Document Imaging Tools and Strategies to Accelerate Your Accounts Payable Activities

1. Document Imaging
Tools and Strategies
to Accelerate Your
Accounts Payable
Activities
John Walls
Verbella CMG
© 2007 Wellesley Information Services. All rights reserved.

2. You Can Save Time and Money
• See how using standard document imaging available to
all SAP customers will:
Bolster and improve your current accounts payable process
Save time and money for the company
1

3. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
2

4. Advantages to a Paperless Office
• Simultaneous multiple user access to documents
• Lower costs
Virtually no floor storage costs
No personnel costs involved in filing and retrieving documents
• Electronic documents can be cross-referenced when
they’re filed
Not limited to two-dimensional filing
3

5. Advantages to a Paperless Office (cont.)
• Disaster recovery
Documents are automatically backed up (best practice —
different locations)
• Electronic documents can be used in SAP workflows
• Electronic documents are easier to produce for audits
They automatically adhere to system-configured
retention policies
4

6. Existing Storage Space Can Be Reclaimed with a Jukebox
128-238 slots
Jukeboxes are common
9.1 GB WORM Platters – roughly 171,750 images
per WORM using a 50 KB per image for a single
page image
WORM = Write Once – Read Many
5

7. Greater Storage Space Can Be Reclaimed with HDWO
Self-healing
Self-configuring Net Apps
Self-administering
CAS Storage
Centera EMC
IBM
DR550
HDWO = Hard Disk Write Once
6

8. Cost Associated with the Paper Office
• Companies spend a lot on paper
$20 in labor to file a document
$120 in labor to find a misfiled document
$220 in labor to reproduce a lost document (does not include
any legal penalties)
• Average document gets copied 19 times
• Professionals spend 5-15% of their time reading
information, but up to 50% looking for it
• 7.5% of all documents are lost (1 in 20)
3% of the remainder get misfiled
Source: Coopers and Lybrand/Lawrence Livermore
7

9. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
8

10. Common Terms
• ArchiveLink
A service integrated in the SAP Web Application Server to link
archived documents with the business object entered in the
SAP system
• Knowledge Provider (KPro)
A cross-application and media-neutral information technology
infrastructure within the SAP R/3 Basis (SAP middleware)
Provides the general infrastructure for storing and
administrating documents in the SAP Content Server
• Content Server
Server at the core of SAP’s document storage and
management concept
Provides the technical infrastructure for all
document-centric applications 9

11. Common Terms (cont.)
• Content Repository
Means logical archive — a way to logically manage content,
usually by retention period or by storage media
• Document types
Backbone of ArchiveLink customizing
Are ten characters in length
Have several functions:
Used to describe the actual image
Can base security on document type
Act as pointers to different logical archives
Workitems are routed to the appropriate processor via
document types in the early archiving scenario
In some cases they specify the SAP t-code to launch
10

12. The End Results — Displaying a Document from FB03
11

13. Go to the Generic Object Services — Attachment List
12

14. Attachment List Shows All the Available Documents
13

15. Document is Displayed
14

16. ArchiveLink Tables
Archive document ID
Archive document ID
SAP object
SAP object
identification
identification Document
Document
key fields
key fields Logical archive ID
Logical archive ID type
type
1000
1000 CoCode
CoCode
1900000000 Doc #
1900000000 Doc #
2002
2002 Fiscal Yr
Fiscal Yr
15

17. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
16

18. Configuration of a Traditional Third-Party Archiving Solution
SAP R/3
Archive Server
OnBase, IXOS
IBM, FileNet, etc.
CAS Storage
Jukebox Centera
Server
Clients
Scanner
Scan Client Retrieval of documents
done from SAPGUI
17

19. SAP Content Server — Typical Configuration
SAP R/3
SAP Content Server
File system or database
HTTP SAP Cache
(No optical media support) HTTP Server
HTTP
HTTP
No scanner interface for
SAP Content Server
Third-party document
capture vendors, like Kofax,
would be necessary
Retrieval of documents through
SAPGUI using the ECL Viewer
18

20. SAP Content Server — What is It?
• Software for storing structured data (Archive
Development Kit files) and unstructured documents
in repositories
• Product of SAP Web Application Server
• Administration from within SAP, transaction code
CSADMIN, Computing Center Management System
(CCMS) transaction code RZ20 and OACO
• Communication through the ArchiveLink HTTP protocol
• Multiple operating system support, including:
Windows
Various Unix systems (new as of SAP Content Server 6.30)
• Does not support optical media
• No direct scanning interface supplied 19

21. Create the Content Repository
20

22. Testing Connectivity
21

23. Status Information
22

24. Sending the Certificate (Optional)
23

25. Content Server Administration
24

26. Content Server Administration Overview
25

27. Details of the Content Repository
26

28. Certificate if Available
27

29. Setting for the Content Repository
Name: ContentStorageName
Type: Character
Default: SDB
Values: SDB
Mandatory: Yes
Description: The ContentStorageName parameter
contains the name of the database instance.
Name: Storage
Type: Character
Default: ContentStorage.DLL
Values: ContentStorage.DLL
Mandatory: Yes
Description: The storage parameter contains the
name of the storage layer necessary for the
access to a repository. No value other than the
default value is allowed.
28

30. Statistics
29

31. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
30

32. How Do We Get Documents Archived?
• Two most common ways to get information to the
archive server:
Paper documents
Can be scanned or faxed into the scan client
The scan client interfaces with SAP and is used to archive
the document into SAP
Electronic documents
Such as emails and desktop documents
Can be kept in their native format and archived from the
desktop without using the scan client
31

33. Three Most Common SAP Archiving Scenarios
• Late archiving:
Uses indexing fields to link image to existing document
• Early archiving:
Uses workflow to route images to processors
Once processed, the image is linked to the newly created
SAP R/3 document
• Late archiving with barcode:
Uses barcodes to link image to previously created
SAP R/3 document
32

34. Aspects of Archiving Scenario Classification
• Task to be executed on archived document (the what)
Enter = Enter document content in SAP R/3 application
Initiates a new workflow-controlled business process within
SAP R/3
Archived document is linked automatically
Assign = Link (assign) archived document to existing
SAP R/3 object
Object is not modified
• Coupling between archiving and task execution (the when)
Immediate = Executed by the person who archived the document
Later = Task is loosely coupled to archiving
Executed by another person (SAP R/3 user)
At a later point in time, on the user’s explicit request
(workitem execution)
33

35. Old, New, and Newest — Scenario Naming Schemes
SAP R/3 4.6C SAP R/3 SAP R/3
and Above 4.5 - 4.6B 4.0 and Older
Early archiving
Storing for subsequent entry Store for entry later
with workflow
Store for assignment
Storing for subsequent assignment N/A
at a later time
Store and enter (storing
Store and enter Simultaneous archiving
and entering)
Store and assign (storing
Store and assign N/A
and assigning)
Assign then store (assigning
Assign and store Late archiving
then storing)
34

36. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
35

37. Late Archiving — Store Business Documents
36

38. Late Archiving — Select File to Upload
37

39. Late Archiving — Provide Indexing Information
38

40. Late Archiving — Confirmation Screen
39

41. Late Archiving — Additional Feature
New Feature: The Link
button allows you to link
the same image to
multiple SAP documents
40

42. Late Archiving Summary
• Advantages:
Very simple to use and easy to configure
It’s set up for every project as a backup or catch-all
It does not change your business process (except maybe
less filing)
• Drawbacks:
Key fields must be known or they have to be looked up by the
scan operator or indexer
Very tedious, lending itself to key stroke errors — or
mis-indexing
41

43. Understanding the Barcode Concept
SAP
Barcode is entered Barcode number
with SAP and SAP key fields
transaction added to
BDS_BAR_IN Table
SAP
Scanning SAP processes new If a match is found,
software entries in both of both entries are
these tables looking deleted and an entry in
Document is for matching
scanned and the link table TOA01
barcodes is made
barcode is read
Integration
Doc ID and
Image and barcode
barcode are sent to
are sent to
SAP BDS_BAR_EX
archive server
table
42

44. Late Archiving with Barcode — Automatic
43

45. Late Archiving with Barcode — Manual
44

46. Late Archiving with Barcode — Manual (cont.)
45

47. Kofax Ascent Capture
46

48. Classification and Extraction of Index Fields
Extraction
47

49. Kofax Ascent Capture Validation
48

50. Automatic Release to SAP — AR4ERP
Released to SAP
49

51. Late Archiving with Barcode Summary
• Advantages:
Does not change the existing A/P process
Requires very little training
Scanning is much more efficient
No indexing
No scanning separator sheets
Identifies documents that have not been scanned
Multiple SAP objects can be linked to a scanned document
Individual document indexing/categorizing is eliminated
• Drawback:
Need to manage and print/buy barcodes
50

52. Late Archiving with Barcode Summary (cont.)
• Best when:
Documents have already been approved, coded, and entered
(processed centrally or remotely)
Storage and retrieval is a key ROI, not improving the
business process
A large volume of documents need to be scanned
Large, centrally located scanners are used
51

53. Barcode Label Information
• Free demo software from Avery
• Typical barcode type or font
2/5 interleaved numeric with a check digit (last digit validates all
preceding digits)
• Box of Avery labels #5267 is about $28.00
One Box contains 100 sheets/8000 labels
About .0035 cents per label or 10 for 3.5 cents
• Preprinted barcode labels $4-$7 per 1000
52

54. Early Archiving Process Flow Using Third-Party Solutions
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
5 – Process Workitem
Workitem executed —
image is viewed and SAP
3 – Archive Image 4 – Workitem Created transaction is created
Image assigned archive Workitem created and
ID and stored electronically routed to
appropriate SAP inbox
53

55. Early Archiving Process Flow with Content Server
Receiving/Processing
1 – Scan Station
Paper is scanned and Department Processor
document types are
assigned within the
scanning application
and released to SAP
Processor
Content Repository
SAP R/3
Processor
4 – Process Workitem
Workitem executed —
image is viewed and SAP
2 – Archive Image 3 – Workitem Created transaction is created
Image assigned archive Workitem created and
ID and stored electronically routed to
appropriate SAP inbox
54

56. Kofax Ascent Capture
55

57. Kofax Ascent Capture (cont.)
56

58. Automatic Release to SAP — XML and Images
Released to SAP
57

59. SAP User Workflow Inbox
58

60. SAP User Workflow Inbox (cont.)
59

61. Process Workitem
POST
60

62. Process Workitem — Completed
61

63. Early Archiving Summary
• Advantages:
Distribute work to others
Allows for ad hoc approval process
Standard reporting on end-user processing
• Drawbacks:
Most complicated of the standard supplied archive scenarios
Processing faster with dual monitors
Uses SAP’s workflow
Workflow needs to be initialized and an organization
structure may have to be used
62

64. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
63

65. Types of Documents
• Structured:
Form-based documents
The same information is listed in the same position or
layout, in the same format on every document
• Semi-structured:
These documents contain the same type of information as
form-based documents, but in different positions or in a
different layout
• Unstructured:
These documents contain various information contained in
various layouts
Vendor
Invoices
64

66. Rules-Based vs. Template-Based OCR
• Rules-based
Entire document is scanned and processed via Optical
Character Recognition (OCR)
Specific zones can be used to search for a key (key words,
phrases, or expressions) and find the corresponding value
(general to specific)
Once configured, it is most likely that new invoices can be read
OCR rates are .5 to 5 seconds
• Template-based (logo ID) — learn, memorize, teach
Each vendor invoice must be maintained as a template for each
resolution (DPI)
New invoice might not be read — system learns the invoice
Database maintained — not good for large numbers of vendors
OCR rates are 8-12 seconds
65

67. How Does Rules-Based OCR Work?
• Configuration
Create classification rules
Features and index fields that classify the document as:
PO, non-PO, credit memo, statement
Assign index fields based on classification
PO invoice classified — PO number, invoice date, invoice
amount, and invoice number
Assign rules and logic to the key values (index fields)
PO Number, PO #, P.O. Num = (45########)
Logical expression 45[0-9]{8} validates 4512345678
66

68. OCR Processing Solution Steps
Document
OCR SAP Images
Rules Database
SAP Content
Server
Data
Scan Extraction Validate Release
Manual or SAP
Automatic Workflow
67

69. Overview of All the Rules
68

70. Break Down a Single Rule
69

71. Performance
70

72. SAP User Workflow Inbox
71

73. SAP User Workflow Inbox (cont.)
72

74. Process Workitem
POST
Fields are pre-filled with OCR
data from image
73

75. Process Workitem (cont.)
74

76. Custom Ledger Solutions
75

77. Document and Date Retrieval
• Extensive search
and retrieval
capability
• Retrieval layout
can be configured
per user
• Process analysis
possible
76

78. Partial Ledger View
77

79. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
78

80. Kofax VirtualReScan™ (VRS)
Scanned in color
Image File Size = 213 KB
Scanned in 1 bit B/W
Image further
processed with VRS 79

81. Scanners and MFPs
• Scanner classification
Low-volume scanner: 10-30 pages per minute (ppm), 500-1000
scans daily
Mid-volume scanner: 30-60 ppm, 3,000 scans daily
High-volume Scanner: 60 ppm, 8,000 scans daily
• Low-volume scanners are being loaded with features
once reserved for the high-end scanners
• Scanners are also incorporating network scanners
• Multi-Functional Peripherals (MFPs)
Used for less then 50 documents a day or when several people
need to scan
No VRS or image enhancement software or scanning features
Simple interface, multiple users, low volume 80

82. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
81

83. Common Mistakes
• Inconsistency in naming document types
• Too many desktop scanners in one location
• Multiple makes and models of scanners
• Too many document types
• Workflow routing to users and not positions
• No workitem delete process
• Too many individuals with delete access
• Not monitoring the open barcode tables
• Allowing users to create attachments through the
Generic Object Services using KPro and store the
attachments on the SAP database
82

84. Create Attachment
83

85. A Word About Using Attachments
• Technically speaking, notes, PC attachments, and URLs
are treated as SAP office documents
They result in corresponding entries in the SOOD and
SOFM tables
• Contents of the attachments are stored in the SOC3 table
• Contents of the PC attachments are written to the
SOFFCONT1 table
• See Note 530792 for more information
• See Note 389366 if you need to move documents from
the database to an external content server
84

86. Best Practices
• Stay consistent in naming document types
• Choose the correct scanner for the volume and
the situation
• Stay with the same brand of scanner
• Use USB 2.0 over SCSI
• Use ISIS drivers over TWAIN drivers
• Know your retention periods
• Inquire about document security issues before configuring
• Use workflow reporting tools to manage the process
• Create a test content repository or content server
85

87. What We’ll Cover …
• Advantages to document imaging
• Common terms and background
• Architecture
• Understanding archiving scenarios
• Walk through of the archiving scenarios
• Advanced options using OCR
• VRS and scanners
• Common mistakes and best practices
• Wrap-up
86

88. Resources
• Verbella CMG, LLC
Information on scanners
www.Verbellacmg.com/scanners
• Kofax
Information on VRS
www.kofax.com/vrs
• Avery
Free demo software for barcode labels
www.avery.com
87

89. Resources (cont.)
• Integrated Solutions
Joseph Wagle, “Fit to Scan: Choosing The Ideal Solution For
Your Document Capture Needs” (Integrated Solutions,
November 2006).
www.integratedsolutionsmag.com/index.php?option=com_j
ambozine&layout=article&view=page&aid=5384&Itemid=69
Ken Congdon, “Narrow Your Distributed Scanning Options”
(Integrated Solutions, November 2006).
www.integratedsolutionsmag.com/index.php?option=com_j
ambozine&layout=article&view=page&aid=5353&Itemid=69
88

90. 7 Key Points to Take Home
• Electronic images are easier and cheaper to manage
• Document imaging can be implemented quickly and cost-
effectively using standard SAP scenarios
• SAP Content Server can be used as a reliable document
management system
• Third-party content servers have some features that
provide advantages over the SAP Content Server
• OCR produces additional automation and efficiencies
• VRS is a necessity when using OCR or scanning high
volumes of documents
• Never scan staples
89

91. Your Turn!
How to contact me:
John Walls
John.walls@Verbellacmg.com
90