e-Invoicing Business Case

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Nov 5, 2013 (4 years and 3 days ago)

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e
-
Invoicing
Business

Case



This
business

case has been prepared for clients to explain the proposed e
-
Invoicing project,
outlining its scope, project team members, timetables and the financial savings from
implementation. The document is a guide and can be adapted to individual situations.


How
to use this document



this is a template with suggested text for each section. You can use this
text or substitute it with your own, it is only intended as a guide. All text in blue gives information
about what each section of the
business

case is for
(re
move when the business case is complete)
and
financial
and other
information particular to your
organization

needs to be inserted where you see
red, bold text in square brackets.


Distribution list



this
business

case needs to be sent

to all interested parties, otherwise known as
stakeholders
.
This group will include group
s

both inside and outside the Finance department, and
some groups outside the
organization
. Here is a list (not exhaustive) of the relevant stakeholders
that need to
be on the distribution list:


-

Accounts Payable

-

Treasury

-

Management Accounts

-

Procurement

-

Organization

Leads and Purchase Order Raisers

-

IT

-

Suppliers


It is imperative that th
at these groups are involved in the initial project discussions and all the way
thro
ugh the project implementation and final project sign off. Many projects fail to deliver the
promised cash savings and operational efficiencies due to lack of stakeholder support from
an
early

stage

in the project

lifecycle
.




Executive
Project Summary

This is a high level summary of the key points in the document and should be able to read as a
standalone document. It is good practice to write this section of the
organization

case
after

the
detailed sections of the
business

case have been completed, in
order
to ensure all key information
has been included in the Project Summary. Think about the recipients

-

typically senior management
and/
or board members.


The Accounts Payable
function plays an important role in any
organization
, both within the Finance

function and outside it. It plays an integral role in cash

flow decisions made by Treasury, provides
information to
organization

leads, suppliers, Procurement and Management Accounts.


The highly transactional nature of the Accounts Payable function makes

it a prime candidate for
automation. The current processes are manual and effort intensive, requiring a large
number of AP
employees

to ensure purchase orders/invoices are processed and suppliers are paid. Error rates are
high and significant amounts of t
ime are spent chasing
organization

leads and/or purchase order
raisers for
invoice
authorisation
. The current cost of processing a supplier invoice is
[
$ X]



use the
Cost per Invoice calculator
in Appendix A
.

The average
cost per invoice of a
n

organizatio
n

that has
implemented e
-
Invoicing is
[$ X]
.


Benefits

The e
-
Invoicing project will deliver a number of financial and non
-
financial benefits:


1).
Revolutionise the AP Department
. Implementing the e
-
Invoicing solution will transform the
AP department from
a slow, manual, transaction focused department to a pro
-
active part of
the Finance function that delivers a seamless processing function and is free to spend more
resource time resolving queries and eliminating errors.


2).
Maximise AP Cash Flow Opportunit
ies
. Releasing AP resources to focus on value added tasks
with increased the opportunities for realising Early Payment Discounts offered by suppliers
and eliminating the occurrence of Late payment Charges.


3).
Improved Supplier Relationships
. By reducing
the invoice receiving, processing and payment
time, AP employees will have more time to deal with queries resulting from supplier invoices
and deal with them in a more timely manner. The implementation of the Supplier Internet
Portal will also provide accu
rate and timely information to the supplier without the need to
contact the AP department. Quicker payments and query resolution put Procurement in a
stronger position when it comes to renegotiating supplier contracts.


4).
Information Reporting
. The e
-
Inv
oicing system will provide timely and accurate reporting to
all parts of the organization. These reports will provide information to Procurement and
Treasury and assist them in the performance of their roles within the organization.


Project Scope

The scop
e of the project is
[ Define which departments and/or physical locations will be
transitioned to the new system ]

and the project timeframe is
[ weeks/months/years ]
. The project
team will be comprised of representatives from the impacted parts of the
orga
nization
:


-

Accounts Payable

-

Treasury

-

Procurement

-

IT

-

Organization

leads

-

Purchase Order Raisers


and will work closely to deliver the project on time and in budget. The project rollout will be
[
phased implementation / total changeover ]

and it is anticipated that there will be little or no
disruption to the AP invoice/expense processing function.


Risks

The primary risks to the project are technology selection and procurement, and user and supplier
acceptance of the new system. The first

risk will be mitigated by analysis of the current AP
processing issues and identification of the key requirement for the automated system that with
replace the current manual one. To mitigate the second risk, early consultation with users and
suppliers to

understand their issues and requirements will be incorporated into the project
requirements document. On
-
going consultation with these groups throughout the project
implementation and targeted training workshops will ensure continued project alignment and

user/supplier acceptance at project launch.


Financials

A Cost
-
Benefit analysis has been performed to ascertain the net savings of
[ $ X ]
that this project
will deliver. The Return on Investment (ROI) has been calculated as
[ X % ]

for the project with a

Payback Period of
[ X Years ]
.




Document Revisions and Reviewers/Approvers Tables

Use the table below to keep an audit trail or document revisions.


Revision
Date

Author

Version

Details of Changes Made














Use this table for the
business

case Reviewers and Approvers


Name

Position

Reviewer

Reviewer &
Approver

Signature of Approver

Date






















Current Situation

This section is used to give a detailed overview of the current Accounts Payable function within your
organization
. Include information about
employee numbers
, a description of the current process and
issues currently faced by the department.


The Accounts Payable function is part of the Finance function and currently employs
[ X ]

employees
.
Its principle

function is to process and pay suppliers invoices
, employee expense claims and
employees

travel advances
-

this is done using a highly manual process

requiring significant levels of
human intervention
.
The department currently faces a number of issues wit
h high error rates as a
result of this manual process. It is also unable to react quickly to the changing nature of supplier
invoicing methods (emails, document imaging, etc
.
) and is not taking advantage of the benefits that
can be achieved from implementi
ng new technologies.


Currently, a supplier invoice

is received in the AP department and is manually matched to the
relevant purchase order, if one has been raised. This activity
occupies a large proportion

of the AP
employees

on a daily basis. Providing the invoice matches the purchase order, it is
[sent
for
authorisation/passed for payment]
. If there is a discrepancy between the supplier invoice and the
purchase order, a query is raised with the supplier and/or the purchase o
rder raiser. This can be a
lengthy process and take up significant amounts of time for the AP
employees
, purc
hase order raiser
and supplier.


Once the query has been resolved, the invoice is
[sent
for authorisation/passed for payment]
. This
involves identi
fying which invoices are due for payment and applying any credit notes that have
been issued by the supplier. During this process, opportunities to take advantage of Early Payment
discounts offer by suppliers can be lost as AP
employees

are swamped by larg
e volumes of invoices.
Penalties for late payment can also be incurred unintentionally due to the vo
lumes of invoices being
processed.


Another significant work load for AP
employees

can be the reconciliation of supplier accounts,
esp
ec
ial
l
y when processin
g errors cause incorrect amounts to be paid. Both the AP
employee

and
supplier
can
become involved in lengthy communications and investigations to identify the nature of
the discrepancy and agree a process to resolve it.


This workflow diagram shows the c
urrent AP supplier invoicing process.
Use your own workflow
diagram or other visual representation

that represents your organization’s AP processes
.




The current cost of processing a supplier invoice is
[$ X]
. This is calculated by taking the total number
of invoices processed in a year and dividing it by the annual cost of the AP department. Companies
that have automated their AP function have an invoice processing cost of
[$ X], [%]

lower than our
current co
st per invoice.


Processi ng error
Supplier invoice
reissued
Supplier invoice
received
by AP
Does the
invoice match
the PO?
YES
Send invoice for
authorisation
NO
Raise query with
supplier and/or PO
raiser
Invoi ce
error
Is the invoice
authorised
for payment?
YES
NO
Supplier invoice
paid
Supplier statement
received by AP
Does the
statement
reconcile?
YES
Process Complete
NO
Investigate
differences
Correct AP system
(if required)
The AP department currently processes
[ X ]
invoices per annum, as well as
[ X ]

expense claims. The
total value of the invoices and expense claims processed per annum is
[ $ X]
.


The main issues faced by the AP department are as follows:


1).
High Processing Costs
. The annual volume of transaction processed by the AP department,
coupled with the manual processes currently employed, give a cost per invoice of
[$ X]
,
compared with the average for companies that have implemented the e
-
Invoici
ng solution of
[$ X
]
.


2).
High Error Rates
.
Because of the high level of human involvement in AP document processing,
the number of errors made is significantly higher than with an automated system.


3).
Lost Cash Flow Opportunities
. Early payment discou
nts offered by suppliers are frequently
missed, due to the volumes of transactions being manually processed.


4).
Supplier Relations
.
Continued errors and lengthy query resolution damage relationships with
suppliers and put Procurement in a weaker position

when it comes to renegotiating contracts.


5).
Lack of Quality Information for Decision Making
. The Treasury department relies on accurate
and timely information in order to plan the
organization
’s cash flow and financial resource
utilisation.
Information

provided by the AP department is currently manually collated and
inaccurate.




Pro
posed Solution

This section is where you explain how the e
-
Invoicing solution will resolve the current issues in the
AP department and how it will deliver processing
efficiencies and cost benefits.


The e
-
Invoicing solution is an automated system that removes a significant amount of human
interaction from the AP process. By automating the receipt, processing and payment of supplier
invoices, employee expense claims and

travel advances, AP
employees

are released from
transactional tasks to concentrate on value added work


reducing errors b
y

identifying the root
cause, resolving queries and delivering timely and accurate information for working capital analysis
and suppl
ier contract renegotiations.


The principle area of
organization

that will be impacted is the AP department, which will h
ave all or
most of its current manual processes

overhauled and replace
d

by the e
-
Invoicing solution. All
purchase order raisers will al
so be impacted as the current manual system is replaced with an
automated one. Procurement, Treasury and Management Accounts will have new sources of
timely
and accurate
information and suppliers will have a
n internet

portal that allows them to access
invo
ice authorisation progress and payment details online.


The e
-
Invoicing system will deliver the main areas of automation:


1).
Invoice Receipt
. This will allow the AP department to capitalise on new technologies and
accept invoices from suppliers electron
ically. Expense reports and travel advances will also be
submitted through the e
-
Invoicing system. Electronic tagging will record when the invoice is
received and match it the purchase order, if applicable. Any differences will be flagged and the
AP
employ
ees

will start the investigation to resolve the issue. This removes the manual task of
opening and recording of supplier invoices and expense claim
s which is a time consuming
activity

for AP
employees
.


2).
Invoice Processing
.
Using the
organization
’s own
levels of authority and s
ign off rules, the
invoice

will move through the automated processing system seamlessly. There will be no need
for human intervention unless
there is a query with an invoice

that has not already been
matched with a purchase order.
When all checks have been made
by the system, the invoice

will be marked for payment and passed to the automated payment part of the system. This
frees up AP
employees

to concentrate on securing Early Payment Discounts and
avoiding Late
Payment Penalties.


3).
Invoice Payment
. The e
-
Invoicing solution can make drastic changes in the speed of payment
as direct payments to supplier and employee accounts through ACH can remove the need to
manually generated cheques and other manual payments. System reports can

provide
info
rmation on outstanding supplier balances
, both current and future, to facilitate better
cash flow planning.


4).
Supplier Account Reconciliation and Query Resolution
. Using the online portal, suppliers can
submit invoices, check on the authorisation status of submitted invoices, respond to queries
and view payment details. This will reduce the number of telephone calls and emails that AP
employees

routinely have to de
al with and improve supplier relations.


5).

Management Reporting
. The e
-
Invoicing will provide information on supplier payments, cash
flow requirements, cost management and supplier information for
the Treasury and
Procurement
departments
to utilise when
assessing and renegotiating contracts with
suppliers. This information is currently collated manually and is often inaccurate due to
resourcing constraints and human error.




Project Detail

Use this section to give a detailed explanation of the scope of
the project, including timeframes,
implementation plans, project team, IT requirements and affected parties (stakeholders).


The project proposed by this
business case

will replace the existing manual Accounts Payable system
with an automated syste
m which
will drastically reduce

the
current
supplier
invoice processing time
.
It will also make significant improvements in AP error rates and free up AP
employees

to perform
more value added tasks.


The project timeframe is
[ define total project length in weeks/
months/years ]
. The proposal is to
address the following areas of the AP process:


1).
Invoice Receipt
. The aim of the project is to optimise technology to increase the number of
ways in which the AP department can receive documents from suppliers and empl
oyees;


2).
Invoice Processing
. The automated system will deliver significant financial savings by
drastically reducing the invoicing processing cost, as well as
delivering a reduced error rate;


3).
Invoice Payment
. By reducing the amount of time involved

in processing supplier invoices
, AP
employees

will be able to focus on maximising Early Payment Discount opportunities

and
reducing Late Payment Charges
, improving cash flow and working capital.


The intention is to implement a
[ phased implementation / t
otal changeover ]
. The stages of the
project are as follows:


-

An analysis of the current situation, discussing

the issues and problems of the existing
system with

all stakeholders
;


-

Proposed changes, including any manual processes that will remain

in place

to
comp
lement the e
-
Invoicing solution;


-

Implementation of the proposed solution, including
IT changes required to support the
new system

and training for all users (including suppliers)
;


-

Post project review.


[
The intention is to target a defined secti
on of invoices initially (e.g. all invoices covered by a
current purchase order) and then expand the scope of the project to include all other supplier
invoices, followed by employee expense claims and travel advances. This will allow the project
team to a
ssess the effectiveness of the project implementation plan, and make changes where
necessary.

]


One key consideration of the project is the technology required to deliver the savings. The IT
department is committing
[ Name ]

to the project and they have been involved from the project
inception. The e
-
Invoicing system will require
[ Give details of the IT infrastructure required to host
the e
-
Invoicing system ]

and
[ X hours/days/weeks/months ]
will be required to put the tech
nology
in place to deliver the automated system.


There will also be training requirements for all users of the system


AP
employees
, purchase order
raisers, employees submitting expense claims, suppliers, Procurement and Treasury


and these
requirements

will be based on the level and frequency of usage. It is intended to train AP
employees

first as they will be the main department impacted by the new system. The department will be split
into three training groups so as to not impact the current workload
of the department and the
project implementation timetable.


Project Team

Detail the key individuals who will make up the project team. Here is a suggested (but not
exhaustive) list of project team members:



Accounts Payable Manager


Accounts Payable team

member


Treasury and or Management Accounts representative


Procurement representative


IT representative


Organization

Leads/Purchase Order Raiser representative


Organization

Department

Project Member Title

Project Member Name

Accounts Payable

AP
Manager


Accounts Payable

AP Supervisor


IT

IT Technician


Organization

Leads

Purchase
Orders Raisers


Procurement

Organization

Account
Manager


Treasury

Financial Analyst






Implementation Plan

This table shows the stages of the project from
inception to completion and sign off. Adapt the
Projects Stages to your own project plan.


Project Stages

Deliverables

Stakeholder(s)

Project Length

Delivery date

Planning and
Analysis

Identify scope of
project, plan
timetable and
identify project
team

AL
L



IT development
and systems
changes

Software and
hardware
changes, testing

AP, IT,
Procurement



Move from
manual to
automated
system

Implement e
-
Invoicing solution
though out
organization

(all
areas in scope)

AP, IT,
Procurement,
Organization

Leads, Treasury



Training

Provide
workshops

ALL



Project Launch

&
Promotion

Roll out to
organization

ALL



Post Project
Review

Analyse
effectiveness of
project
implementation
and evaluate cost
benefits

ALL





Risks

This section highlights the
project risks to the reader so that they have a full understanding of the
implications of going ahead with the project implementation.


As with any project, there are a number of associated risks that must be considered when planning
an implementation such

as this.


1).
Technology
. The backbone of an automated system is the technology that is used to run and
support it. Great care must be taken at the inception stage of the project to ensure that the
right solution is chosen as poor decisions at this stage
will affect the implementation and user
acceptance of the proposed solution. Considerations must be made on hardware
requirements, both
for
now and in the future.
Have all the current issues and their causes
been correctly identified and does the proposed
solution resolve them? Will the new system
incur annual maintenance costs over and above those detailed in the solution supplier’s quote
and does the proposed system have the development potential to grow with the
organization
?


2).
User Acceptance
. This i
s a very important consideration for the project proposer(s).
I
f the
system is rejected by th
e users, the whole project will have been a waste of time and
resources and may generate bad feeling within the
organization
. All stakeholders/users must
be consul
ted at the inception stage of the project to understand their issues and frustrations
with the current system in order to build those requirements into the proposed solution.
These stakeholders/users must also be involved (where possible) in the project
im
plementation and kept informed of its progress.


3).
Supplier Acceptance
.
One of the main benefits of implementing an automated e
-
Invoicing
solution is to improve supplier relations b
y

providing timely information about invoice
authorisation progress, planned supplier payment and queries with supplier invoices
.

The e
-
Invoicing system deli
vers this through the Supplier Internet P
ortal and it is imperative that the
suppliers receive train
ing to use this portal, but are also involved in a consultative capacity
(through the Procurement department)
at an early stage of the project so that they
understand the positive benefits for them. If suppliers do not engage with the system,
resources gai
ned from automating the internal process will be redirected to dealing with
supplier telephone calls and emails, rather that the value added work envisaged

in the project
benefits
.


4).
Resources
.
The project team assigned to deliver the may not remain the

same through the life
of the project
.

This can have a disrupting effect of the project’s progress. The skills required
from each team member to deliver the project need to be evaluated and an alternative
resource identified should a team member not be abl
e to complete the project. Of course,
holidays and other absences need to be factored into the project timetable, where possible.


5).
Funding
. This is crucial


if there are insufficient funds to complete the project it will have
been a waste of time. It
is imperative that the financial analysis (see below) is thorough and
includes a contingency amount for unforeseen expense. All annual costs must be accounted
for as these can often be cited as a reason for dropping a system after it been implemented,
beca
use the
organization

had not realised how much it would cost to maintain it. If the
business

case promises cost s
avings, ensure that they can be

delivered within the stated
timeframe.




Alternative Options

The purpose of this
business

case is to propose a

solution to an identified problem
(s)
. However, the
alternative options should

be considered in order that the reader has all the information to make an
informed decision.


Alternative Option

Assessment of Alternative Option

Do Nothing



Continued inefficie
ncies and loss
cash flow
opportunities (Early
Payment Discounts
/Late Payment Penalties
)



Inaccurate information for cash flow and supplier management



Limited capability of current AP resources to deal with
organization
al growth


AP Outsourcing



Significant disruption of
organization

processes whilst
outsourcing takes place



Negative
employees

relations as a result of AP redundancies



Associated costs of
employees

redundancies



Concerns over data security

Develop an internal solution



Time consuming
,

costly and frequently not fit for purpose



Lack of IT development resource

Partial implementation of e
-
Invoicing solution



Not all benefits will be realised as e
-
Invoicing is an end
-
to end

solution



Issues with support from e
-
Invoicing supplier if only part

of
solution is implemented



Loss of functionality




Financials

This section details the cost of the project, the cost savings that the project will deliver and shows
the Return on Investment (ROI). A Cost
-
Benefit analysis allows the reader to see how the

up front
and annual costs will deliver tangible benefits to the
organization

which will help improve its bottom
line.

Make sure that you include all costs, both one off and annual, so that the reader can see the
true cost of the project. Ensure all
savings identified are clearly understood and can be delivered.


The costs of the e
-
Invoicing project are far outweighed by the benefits, both financial and non
-
financial, that it will bring to the
organization
. The Cost
-
Benefit analysis below shows the co
sts and
benefits that will be delivered by the project over a three year period.



Cost Benefit Analysis


Costs

Description

Year 0

Year 1

Year 2

Year 3

Up Front
Investment

Capital costs of hardware, software
and any other capital investment
required to
implement the e
-
Invoicing solution

[ $ X ]




Implementation
Costs

All expenses associated with
implementing the project, e.g.
consulting, training, temporary
employees

to provide cover, etc.

[ $ X ]




Annual Costs

Software and hardware
maintenance
contracts, additional
training


[ $ X ]

[ $ X ]

[ $ X ]

Ben
efits

Description

Year 0

Year 1

Year 2

Year 3

Reduction in AP
Invoice Processing
Costs

Savings from efficienc
i
es and
better utilisation of AP resources


[ $ X ]

[ $ X ]

[ $ X ]

Reduction in
Payment
Processing Costs

Savings achieved by moving to
direct supplier payments from
manually produced cheques


[ $ X ]

[ $ X ]

[ $ X ]

Error Rate
Reductions

Savings from better utilisation of
AP
employees

resources due to
fewer incorrect payments and
int
ernal error corrections


[ $ X ]

[ $ X ]

[ $ X ]

Employee

Reductions /
Increased
Profitability of
Current AP
Employees

Savings from lower number of AP
employees

to process current
invoicing volumes or saved costs
from not having to employ
additional AP
employees

to deal
with increased invoicing volumes


[ $ X ]

[ $ X ]

[ $ X ]

Enhanced Visibility
and Working
Capital Control

Savings generated from optimising
Early Payment Discounts and
minimising Late Payment Penalties,
better Working Capital
management


[ $ X ]

[ $ X ]

[ $ X ]

Net Savings


[ $ X ]

[ $ X ]

[ $ X ]

[ $ X ]



Discounted
Return on Investment

(ROI) and Payback Period

This is the
ratio of money gained or lost (whether realised or unrealis
ed) on a
project,
relative to the
amount of money
invested

in the project.

The ROI formula is as follows:





Total Present value of Benefits





Total Present Value of Costs


and is expressed as a percentage or a ratio.

Present value
, also known as
present discounted value
,
is the value on a given date

of a payment or series of payments made at other times

(source
:

Wikipedia)
.

The formula for Present Value is:



C

.


( 1 + i

) ( 1 + i


) ( 1 + i


)


where C is the value


i is the annual interest rate


In
calculating the ROI for the e
-
Invoicing project, you mus
t take into account all financial

benefits
and costs, both one
-
off and annual. Here is a list of project investment and annual running costs that
should be included in the calculation:



Project Inves
tment

(On
-
Off Costs)

-

All hardware, software and other IT development costs

-

Project consulting fees

-

Training costs

-

Temporary
employees

required to enable AP
employees

to implement the project and
take part in training workshops


Annual (On
-
Going Costs)

-

Employment costs for the AP department

-

Non
-
employment costs for the AP department

(including operating expenses)

-

Annual hardware and software maintenance fees

-

Annual retraining costs

-

Data storage

-

Consumables, including printing, fax and postage/courier cos
ts

-

Early Payment Discounts lost/Late Payment Charges incurred

-

Total cost of invoice processing


The ROI can be calculated by year or on the project as a whole.


A full analysis of the project costs and savings has been made and the ROI has been calculated
as
follows:




Year 1
-


[ X % ]



Year 2
-

[ X % ]



Year 3
-

[ X % ]


Another good measure for evaluating the financial performance of the project is the PayBack

Period.
This shows the point at which the benefits of the project repay the costs of implementing it. This KPI
is usually expressed in years.





and the Payback Period for the project is
[ X years ]



Assumptions

A number of assumptions will have been made in putting this
business

case together. It is important
that the reader understands what assumptions have been made in order to understand if they
represent a risk to the project.


The following assumptions have
been made in putting this
business

case together:




The project funding is available and will be approved




Full support has been obtained from the stakeholders and future system users




All training requirements have been assessed and will be provided as par
t of the
project implementation plan




All resourcing requirements required for the project can be met




The project has senior management support




Conclusion

This final section brings together the main points from the details sections of the
business

case

to
provide a summary of the key points for the reader. Make sure that all summaries and conclusions
made in this section are also included in the Executive Project Summary at the beginning of this
business

case.


The conclusion of this
business

case is th
at the implementation of the e
-
Invoicing automated AP
solution would bring quantifiable benefits to the
organization
.
It will bring the AP department in line
with rest of the
organization

in utilising technology to deliver invoice processing efficiencies and cost
savings. In summary, the benefits of implementing this solution are as follows:


1).
Revolutionise the AP Department
. Implementing the e
-
Invoicing solution will transform the
AP department from a slow, manual, transaction focused department to a pro
-
active part of
the Finance function that delivers a seamless
processing function and is free to spend more
resource time r
esolving queries and eliminating errors.


2).
Maximise AP Cash Flow Opportunities
.
Releasing AP resources to focus on value added tasks
with increased the opportunities for realising Early Payment Discounts offered by suppliers
and eliminating the occurren
ce of Late payment Charges.


3).
Improved Supplier Relationships
.
By reducing the invoice receiving, processing and payment
time,
AP
employees

will have more time to deal with queries resulting from supplier invoices
and deal with them in a more timely man
ner. The implementation of the
Supplier Internet
P
ortal will also provide accurate and timely information to the supplier without the need to
contact the AP department. Quicker payments and query resolution put Procurement in a
stronger position when it co
mes to renegotiating supplier contracts.


4).
Information Reporting
.
The e
-
Invoicing system will provide timely and accurate reporting to
all parts of the
organization
. These reports will provide information to Procurement and
Treasury and assist them in t
he performance of their roles within the
organization
.


It is recommended that the e
-
Invoic
ing project should be implemented
, subject to senior
management approval and the investment funding required being secured.



Append
ix A

Calculating the Cost per Inv
oice

This is a quick method of calculating the Cost per Invoice for use in the
business

case. Make sure you
include payroll costs within the annual running costs, plus any allocated
organization

overheads cost.




Total Number of Invoices Processed
and Paid
Annually




AP Department’s annual running costs