Arkphire – Automated Purchase Invoice Processing for Sage 200
Sector: IT Infrastructure solutions, IT Product and Managed Services
Product: AdestAP, Adest200 & Adest Web
Application: Automated Purchase Invoice Processing, 3-way Invoice Matching, Invoice Approval Workflow, Transaction Audit Trail, Secure Storage
Arkphire is a leading International provider of IT infrastructure, IT Products and Managed Services. In operation for over 30 years, based in the UK & Ireland, the company specialise in transforming how IT delivers value to businesses by applying best-practice methodologies to design, build and management of complex ICT systems and demanding IT change projects.
Jimmy Dalton, Chief Financial Officer, Arkphire, heads up an experienced accounts team responsible for the overall Finance function including processing 10,000 supplier invoices annually.
90% of invoices received from suppliers arrived via email and required to be printed prior to being processed in the company’s ERP system – Sage 200. Purchase Order (PO) based invoices accounted for the vast majority of the volume, these required to be data keyed and manually matched against PO/Goods received data in Sage 200.
Non PO or Overhead Invoices required to be physically distributed to Approvers prior to being processed in Sage. The manual process was a huge drain on experienced resources, resulting in delays, especially at month end when most invoices arrived. It diverted focus from key value added tasks and was a process that Dalton believed was unnecessarily costly and slow.
Adest200 for Sage was chosen as the Adest AP solution to automate the process.
Adest200, developed specifically as an embedded Sage 200 application using validated Sage objects and architecture, automates purchase invoice capture, invoice coding, auto-matching to PO and Goods Received (2 and 3 way auto-matching) information. Furthermore the solution manages the direct invoice lifecycle from digital invoice approval to posting, filing and archiving.
The solution implemented in Arkphire incorporates intelligent capture of purchase invoices (not template based) from both paper and email. It automatically separates and channels PO based invoices and Overhead/Non PO invoice types, routing the PO invoices for matching in Sage 200 against the relevant PO/Goods received data.
All Non PO invoices are directed to the relevant manager for electronic approval. Pre-configured workflow rules eliminate the majority of the manual tasks and the automated matching ensures that exceptions are identified immediately. All invoices are filed electronically, immediately upon capture, and are accessible directly from Sage 200 or Adest.
Emailed invoices are now captured electronically and not printed, paper has almost been eliminated from the process. Jimmy Dalton, CFO, has seen many improvements. “The overall efficiency and the shorter timeframe to process invoices has eliminated delays and logjams, resulting in a dramatic reduction in the level of accruals at month end leading to earlier financial reporting and a clearer balance sheet for analysis”.
Furthermore, it is his experience that “Auto-matching invoices against POs is far faster than previously obtained. At month end we are confident that every invoice received has been tracked and processed with nothing outstanding and no hidden skeletons”.
A valuable outcome has been “the immediate identification of exceptions, facilitating timely follow up with suppliers and early agreement of credits which was harder to do in the past due to the delays in processing”. This has helped to preserve margins and eliminate unnecessary losses.
“The overall efficiency and the shorter timeframe to process invoices has eliminated delays and logjams, resulting in a dramatic reduction in the level of accruals at month end leading to earlier financial reporting and a clearer balance sheet for analysis.”
— Jimmy Dalton, Chief Financial Officer, Arkphire
Dalton also observed that it is now “far easier when paying suppliers, as all the invoice information is readily accessible making it simple to reconcile supplier statements”.
Overall control of the Purchase to Pay process has tightened up markedly and, through greater visibility, Arkphire has refocused on more value added tasks. From Dalton’s own perspective “from the point of analysis, it is simple to review the status of invoices in the process and to investigate any single invoice or group of related invoices without the need to visit physical files”.