Standard Operating Procedure

Invoice Entry (MIRO)

Work Stream

Accounts Payable (AP)

Version #

1.0

Last Revised Date

Process Implementation

Date

SOP Owner

SOP Approver

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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Table of Contents

1. Overview .........................................................................................................2

1.1 General Information ................................................................................ 2

1.2 Related Internal Policies and Processes ...................................................... 2

1.3 Systems/Tools ........................................................................................ 2

1.3.1 Global Systems/Tools .......................................................................... 2

1.3.2 Market-Specific/Regional Systems/Tools ................................................ 2

2 Executive Summary ..........................................................................................3

2.1 Synopsis ................................................................................................ 3

2.2 Objective ............................................................................................... 4

2.3 Process-specific Service Level Agreements (SLAs) Risks and Controls ............ 4

2.4 Risks and Controls .................................................................................. 4

2.4.1 Global Risks and Controls .................................................................... 4

2.4.2 Market-specific Risks and Controls ........................................................ 5

2.5 Roles and Responsibilities ........................................................................ 5

3. Inputs .............................................................................................................5

4. Process Map ....................................................................................................6

5. Process Description ...........................................................................................7

5.1 Initiate Invoice Entry (MIRO) Process ........................................................ 7

5.2 Start VIM Workflow and Document Type Determination ..............................16

6. Abbreviations/Acronyms .................................................................................. 17

7. Outputs ......................................................................................................... 19

8. Version History .............................................................................................. 20

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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1. Overview

1.1 General Information

Audience

AP Team

Frequency

Daily

1.2 Related Internal Policies and Processes

Upstream/Downstream processes

Upstream: Receiving

Downstream: DP (Document Processing)

Workflows

1.3 Systems/Tools

1.3.1 Global Systems/Tools

System/Tool

System ID/Name

Description

OpenText

Content Management

SAP S/4 HANA

P40

S4 Production

Iron Mountain

Data and Record Management

1.3.2 Market-Specific/Regional Systems/Tools

System/Tool

System ID

Description

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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2 Executive Summary

2.1 Synopsis

The Invoice Entry (MIRO) process is performed to ensure that all the invoices, received through

different channels, are successfully entered in the system and they are available for further

processing. It is performed on a daily basis. The key steps associated with the process are:

1. Archiving the invoices in the OpenText.

2. Recognizing and validating Optical Character Recognition (OCR), if the mandatory fields

are not recognized during automatic OCR extraction.

3. Scanning the paper invoices.

The system tools used to conduct the process are OpenText, SAP S/4 HANA system, and Iron

Mountain. The key departments/Groups involved in the process are

1. Vendor

2. Invoice Processing team

3. Indexer

4. Scanner

The process initiates with the receipt of an invoice from the Vendor and ends with Data

Processing (DP) workflow in the Vendor Invoice Management (VIM). The key decisions required in

the process are:

1. Scanning the paper invoices into the system in all regions except for North America

2. Extracting the information from the paper invoices via Iron Mountain in North America

In the Invoice Entry (MIRO) process, the Vendor initiates the process by sending an invoice to

the ABC COMPANY Invoice Processing team for the goods and services provided by them. The

invoices are received by the Invoice Processing team in various forms through different channels.

The invoices are processed further as per their channels. These channels are:

E-mail

If the invoice is received via e-mail, the system automatically checks the format of the document.

If the format of the invoice is incorrect and/or an attachment is missing, the Invoice Processing

team reviews the invoice and returns it to the Supplier via e-mail.

If the format of the invoice is correct, the invoice is archived and the mandatory information is

extracted. If the mandatory information is not properly recognized, the invoice is routed to the

Indexer to do OCR validation for required fields. When the OCR validation is done, the invoice

flows to the OpenText VIM to start the VIM workflow. Based on the document type, DP workflow

is triggered.

Salesforce/Fiori/Supplier/EDI/SAP eDoc/SOVOS XML

If the invoice is received via Salesforce/Fiori/Supplier/EDI/SAP eDoc/SOVOS XML, the invoice is

rendered, archived, and the text fields are mapped to the VIM Index data. Then, the invoice flows

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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to the SAP S/4 HANA system to start the VIM workflow. Based on the document type, DP

workflow is triggered.

Third party application (Media, Legal, and Tax system)

If the invoice is received via third party application (Media, Legal, and Tax system), the system

automatically checks for any errors in the invoice. If the invoice is error-free, the payment can be

processed. However, if there are any errors, the invoice flows to the OpenText VIM to start the

VIM workflow. Based on the document type, DP workflow is triggered.

Paper Invoices

If the paper invoices are from North America, the information is extracted via Iron Mountain

system.

If it is not North America, the paper invoices are scanned and stored in the archive center. Post

this, mandatory information from the invoice is extracted through OCR extraction. If the

mandatory information is not properly recognized, the invoice is routed to the Indexer to do OCR

validation. When the OCR validation is completed, the invoice flows to the OpenText VIM to start

the VIM workflow. Based on the document type, DP workflow is triggered.

2.2 Objective

This document describes the various entry points of invoices in the system and all process steps

leading to successful extraction and recognition of the invoices till the DP (Document Processing)

Workflow creation

Process-specific Service Level Agreements (SLAs) Risks and Controls

Note: Governance PPT link will be attached once received from Business.

2.3 Risks and Controls

2.3.1 Global Risks and Controls

Risk

Control

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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2.3.2 Market-specific Risks and Controls

Risk

Control

2.4 Roles and Responsibilities

Role

Responsibilities

Vendor

• Sends invoices

Invoice Processing Team

• Review the invoice received via e-mail.

Indexer

• OCR validation

Scan Operator

• Scans the invoices

3. Inputs

Input

File Type and

Location

Frequency

Owner

Purpose/Usage

Invoice

E-mail/

Salesforce/

Fiori/Supplier/

EDI/SAP eDoc/

SOVOS XML/

Third party

application /

Paper

Daily

Vendor

To accurately make

available the invoice

documents in the

system for further

processing

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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4. Process Map

Given below is the high-level process map that describes this process:

Double-click the document below for an enlarged view of the process map.

Invoice Entry

(MIRO).pdf

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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5. Process Description

Disclaimer: Please note that the screenshots used in this document are purely for

illustration purposes only and may not be an exact representation of the actual

environment.

5.1 Initiate Invoice Entry (MIRO) Process

The Vendor sends invoices to ABC COMPANY Invoice processing team for the goods and services

provided by them. This initiates the invoice entry process. The invoices are received in various

forms through different channels.

To view the invoices, the Invoice Processing team performs the following steps:

1. In the SAP Logon 740 window, double-click the P40 S4HANA Prod System option.

2. The SAP Secure Login Client – Login pop-up box is displayed. Enter the KO ID and

password and click the OK button.

3. The SAP screen is displayed. Enter the user ID and password.

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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4. The SAP Easy Access screen is displayed. In the Command box, enter the

transaction code /N/OTX/PF03_WP, and then press the Enter key.

The Inbound Administration screen is displayed, which displays all the invoices

received through different channels. The invoices are processed further as per their

method of receipt. Below screen shows list of documents received through various

channels.

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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E-mail

Email Invoice will have attachments which are PDF and Rendered-To-PDF (TIF, Word,

Excel). These will be OCR-Extracted automatically from the e-mail.

All different PDF files from the same e-mail are processed as different invoices. One PDF

file = One invoice.

All other documents in the e-mail which are no PDF or Rendered-to-PDF (TIF, Word, Excel)

files will be ignored, for example email signatures, logos and graphics (jpg, png, bmp).

The body in the e-mail will be saved as a text attachment for each invoice.

In general, no manual intervention is required. All PDF or Rendered-to-PDF invoices are

extracted from the e-mail and then send to OCR-Validation, when required, or directly to

VIM Workflow.

1. In the below example Invoice received through email attachment can be seen on

the Inbound Administration screen.

2. If the format of the invoice is correct, the invoice is archived. In below screen

archived documents can be seen

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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3. Post the invoice is archived all the mandatory information is extracted through OCR

extraction. Once all mandatory fields extracted successfully, VIM workflow is

triggered automatically.

Note: However, if the format of the invoice is incorrect and/or an attachment is

missing, Email is identified as processing error and rejected. Post the review of the

email and its attachment, Invoice Processing team will send a return note via email

indicating reason (ex. Invalid format)

In below screen these documents can be seen in rejected queue.

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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Electronic Invoices - Salesforce/Fiori/Supplier/EDI/SAP eDoc/SOVOS XML

If the invoice is received via Salesforce/Fiori/Supplier/EDI/SAP eDoc/SOVOS XML, it is first

rendered and archived, post which they are processed by mapping text fields to index

data. In general, no manual intervention is required

1. In the below example Invoice received through Fiori can be seen on the Inbound

Administration screen.

2. Documents received are rendered to pdf and archived. Below is the example of the

rendered and archived invoice.

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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3. These invoices are further processed automatically mapping text fields to VIM

Index data and then routed to VIM workflow

Third party application (Media, Legal, and Tax system)

For the invoices received via third party application (Media, Legal, and Tax system),the

system automatically checks for any errors in the invoice. If the invoice is error-free, it

can be directly processed for payment.

In the below screen, a third-party invoice can be seen with an error and categorized as

IDOC_ERR.

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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In case of errors as seen in this example, the invoice flows to the Open Text VIM and start

a VIM Workflow to eventually resolve errors in VIM through exception resolution

Paper based

In case of North America, the information from paper invoices is extracted via Iron

Mountain system.

If the invoice is not from North America, the Scan Operator scans the invoice, which gets

stored in the archive server. Then through automatic OCR extraction, mandatory

information from the invoice is extracted. If all required fields is not properly recognized,

the invoice is routed to the Indexer to do OCR validation. When the OCR validation is

done, the invoice flows to Open Text VIM to start the VIM workflow.

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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In the below screen, example of the paper invoice input through a scanner can be seen in

the Inbound Administrator.

In the below screen paper invoice input through Iron Mountain is seen.

1. After scanning invoices are stored in archive server. In below screen archived

documents can be seen

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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2. Post the invoice is archived all the mandatory information is extracted through OCR

extraction. Once all mandatory fields extracted successfully, VIM workflow is

triggered automatically for further processing.

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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5.2 Start VIM Workflow and Document Type Determination

After the extraction of the mandatory fields of the invoices for all the channels (of invoice

receipt), the document is available in the Open Text to start the VIM workflow. Further, the

document type determination logic is applied. These are automated steps and require no manual

interventions.

See below screens for an example of a document available in OpenText for further processing.

Go back to the SAP Easy Access screen. In the Command box, enter the transaction code

/n/OPT/VIM_VA2, and then press the Enter key.

1. The VIM Analytics powered by SAP HANA screen is displayed. Enter an appropriate

input parameter in the Accounting Document Number field.

2. Click the Execute button.

3. The VIM Analytics powered by SAP HANA system is displayed. Here the document

available for workflow processing can be seen. Double-click the document number.

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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4. The Display Invoice Document screen is displayed with the details of the Vendor

and the Purchase Order

Documentation Type Determination rules decide the type of DP workflow to be triggered

automatically (ex PO or Non-PO workflow) for further processing of the documents in Open Text

VIM

6. Abbreviations/Acronyms

Short Form

Full Form

Accounts Payable

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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Document Processing

EDI

Electronic Data Interchange

MIRO

Movement in Receipt Out

OCR

Optical Character Recognition

VIM

Vendor Invoice Management

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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7. Outputs

Output Name

Output Type

Output Location

DP workflow

VIM

AP—Invoice Entry—Movement in Receipt Out (MIRO)

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8. Version History

Version

Date

Change Owner

Change

Request No.

Change

Details

1.0

Month in

words/Date/Year

Name of the

change owner

Change request

Change

description