Albert BuijzeDecember 2018
Mission PossibleAccounts Payable State of the Art Process
Agenda
• Introduction ASML• Principles• Current Process• Why, How, What• Digital World: Simplify, Transpose. Accelerate• Lessons learned
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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
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New devices, new applications
Micro mirrors for beamers (TI)
Lab on a Chip (LOC) for counting red blood cells
On-Chip DNA amplification and detection (imec/Panasonic)
Wearable sensors(Holst Centre)
Textile integrated health patch
Simband with health monitoring (Samsung)
Cell sorter to detect metastization (imec)
Imaging drone to monitor crop growth and yield (imec)
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ASML makes the machines for making those chips
• Lithography is the critical tool for producing chips
• All of the world’s top chip makers are our customers
• 2017 sales: €9.1 bln
• More than 20,000 employees (FTE) worldwide
Virtual Close
More Than Technology
The virtual close is not just a matter of rolling out new technology. It requires a sustained, companywide effort to redesign our processes
World Class Finance
17 December 2018
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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
How to accelerate business growthFebruary 5, 2013
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2.0
Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Scope
• Assignment : AP from Score Keeper to Business Partner• Transparent AP Process, Stable Controlled• Low Cost and Sustainable
• Annual Spend 2017• 6.8 billion in value• 525.000 invoices • 5.500 active suppliers World Wide
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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Validating Electronic Invoices on the Network
InvoiceERP
GST/VAT Compliance
PO & PO-Line Match
Buyer Match (non-PO)
UOM & SKU Change
Currency Match
Sub Total& Total Amount
PO-Line Change
Line & Total Consumption
Thresholds
Shipping & Tax Thresholds
InvoiceNumber
Bill To / Ship To
PO Number
Requestor(Non PO)
InvoiceDate
VAT / GSTIDs
AccountCoding
Workflow
Compliance
Suppliers
98% Touchless Processing
Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
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ASML Accounts Payableprepare for the Digital-First Worldrevolutions in technology, societal engagement, and enterprise operations will converge to change the way we all do business by the end of this decadeSimplify processes, Transform platforms, and Accelerate information delivery
Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Current ProcessAccounts Payable is Posting Invoices
DHC Scan center
AFI Ctrl Box
ASML
Ariba Network
WORK
FLOW
SUPPLIERS
Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Facts & Figures 2012 & 2018• Auto posting rate of invoices went up from 40 to 85%
• Total FTE reduction since 2010 is 20 till now, process and automation improvements
• 50% vendors enabled (invoice volume) on Ariba Network in two years • More PO’s, Better Spend Control. No maverick buying• Throughput time reduction from 22 days to 7 days on
average. Happy Flow was 10 minutes.• Processing cost reduction from 30 euro to 3 euro per
invoice
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Principles – Process – Digital World – Why, how, what – Financial Control – Lessons
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ASML Accounts Payable
Simplify processes, Transform platforms, and Accelerate information delivery
Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Simplify• Understand P2P Chain• Respect the stakeholders in P2P process• Use Buckets
• Split Spend in digestible parts • Create Clear Processes per bucket• Automate
• Posting Invoices is easier through clear process and instructions (students instead of Flex)
• Vendor Master Data Management through MDG, (later combined with Ariba Network)
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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Procurement to Pay Chain17 December
2018
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BusinessDemand
Procurement
Vendor
Accounts Payable
Service Providers(In- & External)
Treasury
Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Transform• From Manual Posting of received paper invoices to
• AFI Tool with logic and auto posting• Manual posting is boring and is not stable
• Paper invoices to PDF to scan center• Ariba Network for e-invoicing, plus rules• Students, incorrect posting rate did not change
• More Flexibility• Vendor Master Data Management through Ariba
Network in MDG, SAP
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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
One Source of Truth (less IT, interfaces)
• AFI software• All invoice related events, from invoice date to
payment date, per invoice are registered in AFI• AFI is basis for reporting. Combined with BW and
Spotfire• This way issues can be monitored and improved
• Software Development by ASML AP and AFI and Ariba
• SAP, BW, Spotfire, daily automated reporting
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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Accelerate• Ariba Network, e-collaboration
• Prohibit incorrect invoices entering SAP• Fieldglass, better Flex Process
• Easy hiring, quality, stable process, self billing• Transparix, Freight solution, autoposting• EasyBuy development
• Contract buying and PO’s• Rent contract PO’s
• Less depending on IT services• SAP, HANA, Spotfire, on-line automated reporting
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Current ProcessAriba – AFI – SAP PO- Invoice Integration
Tibco
DHC Scan center
AFI Ctrl Box
AFI(enrich)
MIRO(book&match)
SAPInv. XML Inv. XML
Inv. XML (Push)
Inv. XML (Pull)
Inv & PO Approval
task
Inv. Appr. Idoc
Livelink
Existing PR & NPR Invoices
Task
ASML
POPO Appr Idoc
PO XML (Push)
TIFF
Ariba Network PO Idoc
Approved Ariba PO
Ariba P2O
Supplier
NPR PO’s
PR PO’s
PO (copy)
WORK
FLOW
Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
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SAP
To Be Process Ariba – SAP
PR & NPR Invoices
Ariba Network
Approved Ariba
PR-PO
SUPPLIER
NPR PO’sPR PO’s
ASML Ariba AddOn
Livelink / SAP xECM
SAP IM
Principles – Process – Why, how, what - Digital World – Financial Control – Lessons
Lessons Learned over 10 years
• You can only excel if you understand and work with the entire chain, in this case the P2P chain, P2P Process
• Pay Lots of Attention to Details• Never Trust your External IT service providers• Always ask for POC (Proof of Concept)• Be aware of the IT “JWGWJBS” syndrome• Internal awareness, need for change• Vendor Awareness• Software Development by ASML AP, AFI and Ariba • Involve Internal Control from Day 1
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