Incoming Invoice Management in OWIS: KappaStar Group
About the client
KappaStar Grupa is an investment company that includes five members: Umka Cardboard Mill, Kappastar Recycling, Ekostar Pak, Confectionary Industry Crvenka i KSG Logistics doo. The group's members operate in various industrial sectors, including cardboard production, recycling, confectionery production, and logistics. The organization has a strong focus on efficiency and growth, and each group member has specific business processes that have been developed in accordance with their industry needs.
Problem
A group with several large member companies faced challenges in managing incoming invoices within its business. Each member had different methods of processing invoices, which resulted in inefficient processes, errors and delays. The implementation of the OWIS system enabled the digitalization and automation of this process, providing the group with a centralized solution that facilitated the processing and approval of invoices.
Before implementing the OWIS system, the client had several key problems in managing invoices:
Manual invoice management: Each group member had its own way of processing invoices, which involved manually entering documents into the NAV ERP system, collecting physical signatures, and lengthy approval processes.
Lack of centralization: There was no centralized invoice management platform, which resulted in a lack of transparency and processing delays.
Complex business flows: Different types of invoices (e.g., for raw materials, services) required different approval procedures, with different participants in the process, which further complicated management.
Duplicate checking: There was no automated checking for duplicate invoices, which increased the risk of errors.
Lack of control over status and processing time: The company had no way to track the status of a particular invoice or how much time it was spending on processing at different stages, which made the process difficult to manage and increased the risk of delays.
Solution
Step 1: Analysis and Planning
The OWIS team began the project with a detailed analysis of the existing processes in each group member, identifying key problems and needs for process unification. Based on this analysis, a plan was developed to digitize and automate the invoice approval process, including all key stages – entry, approval, recording and integration with the NAV ERP system.
Step 2: Implementation of the OWIS system
The OWIS system was integrated into the client’s workflows, which enabled the automation of the process of creating, approving and recording contracts. The implementation included the following key steps:
Digitization of the invoice approval process: The processes for entering invoices, cost allocation, and approval were fully digitized and automated, eliminating the need for manual work and physical documents.
Centralization of invoice management: A centralized platform was created in OWIS that allows all group members to manage invoices in the same way, with standardized business flows and rules.
Integration with NAV ERP system: Key data synchronization between OWIS and NAV, including suppliers, cost dimensions, and purchase orders, was enabled. Processes were set up to automatically transfer data from OWIS to NAV and vice versa.
Duplicate invoice checking: Automatic duplicate invoice checking functionality based on document number and supplier data was implemented, reducing the risk of errors.
SEF portal connection: Integration with the electronic invoice portal/system (SEF) enabled automatic receipt and processing of invoices, completely eliminating the need for scanning and manual data entry.
Step 3: Training and support
After implementation, training sessions were held for all system users to ensure that all participants were familiar with the new way of working. The support team was available to resolve any issues and questions, ensuring a smooth transition to the new system.
Technology and Tools
The following OWIS system tools and technologies were used for implementation:
Workflow Designer: Enabled modeling and automation of the invoice approval process, with customized business rules and sequential approval.
Forms Designer: Custom forms were created for entering and managing invoice data, which are linked to purchase orders from NAV and enable cost allocation.
Reports Module: Custom reports were developed to monitor invoice processing time and process efficiency, allowing the planning and analysis department to accurately monitor performance.
Integration: Automated transfer of invoices upon approval to NAV as well as automated receipt of electronic invoices from the SEF portal directly to OWIS, which facilitated the entire process.
Results
The implementation of the OWIS system resulted in significant improvements in invoice management:
Improved invoice processing efficiency: By digitizing and automating processes, the time required to process invoices has been significantly reduced, accelerating business flows and reducing administration costs.
Increased transparency and control: By introducing a centralized platform, the company gained full insight into the status of each invoice in real time, which enabled better monitoring and management of processes.
Reduced risk of errors: Automated duplicate invoice checks and integration with the ERP system enabled more accurate and reliable data entry, reducing the number of errors and preventing potential double payments.
Better control of processing times: Thanks to new reports, the company can now track how much time is spent processing invoices at each step of the process, allowing the identification of bottlenecks and optimization of resources.
Improved collaboration between departments: Digital collaboration through OWIS has enabled better coordination between the different departments involved in the invoice approval process, reducing delays and improving communication.