€0M

saved

by identifying duplicate payments

€0M

gained

by optimizing cash discounts

reduced

in Days Sales Outstanding

Completely Remove Friction in Finance

Processand ensures complete control over payment behavior, invoice processing, improving outcomes such as Days Payable Outstanding (DPO) and Paid-on-Time, while reducing costs. Duplicate invoice payments can always happen when you’re dealing with millions of invoices, why not avoid that entirely? Processand’s machine learning algorithms ensure that you are notified of duplicate payment candidates, as well as notifying you of any potential duplicate payments in the near future. Friction is the thing with Process Mining.

How we help

Processand’s cross-functional expertise ensures business process optimization and immediate value generation in finance

Process Mining Use Cases

Swipe for processes

Accounts Payable

Accounts receivable

Meter to cash

Dues Collection

Maverick Buying

inefficiency / challenge

Definition: POs with invoice receipt before PO or Invoices without PO’s.
Purchasing outside of the procurement process is not compliant.
These purchases often have worse purchasing conditions.

solution and targeted outcome

Identify suppliers and materials for frequent maverick buying.
Educate the related departments.
Automated alerting for cases with Maverick Buying.

business objectives

Spend Reduction
Compliance

core KPIs

#/% Affected Invoices
Affected Invoice Value

Cash Discount Losses

inefficiency / challenge

In procurement, complexity often creates challenges with paying all invoices according to payment terms.
This leads to limited cash resources within an organization.
Analysis of cash discounts are time consuming and often only done partially.

solution and targeted outcome

Visualize realized, missed and possible discounts.
Measure discount utilization performance.
Get alerted on cases where cash discount is on risk and act immediately.

business objectives

Compliance
Spend Reduction
Working Capital

core KPIs

Cash Discount Potential
Cash Discount Realized
Missed Cash Discount

Cash Discount Losses Process Mining Use Case

Duplicate Payments

inefficiency / challenge

Duplicate payments often remain undiscovered leading to extra costs.
Companies lack efficient solutions to identify and avoid these payments.

solution and targeted outcome

A machine learning algorithm is implemented which detects candidates for duplicate payments.
An action engine skill notifies about potential duplicates so they can be validated.
Mark candidates as true/false duplicates after this check to train and enhance the algorithm.

business objectives

Spend Reduction
Compliance

core KPIs

# Candidates
# Confirmed Duplicates
Appr. Value of Confirmed Duplicates

Duplicate Payment Checker Process Mining Use Case

Days Payable Outstanding (DPO)

inefficiency / challenge

Lack of awareness on how efficiently incoming invoices are paid.
It is challenging to create transparency and measure the proportion of invoices paid too early or too late and the respective business impact.

solution and targeted outcome

DPO analysis shows the process throughput time from invoice receipt to clearing date taking the due date in consideration.
Evaluate the proportion of invoices that are paid early, on-time and overdue.
Investigate trends in process analysis to optimize payment behaviour.

business objectives

Working Capital
Spend Reduction

core KPIs

Time Invoice to Payment
Overdue/Early Payments

Days Payable Outstanding Process Mining Use Case

Payment Behavior (AP)

inefficiency / challenge

Paying invoices too early or too late should be avoided.
Late/early payments have negative effects on working capital.

solution and targeted outcome

Payment behavior analysis sheds light on the bottlenecks where payments are conducted too early or too late.
In-depth analysis can reveal patterns in payment behavior regarding vendors, materials etc. and can serve as a starting point for optimization.

business objectives

Working Capital
Compliance
Reduce Costs of Dunning

core KPIs

% Invoices Paid too Early
% Invoices Paid too Late

Payment Behavior Process Mining Use Case

Payment Behavior (AR)

inefficiency / challenge

In accounts receivable it is important to ensure that invoices are paid on time.
Companies often lack a transparent overview on how many invoices are paid too late and how many too early.

solution and targeted outcome

Payment behavior analysis sheds light on the bottlenecks where payments are received too late, and if so, how many days too late.
Enables to conduct detailed analyses on dimensions (e.g., by customers) and consequently execute actions.
Action engine skill can automatically inform the department if the due date for an invoice has passed.

business objectives

Working Capital
Compliance

core KPIs

# Invoice Positions Paid on Time
Net Invoice Value
Avg. Days Paid too Late

Days Sales Outstanding (DSO)

inefficiency / challenge

DSO is the average time of outstanding/open receivables.
A large DSO negatively impacts working capital and hence liquidity.

solution and targeted outcome

Track the development of DSO over time.
Identify bottlenecks in your account collection procedures.
Apply analyses and create action plans to optimize DSO.

business objectives

Working Capital
Compliance

core KPIs

Actual DSO (days)
Best Possible DSO (days)
Invoice Value

Days Sales Outstanding Process Mining Use Cases

First Time Right

inefficiency / challenge

Rework of invoices increases lead times and manual effort.
Not all rework activities are avoidable, but a significant share may be.
Companies often lack the ability to quantify these avoidable efforts.

solution and targeted outcome

Display invoices without rework activities in a First Time Right ratio.
Calculate transformation potential by multiplying time effort of rework activities with FTE costs.
Monitor and increase First Time Right ratio to substantially lower the costs associated with rework activities.

business objectives

Working Capital
Labor Productivity

core KPIs

First Time Right Ratio
Transformation Potential

Billing of Installations

inefficiency / challenge

The complexity of the process may cause the installations to not be billed correctly.
High manual effort is needed to identify and resolve root causes.
If an installation can't be billed once, all billings in further billing period will also fail.

solution and targeted outcome

Determine all billing periods and assign all relevant documents (MR and billing documents, Invoices, Contract, Clarification Cases, etc.).
Identify and cluster root causes.
Use Action Flows to execute predefined actions.

business objectives

Working Capital
Labor Productivity

core KPIs

# installations w/o billing
# Clarifications Cases

Billing of Instellations Process Mining Use Case

Automation of Meter Reading Preparation

inefficiency / challenge

Choosing the meter reading category (self meter reading/reading through external provider/ automatic estimation) for each installation is a laborious manual process.
Communication with external service provider requires manual effort.
Errors can occur due to manual mistakes or data inconsistency between systems.

solution and targeted outcome

Choosing the meter reading category automatically based on rules and machine learning.
Automate communication with external service providers.
Reduce throughput time and manual errors.

business objectives

Working Capital
Labor Productivity

core KPIs

# Installations w/ Self Meter Reading
# Installations w/ Reading Through External Provider

Automation of Meter Reading Preparation Process Mining Use Case

Basic and Substitute Supplies

inefficiency / challenge

Due to current circumstances, an increased number of gas and electricity suppliers may go bankrupt, therefore, increased number of households may fall into basic or substitute supply.
Due to multiple stakeholders, integration of those households can be prone to errors.

solution and targeted outcome

Display and monitor the complete process.
Reduce manual effort through predefined actions.

business objectives

Working Capital
Labor Productivity

core KPIs

# Households in Basic or Substitute Supply

Basic Substitute Supply Process Mining Use Case

Dunning

inefficiency / challenge

If dunning does not happen automatically after a certain period, the time to cash gets prolonged until dunned manually.
Dunning fees are often not paid and mostly below the de minimis limit and therefore are not dunned.
Due to lack of transparency, credit may be disbursed even though dunning proceedings are currently in progress.

solution and targeted outcome

Getting an overview of all invoices that need to be dunned including the progress after the first overdue notice.
Identification of customers/clients that don’t pay on time regularly and additionally try to avoid paying the dunning fees.
Alerting with comment function for invoices to be dunned, to minimize the time to cash by a quick responsiveness.

business objectives

Working Capital
Labor Productivity

core KPIs

Dunning Amount
Dunning Fees
% Realization Rate of Dunning Amount

Returned Payments – Due Collection

inefficiency / challenge

Based on several reasons, returned payments can occur when the due collection is done via direct debiting.
Returned payments lead to bank fees, that are charged to the company and that increase if the payment gets returned after a second attempt.
Besides the monetary impact, the time to cash increases and manual effort arises.

solution and targeted outcome

By optimization of the direct debit (SEPA or ACH) payment method returned payments can be reduced in combination with fewer bank fees and manual effort.
Analysis of more suitable due dates & rates for due collection.
Automated alerts for accounts that regularly return payments.

business objectives

Working Capital
Labor Productivity
Spend Reduction

core KPIs

# Returned Payments
Sum of Refusal Fees
% Settled Refusal Fees
% Open Refusal Fees

Returned Payments Process Mining Use Case

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With over 450 process implementations, we know exactly what the crucial parts of a successful Process Mining initiative are

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Nicolas Möller

COO

Finance

Completely Remove Friction in Finance