Capgemini Oracle Blog

Capgemini Oracle Blog

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e-Invoicing with your ERP Package

How e-Invoicing can help the payables process in terms of cost reduction, efficiency and compliancy. The procurement invoice is one of the most used documents in today’s business. Every organization has to deal with incoming invoices. Although there has been an incredible digital revolution in organizations, the invoice process is still pretty much the same as in the time of Napoleon a few hundred years ago, it is printed and send via normal postal routes. The last couple of years there has been some progress but it has not led to a uniform and optimized solution which can be applied under all circumstances. The traditional way of processing paper invoices is not very efficient: It involves a lot of manpower, and as a result there are high expenses associated with processing and record keeping. Also, the complete process can often be optimized: the throughput time from requisition to payment is very long because of the way of processing, often a large amount of corrections are made on invoices, and the matching of invoices to purchase orders often causes problems. Finally there are more and more government regulations which make electronic delivery and processing mandatory. Goal Our vision is to have a optimal, digital, efficient, transparent and compliant payables process in which invoices are entered first-time-right and where the responsibility for invoice delivery is at the supplier side. This will help to have a more cost efficient and compliant payables process. To reach this vision, Capgemini has defined three processing channels. The goal is to be able to process 90 percent of the invoices automatically. These three processing channels are: 1. Automatic bulk processing 2. Automatic single entry processing 3. Manual processing with the help of a scanning solution Automatic bulk processing Most of the invoices will be processed through delivery of files which will be processed automatically by way of XML related standards (for example, UBL 2.0) for e-Invoicing. Automatic single entry processing Not all suppliers will have the possibility to deliver invoices by means of XML-standards. Offering them a web portal solution will make sure that also these suppliers are connected for automatic delivery. Manual processing with the help of a scanning solution There will always be a small part left which will have to be done by means of manual processing. a scanning solution will help to do this more efficiently and it reduces processing costs. Advantages The three-channel approach offers a lot of advantages: Optimization by standardization Due to the uniformity of invoices delivery standardization takes place. This makes automatic matching possible. Innovative cost reduction Standardization enables faster processing, and lowers the number of changes required for errors. As a result, fewer FTEs are needed for data entry. Legal requirements With this solution your company fulfills the government regulations to process invoices electronically. A side effect is the green character of this innovation. Approach It will take effort to change from the current situation to the three processing channels. How the path will be shaped, and which steps need to be followed often varies from organization to organization. Capgemini can help you determining your roadmap and getting the solution implemented. Together with your organization, we can explore the consequences of the e-Invoicing introduction, in terms of value and IT architecture. Following our way of working you know that things like authentication, integration and connections, to for instance the Digipoort, are secured. For more information: Jeroen Sprangers Senior Enterprise Application Consultant

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Léon Smiers

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