Thanks to the digital transformation taking place even in bureaucratic and administrative procedures, the interchange of data between companies, such as in the case of the customer/supplier relationship, is increasingly agile and effective. However, it very often happens that a part of document management processes is still done manually. For example, in the case of incoming invoice management, automation of the passive cycle is often nonexistent. In other words, many realities, after receiving electronic invoices (which are mandatory today) through the interchange system, still use manual processes for the subsequent management, for example, the payment of the invoices themselves must be managed by an operator.
Passive cycle automation for process simplification
Adopting the simplest and most widely used definition, ultimately the passive cycle encompasses all the processes, workflows and movements that occur prior to the sale of goods or services, and the resulting costs. Thus, within the passive cycle we find the cost items and outputs that contribute to the operation of the business and the creation of the product and service.
In addition, activities that accompany the actual processes and flows, for example, customer master data management and incoming documentation recording, typically fall under this definition.
Although today virtually all document handling is done digitally, the management methods are borrowed from the analog world, with clerks and employees manually handling all the activities necessary for management.
Automating the passive cycle is based on a very simple principle: most of the activities required are procedural or repetitive, with very low levels of discretion. By making these operations automatic, it is possible to save a considerable amount of time, reduce errors, and, in general, allow people to devote themselves to activities with higher added value and a higher level of satisfaction.
Today, with a good document management it is possible to automate most of the passive cycle management in an automatic and intelligent way.
SAP VIM, the passive cycle management for the SAP ecosystem
Within the SAP world, activities related to the automation of the accounts payable cycle are managed by SAP VIM (Vendor Invoice Management), now known as SAP Invoice Management by OpenText. The system, suitably adapted for the specifics of Italian regulations, can be leveraged to automate payment processes, archiving and in general the management of incoming documents, with the aim of speeding up and streamlining operations, creating standard and effective workflows. Used within a structured SAP ecosystem, it offers a number of advantages, the main ones being.
- First and foremost,integration with the ecosystem, particularly with the SAP ERP that forms the core of business management.
- Second, but central from the point of view of efficiency, isautomation, making document flows within the company automatic, but also the approval of purchases and the payment of invoices. This also allows for good optimization: automating processes means reducing delays and errors, for example in handling payments or approving expenses.
- Finally, a central feature of all advanced digital solutions is the ability to generate real-time reports, which are essential for financial analysis and management control.
From a strictly technical point of view, SAP VIM is able to interface with the interchange system for electronic invoicing, extracting data from the standard XML format. In addition, another key feature for implementing a true digital transformation, it facilitates the circulation of information and permeability of data, making it possible to centralize all operations, including communication, necessary for the ordinary and extraordinary management of passive invoicing.
With SAP, electronic invoicing is simplified
Thanks to the advanced tools that SAP VIM has at its disposal, electronic invoicing with SAP can take advantage of advanced tools to automate work, not only in terms of day-to-day operations. In fact, thanks to the use of advanced features such as artificial intelligence and machine learning, SAP Invoice Management by OpenText is able to learn from historical data which invoices need special treatment such as manual approval, allowing it to better focus resources where needed.
Invoice management with SAP can also benefit from effective integration with other SAP tools and services. Cite, for example, SAP ERP Financials. When applied, this integration allows further process automation by automatically matching invoices and orders or contracts.
Automation is the way to competitiveness
In conclusion, we can say that automating the passive cycle and the invoicing process can save companies time and resources while increasing the satisfaction level of employees who will be freed from lower value-added activities. Using a tool such as SAP VIM, it is possible to automate the entire process, from the creation of purchase orders to the issuance of invoices, intelligently and effectively through the use of advanced decision-making and scheduling tools.
Automating the accounts payable cycle and invoicing process helps companies improve efficiency and profits. Smart tools such as SAP VIM simplify the automation process, integrating seamlessly with the business ecosystem and enabling efficiency and competitiveness to be regained.
Our team of consultants is ready to help you improve these procedures within your company, contact us to receive information.
