating
• Listed in Deloittes Fast 500 Technology
  Companies
• Global coverage with operations in North America,
  Europe and Asia-Pacific
• US headquarters in Stamford, CT
• Additional offices in East Coast Boston -
  West Coast Los Angeles

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BasWares Global Customers
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Expectations of finance organizations have
changed.
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The Issue with Manual, Paper-based Systems
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Invoice processing can be broken down into eight
steps Each with its own pain points.
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Pain point Invoice arrival

• Invoice Arrival
• Manual, time intensive process
• Invoices get stuck in an inbox
• Result Can never track them down

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Pain point Order matching

• Order Matching
• PO invoice and delivery need to be matched
  manually
• Dont know if invoice shows the right quantity or
  
• Dont know if the
• good was received
• service was delivered

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Pain point Invoice workflow

• Invoice Workflow
• Where do I send this invoice?
• How do I track who has an invoice?
• What if an approver is out sick / on vacation?
• How do I handle slow responders?
• How do I know if something gets lost?
• Invoices have to be mailed all over the
  building/country

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Pain point Invoice posting

• Invoice Posting
• What department is this billed to?
• What line item in the budget does this belong to?
• How do I split this invoice among cost centers?
• What are the right account codes?

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Pain point Invoice approval

• Invoice Approval
• How do I keep track of authorized approvers?
• How do I know approvals limits are not exceeded?
• How do I eliminate fraud?

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Pain point Transfer for payment

• Transfer for Payment
• Error prone, manual re-keying of data
• Duplicate payments

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Pain point Document archiving

• Document Archiving
• Paper, paper everywhere but cant find what you
  need
• Lost invoices
• Altered invoices
• Limited audit trail capabilities

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Pain point Reporting/spend analysis

• Reporting/Spend Analysis
• Do we have unrecorded liabilities?
• Are we taking advantage of available discounts?
• What are overdue payments costing the company?
• Are we paying invoices more than once?
• Is there any way to detect fraudulent activities?
• What are my upcoming cash requirements?

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These issues typically result inHigher costs,
lack of compliance, and low visibility.

• Invoice Arrival
• Proper routing
• Lost invoices
• Unnecessary mail delivery delays
• Business Process
• Time consuming
• Less controlled
• Unnecessary mail delivery delays
• Overdue payments
• Missed discounts
• Time consuming inquiry and dispute resolution

• Reporting
• Manual paper archiving
• Inefficient cash flow management
• Unrecorded liabilities
• Limited data analysis and audit trail capabilities

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Why Automate?
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There are 3 main reasons to automate

• Efficient process will drive significant cost
  savings
• Proper controls will ensure compliance
• Robust reporting will create visibility
  throughout the process

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Savings are real and measurable

• Payments is the Greatest Remaining Opportunity to
  Reduce Transaction Costs in the Procure to Pay
  Process

Cost Per Transaction Cost Per Invoice Improvement
Average for all companies processing Less than 500,000 invoices per year 34.38 21.87 (63)
Average for companies using electronic methods 12.51 21.87 (63)
Average for companies processing Greater Than 500,000 invoices per year 3.98 2.65 (67)
Average for companies using electronic methods 1.35 2.65 (67)
Source Aberdeen Group
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Compliance is not optional

• Documenting and attesting that the proper
  controls are in place has been legislated.
• Achieving desired results requires policy and
  procedures are followed.

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Visibility is required for effective management

• Raises awareness of current performance, allowing
  decision makers to be proactive
• Productivity levels
• Unrecorded liabilities
• Cash flow requirements
• Boosts customer supports
• Vendors/Suppliers
• Division/Business Unit Heads

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Reporting / Compliance Childrens Memorial
Hospital
Challenges

• Need for better cash management
• Need to eliminate paper and track flow of
  invoices
• Need for quick statistics and accurate
  reporting
• To recognize of expenses in the appropriate
  accounting period

Melissa Gentile, Assistant Controller
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Elements of Invoice Automation
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It is important to consider 3 main aspects of
invoice automation

• Capture
• How does the information get into the system?
• Business Process
• How is the process supported and controlled?
• Reporting
• How can the information be accessed and by whom?

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Your company will benefit greatly!

• Eliminate manual data entry associated with
  paper-based invoices and save as much as 60 in
  A/P processing costs
• Comply with the latest regulatory requirements
  mandating visibility, timeliness, and accuracy of
  financial reports
• Improve supplier relationships by effectively
  managing the payables process
• Better control and management of cash
• Track the unrecorded liabilities typically
  associated with non-PO based purchases

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BECOME A BASWARE USER IN 2006 !

• Schedule a DISCOVERY DISCUSSION to determine if
  there is a fit. (30 45 minutes.)
• Set up an INTERNAL DEMO session with key A/P
  department team members and other contributing
  project members (IT). ( 2 hours)
• Provide a PRICING AND PRELIMINARY ROI MODEL
  leveraging our proprietary ROI. ( 30 minutes)
• Provide a CONTRACT and schedule tentative project
  kick off date. (30 minutes)
• Project timeline review (1 hour)
• Kick off Meeting
• Implementation commences
• 6 8 weeks later you are automated

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Q A
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• Thank You!
• For more information
• BasWare, Inc.
• Sandra Florez
• 214 244 1670
• Sandra.florez_at_basware.com
• www.basware.com/us