Engro Polymer is one of the major contributors of profits and revenues for the parent brand, Engro. The management wanted to implement a standardized digitization and automation of the whole organization, in order to reduce the workload for its employees. SAP was already implemented, however, the Invoice-to-Pay cycle was not automated or integrated and there was no proper flow of the functions. This caused a delay in the processing and vendors had to continuously engage with the Accounts Payables department to get their payments cleared. Because of the inefficiency, vendors charged a higher price for the company requirements.
This issue potentially challenged the reputation of the company and had already increased its costs. In order to rectify the whole issue, the company decided to automate the whole cycle, from receiving invoice to making payments to the vendor. They planned to include scanning of the received invoices and upload of their copies in the system. These uploaded scans will be forwarded to the data entry operator, who will keep it into the system in a customized form. This form is sent to a particular user for approval. The approval of the customized invoice will go through an automated system for the electronic signature. An authorization matrix was designed to segregate and determine different people to authorize the approval, based on the invoice and department. SuperNova named this custom-designed system as Authorization Matrix (LOAM). After all the required approvals, the invoice is forwarded to the finance department which can move it from park to post, which means that the document is now ready for payment. We also incorporated a maintained log in the system for anyone who wishes to see the list of people, who approved the invoice. When the document is approved and a payment gets due at a particular time, the accounts department runs a particular RAM every day. This is known as an automatic payment ram. This program makes a list of all the documents and invoices that need to be paid on their respective dates. The system seeks further approval and finally generates a file that is picked up by the bank that generates and sends the payment to the vendor itself and notifies the company. This update is recorded in the SAP document.
There is no involvement of paperwork in this cycle and every process is completed via a fully integrated system that makes audit, payments to banks and payments to vendors easier and on time. The accuracy is unparalleled as there is no human intervention and it reduces the workload for the finance and accounting departments. Because of the recent lockdown in Pakistan, this solution has become a massive success for the organization. Engro polymer has become the benchmark for the whole group of Engro for its high efficiency and effectiveness supported by a system that also enables to work from home. This system has been a massive success and other many other organizations seek its implementation.
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