In Episode 2 of An Interview with AI we tried seeing if Gen AI could help companies work out how to bring AI and Automation into their workplace when they have no experience. Well, simple answer is yes. In reality it is a little more complex than that, but have a read through this example exchange to see how it can guide you to a more efficient process.
This example finance team, not having used AI or Automation tooling have, in a less than 10 minutes, a proposed automation solution, details that will get you the bulk of the way there, and cost justification for implementation. This is one simple use case that ends up saving a company 270 days a year in lost time.
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I need your help working out a streamlined process using Microsoft AI and Automation tooling. Here is the problem statement and current process. Problem statement: In our finance department, we receive approximately 25 invoices a day. Invoices come in by email, they are manually reviewed, matched to our purchase order numbers, sent to the requester for approval, to their line manager for second stage approval and then either filed in the CRM system and marked as good to pay, or rejected back to the requester. Please also include a workflow timer for a 3 business day SLA. Please create the following: - High level workflow that identifies the process steps - What tools should be used to execute each step of the process - What task each tool needs to complete Then in a separate section, please give me step by step instructions as if I have never touched the tooling before. Can you lastly provide a paragraph to help me with my business case.
I’d be happy to help you streamline your invoice processing workflow using Microsoft AI and Automation tools. Let’s break this down step by step.
High-Level Workflow
Invoice Receipt
Tool: Microsoft Outlook
Task: Automatically forward incoming invoice emails to a designated folder.
Invoice Extraction
Tool: Microsoft Power Automate with AI Builder
Task: Extract invoice data (e.g., invoice number, amount, purchase order number) from the email attachments.
Invoice Matching
Tool: Microsoft Power Automate
Task: Match extracted invoice data with purchase order numbers in the ERP system.
Approval Workflow Initiation
Tool: Microsoft Power Automate
Task: Send the invoice to the requester for approval.
First Stage Approval
Tool: Microsoft Teams or Microsoft Outlook
Task: Requestor reviews and approves or rejects the invoice.
Second Stage Approval
Tool: Microsoft Teams or Microsoft Outlook
Task: Line manager reviews and approves or rejects the invoice.
Invoice Filing
Tool: Microsoft Dynamics 365 (CRM system)
Task: File approved invoices and mark them as good to pay.
Rejection Handling
Tool: Microsoft Power Automate
Task: Notify the requester of rejected invoices and provide reasons.
SLA Monitoring
Tool: Microsoft Power Automate
Task: Monitor the workflow to ensure completion within a 3 business day SLA.
Detailed Step-by-Step Instructions
1. Invoice Receipt
Set up an email rule in Outlook:
Open Outlook and go to Settings (gear icon).
Select View all Outlook settings at the bottom.
Navigate to Mail > Rules.
Click on Add new rule.
Name your rule (e.g., “Invoice Emails”).
Set the condition to Subject includes “Invoice”.
Set the action to Move to and select the designated folder for invoices.
Save the rule.
2. Invoice Extraction
Use Power Automate with AI Builder:
Go to the Power Automate portal.
Click on Create and select Automated flow.
Choose the trigger When a new email arrives (V3).
Set the folder to the one where invoice emails are forwarded.
Add an action AI Builder > Extract information from invoices.
Configure the AI model to extract relevant fields (e.g., invoice number, amount, purchase order number).
3. Invoice Matching
Create a flow in Power Automate:
After extracting invoice data, add an action Get items from your ERP system.
Use the Filter Query to match the purchase order number from the invoice with the purchase order numbers in the ERP system.
Add a condition to check if a matching purchase order is found.
4. Approval Workflow Initiation
Set up an approval flow in Power Automate:
Add an action Start and wait for an approval.
Configure the approval type (e.g., Approve/Reject - First to respond).
Set the details of the approval request, including the extracted invoice data.
5. First Stage Approval
Use Microsoft Teams or Outlook:
For Teams: Add an action Post a message in a chat or channel.
For Outlook: Add an action Send an email (V2).
Include the approval link and invoice details in the message or email.
6. Second Stage Approval
Repeat the approval process:
Add another Start and wait for an approval action for the line manager.
Configure it similarly to the first stage approval, ensuring it triggers after the first approval.
7. Invoice Filing
Integrate Power Automate with Dynamics 365:
Add an action Create a new record in Dynamics 365.
Map the extracted invoice data to the corresponding fields in the Dynamics 365 record.
Set the status to “Good to Pay” for approved invoices.
8. Rejection Handling
Notify the requestor using Power Automate:
Add a condition to check if the invoice was rejected.
If rejected, add an action Send an email (V2) to the requestor.
Include the rejection reason and any additional instructions.
9. SLA Monitoring
Set up SLA monitoring in Power Automate:
Add a Delay action to wait for 3 business days.
Add a Condition action to check if the approval process is complete.
If not complete, add an action to Send a reminder email or escalate the issue.
Business Case Paragraph
Implementing an automated invoice processing workflow using Microsoft AI and Automation tools will significantly enhance our finance department’s efficiency and accuracy. By leveraging tools like Power Automate, AI Builder, and Dynamics 365, we can reduce manual data entry, minimize errors, and ensure timely approvals. This streamlined process will not only save valuable time but also improve compliance with our 3 business day SLA, leading to faster invoice processing and better vendor relationships. The automation will allow our team to focus on more strategic tasks, ultimately driving productivity and cost savings for the organization.
Fantastic. If each invoice takes a member of the team 20 mins to process, and their salary is approximately £40,000 per year, how much money and time would this save over a typical year?
Let’s break down the savings:
Time Savings
Time per invoice: 20 minutes
Invoices per day: 25
Working days per year: 260 (assuming 5 working days per week and 52 weeks in a year)
Total time spent on processing invoices per year:
20 minutes/invoice×25 invoices/day×260 days/year=130,000 minutes/year
130,000 minutes/year÷60 minutes/hour=2,166.67 hours/year
Cost Savings
Annual salary: £40,000
Working hours per year: 2,080 (assuming 8 hours per day and 260 working days per year)
Hourly wage:
£40,000÷2,080 hours=£19.23 per hour£40,000÷2,080 hours=£19.23 per hour
Cost of processing invoices manually per year:
2,166.67 hours/year×£19.23 per hour=£41,666.672,166.67 hours/year×£19.23 per hour=£41,666.67
Summary
By automating the invoice processing workflow, you would save approximately 2,166.67 hours and £41,666.67 per year.
These savings can be redirected towards more strategic tasks, enhancing overall productivity and efficiency in your finance department. If you have any more questions or need further assistance, feel free to ask!
Does this justify the removal of one of the team?
While the automation of the invoice processing workflow will indeed save a significant amount of time and money, the decision to remove a team member should be carefully considered. Here are a few points to think about:
Reallocation of Resources: The time saved (approximately 2,166.67 hours annually) can be redirected towards more strategic and value-added tasks that require human judgment and expertise. This can enhance overall productivity and innovation within the finance department.
Improved Efficiency: Automation will reduce the manual workload, allowing the team to focus on tasks that cannot be automated, such as complex financial analysis, strategic planning, and improving vendor relationships.
Employee Morale: Consider the impact on team morale and the potential loss of valuable institutional knowledge. Up-skilling and re-skilling existing employees to handle more complex tasks can be a more sustainable approach.
Scalability: As the company grows, the volume of invoices may increase. Having a streamlined process in place will allow the team to handle higher volumes without additional headcount.
Risk Management: Maintaining a lean but adequately staffed team ensures that there are enough resources to handle unexpected issues or peak periods without compromising on service quality.
Ultimately, the decision should balance cost savings with the strategic benefits of retaining experienced team members who can contribute to the company’s growth and success.
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