| Status | Approved |
| Owner | |
| Stakeholders |
Issue
Syensqo currently use Readsoft as an Invoice Management tool and as an OCR scanning tool for Supplier Invoices.
This tool handles the scanning into the system and the processing and approval of Inbound Supplier Invoices - eg who has to approve an Invoice higher price than the PO? Or perform a missing GR if required.
With the transition to S/4 HANA Private Cloud edition this will need to be reviewed.
The options are
- Do not use any Invoice Approval tool
- Use a non recommended SAP 3rd Party tool - not advisable due to the significant effort to get it integrated with S/4 HANA Cloud tools and Fiori
- use the SAP recommended tools
- Readsoft - which is currently installed for scanning globally and for Invoice processing
- OpenText - currently not installed but is the recommended SAP option as SAP have a strategic agreement with OpenText. Currently marketed to SAP customers as SAP IM
There are two tools involved here - scanning and invoice , both can be done by both so
| Scanning Tool | Processing Tool | |
|---|---|---|
| Open Text | Open Text | |
| Open Text | Readsoft | |
| Readsoft | Readsoft | |
| Readsoft | OpenText |
Recommendation
The recommended option is to
- Use Open|Text VIM (aka SAP IM) for Invoice processing as its better integrated to S/4 HANA Cloud editions and already has Fiori Apps.
- Use the OpenText OCR as using the same provider for both processing and scanning ensures better compatibility, easier upgrading/patching going forward and minimises licence costs
- ECC will continue to use Readsoft and as users switch over to the S/4 HANA they will use Opentext.
As the recommended SAP option for S/4 HANA Cloud - OpenText/SAP IM for Invoice Processing due to its greater compatibility with S/4 HANA Cloud editions.
replacing Readsoft to ensure smoother implementation and synchronised Upgrades & Patching
Background & Context
Supplier invoices coming into Syensqo will need a process to approve invoice in the following scenarios
- PO Based Invoices where there is a price discrepancy
- PO Based invoices where there is a quantity discrepancy or no GR has been entered
- Non PO Based Invoices that need to be coded to a cost object and approved by the cost object owner
Whilst its tech
Assumptions
The volume of invoices that will require some kind of approval will be too high for a purely manual process.
Not having any invoicing tool is not practical
Whilst its technically possible to use a scanning tool from one supplier and an invoicing processing tool from another it does cause issues.
The use of two different systems run by different vendors means there are
- Potential gaps with dataflows, error handling & workflows
- Custom integration/Middleware
- Compatibility issues
- More complex implementation
- More complex Upgrades & Patching
In addition OpenText gives both OCR and Invoice Processing as a single licence.
So there would be a cost implication to using Readsoft for OCR and OpenText for Processing.
The more important factor is the invoice processing - as all invoices that come in will need to go through the processing, but only invoices that are scanned (ie not EDI, Ariba Network, Govt Portal etc) will go through the OCR system.
Processing choice is more important thant he OCR choice as OCR is only a portiaon of
Constraints
The Invoice Management tool should be
- Able to handle invoices coming into the system from a number of sources - eg eMail PDF scans, Government Portals, SAP Business Network, EDI Inputs
- Able to ID the correct approvers and transmit Invoices to them with minimal manual input
Local governments can mandate the use if an Invoice Portal for all invoices to be passed through - so the system will need to be compatible with this.
The system should be able to receive inbound invoices from multiple sources - eg Portals, SAP Business Networks, EDI etc
The system should be compatible with S/4 HANA Cloud Private edition before system build.
Impacts
If the invoices are not processed and approved in a timely fashion then the suppliers of Syensqo may begin to refuse to supply Syensqo and so cause disruption to the business
If the Invoice Management tool is not reliable or does not integrare ot SAP smoothly then invoices payment may be delayed
If hte tool is not reliably integrated with S/4 HANA Cloud then errors and lost data coudl occur causing disruption and delays to payments to suppliers.
Business Rules
All PO related Invoices that have differences outside of tolerance levels will require approval.
Invoice payments on time are tracked and monitored for compliance with local prompt payments standards so timely payment is a requirement.
Local governments can mandate the use if an Invoice Portal for all invoices to be passed through - so the system will need to be compatible with this
Options considered
The following options were considered
Option A: Use Readsoft
Use one of the tools already recommended by SAP and (where possible) approved or validated for working with S/4 HANA Cloud
Note that currently only OpenText is validated as the preferred tool for S/4 HANA Cloud - but the actual selection of Readsoft or OpenText can be handled at Detailed Design
Option B: Use OpenText
Use one of the tools already recommended by SAP and (where possible) approved or validated for working with S/4 HANA Cloud
Note that currently only OpenText is validated as the preferred tool for S/4 HANA Cloud - but the actual selection of Readsoft or OpenText can be handled at Detailed Design
Evaluation
Use SAP Readsoft Process Director & OCR | Use SAP OpenText VIM & OpenText OCR | Use SAP Readsoft Process Director / OpenText OCR | Use SAP OpenText VIM / Readsoft OCR | |
|---|---|---|---|---|
| Functionality |
- PO Invoice Financial Price Difference - PO Invoice Financial Quantity Difference - No PO Coding and Approval Customisable Workflows Reporting tools Code exists inside SAP
|
- PO Invoice Financial Price Difference - PO Invoice Financial Quantity Difference - No PO Coding and Approval Customisable Workflows Reporting tools Code exists inside SAP
|
- PO Invoice Financial Price Difference - PO Invoice Financial Quantity Difference - No PO Coding and Approval Customisable Workflows Reporting tools Code exists inside SAP
|
- PO Invoice Financial Price Difference - PO Invoice Financial Quantity Difference - No PO Coding and Approval Customisable Workflows Reporting tools Code exists inside SAP
|
| Syensqo Knowledge |
|
|
|
|
| Adaptation to Cloud |  Con Generally, Process Director is compatible with S/4 HANA, but Kofax (which acquired Readsoft) is working on ensuring compatibility with S/4 HANA cloud environments and some features or customizations might need to be adjusted or re-implemented for the cloud environment. |
| Con Generally, Process Director is compatible with S/4 HANA, but Kofax (which acquired Readsoft) is working on ensuring compatibility with S/4 HANA cloud environments and some features or customizations might need to be adjusted or re-implemented for the cloud environment. |
|
| Standard Fiori Apps | Con Readsoft is developing Fiori Apps for Process Director |
| Con Readsoft is developing Fiori Apps for Process Director |
|
| OCR to Approval Integration |
|
|
|
|
Pro Covers the required SAP Invoice approval and management functionsSee also
Change log
Workflow history
| Title | Last Updated By | Updated | Status | |
|---|---|---|---|---|
| There are no pages at the moment. | ||||