Document Imaging in Finance

1. Document Imaging in
Finance
Presented by
•John Walls – Verbella CMG, LLC

2. Why Image?

3. Advantages to a Paperless Office
• Any number of users can access and process a document at the
same time, from different location
• Much Lower Storage costs, Virtually no floor storage costs, or
personnel costs involved in filing and retrieving documents
• Electronic Documents can be crossed referenced when they’re
filed. There not limited to 2 dimensional filing
• Disaster Recovery- Documents are automatically backed up (Best
Practice- Different locations)
• Electronic Documents are available for use in SAP workflows
• Electronic Documents are faster and easier to produce for audits
• They automatically adhere to system configured retention
policies.

4. Typical Configuration
PBS ContentLink
SAP R/3
SAP Archive Server
Content Server
IBM, FileNet, IXOS
File system or data base
(No optical Media support) CAS Storage
Centera
Jukebox
Server
Retrieval-Client
Clients SAP - GUI
Scanner
NoScan Client
Scanner Interface for SAP
Content Server

5. Imaging and Optical Archiving
What is it?
Storage of CI and NCI data
• CI = Coded Information (computer generated documents)
• NCI = Non Coded Information (e.g. scanned incoming invoices)
Optical Media
• WORM disks (Write Once Read Multiple)- Most common
• CD-R (Compact Disc Recordable) (Not recommended)
• Inexpensive media for large quantities of data that will not change
EMC- Centera HDWO (Harddisk Write Once) Storage
• Stored as ISO image (Read Only), treated as a Virtual Jukebox
(IXOS)
• Much lower Administration, Much faster data retrieval
• 4 node, 2.2 TB of usable storage, backed up, self-healing, self-
configuring, self-administering.

6. Reduce Floor Space
Roughly 204,750 images per WORM using a 40 KB
per image average without compression
Fun but Costly Facts
On Average 19 copies are made of every document*
$20 in labor to file/retrieve/store a document*
250 dollars to replace or duplicate missing documents*
3-4% of all documents are missed filed, resulting in $120 to
located and re-file*
7.5 % of all documents are lost (1 in 20)*
$25,000 to fill a 4 draw filing cabinet, & $2,100 to maintain it*
* Source: Coopers & Lybrand/Lawrence Livermore

7. What are we trying to Achieve?

8. What are we trying to Achieve?

9. Scenarios
Late Archiving with Barcode and the SAP Content
Server using Kofax Ascent Capture
Early Archiving and the a Third party Content
Server
Kofax AR4ERP release and Early Archiving with
SAP Content Server

10. Late Archiving with Barcode

11. Enter Barcode (Automatic)

12. Enter Barcode (Manual)

13. Kofax Ascent Capture

14. Classification and Extraction
of Index Fields
Extraction

15. Kofax Ascent Capture

16. SAP
Barcode is entered Barcode Number
With SAP and SAP Key fields
transaction Added to
BDS_BAR_IN Table
SAP
Scanning
software SAP process new If a Match is found
entries in both of both entries are
Document is these tables looking
Scanned and deleted and an entry in
for Matching Bar the Link Table TOA01
Barcode is read codes is made
Integration
Image and Barcode Doc and ID and Bar
is sent to Archive code are sent to
Server SAP BDS_BAR_EX
Table

17. Early Archiving

18. 1 - Scan Station Receiving/Processing
Paper Scanned Department
Processor
2 – Image Assigned
User assigns image
to an SAP Document type
Processor
Content Repository SAP R/3
Processor
4 – Process Work Item
Work item executed,
image is viewed and
Archive Image Work Item Created SAP transaction is
Image assigned Work item created and created
Archive ID and stored electronically routed
to appropriate
SAP Inbox

19. Early Archiving
Storing for subsequent entry
• Distribute work to others
• Most commonly used in A/P and for incoming Sales
Orders.
• Uses SAP’s Workflow (TS30001128), so Workflow
needs to be initialized
• An Org structure may have to be used
• Allows for ad hoc approval process.
• Standard reporting on end-user processing.
Drawbacks
• More complicated then Late archiving

25. What is OCR
• ….and how does it work?

26. OCR- What’s in it for me?
Increased Faster Reduced Reduced
automation processing paper handling labor
Say Good-Bye to Never Miss a Gain An Auditable
Retrieval Time Discount Again Business Process

27. Information Types
Structured
• Form based documents – the same information is listed in the
same position or layout, in the same format on every document
Semi-Structured
• Documents contain all the same type of information, but in different
positions or in a different layout
Vendor
Unstructured
Invoices
• Documents contain various information in various layouts

28. Rules based vs. Template based
OCR
Rules based
• Uses zones to search for a key (key words, phrases or
expression)
• Keys are then used to logically locate content
• Once configured, it is most likely that all header information on
“New Invoices” can be read
• OCR rates .5 to 3 seconds, much faster because you only OCR
the zones and not the whole page
Template (Logo Id) Learning, Memorize, Teach
• Each vendor invoice has to be maintained as a template
• New invoice might not be read
• OCR rates 8-12 seconds

29. Design Studio

30. Design Studio – Test Mode

31. OCR Processing Solution Steps
OCR Rules
Verify
Documen
Validate t
Images
Process
Vendor
Scan Extraction PO
PO Lines
Data
SAP
Database

32. Integration Options into SAP
1. Standard Kofax Release into SAP – AR4ERP Simple
integration using a single step Workflow with Pre-filling at both
the header and line item level. (Early Archiving with OCR)
2. Automatic Parking of Accounting documents- Header fields are
typically captured, and documents are parked. Optionally this
“Parked” transactions can be routed via workflow for additional
processing.
3. Automatic Posting of documents via SAP BAPI’s. Header and
Line items fields are captured and documents are automatically
posted in the background.
4. Release into custom “ledger solutions” or other custom
workflow solutions.

33. Release and Integration
Option #1 Kofax AR4ERP
Direct Release of Image and data into SAP
• Release scripts calls SAP function modules to fill
the necessary tables/fields in SAP and to store the
image via SAP ArchiveLink.
• Header or Header and line item is captured from
the Vendor Invoice.
• Workitems created and routed for further verification,
approval, and manual posting.
• Fields are pre populated with OCR data

34. Kofax Ascent Capture

35. Classification and Extraction
of Index Fields
Extraction

36. Kofax Validation

37. Automatic Release to SAP-
XML and Images
Released to
SAP

38. SAP User Workflow Inbox

39. Process Workitem
POST
Fields are Pre-Filled with OCR
data from Image

40. What do I need to get started?
• Scanner for Document imaging
• Scanner that is supports VRS (Virtual ReScan)
• Electronic documents are supported
• OCR Software solution
• Rules based OCR solution
• Content Management solution
• SAP Content Server
• PBS ContentLink with EMC Centra
• IBM, Documentum, EASY, FileNet, IXOS, Saperion, etc
• Release to SAP system
• Automatic Posting or further processing within SAP Workflow

41. Virtual Re-Scan (VRS) Eliminates Rescanning
Low Contrast
Logo
Dot Matrix
Text
Highlighter
Carbon Copy
Handprint
Coffee Cup
Stain
Shaded
background

42. Kofax VirtualReScan™ (VRS)
Image File Size = 213 KB

43. OCR Learning Points

44. Watch Out
For Solutions that try to handle all exceptions out side
SAP
• Chances are you’re being sold an external Workflow
• Clients Thin or Thick have to be administered
• “BASIS” are not going to like having so many interfaces into
SAP
Keep in mind there are other options for Non SAP users
• Workflow that interface with the users daily email service
• Web interfaces, including portals

45. Leading Practice
Notify your vendors-
• Tell them that their documents will be processed via OCR
• Get them to work with you.
• Single line line items
• Stop sending invoices on blue paper with balloons
• Clearly identify the information that you need to see
Consolidate Vendors
• Use this as a opportunity to consolidate vendors, if they are
not going to help with the above, then consolidate
Clean up Vendor Master records
• Vendor Address and Phone numbers will be used daily for
vendor look up, make sure the information is correct.
• Set up process to correct errors efficiently

46. Take Aways
When choosing an OCR solution make sure it can do
what you need it to do.
Integration- “Is key” not only with SAP but into your
Content Management system as well.
Look for exception handling within SAP, not in home
grown vendor solution.
Start slowly for better results
• New technology- employees need time to adjust and
embrace. Using the light switch approach may turn
employees off.
OCR is hear to Stay

47. Questions ?
Thank you
for attending the ASUG Midwest – Central
Chapter Meeting
For More Information about Imaging, OCR, Workflow, Data Archiving and
Content Storage Systems
Visit
www.VerbellaCMG.com
Contact Information
John Walls
Verbella CMG, LLC
Email John.Walls@Verbellacmg.com
Call 484-888-2199