DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
AP Invoice Automation System
SUMMARY:
This ordinance authorizes a contract with Readsoft, Inc. for the purchase, configuration, implementation and training for software to further automate and streamline Accounts Payable invoice processing. Readsoft, Inc. has been a certified data capture SAP partner since 2001 with over 1,000 SAP customers and has extensive public sector experience. The initial software implementation, configuration and training will be for a seven month period upon City Council approval.
It is estimated that the additional automation, which includes the use of Optical Character Recognition (OCR) capabilities, will result in timelier payments to vendors allowing the City to take better advantage of lost vendor discounts, improve vendor relations and potentially increase the level of vendor participation in future bids. This contract will allow for the reallocation of existing resources to focus on vendor relations and payment as opposed to data input.
Funds in the amount of $384,000 are available from the ITSD Portfolio project fund.
BACKGROUND INFORMATION:
The City is undergoing a phased effort to modernize its invoice management and payment process. The initial phase, which went live in April 2010, focused on scanning invoices and delivering electronic images throughout the organization using workflow to obtain all the necessary information to process the invoices into SAP.
The volume of transaction activity handled currently by COSA's Accounts Payable Section includes:
* 3,000 Total Active Vendors; (~7,000 vendor master records)
* Total Invoices Received Annually = 110,000 PO; 36,000 Non-PO; 10,000 Employee Travel & Expense Reimbursements
* 50% of invoice transactions correspond to <8% of total dollar spend
Through subsequent phases, the Accounts Payable division seeks to (1) further automat...
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