Registered: 1398911567 Posts: 159
Reply with quote #1
During our initial implementation, the young consultant told us the 80/20 rule. He said that if we optimized the top 20 to 30 vendors, we would cover off 80% of our invoices. His maths were wrong. We have thousands of suppliers and if we used the 80/20 rule of thumb, then we would need to optimize the top 400 suppliers (if 2,000 suppliers) to get 80% coverage, presuming that this 20% accounts for 80% of our business. It does not.
I think the rule should be to always optimize if an invoice is matched to the wrong supplier. If it is matched to the wrong supplier, then there is problem with the invoice definition that it matched to (the incorrect ID) and there may be a problem with the invoice definition of the one it should of matched to (the correct ID); or both. Using Manager, you need to confirm which ID the invoice used; and using Optimize which ID it should have used. Then check the identifier fields. We found one of the reasons for incorrect matching was because our own ABN was used as an identifier field. This causes mismatching because a lot of suppliers quote both their own and our company's ABN on their invoices. You need to weed these incorrect ABN's out. There is no report or view that I am aware of that will tell you which ABN Identifier was learned. You need to open each invoice definition and check, or be disciplined to immediately check the identifier fields when you find an invoice in Verify that has been matched to the wrong supplier. Another reason for incorrect matching is when you are dealing with a group of suppliers with the same ABN number. I think the system will first match on ABN irrespective of the order of the identifier fields in your Invoice profile. If the vendor is part of a corporate group, you need to think about what makes one invoice different from the other in determining which Invoice Definition (and consequently vendor number) should be used. In these cases we made the identifier fields AND (not OR) and used the fax number as an identifier field as usually this was unique to an address. A test you can do is to Sort in Optmize by "Ident in Verify". These are the suppliers that were changed during the Verification process. They are prime candidates to check the identifier fields on. If we only focus on the top vendors, then AP may spend a lot of time fixing the remaining vendors who were never optimized. Say our top 20% of vendors have 50 invoices or more per annum. We have a vendor with poorly defined Identifer fields which accounts for 10 invoices per year. That means we have to fix these invoices 10 times in Verify as opposed to fixing them once in Optimize. My advice to our AP team has been to get the identifier fields right on as many invoices as possible FIRST, then do a deeper optimize on the top vendors only, say the top 200. Matching to the right supplier is key, the icing on the cake is it reads the date properly, for example. Fortunately with the new Invoices 5-7 system, the system is matching to the correct supplier better with the caveat that we have turned off the new feature to dynamically learn the identifier fields. __________________ Cheryl LinkedIn:
Registered: 1398911567 Posts: 159
Reply with quote #2
Did you know you can use the < or > signs in your Optimize query to determine which are the most necessary invoice definitions to optimize? Here's an example which focusses on Invoices which were matched to the wrong supplier.
1. Sort the "Ident in Verify" column so that the largest number appears first 2. In the Ident.Rate column enter <71 (this means that at least 30% of your matches were incorrect, you can set this benchmark lower/higher if you like) 3. In the Total column enter >5. (this means to only show IDs where you have processed 6 or more for that version of the definition, again you can tweak this number). If you don't limit the search, you may have a lot of displayed results where only one invoice was identified with the wrong supplier (0 Ident Rate and 1 Total). Run the above test and see how many you have in the list. If it is a lot, then tweak your tolerances. If its only a few, relax your tolerances. We run this test the other day and it returned only 5 vendors. Once you are happy with the final list, make a copy of it (select All, Ctrl C and Ctrl V in Excel). This is the list of suppliers (note I said suppliers not IDs) that need to be optimized to fix the incorrect matching of invoices to suppliers. Now clear all the values at the top so you are displaying all Invoice Definitions. From your Excel list, type in the supplier name to reveal all IDs for the same supplier. Your list in Excel will show you which IDs were matched to, but you need to have a handle on which IDs it should of matched to. So now that you know who your problematic suppliers are, it is recommended to optimize on a supplier basis not on a specific ID basis. Check your identification fields for these suppliers. See the earlier post about using AND when the supplier is part of a corporate group. __________________ Cheryl LinkedIn: