SAP BTP GENERATIVE AI INVOICE AUTOMATION

The company initially faced a significant challenge in invoice processing due to the substantial volume of invoices, high line counts, and numerous small variances necessitating a reconciliation process before posting. Despite the current process involving the use of three bots and a custom upload to automate certain aspects, there are notable issues affecting its efficiency and accuracy. There is a pressing need to design and implement an improved process aimed at reducing manual effort and mitigating the risk of errors in order to streamline operations and enhance financial governance. 

The integrated oil company faces a significant challenge in managing the procurement of large volumes of hydrocarbons from various counterparties. Each month, the company contends with a substantial influx of invoices, some containing exceedingly high numbers of line items, surpassing 3000. These invoices demand meticulous processing to uphold crucial business controls, ensuring accurate payment for contracted or received goods, and timely settlement with counterparties.

However, the sheer volume of invoices, coupled with extensive line counts and numerous small variances, necessitates an arduous reconciliation process before posting. 

In this collaborative project with ConvergentIS, the focus lies on efficiently processing a high volume of invoices, some containing over 3000 line items, while upholding rigorous business controls and guaranteeing prompt vendor payments. Advanced AI and OCR technologies are leveraged to automate the extraction of data from invoices, Field Tickets, Credit Notes, and Debit Notes, streamlining the processing process with precision. The implementation of business rules enables automated 3-way matching against goods receipts and purchase orders, significantly reducing errors and ensuring adherence to compliance standards. Additionally, the solution offers a user-friendly interface and integrated approval workflow, empowering the Accounts Payable team to effectively manage exceptions and enforce organizational policies. 

By embracing innovative technologies and establishing robust automation protocols, this initiative addresses the intricate challenge of invoice processing with efficiency and accuracy, enhancing operational efficacy and financial governance within the organization. 

The integrated oil and gas company achieved significant efficiency improvements through the implementation of the SAP Business Technology platform and ConvergentIS Procurement Gateway for Invoice to Pay solution. Previously, financial analysts spent an average of 16 hours processing each invoice, leading to a total processing time of 6000 invoices per month, many of which had high line item counts exceeding 3000. However, with the new solution in place, the processing time per invoice decreased drastically to just 2 hours. This remarkable enhancement enabled financial analysts to handle a greater volume of invoices per day, increasing their capacity from 0.5 to 4 invoices processed daily. 

Moreover, the reduction in processing time per invoice directly translated into tangible cost savings for the integrated oil and gas company. By automating various aspects of the invoice processing workflow, the organization was able to decrease the number of full-time equivalent (FTE) staff required for invoice processing from 20 to 10 FTEs. Consequently, the company realized a notable reduction in staffing costs, resulting in FTE savings of 10. This streamlined approach not only reduced operational expenses but also enhanced productivity by allowing financial analysts to allocate more time to value-added tasks such as analysis and strategic decision-making.

Furthermore, the automation of invoice extraction and verification processes led to improved accuracy and compliance, minimizing errors and ensuring adherence to financial regulations and internal policies. Standardized workflows and digital approval processes further contributed to enhanced accuracy and compliance, mitigating the risk of errors and potential financial penalties.