SAP Solution Brief

Ariba Solutions Objectives Solution Benefits Quick Facts

Ariba Contract Invoicing

Effective Management
of Non-PO Invoices
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
 Objectives Solution Benefits Quick Facts

Help ensure compliant

non-PO invoicing
Help ensure compliant For recurring and unplanned services such as landscaping, equipment
non-PO invoicing installation and maintenance, or printing, you need a streamlined way to
approve invoices, with easy access to contracted rates. The Ariba® Contract
Invoicing solution from Ariba, an SAP company, allows your suppliers to
create invoices against contracts, enabling fast, efficient processing of
non-PO invoices.
Integrated with cloud-based solutions for Having suppliers create an invoice from a
sourcing and contract management, Ariba contract or rate sheet removes AP staff from
Contract Invoicing enables straight-through review and approval of these invoices. You just
processing of non-PO invoices to help ensure confirm that the work was completed and the
the compliance that your business requires. invoice is ready to pay.

While the Ariba software lets you process By replacing a manual process, you reduce
non-PO invoices for services with fixed con- errors, speed processing time, and lower
tract rates, where the solution stands out is in costs. With Ariba Contract Invoicing, you can
its ability to handle the processing of invoices manage your non-PO invoices as effectively
for services with tiered or discount pricing. as invoices driven by POs.
You can also process invoices for services
with rates that vary by type of service, where
it was delivered, when it was performed, or
some other variable.

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 Objectives Solution Benefits Quick Facts

Enforce your contracts and protect

against rogue spend
Enforce your contracts and protect Your procurement team may be great at nego- •• Commodity covers a supplier’s items for
against rogue spend tiating contracts with suppliers, but how can specific commodity codes, which is useful
you be sure that negotiated prices get enforced for aggregating spend on invoices for com-
Simplify accounting with advanced on the invoices processed against them? modities with fluctuating prices.
contract invoicing •• Supplier covers all of a supplier’s products
Ariba Contract Invoicing does just that. This or services and can be used as a master
Apply contract invoicing to a broad collaborative Ariba solution automates the agreement to manage specific projects
set of services creation of invoices from contracts to help invoiced against it.
ensure that non-PO invoices honor all your
Support new e-invoice agreements. You can manage straight- The solution also supports blanket purchase
processing potential through processing of invoices for different orders, providing an effective approach to pro-
contract levels: cessing goods and services you may reorder
Take advantage of a global business •• Item covers only specific catalog items. throughout the year, while enforcing order
commerce network •• Catalog covers all items from a specific limits that may be defined with that supplier.
catalog of the supplier.

Item-level processing lets you select contract

line items and “flip” them into invoices.

3 / 9 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

 Objectives Solution Benefits Quick Facts

Simplify accounting with advanced

contract invoicing
Enforce your contracts and protect With Ariba Contract Invoicing, you can handle of innovative contract invoicing features such
against rogue spend unexpected items and charges. You can as tiered pricing and non-PO invoice matching
include additional pricing terms for fixed and with line items on cXML, CSV, and other
Simplify accounting with advanced recurring itemized fees on invoices, and add imported invoices to contracts.
contract invoicing costs and expenses as needed.
Support for tiered pricing allows you to spec-
Apply contract invoicing to a broad For non-PO invoices, the solution automati- ify different prices or discounts based on
set of services cally applies relevant accounting elements purchase volume – either dollar amount or
such as project, cost center, department, quantity – against the contract. You can set
Support new e-invoice commodity map, user, or general ledger cumulative volume discounts, where the price
processing potential account from the contract. change applies when order volumes hit a
certain threshold (for example, once annual
Take advantage of a global business You can also perform mass edits on account- order volumes reach 1,000 units). Or you can
commerce network ing information and create contract invoice configure discounts by order size: for exam-
templates that consolidate items you need on ple, US$5.99 per unit for orders of 19 or less,
a recurring basis. Add attachments such as a $5.49 for orders of 20 to 49, and $4.99 for
bill of lading or field ticket to further expedite orders of 50 or more.
invoice processing. In addition, take advantage

4 / 9 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

 Objectives Solution Benefits Quick Facts

Apply contract invoicing to a broad

set of services
Enforce your contracts and protect Contract invoicing is especially suited to those pricing for specific services. In addition, you
against rogue spend services where a supplier self-dispatches or can choose to dispatch a blanket PO to estab-
where the dispatching process does not lish a budgetary limit for each service.
Simplify accounting with advanced involve a PO. Examples include the following.
contract invoicing Equipment installations – You can standard-
Snow removal – Providers can work with you ize the services that subcontractors perform,
Apply contract invoicing to a broad to establish contracts that define the scope automatically match prices on invoices, and
set of services of services and ground rules for working force subcontractors to complete necessary
together and that enforce these agreements steps and paperwork before billing.
Support new e-invoice during invoice processing.
processing potential Processing compliant invoices with Ariba
Tree trimming – Through complementary Contract Invoicing for these and other ser-
Take advantage of a global business Ariba sourcing and contract solutions, utility vices such as waste management, equipment
commerce network companies can work with these suppliers to maintenance, or print and advertising can
define a preventive maintenance program boost productivity while supporting sourcing
and establish rate cards with agreed-upon and procurement teams.

5   /  9 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

 Objectives Solution Benefits Quick Facts

Support new e-invoice

processing potential
Enforce your contracts and protect To complement Ariba Contract Invoicing, the •• Driving procurement compliance in the
against rogue spend Ariba Services Invoicing solution can be used oil and gas, natural resources, and energy
for real-time creation and approval of service industry segments
Simplify accounting with advanced entry sheets – and the ability to quickly •• Moving estimate-based service contracts to
contract invoicing create error-free invoices from them. Through the cloud
the Ariba Network, you collaborate on proj- •• Helping suppliers interpret large planned
Apply contract invoicing to a broad ects with service firms and contractors orders with service hierarchies
set of services worldwide before any service is performed. •• Flipping multilevel service orders to invoices
Suppliers can access contracts and rate data
Support new e-invoice to create service entry sheets for planned In addition, by integrating these solutions
processing potential and unplanned services and then “flip” them with Ariba’s full suite of source-to-settle
into invoices for straight-through processing. solutions, you can improve strategic or
Take advantage of a global business tactical sourcing, management of contracts,
commerce network Ariba Services Invoicing complements Ariba and supplier information and performance
Contract Invoicing when you are: management.

With Ariba Contract Invoicing and Ariba Services

Invoicing, you can achieve a greater level of
compliance support than for invoices driven by POs.

6   /  9 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

 Objectives Solution Benefits Quick Facts

Take advantage of a global business

commerce network
Enforce your contracts and protect Supporting a collaborative invoice process, With many of your suppliers already active on
against rogue spend Ariba Contract Invoicing leverages the reach the Ariba Network, you can quickly connect
and power of the Ariba Network, a global with them for e-commerce. Those suppliers
Simplify accounting with advanced community of more than 1.8 million trading not on the network can be enabled for
contract invoicing partners. The Ariba Network automates col- electronic processing through automated
laboration and transaction processing across supplier enablement tools and flexible con-
Apply contract invoicing to a broad the e-commerce spectrum: source to settle nectivity options. And for those suppliers still
set of services for buyers and order to cash for suppliers. sending paper invoices, you can scan and
convert the invoices to an electronic format.
Support new e-invoice All the business rules you configure in the
processing potential Ariba Network apply to contract invoicing, As part of a family of integrated cloud appli-
including supplier group rules and country- cations, Ariba Contract Invoicing extends the
Take advantage of a global business specific invoice rules. In addition, by digitally capabilities of Ariba Sourcing and Ariba
commerce network signing contract invoices, you can extend Contract Management solutions. This lets
non-PO invoice processing to regions where a you strategically source suppliers, formalize
digital signature is required for authentication. these agreements in contracts, and gain
more control over your spend.

7 / 9 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

 Objectives Solution Benefits Quick Facts

Make accounts payable

an innovation center
Make accounts payable With Ariba Contract Invoicing, you can Part of a comprehensive approach to invoice
an innovation center manage your most complex and challenging management that helps accounts payable
non-PO invoices, including those containing Run Simple, the solution can help your
variable rates or tiered pricing. suppliers too. Self-service tools for suppliers
eliminate invoice- and payment-status phone
In addition, Ariba Contract Invoicing simpli- calls. Online dashboards centralize all docu-
fies the processing of blanket purchase ments and communications so that your
orders and different contract invoice types. suppliers can view approvals, payments,
You can automate account coding, perform rejected orders, and more, which helps them
mass edits to accounting information, reuse with cash forecasting and dispute resolution.
contract invoice templates, incorporate
attachments in the invoice review and
approval process, and more.

Accelerate invoice processing, improve on-time

payment performance, and maintain the financial
health of your supply chain.

8 / 9 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

www.sap.com Objectives Solution Benefits Quick Facts

Summary Benefits
To avoid rogue or off-contract spend and •• Improve control over, and accelerate the
noncompliance with business policies, you processing of, non-PO invoices
need to efficiently and accurately process •• Accommodate multiple non-PO invoice sce-
non-PO invoices. The Ariba® Contract Invoic- narios, including invoices with variable rates
ing solution allows you to accelerate non-PO and tiered pricing, automated account cod-
invoice processing and enforce compliance ing, and reuse of contract invoice templates
to contracts and rate cards. •• Help sourcing and procurement capture
negotiated savings
Objectives •• Integrate with other Ariba solutions to
•• Simplify processing of non-PO invoices, at reliably source, contract, and transact with
lower cost suppliers
•• Minimize invoice errors and exceptions
•• Prevent rogue spend Learn more
Call your SAP representative or visit us online.
Solution
•• Contract invoicing to streamline non-PO
invoicing and enforce contract compliance
•• Support for complex invoices that contain
variable rates and tiered pricing

9   /  9
Studio SAP | 35785enUS (15/07)
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
© 2015 SAP SE or an SAP affiliate company. All rights reserved.

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