OpenText for invoice processing

Brief description of the solution

1Klick Mail Kontakt Incoming documents are manually presorted for scanning. Immediately after the scanning process, e.g. via enterprise scan, the fields are extracted automatically by OCR:

  • Client
  • Creditor
  • Booking/reference number
  • Individual invoice line items
  • ...

By a defined confidence level ‘X’ (in percent) it is determined if blind indexing can be applied. The extracted information is matched against the data of the corresponding order. If order and invoice are fully compliant and at a confidence level greater than ‘X’ an automated booking and payment of the invoice can take place.

If information is missing (confidence level below ‘X’) or if there are discrepancies between invoice and order these documents are sent to the postprocessing workspace and are available for manual processing. These process steps can be easily customized.

External digital data and documents are induced directly into the system via agent modules. To simplify the processing of faxes and email, if not already existing, a central incoming mailbox e.g. invoice@xyt.com should be established.

According to the classification, the extracted values, and the matching with the existing reference data, the invoice receipt is automatically distributed in the TCP process and, if applicable, is supplemented with additional information and documents.

If documents for an order or reference number are found in the OpenText Archive, they show up in the interface automatically without a separate manual search becoming necessary.

Standardoberfläche

Default interface (highly customizable)

 

Classification

With the OpenText Capture Center, very performant and flexible recognition and extraction workflows can be created. This recognition process already uses external reference data (creditors/order/etc.) to improve results.

 

OCR configuration and analysis of the recognition

Classification is done during the OCR, in postprocessing or during the process.

  • Invoice, credit(document type)
  • Client
  • Invoice with order reference
  • Invoice without order reference (accounting)
  • ...

Depending on the classification, the following steps arise.

Client

In this process step, if applicable, an allocation to the separate companies and subsidiaries is done

 

Deduplication

With the following selected parameters (customizable) a soft search of the OpenText Archive for similar or identical receipts is done:

  • Client
  • Creditor
  • Invoice date
  • Order/reference number
  • Amount

If the list of results is >1 (earlier archiving of the current receipt) the notification ‘deduplication’ is shown on the web interface, linking to the search result or the found documents. The user is now able to decide if it’s in fact a duplicate with a single click and a visual inspection of the already archived receipts.

 

Validation of mandatory detailspursuant to §14UStG

There is an automated validationpursuant to §§14,14a UStGwith the following criteria:

  • Name and address of the supplier.
  • Name and address of the benificiary.
  • Date of delivery of the service.
  • Amount and type of the delivered product, or nature and extent of the service.
  • The net amounts broken down by rate of tax.
  • The corresponding tax amounts.
  • The date of issue (=invoice date).
  • A unique invoice number, as well as.
  • The tax ID or sales tax ID of the drawer.

If information is missing, the user is displayed a clear notification on the form.

 

With order reference (exemplary)

If an order number or external reference number of a client is recognized on the receipt, it is looked up in the respective enterprise resource planning or inventory control system, the order details are selected and compared to the information on the receipt.

If the receipt fully matches the order, an automated direct booking can take place. If there are discrepancies the following happens:

  1. For quantity deviations (or other discrepancies except the price) it is forwarded to the department/role invoice control, where inquiries and/or delegations to purchasing are possible. The role invoice control can now choose subsequent actions (customizable):
     
    • pay invoice
    • don’t pay invoice and back to postprocessing
    • don’t pay invoice and set to resubmission
    • pay invoice and create debit note
    • delegate to department purchasing
  2. For price deviations the individual items are separated by the criteria vendor and article group. There is a matching with e.g. a user table of the department purchasing and the invoice is forwarded to the person handling this particular vendor or article group. The same actions are available to the role purchasing as to the role invoice control and can be customized flexibly according to the requirements.
 

Without order reference (exemplary)

Cost accounts are sent to a manual mail distribution or are automatically distributed to the person responsible by a rule set defined in the OCR. This can be applied to receipt level as well as position level.

If an additional clearance is necessary, it is subsequently forwarded to the respective person responsible.

  1. If clearance is granted, the invoice is forwarded to accounting.
  2. If clearance is not granted, the invoice can be sent back to manual mail distribution or the previous handler for inspection.
  3. If no clearance is necessary, it is directly forwarded to accounting.

All these steps can be easily adjusted to the business process via the process designer

 

Debit notes (optional)

If there are discrepancies, in some cases the invoice is accepted and paid anyway (dispensation, etc.) or a credit note of the vendor shall be waived. To speed up internal processes, this can optionally be done with a debit note (simplified A/R invoice)

For this purpose, the process is forwarded to a TCP agent. There, the debit note waits until shortly before the date of payment (3 to 5 days, configurable). During this time there is a cyclic matching with goods input. At the point of time defined above (e.g. 5 days before date of payment) the following procedure happens:

  1. If there is no goods input, a notification is sent to invoice control with the following content: "Goods input XYZ not established, debit note has been created". The debit note is then created and forwarded to accounting.
  2. If correct goods input has been established (invoice item and amount match the shipment) no debit note is created and the invoice is forwarded to accounting. .
  3. If there is incomplete goods input (e.g. partial shipment, invoice and shipment don't match) it is forwarded to invoice controlling for inspection and determination of the subsequent course of action.
 

Booking

After the previously mentioned departments or steps are passed, booking and payment order is done by the department/role accounting. The invoices and processes at hand can be released, set to resubmission or sent back to the previous departments for inspection and revision.

If booking clearance was granted, the process is reviewed in SAP/ERP by external call (advance booking).  When the feedback is positive the booking is executed, the documents are linked to the SAP process and if applicable, the payment is directly initiated (also possible directly via web services, RFC or BAPI call).Afterwards the process is closed in TCP.

Faulty accounting records or incomplete bookings are sent back to accounting along with the invoice and an error message. After elimination of the erroneous data, the booking can be pushed again.

 

Process journal (flow trace)

Every step of the process, every annotation or action is caught in a protocol/history and therefore traceability is ensured. At the end of the process a PDF is generated and stored audit proof into the archive. Particular search queries allow for quick research of the documents as evidence for e.g. revision demands. If requested this process protocol can also be linked to the corresponding SAP documents. OpentText TCP is web-based and like the OCR components it is completely scalable.

This example deals with an incoming receipt with a recognized creditor. Neither the tax number, nor the date of delivery could be determined (red fields). Therefore the notification about §14 UStG appears. The individual items (if required) are displayed in a separate table.

If the creditor hasn’t been correctly recognized by the OCR or the user notices a wrong association, he can use ‘search’ to directly access the reference data and select the desired data record.

If a new set of reference data has to be created, this can be transmitted directly to e.g. the role reference data administration via ‘request’. This either triggers an automated mail or the subprocess ‘reference data administration’ is started. Afterwards, the process is set to resubmission.

Adding annotations (text, lines, stamps, highlights, etc.) to the receipt is incorporated by default. In this example the documents are viewed in a web viewer and therefore no installation on the client is required.

Standardprozess

Simple default process (highly customizable)