Incoming invoices in SAP
This specialist article describes what is behind FIS/edc, the SAP optimization for incoming invoices, how it works and the advantages it provides.
Product Manager at FIS
What is FIS/edc for incoming invoices?
FIS/edc for incoming invoices is a solution for the automated processing of invoices in the SAP system. Accounting in particular benefits from the automated processing of an invoice. Incoming invoices are displayed in the solution and can be imported directly into the SAP system. Deviations and discrepancies within an invoice can be checked by the processor and corrected if necessary. Regardless of the channel via which the document is received, a master data matchup is carried out in an automated manner as well as an initial invoice verification, including factual check. If the incoming invoice can be assigned to a specific purchase order, a background posting will directly be made. In doing so, no-touch quotas of up to 90 percent can be achieved. This significantly reduces the processing times as well as the workload of financial accounting employees and prevents manual input errors. 
If postprocessing or a release is required, this can be controlled via smart workflows. The use of artificial intelligence in the form of machine learning applications for the automated assignment of incoming invoices provides additional saving potentials.
What functions does the FIS solution for incoming invoices include?
Incoming invoice processing in FIS/edc is seamlessly 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.
Automatic processing of incoming invoices in paper form or as PDF documents is carried out by means of OCR document recognition with excellent recognition rates being achieved. 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.
Our FIS software provides automatic matching of incoming invoices with the respective purchase orders, which results in highest efficiency. If there is no match between the two documents, our software will enable easy subsequent invoice verification or the use of a workflow for complementing missing information. By means of internal document assignments, item matchings and data enrichments, invoices can directly be updated 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
An SAP Fiori-based mobile app 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.
Artificial intelligence in Financial Accounting
Automated invoice processing involves work steps that continuously have to be carried out manually. Invoices in the worklist of an accounting clerk have to, among other things, be viewed, assigned to a specific account and forwarded to the appropriate approver for release. These processes can be automated by means of machine learning applications.
The use of artificial intelligence (AI) will bring a change to your FI processes. In the area of finance and accounting, FIS has developed an efficient user case by applying machine learning. This technology provides major benefits, particularly if processes are to be automated for which no generally accepted rules exist – i.e. if classic Customizing is not sufficient.
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.
DIGITAL PROCESSING OF INCOMING INVOICES
eInvoicing in Financial Accounting provides enormous opportunities for automated invoice processes and for increasing their transparency. Accelerate the processing times of your invoices, make processing statuses more transparent and achieve fully automated SAP invoicing processes complying with statutory requirements.
The FIS/InvoiceManagement Package can be used to process incoming invoices in a fully digitized procure-to-pay process: from the receipt of digital invoice formats, the entry of incoming invoices and their final posting to the creation and dispatch of an invoice. Vendor invoice data, for instance, is automatically compared with the associated purchase requisition in the SAP system. If all details on invoice and purchase order are identical, these invoices will be posted and paid automatically – without manual interference by the accounting clerks. Here, SAP users can achieve ”no touch” quotas of over 90 percent.
Often, just the automated matching of partial information can help accelerate the process. Important invoice characteristics, for instance, are read, invoices verified formally and arithmetically or compared with SAP master data. Even a simple release workflow enabling an automatic assignment of the invoice to the releasing person might considerably facilitate daily business, even if the volume of invoices is low.
The FIS solution package compares inbound invoices with existing purchase orders in the ERP system and controls the verification and release processes completely irrespective of the invoice format. This helps you accelerate the processing times of your invoices and make processing statuses more transparent. According to its format, the invoice is converted into a format that can be read by the user (visualization).
The seamless integration into FIS/edc for incoming invoices enables the accounting clerk in the company to verify invoices for electronically transferred documents in the same way as the procedure focused on paper documents they are familiar with. Consequently, you implement a consistent and completed invoice receipt process.
What are the benefits of FIS/edc for incoming invoices?
How can automation be successful?
Automation in the FIS solution for incoming invoices is achieved through a combination of intelligent document recognition, automated data extraction and seamless integration into SAP. Incoming invoices – received as paper documents, PDFs or EDI – are entered using OCR technology or direct interfaces and automatically compared with existing purchase orders and goods receipts. The system recognizes deviations, for example in quantities or prices, and forwards them to the responsible employees for clarification. If invoices match, they are updated automatically without manual intervention. In addition, artificial intelligence optimizes the classification of invoices and supports the automatic assignment to the right approvers, which speeds up the approval process. Thanks to the deep SAP integration, the entire workflow from entering to archiving is handled efficiently and in an audit-proof manner.
What enterprises is the solution suitable for?
FIS/edc for incoming invoices is ideal for companies that process a large number of invoices and want to reduce manual processes. Finance and accounting departments that value efficiency, transparency and seamless SAP integration will benefit in particular. Learn here how we at FIS implement projects concerning FIS/edc for incoming invoices.
Conclusion
With FIS/edc for incoming invoices, companies digitize and automate the entire invoice workflow – from entry and verification to update. The solution processes all invoice formats efficiently, enables background postings in case of purchase order reference and integrates smart approval workflows. This relieves the accounting department, reduces errors and ensures transparent and accelerated invoice receipt processes – even with a high volume of documents.