AP Outsourcing Case Study – Global Leader in Process Equipment

Dave SchnittAccounting Outsourcing, Case Studies

process equipment

Background

  • Global leader in process equipment solutions processing over 8,000 invoices per month over 20 global locations in North America, Asia, and Europe.
  • Paper-­based approval process: Would copy the invoice, send the original to approvers, and wait for invoices to be returned. Lack of visibility into invoice status caused late payments to vendors.
  • Client would process PO invoices in their ERP system and rely on the Purchasing department to run a report to resolve any exceptions. They were unable to quantify and measure exceptions to implement process improvements to reduce them.
  • The disbursement cycle took about one full week to complete and due to client’s paper-­based process with many invoices on people’s desks it was difficult to capture the value of invoices in
    process extending month end close.

Solution

  • Using IQ’s proprietary Archimedes system, client was able to track invoices through the process, subsequently reducing lost or misplaced invoices and reducing rush or late vendor payments.
  • IQ developed processing rules and tracking capabilities, using Archimedes, to report on exceptions and gather data to improve the process improvements that reduce the number of exceptions.
  • IQ used Archimedes to build a custom accrual extract, allowing client to capture at any time all in-­process invoices for accrual purposes for a rapid month-­end close.
  • Using best practices and process efficiencies, IQ cut the disbursement cycle to one day.
Summary
Article Name
AP Outsourcing Case Study - Global Leader in Process Equipment
Description
Using IQ’s proprietary Archimedes system, client was able to track invoices through the process reducing lost or misplaced invoices and late vendor payments
Author