William Tracey 1
SoftCo P2P automates the finance process from procurement to invoice automation and payment posting to the organization's financial or ERP system. Elimination of manual and duplicate processes provides visibility and control over corporate spend and accruals for month-end close. Cost savings of up to 80% are achieved through the reduction in invoice processing times combined with automated matching and exception handling. Organizations achieve optimized pricing from preferred vendors and improve vendor relationships. SoftCo Analytics delivers key metrics and reports for visibility and process efficiency.
In many organizations POs are generated retrospectively, post-invoice receipt. This unstructured procurement makes it difficult for management to control spend and ensure adherence to spend policies. SoftCo P2P ensures full compliance with “No PO, No Pay” policy for straight-through invoice approval. Controlling indirect spend, which typically accounts for 20% of total spend, prevents maverick buying from unapproved vendors. SoftCo Portal optimizes buyer-vendor interaction; management can deal with vendor queries quickly and easily, facilitating shorter resolution times.
SoftCo Workflow ensures that invoices are processed according to the organization’s approval matrix and hierarchy. Exception invoices are automatically sent to authorized approvers for verification. Segregation of duties is enforced by dual approval before goods and services can be ordered. In many organizations, it is difficult to manually manage complex approval levels across multiple entities and handle exceptions efficiently. Workflow is fully configurable to handle a myriad of business rules and complexities ensuring control and visibility over the organization’s invoice approval process.
Manually handling 2- or 3-way matching requires the reconciliation of the PO with the vendor invoice and the goods receipt note. Matching is a highly time-consuming and labor-intensive task which frequently results in human error or duplicate payments to vendors. SoftCo P2P automates 2- or 3-way matching which delivers up to 80% straight-through processing of invoices, significantly reducing the workload of the finance team. Automatching flags exceptions and duplicate invoices and re-routes them, ensuring that duplicate payment does not occur.
SoftCo has over 25 years of experience with integration technologies and processes. This expertise is crucial to the successful implementation of P2P projects. SoftCo P2P integrates with all major finance systems, databases, and ERP systems including SAP, Oracle, and Microsoft Dynamics via SoftCo Connect standard adaptors. Industry-specific adaptors are incorporated into the integration product suite enabling seamless inter-operability. The ERP system remains the master record for key financial information such as GL codes, cost centers, and product IDs while SoftCo P2P extracts and post data back to the ERP system in real time.
SoftCo P2P provides full visibility over the entire process, providing extensive dashboard reporting of KPIs and associated metrics. Standard reports include invoice receipt to payment time; productivity per FTE; compliance to spend policy; processing cost per invoice; and invoice exception rate. Information is presented in real time and additional key performance indicators (KPIs) and dashboard reports can be easily included for any step in the P2P process. This level of visibility ensures the timely completion of month-end close and accruals, and enables the finance team to focus on value-added work.
SoftCo Vendor Management enables procurement teams to establish and maintain a strong vendor base from on-boarding and validation to on-going maintenance. SoftCo Vendor Management reduces vendor risk and improves relationships while cutting the administrative costs of managing vendors. Preferred vendors can register and update information through SoftCo Portal. The procurement team is notified via email when there is missing or incomplete data (such as anti-money laundering (AML)/anti-bribery and corruption (ABC) documents, and VAT/EIN numbers). Alerts are also sent when time-sensitive documents, such as vendor contracts, need to be reviewed. Approved vendors can submit documents (including invoices) in PDF, EDI, and data files, allowing the procurement team to validate information and the AP team to quickly process invoices.