Case Study

Powered up: invoice processing at Stadtwerke Leipzig GmbH

Invoice CENTER processes grid utilization invoices

It comes as no surprise that Invoice CENTER for SAP® can process commercial invoices. But that's not all. Stadtwerke Leipzig not only relies on Invoice CENTER for SAP to read and analyze commercial invoices, but also complex grid utilization invoices. Entering such invoices manually is enormously time-consuming, as they generally consist of tables extending over several pages. With Invoice CENTER for SAP and the integrated DOKuStar data analysis application, these invoices can now be processed in a fraction of the time originally required. Stadtwerke Leipzig has thus minimized the time required for manual work in the relevant departments and the costs associated with invoice processing, thus significantly boosting efficiency.

The user

The mission of the 1,200 employees of the Stadtwerke Leipzig is to provide electricity to private households and to commercial and industrial customers. This would not be possible without external contractors and other business partners who invoice their services to Stadtwerke, issuing not only standard commercial bills, but also grid utilization invoices. Thanks to the Energy Industry Law, which came into force on 28 April 1998, and the resulting liberalization of the German energy markets, customers in Germany can now choose their electricity suppliers. They are thus no longer dependent on their regional utility company. Conversely, Stadtwerke Leipzig also delivers electricity to customers not directly attached to its own grid. Existing grids are used for transmission, with the Stadtwerke using its own lines as well as those of other utility companies. Grid operators are required by law to provide transmission capacity for the electricity of their competitors. The grid operators are entitled to bill the actual costs incurred in a grid utilization invoice. The objective of Stadtwerke Leipzig was to automate the processing of grid utilization invoices as well.

The requirements

The sheer volume of 30,000 commercial invoices and 30,000 grid utilization invoices a year – a figure expected to increase in the near future – is not a problem for Invoice CENTER. The actual challenge for the system is the layout and structure of grid utilization invoices. They come from a wide range of grid operators with considerable differences in appearance, structure and color. But that's not the only hurdle to be mastered by automatic invoice processing – the invoices also have an average length of three pages and frequently contain tables extending over multiple pages. Stadtwerke needed a system that would integrate with its existing SAP system in such a way that the SAP workflow would control and log the entire process. Integration with the existing FileNet archive was deemed essential, as was document archiving in compliance with GDPdU standards.

The solution

Invoice CENTER for SAP is the optimal solution for all requirements related to invoice processing. The system is fully integrated in the SAP workflow. Invoices are already scanned in the mailroom and immediately placed in the attached FileNet archive (early archiving). The SAP workflow then sends the digitized invoices to the DOKuStar document analysis application, which recognizes the multiple-page documents, extracting and analyzing all relevant invoice data – including tables extending across several pages. All of the acquired data is automatically checked against the SAP database. The grid utilization invoices are checked in terms of content and calculation in a separate SAP module downstream of Invoice CENTER for SAP. After the invoices are verified and approved, their data is forwarded for posting and payment. Parallel to this, the data required for invoicing of Stadtwerke customers is extracted and sent to the invoicing service provider. The approval cycle follows the analysis of general supplier invoices. The SAP workflow transfers the invoices to be approved to the Invoice Cycle ad hoc workflow. Invoice Cycle is configured to also permit users without SAP access to check and approve invoices. This relieves the burden on the accounts-payable department without impairing its control over the approval process. The workflow uses data stored in SAP, eliminating the need for multiple data repositories. It's a perfect solution – and a fast one. The integrated document analysis software is one of the reasons for its speed. The wide variety of invoice layouts calls for an OCR/OCR engine with free-form and template-based recognition capabilities – like DOKuStar. The optimal combination of both methods guarantees a high recognition rate. A single training cycle is enough to achieve rates of nearly 100 percent.

The advantages

Greater efficiency – reduced costs! The Invoice CENTER for SAP solution implemented for Stadtwerke Leipzig fulfills all of the demands placed on it. The system is integrated in the existing IT infrastructure, data entry work is reduced, document processing times are shortened, document access is guaranteed at all times and the statutory requirements related to digital auditing (GDPdU) are observed. The responsible department can monitor the invoice processing status at all times, as the system's complete integration into the SAP Business Workflow ensures clarity and consistent execution. The quality of the involved employees' work is improved and overtime is a thing of the past. The company thus benefits doubly by eliminating the cost of overtime and by freeing up employees to address more challenging matters, enhancing job satisfaction. Finally, Stadtwerke can save dunning charges and improve customer satisfaction with its optimized invoice processing.

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