What Are the Key Elements a Solution Must Have to Automate Your Accounts Payable Processes?

The distributed nature of accounts payable processes often requires approval on several levels, and generates huge volumes of documentation that are difficult to effectively manage. Not only does this increase the amount of time needed to process each invoice, but it also sets the stage for costs to spiral out of control. Because of this, AP processes are an ideal place to start as organizations look to strengthen controls, drive out costs, and increase efficiencies.

Problems with Conventional Approaches

Many companies have tried and failed to achieve the full benefits of automating the accounts payable process because they've followed a conventional approach. Although it can claim business efficiencies, this approach invariably costs more than expected and delivers less than promised. It focuses on short term functional goals and tempts departmental managers to stray further and further from their core functions. What is needed is a systematic, strategic approach that takes paper out of the AP process.

Key Elements of a Strategic Approach

A strategic solution is one that addresses all aspects - the whole problem set - without distracting the enterprise from its purpose. While it can be implemented in small stages, a strategic approach must be built on robust foundation blocks that support a growing and evolving structure.

A strategic approach transforms the business and sets the conditions for breakthrough results. But what are the necessary characteristics of a complete strategic solution? Business leaders prioritize the following critical elements:

• Completely paperless.

• Full service.

• No hassle turnkey.

• Connects extended enterprise with in-house systems.

• Subscription based pricing - pay as you go.

• Quick to implement.

• Quick to change.

• End user ownable.

• Enterprise class solution.

• Universal access through a web browser.

Introducing a Complete Strategic Solution

Incorporating all of the elements of a strategic solution is ASPEN 360 Accounts Payable Edition, a subscription-based service that automates the back office process using advanced AP imaging and workflow. ASPEN 360 enables you to outsource your AP processes while remaining in complete control of the solution. It incorporates best practices AP automation with the invoice virtualization center for a complete, ZeroTouch solution.

ASPEN 360 increases efficiencies and reduces costs with features such as:

• Straight through processing: ASPEN 360 automates the three way match through Straight Through Processing. Invoices are matched without AP processor intervention to achieve a truly automated three way line item match. Additionally ASPEN 360 goes a step further in the matching process to assist in streamlining the matching of the exception invoices that fail the Straight Through Matching process.

• Invoice Virtualization Center: ASPEN 360 receives the invoices and data in any format the vendor currently transmits and converts it to electronic format. The document conversion and data capture occurs through one of the ASPEN 360 U.S.-based Invoice Virtualization Centers. After the invoice is received, a combination of OCR and manual data entry are used to capture the predetermined invoice data. This combination of quality controls and reviews ensures the Invoice Virtualization Center achieves the highest possible levels of accuracy.

• ERP connectors: Effective and efficient invoice processing demands a tight integration with ERP or accounting systems. ASPEN 360 Accounts Payable Edition is ERP and accounting system agnostic; its proprietary Business Connectors will allow data transmissions to and from any financial system.

• Vendor portal: ASPEN 360's self service vendor portal allows vendors to access information about their invoices over the Web 24/7 without having to tie up valuable AP staff time. Additionally internal questions coming from departmental managers can be streamlined by using the self service portal.

• Comprehensive reports and monitors: ASPEN 360 provides numerous reports and monitors to analyze the productivity of an AP department, review the invoice workflow status, find important information about users, and more.

• Customized approval based processes: ASPEN 360 offers an online view of invoices throughout the review, approval and payment process. Invoices are routed electronically to the appropriate person for approval based on existing business rules. These invoice automation rules can incorporate notifications of duplicate invoices, route invoices above a certain dollar amount to particular staff, create and maintain approval timers, and perform workload balancing. Workflow alarms and notices speed approval times by alerting users as invoices arrive and when time limits for review and approval are exceeded.

Conclusion

Too many companies have relied on conventional approaches to try and automate accounts payable processes. Invariably this leads to short term fixes and rapidly increasing budgets. The true benefits of accounts payable automation can only be realized by implementing a strategic solution. This solution has AP best practices built-in, a rules-based process management engine for process design and implementation, and business connectors that allow information to be transmitted to and from any financial system. The delivery method includes an Invoice Virtualization Center for virtualizing invoices, Web-enabled access, and a Software-as-a-Service model. With these components, companies are able to achieve a seamless flow of information and activity that is completely automated, digital, and free of paper or excess manual effort.

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