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Building a Document
Management Plan Part II
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by Ray Griffiths |
Editorial Note: In
Part II the focus is still on proper planning for a document
management system. This next phase, goes deeper into exploring the
specific needs of a document imaging solution.
Kay
Graham-Gilbert
Continued from Part I
Accounts Payable Entry Level
As organizations look to drive down costs and improve efficiency,
manual and time-consuming processes in accounts payable (A/P) are an
ideal place to start. A/P processes may require approval on many levels, and generate huge
volumes of paper and electronic documents that are difficult to
effectively manage. |
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Document imaging systems enables companies to achieve process
efficiencies and cost savings in three key areas:
* Capture, storage and retrieval of data and documents
* Automation of critical business processes to drive efficiency
* Sharing of information and extension of processes to internal and
external resources
Integration with ERP and LOB applications allows companies to
seamlessly enable a single interface to all payables transaction
content, and extend automated processes into these applications.
Integration will significantly improve response times, eliminate
time-consuming duplicate data entry, reduce errors, increase
processing efficiencies and enhance levels of service. |
Implementing document management/imaging technology helps managers and
employees identify, classify, track and manage all forms of A/P
information, from inception through the end of the content lifecycle.
The technology manages all types of corporate records, regardless of
whether the record is in the form of a physical document, an email with
attachments, or an electronic spreadsheet. The solution allows users to
establish retention periods, organize and retain these documents and
other assets for legally required amounts of time, and provide quick, on
demand access to them.
As was stated in Part I of this series, a document imaging system in
accounts payable will have good ROI if some or all of these conditions
exist:
1. There are 5 or more payables clerks
2. They are manually matching checks
3. Invoices have to be approved after they are received.
4. Receivers are being printed and sent to accounting.
5. Some payables become receivables.
6. You process hundreds of invoices every week from the same vendor(s)
Much of the processing in accounts payable can be automated to some
degree by using document imaging technology. An analysis of the
department will determine to what degree you can automate and realize a
good ROI. This article addresses entry-level document imaging and how
you can make it pay off.
An accounts payable department with at least 5 employees should be able
to justify a document imaging system based on vendor research and check
matching. These two functions may take 30% or more of a clerk’s time.
Eliminating check matching and reducing the time it takes to research
vendor issues will increase productivity 15-20%. In addition you will
have better control of your invoices, and auditing will be faster and
cost less.
Setting up an entry-level document imaging system is not complicated
it just requires a plan. The first step is taking a document inventory.
* Get samples of all documents that are part of the invoice paying
process, which may include but is not limited to:
o Purchase order
o Packing slip
o Receiver
o Invoice
o Expense report
o Check
* Read How to select a document imaging scanner to help you select the
right scanner for your needs.
* Determine origin of each document and how it is created.
o Internally or externally
o Computer generated
* Follow the flow of each document and determine how each document
affects the process and the disposition of each document.
* After an invoice has been paid which documents are filed with the
invoice and which documents are in other locations.
o Are checks matched with invoices and attached to the invoice?
* What are the retrieval requirements after the documents have been
filed?
o These are the typical index keys used in accounts payable.
+ Purchase order number
+ Vendor number
+ Invoice number
+ Check number
Usually in accounts payable invoices and packing slips are scanned and
indexed. The purchase order, receiver and check can be captured from the
print spooler through a COLD (Computer Output to Laser Disk) process.
These documents can be auto indexed by the COLD process.
Is there a need to match and verify check amount and vendor against the
invoice?
· Database integration can be used to automate the check matching
process.
The next step is to answer some questions about how to size your
entry-level system.
1. How many documents per day will be scanned?
2. How many users will be retrieving documents?
3. How many years of documents will be on line?
It is always a good idea to check with your computer department and find
out what server platforms they prefer.
The last step is to determine where you want to go with document
imaging by answering the following questions.
1. Do you want to do work flow in accounts payable?
2. Do you want to automatic data extraction from invoices?
3. Are there other departments that will use document imaging?
After you gather all of this information you will be ready to set-up
meetings with vendors. Choosing the vendors to talk to will be a
challenging task. The requirements of the computer department may limit
your selection. Windows 2003 or Linux is the most common platforms used
for document imaging. You can start your search for vendors by doing a
search on the Internet. Look at the vendors web pages; this will give
you some information about their products. Select several to contact and
set-up an initial telephone call or visit to start the process. On
the initial visit you need to determine:
1. What server platforms are supported
2. Are their systems open
1. Not hardware dependent
2. Images stored in standard formats
3. Provision for exporting images with associated data
3. Do they have the features that match your requirements
4. Is their system scaleable
5. How is their system serviced
1. Can they work on the system remotely*
2. Do they have source code
3. What are the annual service fees
6. Three references
7. Will their system fit into your budget
Call the references before moving forward.
Select no more than three vendors for the final phase of the process.
Have vendors demonstrate their system. Give them samples of your
documents to use for the demonstration.
After the demonstrations are complete decide which of the vendors you
what to give you a proposal.
If you would like some help with this
process send an email to
consulting@documentimgingnews.com
* If a company can work on your system from
their office you will get faster service
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2005 Interactive Consulting. All rights reserved.
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