SAP CIM, invoice processing of the future?
Tjalling Jan Gerkema - Senior SAP Invoice Management & Workflow Consultant
In a world where companies are increasingly working digitally, efficiency in managing financial processes is crucial. One of the most time-consuming and error-prone processes is the processing of purchase invoices. Traditional methods, where paper invoices are manually entered, approved and processed, often get bogged down in a sea of paperwork and human error.
This is where SAP Central Invoice Management (CIM) comes in, an SAP solution that transforms invoice processing using Cloud technology, artificial intelligence (AI), and the SAP Business Technology Platform (BTP).
What is SAP Ariba Central Invoice Management?
SAP Central Invoice Management is a standard SAP solution designed to centralize and optimize the invoicing process. It enables companies to bring invoices from different sources and in different formats together in one unified environment. This simplifies the management of invoices, approvals and payments.
Although it says Ariba in the product title, this product can also be used separately from SAP Ariba.
The SAP CIM process in the case of integration with the SAP S/4HANA Cloud, public edition
Source: SAP on Youtube.com
Key functionalities of SAP CIM
The Central Invoice Management solution helps reduce the complexity of the invoice-to-payment process and ensures that approval to payment can occur with minimal human intervention.
See below for an overview video of the functionality.
| undefined | Use |
|---|---|
| Integrated OCR capabilities | Capture invoices via integrated OCR using the Document Information Extraction service, simplified drag-and-drop experience for uploading invoice images and automated PDF email services |
| Importing master data and purchase invoices | You can load master data , such as company numbers, supplier data and document types from the back-end system. You can also select which invoices are to be imported and schedule the import of invoices from the back-end system. |
| Managing imported invoices | You can keep track of the status of invoices from multiple back-end systems in one central Fiori app including details and status. |
| Integration with invoice processing solutions | SAP Ariba Central Invoice Management supports integration with invoice processing solutions (e.g. SAP Ariba Buying and invoicing) |
| Intergration with an ERP system | Expandable platform optimized for SAP S/4HANA Cloud Public Edition (with other planned ERP optimizations) |
| Central working stock | Single view for accounts payable team, visibility of all invoices across all channels and the organization and streamlined processing and approval, with prioritization by status, company number and workflow |
| Manage data access authorizations | You can set user roles and authorizations to restrict access to invoices |
The role of Cloud, SAP BTP and AI in SAP CIM
By using the functionalities of the SAP BTP, the process can be easily extended without compromising the clean core principle. CIM also uses standard APIs on the platform to perform invoice recognition (OCR) and enrich data.
AI also plays a crucial role in SAP CIM. Using machine learning algorithms, invoices can be automatically classified, read, analyzed and matched with purchase orders. This reduces the risk of human error and significantly speeds up the approval process.
Integration with SAP S/4HANA Public Cloud
One of the main advantages of SAP CIM is it is Cloud based and has seamless integration with SAP Public Cloud. Although more limited, there are opportunities with SAP S/4HANA and SAP ECC.
In addition, integration with the SAP Public Cloud provides the ability to use SAP CIM as a cloud-based service. The link to the SAP Public Cloud also allows for easy scaling and adaptation to changing business needs and the use of the entire SAP solution in the cloud.
Manage Supplier Incoices Centrally - Overview reporting App to track invoice through the process
Source: SAP
Product maturity
So what about the maturity of this product? Compared to other invoice processing products like e.g. SAP Invoice Management by OpenText, there are still some steps to be made. Which in itself is not surprising, because this solution has been developed and proven for years and SAP CIM is just starting out. Examples of missing functionalities are the limited set of business rules that check the consistency and completeness of the (by OCR) supplied data, limited XML processing, lack of automatic coding and workflows to catch deviations from the purchase order data. These types of functionalities can be added, however, all of this must be built customer-specific.
The roadmap of SAP Central Invoice Management is therefore still full of functionalities to be developed.
SAP Ariba Central Invoice Management Roadmap
Source: SAP
Conclusion
SAP Central Invoice Management is a cloud-based standard SAP tool for organizations looking to modernize and optimize their invoicing processes. By leveraging cloud computing, AI and the SAP BTP platform, SAP CIM provides a scalable solution that can integrate with primary SAP S/4HANA Public Cloud. Side note, however, is that SAP CIM still has some steps to take in maturity and will still have to prove itself compared to long-established other invoice processing solutions such as SAP Invoice Management by OpenText.
More information
For further questions or information on this topic, or for other questions on SAP Workflow, SAP Master Data Governance, Fiori or SAP Invoice Management (SIM), please contact Martijn Wever.
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