PulseIQ

18 steps became 8. 8 loops became 2.

Accounts Payable process map: PulseIQ

What this process is

How a vendor invoice goes from a business team's request to money in the vendor's bank, and into the books at month end. This is a demo map for a composite software company.

Why it matters

Most of the effort sits in rework: chasing a missing PO, receipt or approval, then fixing the entry. Agents take the chasing and preparing. People keep the decisions that need a signature.

Overview · the 3,000 ft view

BEFORE · 7 STEPS · 7 PEOPLE TOUCH IT · 1 LOOP BACK

Missing POInvoicearrivesLog invoiceCheck POCode invoiceMatch toorderApproveinvoicePreparepaymentPay supplierInvoice paid

AFTER · 7 STEPS · 4 AGENT STEPS · 3 HUMAN DECISIONS

Missing itemInvoicearrivesGXIntake and POcheckGXMatch andcodeGXChaseexceptionsReleaseflaggedexceptionApprove abovelimitGXPrepare andrisk checkSign offpayment runInvoice paid

BEFORE · 18 STEPS · 7 OWNERS · 8 EXCEPTION LOOPS

What happens

  1. 1Raises a spend request in the spend request tool (Requester (business team))
  2. 2Checks the request and issues a purchase order (Procurement)
  3. 3Sends the invoice by email or portal (Vendor)
  4. 4Confirms the goods or service arrived (Requester (business team))
  5. 5Opens the invoice and logs it (AP team)
  6. 6Re-keys invoice details into the AP system (AP team)
  7. 7Looks up the vendor and the purchase order (AP team)
  8. 8Codes the invoice to account and cost centre (AP team)
  9. 9Matches the invoice to the order and receipt (Finance system)
  10. 10Reviews the coding a second time (Approver (budget owner))
  11. 11Approves the invoice (Approver (budget owner))
  12. 12Approves invoices above the approval limit (Finance leader)
  13. 13Schedules the payment (AP team)
  14. 14Builds the payment run (Finance system)
  15. 15Signs off the payment run (Finance leader)
  16. 16Releases the payment in the bank portal (AP team)
  17. 17Posts the payment to the ledger (Finance system)
  18. 18Reconciles the bank and accrues unpaid invoices (AP team)
  19. ↻Loop: Invoice arrives with no PO, so a late PO is raised (Procurement, back to step 2)
  20. ↻Loop: Vendor or bank details wrong or changed, vendor re-confirms (Vendor, back to step 3)
  21. ↻Loop: Receipt or coding missing, requester chased (Requester (business team), back to step 4)
  22. ↻Loop: Price or quantity mismatch, back to the vendor (AP team, back to step 3)
  23. ↻Loop: Approver away or late, invoice chased (Approver (budget owner), back to step 10)
  24. ↻Loop: Duplicate invoice found after posting, entry reversed (Finance system, back to step 5)
  25. ↻Loop: Payment run missed the cutoff or the bank rejected it (AP team, back to step 13)
  26. ↻Loop: Month-end accrual chase for unbilled receipts (Requester (business team), back to step 4)
A Request andorderB ReceiveC Code andmatchD ApproveE PayF Record andcloseRequester(businessteam)ProcurementVendorAP teamApprover(budget owner)Finance leaderFinance systemRaise spendrequest1Issue purchaseorder2Send invoice3Confirmreceipt4Open and loginvoice5Re-key invoicedetails6Look up vendorand PO7Code theinvoice8Match to order9Review thecoding10Approveinvoice11Approve abovelimit12Schedulepayment13Build paymentrun14Sign offpayment run15Releasepayment16Post to ledger17Reconcile andaccrue18Late PO raisedVendor detailsrecheckChase receiptor codingPrice orquantity gapChase approverDuplicatereversedPayment redoneMonth-endaccrual chase

AFTER · 8 STEPS · 5 AGENTS · 3 HUMAN DECISIONS

What happens

  1. 1Requester raises a spend request (Requester and vendor)Agent
  2. 2Reads the invoice and checks it has a PO (Intake and PO check agent)Agent
  3. 3Matches to order and receipt, proposes coding (Match and code agent)Agent
  4. ↻Loop: Asks for the missing receipt or coding (Exceptions and chasing agent, back to step 3)
  5. 4Releases a flagged exception (Humans (decisions only))Human
  6. 5Approves above the approval limit (Humans (decisions only))Human
  7. 6Prepares the payment run and checks risk (Payment prep and risk check agent)Agent
  8. ↻Loop: Holds a risky payment for review (Payment prep and risk check agent, back to step 6)
  9. 7Signs off the payment run (Humans (decisions only))Human
  10. 8Posts payments and accrues unpaid invoices (Close accruals agent)Agent
A Request andorderB ReceiveC Code andmatchD ApproveE PayF Record andcloseRequester andvendorAgentsFinance systemHumans(decisionsonly)Raise spendrequest1Read and checkPO2Match and code3Ask formissing itemReleaseflagged item4Approve abovelimit5Prepare andrisk check6Hold riskypaymentSign offpayment run7Post andaccrue8
Steps
18 steps → 8 steps
derived
Exception loops
8 loops → 2 loops
derived
Cycle time
21 days → 5 days
illustrative
Straight-through rate
22% → 78%
illustrative
Cost per invoice entered
$14 → $4
illustrative

7 → 15

DOCUMENTED VS ACTUAL · 7 STEPS ON PAPER · 15 IN PRACTICE

On paper
Raise request1Issue order2Receive invoice3Match and code4Approve5Schedule and pay6Record and close7
In practice
Raise request1Issue order2Late PO raisedafter invoice330% of casesReceive invoice4Vendor detailsre-confirmed512% of casesMatch and code6Receipt or codingchased738% of casesPrice or quantitygap resolved822% of casesApprove9Approver chased1035% of casesSchedule and pay11Payment redone128% of casesRecord and close13Duplicate reversed144% of casesMonth-end accrualchase1525% of cases

Same four buckets. Smaller firm, same method.

26 boxes on today's map: 10 to delete, 8 for automation, 3 for agents, 5 for a person to decide.

Delete

Rework and repeats

10 steps and loops

  • 6Re-keys invoice details into the AP system
  • 10Reviews the coding a second time
  • ↻Invoice arrives with no PO, so a late PO is raised
  • ↻Vendor or bank details wrong or changed, vendor re-confirms
  • ↻Receipt or coding missing, requester chased
  • ↻Price or quantity mismatch, back to the vendor
  • ↻Approver away or late, invoice chased
  • ↻Duplicate invoice found after posting, entry reversed
  • ↻Payment run missed the cutoff or the bank rejected it
  • ↻Month-end accrual chase for unbilled receipts

Fix the cause and the loop goes away.

Automation

Rules, feeds and schedules

8 steps

  • 2Checks the request and issues a purchase order
  • 3Sends the invoice by email or portal
  • 7Looks up the vendor and the purchase order
  • 9Matches the invoice to the order and receipt
  • 13Schedules the payment
  • 14Builds the payment run
  • 16Releases the payment in the bank portal
  • 17Posts the payment to the ledger

Rules and system feeds do the repeat work

Agents

Chase, ask, assemble the exception

3 steps

  • 5Opens the invoice and logs it
  • 8Codes the invoice to account and cost centre
  • 18Reconciles the bank and accrues unpaid invoices

Agents gather the facts and prepare the case.

Human decisions

A person signs

5 steps

  • 1Raises a spend request in the spend request tool
  • 4Confirms the goods or service arrived
  • 11Approves the invoice
  • 12Approves invoices above the approval limit
  • 15Signs off the payment run

A named person decides and signs.

Slides · 16:9 preview

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Slide 1
Accounts Payable process map: PulseIQDRAFT · UNREVIEWED | COMPOSITE DEMO · FIGURES ILLUSTRATIVE1 / 7WHAT THIS PROCESS ISHow a vendor invoice goes from abusiness team's request to money inthe vendor's bank, and into thebooks at month end. This is a demomap for a composite softwarecompany.WHY IT MATTERSMost of the effort sits in rework:chasing a missing PO, receipt orapproval, then fixing the entry.Agents take the chasing andpreparing. People keep thedecisions that need a signature.TODAY, STEP BY STEP (18)1Raises a spend request in thespend request tool (Requester(business team))2Checks the request and issues apurchase order (Procurement)3Sends the invoice by email orportal (Vendor)4Confirms the goods or servicearrived (Requester (businessteam))5Opens the invoice and logs it (APteam)6Re-keys invoice details into theAP system (AP team)7Looks up the vendor and thepurchase order (AP team)8Codes the invoice to account andcost centre (AP team)9Matches the invoice to the orderand receipt (Finance system)10Reviews the coding a second time(Approver (budget owner))11Approves the invoice (Approver(budget owner))12Approves invoices above theapproval limit (Finance leader)13Schedules the payment (AP team)14Builds the payment run (Financesystem)15Signs off the payment run(Finance leader)16Releases the payment in the bankportal (AP team)17Posts the payment to the ledger(Finance system)18Reconciles the bank and accruesunpaid invoices (AP team)
Slide 2
Overview: before and after at 3,000 feetDRAFT · UNREVIEWED | COMPOSITE DEMO · FIGURES ILLUSTRATIVE2 / 7BEFORE · 7 STEPS · 7 PEOPLE TOUCH IT · 1 LOOP BACKMissing POInvoicearrivesLog invoiceCheck POCodeinvoiceMatch toorderApproveinvoicePreparepaymentPay supplierInvoice paidAFTER · 7 STEPS · 4 AGENT STEPS · 3 HUMAN DECISIONSMissing itemInvoicearrivesGXIntake and POcheckGXMatch and codeGXChaseexceptionsReleaseflaggedexceptionApproveabovelimitGXPrepare andrisk checkSign offpayment runInvoice paid
Slide 3
18 steps became 8. 8 loops became 2.DRAFT · UNREVIEWED | COMPOSITE DEMO · FIGURES ILLUSTRATIVE3 / 7BEFORE · 18 STEPS · 7 OWNERS · 8 EXCEPTION LOOPSA Requestand orderB ReceiveC Code and matchD ApproveE PayF Record and closeRequester(businessteam)ProcurementVendorAP teamApprover(budgetowner)FinanceleaderFinancesystemRaise spendrequest1Issuepurchase2Sendinvoice3Confirmreceipt4Open andlog invoice5Re-keyinvoice6Look upvendor and7Code theinvoice8Match toorder9Review thecoding10Approveinvoice11Approveabove limit12Schedulepayment13Buildpayment run14Sign offpayment run15Releasepayment16Post toledger17Reconcileand accrue18Late POraisedVendordetailsChasereceipt orPrice orquantityChaseapproverDuplicatereversedPaymentredoneMonth-endaccrual
Slide 4
Future state: Accounts Payable process map: PulseIQDRAFT · UNREVIEWED | COMPOSITE DEMO · FIGURES ILLUSTRATIVE4 / 7AFTER · 8 STEPS · 5 AGENTS · 3 HUMAN DECISIONSA Request andorderB ReceiveC Code and matchD ApproveE PayF Record andcloseRequester andvendorAgentsFinancesystemHumans(decisionsonly)Raise spendrequest1Read and checkPO2Match and code3Ask formissing itemReleaseflagged item4Approve abovelimit5Prepare andrisk check6Hold riskypaymentSign offpayment run7Post andaccrue81Requester raises aspend request(Requester andvendor)AGENT2Reads the invoiceand checks it hasa PO (Intake andPO check agent)AGENT3Matches to orderand receipt,proposes coding(Match and codeagent)AGENT4Releases a flaggedexception (Humans(decisions only))HUMAN5Approves above theapproval limit(Humans (decisionsonly))HUMAN6Prepares thepayment run andchecks risk(Payment prep andrisk check agent)AGENT7Signs off thepayment run(Humans (decisionsonly))HUMAN8Posts payments andaccrues unpaidinvoices (Closeaccruals agent)AGENT
Slide 5
Same four buckets. Smaller firm, same method.DRAFT · UNREVIEWED | COMPOSITE DEMO · FIGURES ILLUSTRATIVE5 / 726 boxes on today's map: 10 to delete, 8 for automation, 3 for agents, 5 for a person to decide.×DeleteRework and repeats10 steps and loops6Re-key invoicedetails10Review the coding↻Late PO raised↻Vendor detailsrecheck↻Chase receipt orcoding↻Price or quantitygap↻Chase approver↻Duplicate reversed↻Payment redone↻Month-end accrualchaseFix the cause and the loop goes away.{ }AutomationRules, feeds and schedules8 steps2Issue purchaseorder3Send invoice7Look up vendor andPO9Match to order13Schedule payment14Build payment run16Release payment17Post to ledgerRules and system feeds do the repeat workAIAgentsChase, ask, assemble the exception3 steps5Open and loginvoice8Code the invoice18Reconcile andaccrueAgents gather the facts and prepare the case.✓Human decisionsA person signs5 steps1Raise spend request4Confirm receipt11Approve invoice12Approve above limit15Sign off paymentrunA named person decides and signs.
Slide 6
Before and after, by the numbersDRAFT · UNREVIEWED | COMPOSITE DEMO · FIGURES ILLUSTRATIVE6 / 7COMPOSITE DEMO · FIGURES ILLUSTRATIVEStepswas 18 steps8 stepsException loopswas 8 loops2 loopsCycle timewas 21 days5 daysILLUSTRATIVEStraight-through ratewas 22%78%ILLUSTRATIVECost per invoice enteredwas $14$4ILLUSTRATIVE
Slide 7
Documented versus actualDRAFT · UNREVIEWED | COMPOSITE DEMO · FIGURES ILLUSTRATIVE7 / 77 → 15DOCUMENTED VS ACTUAL · 7 STEPS ON PAPER · 15 IN PRACTICEON PAPERRaise request1Issue order2Receive invoice3Match and code4Approve5Schedule and pay6Record and close7IN PRACTICERaise request1Issue order2Late PO raisedafter invoice330% of casesReceive invoice4Vendor detailsre-confirmed512% of casesMatch and code6Receipt orcoding chased738% of casesPrice orquantity gap822% of casesApprove9Approver chased1035% of casesSchedule and pay11Payment redone128% of casesRecord and close13Duplicatereversed144% of casesMonth-endaccrual chase1525% of casesLOOP-BACKS↻Step 3 (Late PO raised afterinvoice) goes back to step 2(Issue order) in 30% of cases↻Step 7 (Receipt or codingchased) goes back to step 4(Receive invoice) in 38% ofcases↻Step 10 (Approver chased) goesback to step 9 (Approve) in 35%of cases↻Step 12 (Payment redone) goesback to step 11 (Schedule andpay) in 8% of cases↻Step 15 (Month-end accrualchase) goes back to step 13(Record and close) in 25% ofcases

PulseIQ is a fictional company. Figures illustrative.