Raw material invoice automation is the key for foreign direct investment (FDI) manufacturing enterprises to solve the complex challenge of document accounting, ensuring the accuracy and timeliness of financial data. In multi-plant operations, manually processing thousands of raw material invoices monthly not only wastes time but also creates significant barriers to internal control and financial analysis.
Current Operations and Challenges in Accounting for Raw Material Invoices
The Finance and Accounting department at FDI manufacturing enterprises, especially those with multiple plants, faces a heavily burdensome and complex raw material invoice accounting process. This process, if not optimized, becomes a bottleneck hindering business speed.
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Massive Document Volume and Continuous Processing Frequency
The raw material invoice accounting process is formally known as “Accounting for Raw Material Invoices on the ACCPAC System.”
- High Volume: The enterprise must process over 1,000 invoices per month per plant. In a multi-plant model, the total document volume increases manifold.
- High Frequency: This task must be performed daily to ensure raw material input data is updated promptly, serving production and inventory control.
- Slow Processing Time: The average manual processing time is up to 20 minutes per invoice. When multiplied by thousands of invoices, the total time wasted is substantial.
Risk of Lack of Integration and Difficulties in Control
Manually accounting for raw material invoices brings several severe risks to financial management:
- Risk of Manual Error: Manually entering and cross-checking supplier information, material codes, and quantities from paper/scanned documents into the ACCPAC accounting system easily leads to errors, causing discrepancies between accounting ledgers and inventory data.
- Lack of Integration and Continuity: The manual process involves multiple handover steps between departments (Purchasing, Warehouse, Accounting), leading to potential interruptions and a lack of flow. When tracing or controlling is required, searching for related document sets takes significant time.
- Difficulties in Reporting and Analysis: Data is not updated in real-time. When needing to compile financial reports or analyze raw material input costs, the accounting department must wait and spend additional time reconciling data, delaying management decisions.
This is the main driving force for FDI enterprises to transition to raw material invoice automation.
Process Description and Effectiveness from Raw Material Invoice Automation
The raw material invoice automation solution is built by combining process automation robots with intelligent data extraction technology (OCR). The entire accounting process is fully handed over to the robot.
Automated Accounting Process with Robots
After implementing automation, the robot handles all complex steps that span the raw material invoice accounting process from start to finish:
- User Uploads Document Set: The user uploads the document set (invoice, goods receipt note, etc.) to the document management system.
- Bot Receives Information and Downloads Document Set: The robot automatically monitors the folder or email, identifies the new document set, and downloads it.
- OCR System Extracts Document Set Information: Intelligent OCR technology automatically reads, recognizes, and extracts all important data fields on the invoice (supplier name, tax code, amount, material list, quantity).
- Cross-Checks Document Set Information: The robot performs a cross-check of the extracted data against other documents in the set (like the goods receipt note) to verify data validity and consistency.
- Creates Mapping Report & Stores Information: The robot automatically creates a data mapping report and stores the standardized information in a temporary database.
- Logs Into Accounting System: The robot automatically logs into the ACCPAC system.
- Retrieves Supplier Information: The robot retrieves the standardized supplier information from the document set.
- Enters Detailed Information: The robot enters data into complex fields such as Order Receipts information and Barcode System on the ACCPAC system.
- Accesses Data Export Menu & Fills Information: The robot navigates through system menus, accesses the data export function, and fills in the necessary parameters.
- Fills Information into Material List: The robot enters detailed data into the material list.
- Uploads ACCPAC Template: The robot completes the process by uploading the fully accounted template to the ACCPAC system, finalizing the accounting entry.
Significant Effectiveness from Automation Implementation
The raw material invoice automation project, implemented over 4.5 months, has yielded distinct transformation values:
- 100% Process Automation: All steps, from document receipt to final accounting entry in ACCPAC, are performed by the robot.
- Time Savings: The average processing time per invoice decreased from 20 minutes to 10 minutes – a 50% reduction in processing time.
- Information Processed in Real-Time: Invoices are processed and updated in the system continuously right after being uploaded, eliminating delays and ensuring financial data is always accurate and ready for analysis.
- Improved Employee Experience: Frees up Finance and Accounting staff from the pressure of excessive and tedious work, allowing them to focus on risk control, complex reconciliation, and strategic analysis.
Successful Implementation Experience for Raw Material Invoice Automation
To achieve success with a complex process like accounting for raw material invoices on the ACCPAC system, the enterprise must adhere to a scientific implementation methodology and meticulous platform preparation.
Ensuring Conditions for Raw Material Invoice Automation Implementation
The prerequisite for implementing raw material invoice automation is process standardization.
- Business Process Standardization: Clear and consistent documentation of the invoice processing procedure, including exception handling scenarios, is needed. The robot can only perform well when the process is standardized.
- Environment Preparation: Setting up a separate operating environment for the robot, ensuring it has stable access to target systems like ACCPAC and document management systems.
Reasonable Project Implementation Methodology
The implementation roadmap is divided into clear phases, helping to manage risks and ensure quality:
Survey
The initial phase focuses on assessing feasibility and value:
- Gathering automation ideas from the Finance and Accounting department.
- Evaluating the process’s suitability for automation application (high repetition, low variability).
- Analyzing the technical complexity and estimated value of automation (reduced processing time, increased accuracy).
- Determining the priority order for implementation.
Business Requirements & Solution
- Process Standardization: Documenting the detailed process (Process Design Document) after optimization.
- Environment Preparation: Allocating accounts and configuring necessary systems for the robot.
Automation Implementation
The development and testing phase is tightly managed:
- Detailed requirements analysis and robot solution design.
- Development and internal testing.
- User Acceptance Testing (UAT) with the Finance and Accounting department to ensure the robot operates according to business logic.
- Handover and official operation (Go Live).
Evaluation
After going live, periodic evaluation is necessary to measure the robot’s actual performance and the achieved cost savings, preparing for expansion to other processes.
Commitment to Adhering to the Roadmap
To ensure success within the 4.5-month timeline, having a clear implementation roadmap coupled with a commitment to sticking to the roadmap is critical.
Akabot (part of FPT Corporation) is a reputable partner helping FDI manufacturing enterprises successfully implement raw material invoice automation with the following capabilities:
- Deep Experience: In-depth knowledge of FDI-specific accounting systems like ACCPAC and complex financial processes.
- Standard Implementation Methodology: Applying a professional project methodology, ensuring quality and timeline adherence.
- Comprehensive Support: Providing technology solutions and on-site technical support services, minimizing operational risks and incident resolution time.
Implementing raw material invoice automation is not just a cost-optimization solution but also a foundation for FDI enterprises to build a transparent, efficient, and scalable financial management system.
