Case Study

Invoice processing steps up a gear at Deutsche Post

Deutsche Post AG has been successfully transformed from a state-owned enterprise to a modern service provider. The company is even using a service-based operating mode for internal processes. The group-owned Shared Service Center Accounting in Cologne is now processing all paper-based incoming invoices using Invoice CENTER from Open Text Document Technologies. Each year, they process around one million payment transactions for the approximately 8,000 organizational units. Productivity has increased by another 25 percent since the system has been in use.

The user

With 470,000 employees worldwide and a business volume of 63,5 billion euros in 2007, Deutsche Post AG is one of the largest German enterprises. Deutsche Post moves more than 70 million letters each day and that, combined with their mail, express, logistic and financial services, makes them the largest post enterprise in Europe. As an internal service provider, the Shared Service Center Accounting in Cologne performs all accounting tasks for Deutsche Post and its twenty subsidiaries. This includes general ledger and fixed assets accounting, accounts payable and receivable, closing as well as cost accounting and profitability analysis.

The challenge

By implementing the project “DRIVE” [Digitale Rechnungs-Integration und Verarbeitung (digital invoice integration and processing)], Deutsche Post aimed to optimize processes and thereby cut down on costs. A crucial factor in choosing an automated solution was that it should have a high recognition rate and thus significantly reduce the data entry effort in SAP ® R/3®. Another requirement from the Shared Service Center was that the new solution had to be fully embeddable in the already existing SAP Business WorkflowTM.

The solution

For their DRIVE project, Deutsche Post AG chose to implement the Invoice CENTER from Open Text Document Technologies. The entire system is integrated in SAP ® and is supported by a web client application. The digital invoice process begins with preparing and scanning the incoming mail – after this, the process is paperless. The digitized invoices are electronically archived and transferred to Darmstadt where the DOKuStar recognition software – a part of Invoice CENTER – reads in the required accounting data. The software automatically recognizes around 70 percent of all account-relevant data. This rate is improved in subsequent project phases using supplierspecific recognition rules. Any missing or incomplete information is added during validation. Once all of the invoice data has been completely captured, the accounting entry is made. Invoices relating to an existing order in SAP are automatically compared and balanced. All other invoices are processed by the accounting clerk and booked to the appropriate account. If required, approval can be requested via e-mail from the responsible manager of the cost center of the 8,000 organizational units in Germany. The recipient opens the e-mail and, by clicking a hyperlink contained therein, can view, verify and authorize the document in a web browser. The e-mail can also be forwarded to additional recipients. An SAP connection is not required at the external workstation. The application communicates with its own application server that constantly informs SAP Business Workflow about the current invoice status. As soon as all of the persons in charge have authorized the invoice, the accounting clerk in the Shared Service Center receives a confirmation and he or she settles the account. Paper transfer to assist with invoice processing is unnecessary. This saves two days or more.

The Advantage

With the DRIVE project, Deutsche Post AG has implemented a workflow system for incoming invoices that makes it possible to settle them on the same day. In this way, Shared Service Center Accounting has increased its productivity by 25 percent. “The accounting employees profit from this system by being able to view all of the important information at a glance,” explains Dietrich Franz, project manager for Process Organization Accounting at Deutsche Post AG. “At the same time,” he continues, “we were able to increase our customers’ satisfaction by settling accounts on time and without complications.” DRIVE is an application that can be used internationally throughout the entire enterprise.

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