What do you consider to be the key financial priorities for your organization for the year ahead?

The CFO’s motivation...

Strategic Priorities

72% 48%

45% 43%

35%

Improving operational efficiency

Optimising cash flow and working capital management

Increasing profits and top line performance

Reducing overall purchase costs

Improving forecasting / planning ability

Basware Global Survey 2011

... How Accounts Payable can influence that.

The Top 10 Mistakes in Accounts Payable

And How to Avoid Them

Shuffle Paper for Approval of Invoices

Shuffle Paper for Invoice Approval Problems

Ø Photocopying of Invoices

Ø Tracking of Invoices in Process

Ø Faxing of Invoices

Ø  Printing of emailed invoices

Ø Temporary Filing of Invoices in AP

Imaging and Workflow Automation: Paystream Advisors 2012

Pay Late Fees or Not Take Advantage of Favorable Early Pay Discounts

Invoice Processing Cycle Times

Pay Late Fees and Not Taking Discounts

Problems

Ø Can Cause Issues in Obtaining Additional Credit

Ø Strained Vendor Relations

Ø Additional $$$$ –  Wasting Potential Interest –  Missing Favorable Discounts

High Cost of Processing an Invoice

Problems

Ø Courier Costs

Ø Manual Data Entry

Ø Manual Matching

Ø Manual Exception Handling

Ø Manual Approval

Ø Labor Spent Tracking Invoices Internally

Ø Responding to Vendor/Internal Requests

Not Having Visibility of Unrecorded Liabilities

Unrecorded Liabilities

Problems

Ø Not Able to Perform Accruals on Actual Liabilities

Ø Creates Cash Flow Management Challenges

Ø Reporting Issues –  Reporting on estimates –  Adjusting based on actual

Cash Management Report

Believing EDI or e-Invoicing is the Path to an Immediately Paperless AP process

EDI or E-invoicing=Paperless??

Problems

Ø EDI is a Recommend Format not a Fixed Format

Ø EDI Typically Requires IT Involvement on Both Sides

Ø e-Invoicing –  E-Invoicing is not just a simple project

Paystream e-invoicing adoption benchmarking Report 2011

Spend More Processing an Invoice Than the Amount

Cost per Invoice: Aberdeen Group

Be Involved With Why the CFO or Others are Walking Out in Handcuffs

Audits and Compliance Problems

Ø Must Have an Auditable and Repeatable Business Process

Ø Auditors Always Seem to Want the One Invoice You Can’t Find or Mishandled

Ø Store your invoice, check images, or remittance documents in multiple locations or media making audits painful and expensive

Ø Fraud in Invoice Approval

and payments

Fraud associated with Payment method Aberdeen Group May 2010

Neglect to Coordinate with Finance, Procurement and IT

SAP V.3.4

Purchasing & Procurement

Financial Operations AP/AR

Supplier Data

Cash Control & Working Capital

Processes

ORACLE V.9.0

Purchasing & Procurement

Financial Operations AP/AR

Supplier Data

Cash Control & Working Capital

Processes

Infor ERP

Purchasing & Procurement

Financial Operations AP/AR Cash Control &

Working Capital Processes

SAP V.5.0

Purchasing & Procurement

Financial Operations AP/AR

Supplier Data

Cash Control & Working Capital

Processes

Fragmented silos mean fractured processes Paper processes still dominate

Are you struggling to work together?

Supplier Data

Differing Priorities exasperate the problem example scenario:

AP: Focusing on process control, compliance

& efficiencies. (e.g. error & dispute

Management)

IT: Balancing

Cloud v. On-Premise Strategies

Treasury: Optimizing cash, coping

with squeezed credit lines & currency volatility

Finance: looking to improve

working capital by pushing out payment terms

Procurement: Focused on savings

targets, not total cost and working capital

optimization and supply assurance

Suppliers: Factoring in increasing

‘cost of business’ into pricing & terms,

exposed to liquidity risk

Become a Call Center/Service Center for Vendor and Internal Requests

Call Center/Service Center

Problems

Ø Interrupts the Core Work of Accounts Payable Professionals

Ø Typically Requires Research and Then an Additional Follow Up Call

Ø Even Research Does Not Always Answer the Request –  If the invoice is not in the AP process it is difficult to locate –  Who really understand what the supplier delivered

Personal Archive for Reviewers/Approvers

Supplier Portal for invoice and payment statuses

24

Collaborate with your peers and suppliers

Have Company Operations Interrupted or Halted Due to Non-payment of an Invoice

Core Business Interrupted

USA TODAY January 1, 2008

Core Business Interrupted

Problems

Ø Production Stops –  If required goods and services being provided by vendors are placed on hold it can cause down stream issues.

Ø Missed Revenue

Ø Gets Executive Attention Fast

Manually Enter Invoice Data Into Your ERP System

Manual Data Entry

Problems

Ø High Cost to Manually Enter Required Invoice Header, Line and Coding Information –  Most organizations do not capture line item detail due to this –  Line item detail critical in managing purchasing costs –  Coding can sometime be extensive

Ø Accuracy Issues

Ø AP processors Least Favorite Task

Strategy

Aligning P2P Agendas Bringing Stakeholders on-board

Procurement agenda •  Spend Management •  Supplier Base Rationalization •  Supplier Assurance •  Collaborative Innovation •  Costs Out

Accounts Payable Agenda •  Compliance •  Control and Visibility •  Operational Efficiency •  Savings Realisation

Finance agenda •  Financial Reporting •  Cash Flow Visibility •  Working Capital •  Op. Stability, Risk •  Business Support

Supplier Agenda •  Customer Service •  On-time Delivery •  Receivables Optimization •  New Customer Acquisition •  Lost cost of service

Possible Solutions

Possible Solutions

Suppliers

Professional Services

Customer Legacy Systems e.g. Financial Systems, ERP

B2B Connectivity

Catalogs Purchase Message Exchange

Supplier Portal Scan and Capture Service

E-invoice Exchange

Accounts Payable Procurement

Sourcing Contract Management Requisition Creation

Requisition Approval Order Goods Receipt

Data Capture e-invoicing Invoice Pre-Matching Invoice Approval

Payment Management Travel Management Expense Management Archiving

Supplier Activation Services

Mobility

E-Invoicing

Workflow / Automation

Integration to multiple ERP’s / systems

Solutions for 100% electronic Invoices

Supplier

Supplier

Supplier

Buyer

Portal Invoices

E-Invoices

Paper & Email Invoices

Accounts Payable

Supplier Activation Service

Invoice Automation drives...

100% visibility of spend

Full PO coverage

T&E behaviour profiles

360◦ view of P2P operations

Accurate cash forecasting

360◦ view of supplier

Visibility of contract terms

Payment term performance

Visibility

100% e-Invoicing from Day 1

Intelligent Invoice Matching

More spend managed

Accelerated cost savings.

Managed Demand

Cash Flow Accuracy

Faster period closing

Controlled Travel & Expense

Reduced costs of AP/P2P

Control

Straight through processing

Federated P2P

Intelligent workflows

End-to-End P2P platform

Payment strategy execution

Regulatory /VAT compliance

anyERP™ integration

Compliance

Accurate working capital

Supplier discount capture

Cash flow & currency forecasting

Open, interoperable global trading network

Global Scan & Capture

Dedicated Supplier Activation

Flexible organizational modelling

Hybrid Deployment options

Agility

Our credentials

History •  Founded 1985 •  Consistently Ranked #1/

# 2 by analysts in P2P •  11 offices around the

world

Corporate Performance •  Net sales $140m in

2011 •  1000+ employees •  Partners in 30+

countries •  >1m users at 1,600

customers

Our Open Network •  1.9MILL suppliers listed •  >38m e-Invoices/POs in

2011 •  €116 BILL annual spend •  110+ partners •  99.6% invoices

automated in 50 formats

Who We Are

Consistently rated as leading P2P Provider

Independent research confirms Basware as Invoice Automation leader

The Forrester Wave™: AP-EIPP, Q2 2008 A US survey of Electronic Invoice Presentment and Payment

The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Independent research confirms Basware as Invoice Automation leader

Consistently rated as leading P2P Provider

Independent research confirms Basware as eProcurement leader

The Forrester Wave™: eProcurement Solutions, Q1 2011 A global survey off eProcurement vendors

The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Working with more than 1600 international customers

Food / Beverage

Medical / Pharma / Biotech

Chemicals

Manufacturing

Professional Services

Services

Retail

Energy

Construction

Banking / Finance

Transportation / Logistics

Public Sector

A Basware Presentation

Presented by Dean Baxter dean.baxter@basware.com Basware Inc May 2012

Giving you the financial agility you need to run your business more effectively