Norikkon Equips Duke with Accounts Payable Power 

APayCenter Streamlines Accounts Payable Process Delivering Measurable Results

About Duke

Duke University and Duke University Health System is an internationally recognized medical research institution located in Durham, North Carolina. Each month, Duke generates more than 35,000 paper invoices, 40,000 EDI invoices, 22,000 line-item extractions, and 2,500 redacted invoices using three scan stations and two full-time scan operators. 
With an estimated volume of 900,000 invoices yearly, Duke faced real challenges. They needed to reduce expenses in AP staffing, copying, and storage, reduce time-consuming tasks, increase overall processing time, and improve real-time visibility. Duke found they could overcome these challenges and dramatically improve their overall efficiency by using Norikkon's APayCenter, a complete account payable automation solution.

Norikkon analyzed Duke's current business processes and, after identifying the bottlenecks and numerous manual steps, targeted five areas in which Duke could maximize their business processes for greater accuracy and efficiency.

Goals
  • Reducing accounts payable staffing expenses
  • Eliminating paper invoice copy and distribution
  • Reducing time-consuming tasks
  • Increasing overall processing time

Objective 1: Document Storage, Distribution and Capture 

Duke receives nearly 40% of its invoices on paper and 60% electronically. Before using APayCenter, Duke users distributed paper invoices manually, creating multiple copies. Off-site paper storage added more issues, along with a recurring challenge of how best to process and store different invoice formats such as paper, fax, email, and electronic.


The Solution
Norikkon implemented with its partner an ArchiveLink-certified content repository, which eliminates the copying and distribution of paper invoices, and renders electronic invoices into scanned, archived images immediately accessible to authenticated users online, from any location, within 24 hours. Invoice images are automatically linked to an SAP accounting document for direct access from SAP ERP and housed in one central location.
Norikkon then worked with Duke to implement a full-scale OCR capture technology to scan and archive invoices. Using OCR, Duke users can now automatically extract critical invoice information from the document image, thus reducing entry errors, delays, and inaccurate payments to vendors. Extracted invoice data are pre-filled in the relevant SAP posting transactions (such as FB60 or MIRO), which eliminates redundant data keying for processors. 

Objective 2: Invoice Process Automation 

Before using Norikkon's APayCenter, Duke's invoices were keyed in manually from paper into SAP with no link to the invoice document and backlogged an average of 5-10 days. Duke repeatedly missed payment discounts, and invoice processing time increased. 

The Solution

Norikkon's APayCenter eliminated the backlog. The data extracted by OCR capture technology is sent to Duke's SAP server and content repository, then Norikkon's APayCenter pulls the data. The APayCenter dashboard provides Duke with a real-time, at-a-glance view of liabilities and the status of each invoice. Through this central location, Duke users can process SAP work items directly or use the SAP Workplace. Using a variety of search criteria, users can pinpoint specific invoices, current or historical, and provide direct links to invoice images and supporting documentation.

Objective 3: Exception and Approval Automation 

Duke accounts payable has up to 80 different issues documented as invoice exceptions. These exceptions include both pre-posting problems that prevent invoice posting, as well as, post-posting invoice payment blocks, including:

    • Missing/Invalid PO
    • Missing approval 
    • Price/Quantity variance 
    • Invoice duplicates 
    • Item not on PO 
    • Vendor maintenance 
    • Missing tax code 
    • Missing documentation 
    • Value exceeds limit payment block
    • Quantity difference payment block 
    • Price difference payment block

The Solution
Together, Norikkon and Duke implemented SAP Workflows and APayMail, an SAP-integrated component of the APayCenter, to manage approvals and exceptions efficiently. Through the use of SAP Workflow and APayMail, invoice approvals or exceptions are communicated to the appropriate person with the invoice image attached. Also, vendors are automatically notified via fax of invalid or missing purchase order numbers, significantly reducing user workload and phone calls. By using APayCenter, APayMail, and SAP workflows, Duke now processes exceptions and approvals both inside and outside SAP with full SAP integration of email content. Management is provided a complete audit trail.

Objective 4: Reporting and Analytics 

Before using APayCenter, Duke users were limited in their ability to generate specific reports with real-time data.


The Solution

Norikkon's APayCenter provides Duke with substantial new reporting capabilities that enable users to quickly generate specific productivity, liability, and invoice status reports, which departments and financial analysts can use to make timely and accurate business decisions. Also, since APayCenter leverages SAP workflow and ABAP, IT personnel can configure APayCenter to provide special reports that are outside APayCenter's standard report structure and change workflow as needed. 

Objective 5: Audit and Compliance

Before using APayCenter, Duke's ability to retrieve invoice documents was not only labor-intensive and tedious, but support information was often missing, leaving an incomplete audit trail.


The Solution
Norikkon's APayCenter streamlined Duke's entire accounts payable process, which reduced the time users needed to fulfill external audit requests. By using APay's batch functionality, users can now download data into PDF files from SAP and email to auditors.

What APayCenter delivered

Duke chose Norikkon's APayCenter to streamline its accounts payable process for two main reasons:
  1. APayCenter's ability to fully integrate with SAP and their chosen OCR solution, and
  2. APayCenter's extensive flexibility to meet their specific business requirements. The results below confirmed their choice and made a measurable difference in the way Duke accounts payable does business.

APayCenter delivered real results for real challenges

  • Elimination of paper copy and distribution costs.
  • Reduction of invoice backlog by 10-15 days.
  • Making all invoices visible to internal clients within 24 hours of receipt.
  • Enabling managers to gain real-time access to liabilities, productivity, and invoice status.
  • Eliminating internal auditor inquiries by providing direct access to critical data, inside and outside of SAP.
  • Reducing processing time with automatic routing to resolve exceptions and invoice approvals, internally and externally using SAP workflow and SAP-integrated Norikkon's APayMail.
  • Reducing time fulfilling external auditors' requests by using batch functionality to download data into PDF files from SAP and email to auditors. 
  • Enabling Duke's IT personnel to make changes to workflow as needed. 
  • Allowing for the reduction of 25% of Duke AP staff, enabling the reallocation of those resources to support Duke's mission of education, research, and patient care.
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