Vendor reconciliation in SAP

Vendor Reconciliations In SAP
www.bestsapcbi.com

Why Reconcile Vendor Statements
 Identify vendor invoices or credit notes not received or processed.
 Ensure early settlement discounts taken.
 Identify credits, payments or discounts not processed by vendor.
 Prevent duplicate payment or over payment.
 Reduce vendor queries, improve relationship and prevent disruption of supply.
 Validate balance sheet (and determine any possible provisions or accruals).
 Identify Procure To Pay issues.
BEST Vendor Reconciliations

What is BEST Vendor Reconciliations?
 Standard SAP does not include functionality to reconcile vendor statements.
 In business, vendor statements are reconciled nonetheless, and SAP clients are forced
to process vendor statements manually (often ticking off on paper!), outside of SAP.
 BEST is a fully integrated SAP add-on module that allows moving from manual, non
system statement processing to a more efficient, auditable, reportable system in SAP.
 Simply, the benefits are all those associated with system processing rather than
manual processing.
GOODS
RECEIPT
INVOICE
ENTRY
PURCHASE
ORDER
STATEMENT
MATCHING

Built In SAP For SAP
 Built in SAP for SAP -> additional SAP module.
 The product has been certified by SAP Germany and conforms to SAP standards.
 Additional screens and reports – everything is in SAP!
 Same SAP user authorisations controls.
 Upgradeable as conforms with standard SAP methodology.
 Fits within current IT architecture -> same hardware, transport and control procedures,
SAP support staff etc.

BEST is in SAP – Additional Transactions

Some Reference Sites

Statement Reconciliation Outside SAP
SAP
Creditors
Docs
SAP
Downloads
/ Interfaces
View SAP
Screen &
Retype
Non SAP
Tool.
E.g. Excel
Vendor
State-
ments
Paper
Email (e.g.
PDF or
Excel)
Manual
Matching /
Ticking
Manual
Recon &
Balancing
Print &
Sign
Manual
Approval
Save On
PC
Filing
Room
Ad Hoc Fax
/ Email To
Vendor
Printed
Recons
Limited
Management
Reports
SAP
Key
Manual

Problems With Reconciling Outside SAP
 Costly (personnel time, printing, errors)
 No system controls or audit trails.
 GRC and other compliance tools in SAP.
 Limited, cumbersome and inaccurate
management reporting.
 Risk of reduced cashflow, lost discounts, over
payments, delayed payments, supply disruption,
etc.
 Employee disruption.
 Duplication of vendor master and transactional
data in SAP and non SAP tool.

Reconciling Vendors With BEST in SAP
Vendors
Electronic /
SAP PI /
EDI /
FTP /
iDOCs
Email
Report
Approve
Pay
Match
in
Multiple Statement Formats
Send
statement
Calculate vendor accruals
Report matching statistics
Track missing statements
Reconciliation reports
for all vendors and
companies
Automatic matches
(advanced algorithm
ensures high rate)
Suggested and
manual matches for
exceptions
No more signing on
paper – approve
online
Multiple approval
levels and criteria to
structure creditor
department
Optional payment
block if no statement
match
Match all SAP!
• Open & Cleared
• Parked & Held
• GR/IR
• Invoice tools
(OpenText,
ReadSoft, eFlow
etc)
Recon report
Load into SAP
Store in SAP
OCR (using BEST
OCR or any other) of
paper, scans, faxes
OR
Fast “Copy and
capture” to SAP
Auto into SAP from inbox, e.g.
statements@yourcompany.com.
PDF and other formats.
Upload
spreadsheets
into SAP

Quick SAP Demo
 Example of no human involvement / complete automation:
 Supplier emails PDF statement.
 SAP matches statement and sends supplier reconciliation report.
(In most cases, your AP personnel would first review the reconciliation report).
 View a few different types of reconciliation report.

Why Reconcile In SAP?
Our website / portal
Avoid risky and costly interfaces of vendor master and transactional data to non SAP
systems.
Match not only creditor documents but up the procurement chain in SAP:
Parked and Held
GR/IR (goods receipts with no invoice yet)
Invoices in process in VIM tools (Vendor Invoice Management) that interface to SAP
such as OpenText, ReadSoft, eFlow etc.
Option to block invoices for payment if not on statement.
Option to balance reconciliation to SAP payment (or proposal), not just vendor ledger.
Standard SAP creditor line item reporting shows reconciliation info.
Reconciliation report always real time as all data in SAP.
No printing or filing as:
Statement from vendor stored in SAP Content server.
Reconciliation approval in SAP – no more printing and signing.
Final reconciliation stored in SAP each month.
Accrual / provisions calculations automated in SAP.

Why Reconcile In SAP? (2)
Same existing:
SAP hardware and software – no new servers etc.
SAP user logins, so easy for users.
SAP Authorisation to control access, and audit trails in SAP.
SAP transport and control procedures.
SAP database and data back-ups.
SAP support staff.

Why Reconcile in SAP?
OI (Open
Item) or BF
(Balance
Brought
Froward)
Online
reconciliation
approval
Option to block
invoices for
payment if no
statement match
Send reconciliation
(and remittance)
to vendor.
Statement and
reconciliation filed in
SAP.
If no creditor
match, also
match to
parked, held
and GR/IR.
I.E. match to
everything in
SAP!
Calculate vendor accruals.
Matching rates.
Track missing statements &
approvals.
Match invoices
stuck in AP
automation tools
such as OpenText,
ReadSoft etc
Balance to
vendor
ledger.
Also to SAP
payment /
proposalAuto load
any
statement
into SAP:
PDF, Excel,
paper etc
Same SAP user logins and
authorisation controls

Case Study Of Recon Processing Times
Statement Size Before BEST Time With BEST Time
Small – 5 Lines 30 Minutes 7 Minutes
Medium – 50 Lines 1 Day 20 Minutes
Large – 1000 Lines 1 Week <45 Minutes
Very Large – > 10 000 Lines 2 – 3 Weeks 2 – 3 Hours
Reference Site 1:
Statement Size Before BEST Time With BEST Time
Small – 5 Lines < 5 Minutes < 5 Minutes
Medium – 50 Lines 20 Minutes 5-10 Minutes
Large – 1000 Lines 1 Hour 10 Minutes
Very Large – > 10 000 Lines 1 Day 20 Minutes
Reference Site 2:
* Case studies available on www.bestsapcbi.com

Return On Investment
Request a complimentary business case analysis to see the value of these benefits from
implementing BEST:
Personnel Time Savings
Paper Handling Costs
Reducing Supplier Spend
Improving Audit Controls & Management Reporting
Happier Suppliers & Employees
Built in SAP for SAP – maximise your SAP investment
*** For each benefit category above detailed slides follow to help calculate the
monetary benefits.

Personal Time Savings
Task
Days Previously
Spent Per Month
Days Saved Per
Month
Daily Personnel
Cost
Monthly
Saving
Manual matching of the supplier statement and preparation of
the reconciliation report.
0
Manually blocking and unblocking invoices for payment that are
not on the statement.
0
Printing the reconciliation report for approval and filing. 0
Scanning / faxing / emailing the reconciliation report to vendors
and others.
0
Scanning and emailing the remittance advice. 0
Preparing management reports by collating separate
reconciliation spreadsheets to prepare total figures etc.
Consider monthly operational reports, annual reports for audits,
accrual calculation etc.
0
Ad hoc query resolution, e.g.: finding filed reconciliations from
previous months; sending ad hoc reports to chase capturing of
outstanding invoices, etc.
0
Other? 0
Total 0
Consider how much time is currently spent on the activities below – and that can then be
reduced if you implement BEST:

Paper Handling Costs
Consider how much paper is currently printed, scanned, faxed and filed – and how much
this can be reduced if you implement BEST:
Task Pages Per Month
Pages Saving Per
Month
Cost Per Page
Monthly
Saving
To enable statement matching, what is printed from SAP –
vendor line items (FBL1N)? the payment proposal? GR/IR,
parked or held listings? How many pages are printed monthly?
0
How many pages of supplier statements are printed monthly,
either to enable matching of the statement or to file it?
0
Is the reconciliation report printed for approval signatures or
filing etc? If yes, how many pages are printed monthly?
0
Is the statement scanned for electronic storage – how many
pages monthly are scanned?
0
Is the reconciliation report scanned for storage or scanned for
sending to the vendor – if yes, how many pages per month?
0
Is the reconciliation report faxed to the vendor – if yes, how
many pages per month?
0
Will the reconciliation balance to the payment? If yes, do you
currently send remittance advices via scanning or faxing – and
what volumes per month?
0
Are reconciliations filed and stored? What is the estimated cost
of this manual storage?
0
Other? 0
Total 0

Reducing Supplier Spend
It is possible to reduce supplier spend enormously, as well as reduce the risk of erroneous
spend:
Spend Type Monthly Saving
Ensure claim all or more settlement discount as due to quicker and more accurate reconciliations,
uncaptured invoices can be quickly identified and captured
If you have a policy (or introduce such a policy) of only paying on statement, i.e. only pay invoices that
match the statement, then proper system control can ensure that no invoices are paid that shouldn’t be
paid.
As creditor personnel spend less time on mundane matching and producing of reports, more time can
be spent on resolving unreconciled items and other queries. Cleaner creditor accounts should result, as
well as a push back up the procurement chain to improve, for example, pricing data, goods receiving
practices, invoice handling and processing, etc.
If you are currently not able to manually reconcile every statement every month, you should now be
able to, and thus benefit from fast and accurate reconciliations for even the lower priority vendors.
Any credits from the supplier on the statement should be posted in SAP before the credit is reversed,
and in the current month to take advantage of cash flow.
Other?
Total 0

Improved Audit Controls & Management Reporting
Type Monthly Saving
Reconciliations are produced by the system, the reporting is consistent and understandable and
balance.
Statements can be tracked by user, date and time from statement loading, through matching and
reconciliation reporting to emailing of the supplier.
A configurable, multi-level statement approval system ensures that statements are checked according
to management policy, with associated approval audit trails.
Any missing statements for the period can be immediately identified by company, clerk and vendor.
Accrual (or estimated unrecorded liability) reports at the press of a button across all suppliers.
Analyse statement matches and clerk workload by vendor, company, profit centre, period, and SAP
document type.
As supplier statement data is in the SAP database, all manner of system reporting becomes possible.
Other?
Total 0

Happier Suppliers & Employees
Type Monthly Saving
A neat, precisely balanced reconciliation can be emailed to your supplier. Faster and more
accurate reconciliations will help resolve issues faster. This will lead to happier suppliers.
Working in a paper, manual environment can sometimes be chaotic for employees. Moving to a
more streamlined, system environment can help to create a happier work environment.
Other?
Total 0

Built in SAP for SAP – maximise SAP
Maximise your current SAP investment!
No new hardware or IT support staff or skills are required.
No complex interfaces to non SAP systems. Huge cost and risk.
No duplicate vendor masters.
No duplication of all creditors transactions (hundreds of thousands per month?).
You do not have to login to two different systems continually throughout the day.
SAP transactions are immediately and automatically reflected on the vendor reconciliation. No waiting for
interfaces to run.
Vendor statement fields can be maintained and reported within the standard SAP transactions:
Standard SAP creditor line item list
Standard SAP audit trails of changes
Standard SAP vendor master.
Standard SAP payment run (e.g. block unmatched invoices).
Standard SAP access control / authorisations.
Standard SAP transport procedure.
Benefit value?
Back…

High Level Project Plan
Phase M1 M2 M3 M4 M5 M6
Project Preparation
Design
Build
Testing (Integration/ UAT)
Data Prep/ Pilot Cutover
Training
Pilot Go Live & Support
Roll Out & Support
Project Close
 While implementing BEST is not a large project, the plan is well developed after many
implementations at large organisations.
 Standard timeframe is 3 months to Go Live, and a further 3 months to project close-out.
 Minimal client IT and business involvement.

For brochures, customer case studies and more
please see www.bestsapcbi.com
Please contact us with questions, for a more
detailed demonstration or to discuss your
requirements.
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