ICreative introduces the Procuration Manager for Basware P2P. This tool simplifies procuration scheduling and better streamlines approval flows.
Procuration is mandating employees to enter into commitments and obligations on behalf of the company. Examples include entering into contracts, placing orders and approving invoices. It is a standing authorization to act on behalf of the company.
To prevent abuse, the frameworks for this are laid down in a so-called procuration regulation. These include who may approve which (purchase) invoices and up to what amount. In many larger companies, these powers and responsibilities lie at various levels in the organization. The rules are therefore set out in a so-called procuration scheme (also called approval matrix or procuration matrix).
Approval Flows
To correctly implement the procuration scheme, Basware P2P configures approval flows based on this schema. The approval flow then represents the route an invoice must take within the organization.
'We find that many companies find the procuration schedule difficult. As more employees and administrations are involved in the procurement process, the complexity of a procuration diagram increases and with it the number of errors that creep into the process,' says Berjan van den Broek, consultant at ICreative. 'Moreover, a procuration schedule is subject to change, so it keeps coming back.'
Matrix validation
Errors in the matrix often only surface as more invoices get stuck in the system. This then leads to manual correction work. This is why ICreative is introducing the Procuration Manager, an add-on to Basware that allows functional administrators to validate and test the approval matrix with every change. The tool clearly shows where the conflicts are.
'A common error is that two or sometimes more approvers are defined in a flow for a given amount. An invoice then gets stuck in the system unnecessarily. You can easily discover this error with ICreative Procuration Manager. After correction you can re-import the matrix and the number of invoices unnecessarily stuck in the system will decrease,' explains Berjan.
Compliant
It is becoming increasingly important to properly define authority within an organization and apply it in the various information systems. 'It is increasingly becoming a subject for audits. Certainly when it comes to procuration in purchasing and approval of invoices,' says Vincent Wouters, CEO of ICreative.
With ICreative Procuration Manager, on the one hand, it is much better ensured that the procuration schedule is correct; that is, that the purchase invoice is approved by the right person with the right authority. On the other hand, updating the schedule becomes easier and more efficient, making it more accessible to make adjustments more often and faster. The latter is important to keep authorizations current in Basware. 'So with this solution you are better in control, better able to be fully and efficiently compliant with the governance structure set up and the process becomes even more auditable,' Vincent said.