Kofax Solutions for Accounts Payable

Learn how to utilize Kofax Capture, Kofax Transformation Module, and Kofax Total Agility to transform your AP process from manual data entry to automated data entry through the use of the most advanced OCR technology. All of this integrated with Perceptive Content or your ERP for a smooth AP process.

Transcript

Geoff:
Hey good morning or afternoon depending on where you are. This is Geoff Lilienfeld with RPI Consultants. I am one of the partners at RPI and also manage our Imaging, Strategy and Technical Services practice. That is primarily consisting of Perceptive Content, Perceptive Intelligent Capture, as well as Kofax, KTM, Kofax Capture and soon to be Kofax Total Agility. With me is Mike Friel. Mike Friel is a Kofax KTM, KTA and Capture expert as well that we work with, with quite a few engagements. Just to give you a little bit of an overview as to what it is we’ll be doing here, we’re going to talk a about Kofax and how it relates accounts payable. Then we’re going to jump into a live demo that Mike is going to perform. Quick background on RPI, we got our start back in 1999 as experts in the procure to pay lifecycle space. As it stands currently, RPI is kind of focused into two groups. One group being Lawson. There’s about 60 to 65 Lawson consultants. The second group is the one I manage which is that Imaging Strategy and Technical Services.

Again, Perceptive Kofax. We’ve been working with Perceptive for 16 years now and Lawson for 12 years. Again, start being AP shared service centers but of course the imaging space has evolved quite a bit. With our focus on imaging, we really focus on two things. Or two core fields. One being the actual content, that’s where Perceptive Content/ImageNow comes into play. The second being Intelligent Capture. That’s the OCR piece that we’re going to be talking about today. The two main players in this space, there’s Perceptive Intelligent Capture and Kofax KTM. Depending on your various business needs, each one has a role and a good time to leverage them. Perceptive Intelligent Capture is highly customizable and requires or can have a lot of custom backend coding. For extremely complex projects, Perceptive Intelligent Capture can be a great fit. Kofax KTM is a great solution for processing forms and invoices, structured data as well as invoices. It comes with a great user interface and is very easy to train and to just keep up and running and learning invoices. We’ll show you that.

There’s a few benefits of going into AP automation. Of course, when we think about OCR, one of the main things that we think about is data entry. Not having to manually key in a whole ton of data. Once we get things from OCR, we can get into an approval workflow. Rather than having to carry invoices all over the place, we can actually have invoices automatically route to the appropriate approvers. Be approved with a couple of clicks, and we know that the right people are approving every invoice. It also creates a nice audit trail. One of the things we look for especially looking over approvals is [inaudible 00:04:09].

Mike:
Geoff, I think we lost your audio.

Geoff:
I will switch over. Is that better?

Mike:
Much better.

Geoff:
Okay. One of the things that we can look for also is that straight through processing. We look for a three way match. Once we have that three way match, then we know okay, we don’t need to further look at this and we can cut the check and save a whole bunch of time there. Of course, there’s also taking advantage of payment terms so that we can get those discounts as well as the ability to retrieve documents easily later on. Keeping in mind that we can match documents together. If we have an invoice, we can easily with a single click, pull up the packing slip, pull up the PO. Have everything right there. Then obviously, the endgame is that all of this has to integrate with your ERP system. In a very common scenario that we might be looking at, what we might be doing is bringing the data, scanning the invoices into Kofax KTM or KTA, passing the data to Perceptive Content, performing approval routing inside of Perceptive Content. Of course, it doesn’t have to be Perceptive Content. There are other document imaging systems as well. Ultimately, once that invoice is approved, we want to pass that data into the ERP system. Whether that’s Lawson or Peoplesoft, Dynamics AX, NetSuite, whatever it is that you’re using, we’re able to then pass that data to your EPR system and ultimately get the check cut.

If we look at why it is that organizations go to this type of a solution, it’s not shocking to see that one of the top things that we want to do is reduce the cost to process an invoice. These things can get pretty expensive. If I jump forward to the next slide real quick, we can see for some organizations, it costs as much as $26 to process an invoice. You really can get that down quite a bit. Not shocking, the more invoices that an organization is processing, the more that you can expect to be saving. Especially if you have very high volume vendors where you’re getting a whole tone of invoices from the same vendors. Once the system gets trained on that vendor, you can really start moving through those invoices and eliminating a lot of the manual keying. If we go back real quick, there’s also just that invoice handling process. Not having these things floating all over the place. The ability to have that cash management take advantage of the payment terms.

What we generally see with our clients is that we want to have this full automation. From the time that we receive that invoice. Hopefully that’s coming in via email, that we’re then sending that through a work flow and properly having that approved and making sure that all of the GL coding is correct. With some of our larger clients that have multiple locations, especially very common in healthcare, there also a big piece of this around centralizing the AP process. As opposed to having invoices being processed all over the place, at satellite sites or various hospitals, we want to have one central AP department that’s processing these invoices. The AP automation piece, not only provides the automation, but it also provides the ability for us to get invoices approved across various satellite locations. As we discussed, there can be some very large cost savings to all of this. What I’m going to do now is pass over the com here to Mike who will go ahead and show us what this looks like.

Mike:
Here we go. Can you see my screen Geoff?

Geoff:
Yep, I think we’re good Mike.

Mike:
Perfect, perfect. Thank you so much. Well let me add my good afternoon or good morning to everybody out there. As Geoff mentioned, my name is Mike Friel. I’m with a company called New Wave Technologies and we are a technology partner with RPI. We do a lot of work together. They come to us for all their Kofax software scanning, things like that. We’re a major distributor. A little bit of my background is, I used to work for Kofax. I’ve been in the document capture, document management industry for, gosh it’s got to be 20 years from now. At New Wave, I specialize in really one thing, that’s importing the Kofax line and helping our partners with situations just like this, where I’ll do webinars. I kind of throw this graphic up because there’s a lot of people who are completely unfamiliar with Kofax Capture. It is a world class document capture application, it’s been around gosh more than 20 years now. Then laid on top of Kofax Capture is something Geoff talked a little bit about which is, Kofax Transformation Module, KTM. KTM essentially extends the capabilities of Kofax Capture by adding things like document classification and automated data extraction. There’s a number of applications to this technology.

The ones that you’ll see today are probably the most ubiquitous ones in the industry is invoice processing solutions. Most companies do some form of invoice processing regardless of the size of the company. What you’re going to see from a work flow standpoint is, I’m going to scan a bunch of invoices. In reality, I’m actually going to import them in, they’ve been scanned ahead of time. Then we’re going to go to this server piece, this KTM server piece where they’ll be classified and extracted. Also worthy of note, and Geoff just spoke about it is the fact that I’m seeing now that 25% of invoices have never been in paper form. They’re sent maybe via an email attachment as a PDF file to companies to process that way. Kofax is equally adept at the ability to monitor a mailbox or bunch of mailboxes or things like that and bring an invoice in just by getting those scanned locally.

After we extract the information from that invoice, we’re going to go to the validation module where we’ll put a set of eyes on low confidence fields. This learning server is an amazing piece of technology that I’ll get into during the demo. Then release, or export, where think of Kofax as really just the front end capture and classification extraction piece. As Geoff mentioned, then the ability to feed Perceptive Content or any ERP or ECM out in the marketplace. Kofax has what we call export connectors to many, many different platforms out there. Although you’ll see this running on my laptop standalone which is a perfectly valid configuration, this can scale to the high heavens. I spent a good deal of time with Iron Mountain who are one of the largest users of this technology. It was not unusual to in a big back file conversion to see 15 or 16 high volume, high production scanners cranking away at millions of images. Again, it scales enormously.

That’s what you’re going to see, we’ll close this down. Again, this is the real live software. This is no smoke and mirrors. I’m going to launch and application called Kofax Capture Batch Manager. That’s what you see now. Think of this as a supervisor’s snapshot if you will, of the system. I don’t have any batches in progress. Again, back in the Iron Mountain days if I launched