Our client processes over 15,000 invoices each month. Management was looking to reduce operational overhead cost in A/P by eliminating or substantially reducing off-site storage cost of A/P invoices.

Electronically store invoice images after completing the A/P cycle. Annual cost savings were estimated at around $30,000.00.

A suite of document management tools were used to develop a custom solution that automated the processing life-cycle of A/P invoices as follows:

• Images of the Purchase Orders (P.O.) are sent to document management system without increasing the workload in purchasing department.
• Data from purchasing system is used to create indexes for the above P.O. images.
• Hard copy invoices get scanned into the document management system each day.
• OCR (Optical Character Recognition) is used to extract data from hard copy invoice.
• Extracted data is quickly reviewed and validated by a single operator.
• Validated data is used to creates indexes to the scanned invoices and links to the proper P.O.s.
• Validated data gets imported into Client's ERP system automatically, thus eliminating the need for manual data entry.
• Image of the invoices and their associated data are routed to approvers via an intuitive workflow.
• Approved invoices are queued by A/P clerk for payment.
• Invoice payment process updates document management indexes with payment amount and instrument number (check number, etc.).

• About $400,000 of annual cost reduction.
• Maintain same size A/P department despite 100% growth in business.
• Improved invoice tracking & approval.
• Reduction in inter-office & job-side carrier services.
• Improved vendor relationship.
• Reduction in invoice inquiry by the Client’s employees.
• Eliminated the need for duplicate copies of P.O. (from 8 to 1).
• Invoice life-cycle audit reporting.