Week 2: Use Cases in Finance, Procurement, and Project Management

Unit 2: Goods Receipt and Invoice Receipt

Reconciliation
Goods Receipt and Invoice Receipt Reconciliation
Business challenge

▪ The GR/IR account reconciliation process

is an exception handling process for all
purchase order items where invoices and
goods receipts don‘t balance after some
time.
▪ The G/L accountant and other involved
parties need to understand the business
situation on the level of a purchase order
item and decide how to solve the situation.
▪ The purpose of our application consists of
supporting all involved parties in
 understanding the root cause as quickly
as possible
 performing the right series of actions to
solve the issue

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Goods Receipt and Invoice Receipt Reconciliation
Next level of user support with analytics, assistance, and machine learning

▪ Intelligent recommendations simplify

and accelerate the reconciliation
process Goods Receipts Invoice Receipts
▪ Fewer human interactions reduce the
effort for non-value-adding activities
Match
▪ ML learns from the accountant’s
decisions Rule-based clearing

No match
▪ Reduction of open items
▪ Faster period end closing with higher
precision (write-offs) Write off

Intelligent Efficient clearing Cleared

Recommendation GR/IR Balance
Posting
Analytics, Assistance, and Machine Learning
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Goods Receipt and Invoice Receipt Reconciliation
Demo

1. Get an overview 1 2
2. Prioritize your work focus
3. Investigate the details
4. Decide on next steps
5. Follow up collaboration

3 4 5

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Goods Receipt and Invoice Receipt Reconciliation
Implementing machine learning for goods receipt and invoice receipt reconciliation

Connect SAP S/4HANA

Generate GR/IR Status
GR/IR with SAP SCP Train GR/IR Prediction Model
Recommendations
GR/IR ML Service

▪ SCP Admin: Subscribe to ▪ S4HC GL Accountant: ▪ S4HC GL Accountant:

GR/IR application – Schedule GL job – Schedule GL job
▪ S4HC Admin: – Job template – Job template
– Create communication “SAP_FIS_GRIR_TRAIN” “SAP_FIS_GRIR_INFERE”
system ▪ Based on own historical data ▪ Creation & update of process
– Create communication from within S4HC recommendation for all PO items
arrangement ▪ Regular training, that need GR/IR reconciliation
▪ One time effort e.g. monthly ▪ Regular generation, e.g. daily

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Goods Receipt and Invoice Receipt Reconciliation
Benefits and capabilities for the head of shared services

Benefits Capabilities
Reduced effort for GR/IR Real-time insights into all relevant
reconciliation information
All data in one view simplifies Simple and flexible SAP Fiori UI
processing
ML-based recommendations
Better and faster decisions
Easy reporting and drilldown
Simple root-cause analysis capabilities

Flexible embedded analytics One source for analytics and

based on transactional data transactional data
creates transparency ML continuously improves while
Reduced processing backlog learning from user decisions

Increase the efficiency of GR/IR account reconciliation with a smart and simple user
interface and ML-based recommendations
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6
Goods Receipt and Invoice Receipt Reconciliation
Benefits and capabilities for the head of finance

Benefits Capabilities
Increased accuracy of financial Real-time insights into all relevant
statement information
Reduction of write-offs Simple and flexible SAP Fiori UI
Minimized potential fraud or error ML-based recommendations
Higher accuracy for cost and Easy reporting and drilldown
inventory valuation capabilities
Increased accuracy of vendor One source for analytics and
liabilities transactional data
Faster clearing and lower number ML continuously improves while
of GR/IR discrepancies learning from user decisions

Enables increase in compliance and financial statement accuracy

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Goods Receipt and Invoice Receipt Reconciliation
Benefits and capabilities for the head of procurement

Benefits Capabilities
Enable root-cause analysis of Real-time insights into supplier
problematic supplier behavior and delivery patterns
Optimization of supply chain Simple and flexible SAP Fiori UI
Minimize potential fraud Easy reporting and drilldown
capabilities
Easy analysis of suppliers with
high volume of GR/IR One source for analytics and
discrepancies transactional data

Better insights into problematic delivery and invoice behaviors of suppliers

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Goods Receipt and Invoice Receipt Reconciliation
Roadmap
Phase 1 Phase 2
Manual Processing Processing with ML Support
support
▪ The system logs the actions of ▪ The training data is used to train
the end users, creating a set of the ML service.
training data for the ML service. ▪ The recommendations of the ML
service support the end user for
taking faster and better
decisions.
▪ The ML service gets better with
the number of processed items.
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Phase 3 (Roadmap)
Automated Processing
▪ As soon as the ML service is
considered to be trained well
enough with the available
historic data, the
recommendations of the ML
service can be taken over
automatically. So more and more
manual steps can be replaced
by automated actions of the
machine.
9
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