Meeting the Challenge of Multiple Invoice Formats

In most organizations, paper invoices are handled using one process, electronic bill presentment invoices using a different process, and electronic invoices received via XML or EDI, for example, are handled using yet another different process. Managing and maintaining these multiple, inconsistent processes are costly and inefficient. With the 170 MarkView® Connector, multiple inconsistent processes are unnecessary since once the invoice document and data is captured online, a single consistent process can be deployed to handle all invoices, regardless of their original format or source.

Handling all Invoice Types

For paper invoices, 170 MarkView Connector accepts feeds from our robust, high-volume front-end imaging scanning solution. Because of the tight ERP integration, these scanned invoices can be transferred into the ERP financial system in a single step or automatically using intelligent Optical Character Recognition (OCR).

We also support the capture and intelligent preprocessing of electronic invoices through feeds such as EDI, XML and electronic invoice delivery services.

And finally, we also capture "Invoice-less" Check requests through the self-service submission of invoices through on-line forms.

Paper Invoice Challenges

In the traditional paper-based approach, the mail room receives invoices from suppliers and then AP professionals key in the invoice data from the paper invoices. The paper invoices are then filed in storage. Amazingly, this is still the standard procedure in most organizations. Unfortunately, it is a manually intensive process to enter the invoice data. Keying of this data from the paper invoices is prone to errors and because most of the invoice detail is not keyed in, the original invoices must be managed and maintained in offline file cabinets.

In a much better approach, the mail room receives invoices from suppliers, prepares the documents by removing staples and paperclips, sorts them into batches and scans them in. Dedicated AP personnel then keys in the invoice data from the invoice images. If the solution is designed correctly, like the 170 MarkView for Accounts Payable solution, AP keys directly into the ERP or accounting system and the image is automatically associated with the ERP invoice record. In the future, whenever that invoice record is accessed, end-users will also have access to the original invoice document itself. This permanent association of transaction-level backup has a dramatic impact on streamlining the entire invoice processing cycle.

Unfortunately, the challenge with front-end imaging is that it still requires dedicated heads-down entry clerks and suffers from keying errors. Furthermore, invoice detail is often not keyed in to save labor costs and speed processing-the tradeoff is that without this extra invoice detail, it is much harder to gather business intelligence on such things as purchasing trends and opportunities.

170 MarkView Connector

Here is where 170 MarkView Connector enters the picture. The OCR engine extracts structured data from unstructured images by electronically reading the data, accelerating the data entry process.

OCR is not perfect because paper invoice quality is going to vary widely from clean, crisp paper to dirty, crumpled paper and the invoice documents will vary from vendor to vendor and over time. Thus a QA step to check the accuracy of the OCR process is necessary. What our OCR can do is predict the reliability based on the quality of the image and other embedded rules. When it predicts the extracted data is not accurate (based on configurable thresholds), the invoice can be routed to a QA process where the operator, instead of keying in the data, is verifying the data and correcting the data.

Once the data is successfully received from our OCR Engine, it is sent through the 170 MarkView Connector which loads the invoice data into the ERP system. The data is processed as follows:

• Business Logic Validation: Business rules are applied such as derivation of the supplier site based on the invoice address.
• Terms reconciliation: Invoice terms are evaluated against the supplier terms to see which should take priority.
• PO-based line matching: Based on the invoice line data and PO data, invoice lines are properly matched to the existing ERP purchase order lines.
• Intelligent Data Pre-processing: Any data field can go through standard data manipulation such as date formatting, character manipulation, number formatting and even intelligent data processing based on available invoice, invoice line and ERP data.
• Exception Handling: Any invoices that are not loaded for any business or data reason are tracked with end to end audit trails to ensure they are properly and efficiently handled and that any systemic issues are addressed.
• Automated Routing: Finally as the invoice comes into the 170 MarkView Connector and the ERP environment, 170 MarkView will automatically determine the workflow steps for processing-this includes determining who should be receiving the invoice and the tools to take self-service action. Invoices that need coding will be routed to the appropriate individuals with the proper coding tools; invoices that need approvals will be routed to the correct approvers with the proper approval tools; invoices that need holds resolved will be routed appropriately with the necessary hold resolution tools; etc. This automated routing greatly increases the efficiency of the invoice payment process.

Setting the Groundwork for All Invoice Types

A powerful benefit of the 170 MarkView Connector architecture is that it sets the groundwork for any type of electronic invoice feed to be processed-OCR feeds, EDI, XML, spreadsheets and even invoice delivery feeds from electronic invoice networks can be processed through the 170 MarkView Connector.

The 170 MarkView Connector receives electronic invoice data and then maps and loads it into the ERP system. For invoices not processed with OCR, a virtual invoice document is created with all the invoice data from the electronic feed -which includes data not typically found in the ERP invoice data tables. This virtual invoice, like an image invoice, can be easily accessed from a browser using our best practice workflows.

Similar to OCR feeds, the 170 MarkView Gateway can intelligently pre-process electronic invoices from other feeds including business logic validation, terms reconciliation, Non-PO based auto-coding, PO-based line matching, tax code derivation, intelligent data pre-processing, exception handling and automated routing.