Document processes in SAP
This specialist article describes what is behind FIS/edc, the SAP optimization for digital document processes, how it works and the advantages it provides.
Product Manager at FIS
What is the FIS/edc SAP optimization?
Companies can use FIS/edc, the Electronic Document Center for SAP, as a convenient tool for the entry, processing and archiving of paper documents and electronic formats (e.g. ZUGFeRD, EDI and XRechnung). FIS/edc enables the connection and integration of customers and vendors to your existing SAP system. Documents, such as invoices, order responses, delivery notes and orders, are processed automatically and with fast processing times and, as a consequence, have a positive effect on the cost structure of your company.
What functions does the FIS solution include?
FIS/edc enables the automated document processing for finance and accounting, purchasing and procurement as well as sales and distribution. The overall purchase-to-pay and order-to-cash processes can be designed more efficiently and in an automated way thanks to the SAP optimization. FIS/edc processes all documents relevant for these user departments and can be easily extended to further and often industry-specific documents.
For further optimization of your processes, the FIS/mpm master data management tool that can be used to easily create new vendors via a cross-functional workflow as well as the reliable FIS/fci OCR software solution for document recognition can both be seamlessly integrated.
Overview of all FIS/edc functions:
How does SAP invoice processing with FIS/edc work?
The solution for processing incoming invoices in FIS/edc is fully integrated in the overall purchase-to-pay process, which enables a step-wise increase of the invoice processing automation degree in SAP. In Financial Accounting, invoices are received as PDF documents, in paper form or as electronic invoices.
Incoming invoices and payment advices in paper form or as PDF documents are automatically processed via AI and OCR document recognition with excellent recognition rates. Moreover, the software supports electronic documents and invoices, such as EDI, ZUGFeRD or XRechnung. Once the documents have been imported, they will automatically be assigned to the existing data records in the SAP system.
Advantages for your (financial) accounting:
Support of all standard invoice formats, such as EDI, ZUGFeRD and XRechnung, in one solution
The FIS software proves to be highly efficient for automatic matching. If no match is made, it is possible to use an uncomplicated subsequent invoice verification or an electronic workflow for enriching missing information. Internal document assignments, item matching and data enrichment form the basis for a direct update of an invoice document in SAP. Optionally, electronic invoices can be saved as visualized PDF documents in an audit-proof way.
The connected approval procedure rounds off the options of automated invoice verification. This workflow enables a completely paperless release, ensures a respective throughput of the invoice and increases transparency for the management. Once the release workflow has been completed, the invoice can be further processed in an accounting-related way (posting, account assignment and payment).
Useful: Mobile invoice release via app
A mobile app based on SAP Fiori can be used to carry out approval requests in FIS/edc in connection with vendor documents in SAP – i.e. processes such as verification, approval, rejection, commenting, forwarding and account assignment of incoming invoices – anytime, anywhere, without long wait times, on the move and irrespective of what invoice type (FI invoice without purchase order reference, MM invoice with purchase order reference) is concerned.
How does eInvoicing with the FIS/edc SAP optimization work in SAP?
eInvoicing and automation in Financial Accounting offer enormous opportunities. Accelerate the processing times of your invoices and make processing statuses more transparent. With eInvoicing, you can achieve fully automated SAP invoicing processes and, at the same time, meet the requirements of the eInvoicing obligation – both when receiving and sending invoices.
How does the FIS/InvoiceManagement Package improve the processing of incoming and outgoing invoices?
FIS/edc optimizes the entire invoicing process – both for incoming and outgoing invoices – through automated processes, workflows without media changes and support for common electronic invoice formats, such as ZUGFeRD, XRechnung or EDI.
When it comes to incoming invoices, paper-based and electronic documents are automatically recognized and processed using artificial intelligence, OCR and validation technologies. The invoices are compared with purchase orders and goods receipts in the system and forwarded for checking and approval via an integrated workflow – also via mobile app if requested. This considerably reduces manual work steps and processing times.
FIS/edc also provides an automated solution for outgoing invoices: Invoices generated from SAP can be issued in the desired eInvoicing format, sent electronically and archived in an audit-proof manner. This ensures that all legal requirements (e.g. EU requirements for electronic invoices) are met. The central overview of the shipping status and any returns creates transparency throughout the entire billing process.
Advantages in the entire invoice management:
How can order responses be processed in an automated way?
Purchasing and procurement benefit from the FIS/edc solution for order responses through the automated processing of inbound documents, such as order responses. The documents received are displayed in FIS/edc for order responses from where they are imported directly into the SAP system via the SAP standard IDoc interface.
In Customizing, you can define rules concerning the management of discrepancies between purchase order and order response. Here as well, manual postprocessing is possible in case of differences. By assigning the order response to the purchase order, tolerance exceedances or discrepancies between purchase order and order response are displayed to the inspector. This enables an efficient postprocessing in the ordering process directly from the SAP system.
Benefits for procurement and purchasing:
How does FIS/edc improve the processing of sales orders?
FIS/edc for sales orders is used for optimizing the inside sales processes and, as a consequence, releases valuable resources. The solution enables the content-related and technical entry and processing of all inbound purchase orders – irrespective of whether they are entered as paper documents via OCR (document recognition) [FM5] in SAP or transmitted electronically as PDF files via EDI or e-mail. Erroneous EDI orders can directly be postprocessed by sales employees, which provides for a reduced workload within the IT department.
Comprehensive check and matching routines enable an automated processing of the sales orders received. This means that for correct customer purchase orders with or without reference to preceding documents (e.g. quotations, contracts), the document is created by the system. Subsequently, the supply chain is triggered automatically. With FIS/edc for sales orders, you will always keep an overview of all customer-relevant data and documents at a central place.
Benefits for sales and distribution:
How does FIS/edc improve the processing of shipping notifications?
FIS/edc for shipping notifications enables the automated entry and processing of shipping notifications. Thanks to the integration into the SAP system, delivery notes are assigned directly to the corresponding purchase orders.
This creates a reliable basis for goods receipt posting and subsequent invoice verification. OCR recognition of paper documents as well as the processing of PDF and EDI documents ensure maximum flexibility during entry. Erroneous or imcomplete data can be postprocessed easily by using workflows.
FIS/edc not only supports increased efficiency in warehousing and logistics, but also transparency and traceability throughout the entire delivery process.
Advantages when processing delivery notes:
What are the benefits of FIS/edc?
How can automation be successful?
FIS as an SAP specialist offers companies an interesting selection of numerous components for implementing different corporate objectives at a high level. This includes, for instance, the intelligent document recognition comprising anything from the import of paper documents to the release of the vendor invoice. Software optimizations for SAP, such as FIS/fci and FIS/edc, are sustainable enhancements with numerous benefits due to the continued further development within the release strategy:
FIS/fci for document recognition
The FIS/fci optimization as part of FIS/edc can be used to automatically enter paper documents (or also electronic documents, such as PDF documents) in the existing SAP solution thanks to a hybrid AI and OCR approach. Document characteristics such as customer name, address, phone, fax, bank data and tax number are automatically matched with the master data record in the ERP system.
Excellent recognition rates are achieved using an extensive test methodology. Of course, FIS/fci is suitable for all typical documents in companies, such as invoices, order responses, delivery notes and orders.
Artificial intelligence in Financial Accounting – efficient processing of FI invoices
The use of artificial intelligence (AI) will bring a change to your FI processes: The intelligent account assignment and approver determination by FIS uses this technology to independently classify FI invoices and establishes an automatic account assignment system. Subsequently, it finds the responsible approver by means of AI and automatically sends the invoices to them for release.
By using this smart solution for invoice receipt processing, your employees are relieved for instance, manual processing errors prevented and invoice receipt processes become more transparent.
What enterprises is the solution suitable for?
FIS/edc is aimed at companies that use SAP and want to make their document-based business processes more efficient. Organizations with a high volume of documents in the areas of purchasing, financial accounting or sales benefit in particular. FIS/edc is therefore the right choice for anyone who wants to simplify and digitally transform their internal processes relating to invoice verification, order responses, sales orders and delivery notes. Learn here how we at FIS implement FIS/edc for order responses and make them more transparent.
FIS/edc is suitable for companies of all sizes that use SAP and want to make their document-based business processes more efficient. Organizations with a high volume of documents in the areas of purchasing, financial accounting or sales benefit in particular. FIS/edc is therefore the right choice for anyone who wants to simplify and digitally transform their internal processes relating to invoice verification, order responses and sales orders and make them more transparent.
Conclusion
FIS/edc provides companies with a powerful solution for end-to-end digitization and automation of document-based processes in SAP. Integration into existing SAP systems, support for a wide range of document formats and extensibility through additional modules make FIS/edc a future-proof tool for greater efficiency, transparency and profitability in purchasing, accounting and sales and distribution.