KPMG in India’s offerings for

automating Accounts Payable and

Accounts Receivable processes
In this era of rapid technological innovations and changes, digitisation of content has become
top priority for more organisations. KPMG in India provides the technical expertise and leverages
our firm wide experience and expertise to deliver continual improvement, digitisation and attain
business excellence. This differentiator has enabled us to build certain assets, accelerators. as
described below:

Accounts Payable (AP)

Description
The procure-to-pay systems enable the integration of the purchasing department with the
accounts payable (AP) department. It is the process of requisitioning, purchasing, receiving,
paying for and accounting for goods and services. It gets its name from the ordered sequence of
procurement and financial processes, starting with the first steps of procuring a good or service
to the final steps involved in paying for it.

Procurement to Identify
needs
Create

pay-cycle
Requisitions

Requisitions
approval

Purchase
Vendor
order
payment
approval

Invoice Create
approval PO
Goods/
services
receipt

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of
the KPMG global organization of aindependent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
There are four workflows under procurement to pay cycle in our current implementation. 1. AP
Overseas. 2) GRN Creation 3) EMD 4) Invoice Processing.
Business user will submit service request for invoice approval and adds a case in client tool.
Vendor details are pulled from ERP system by using purchase order (PO) number. Request goes
to AP overseas executive for his/her review and approval. After the approval, case will be closed.
For AP domestic payments, business user will search for the operating unit and PO then received
quantity, vendor details will be fetched ERP system and GRN (Goods Received Note) is created
and posting is done on the ERP system.
As a next step, business user will submit EMD (earnest money deposit) request; then request
goes to AP Executive to verify the EMD request. Supporting documents will be attached as
well. AP Executive will review the request and approve the same. Invoice request will be auto
launched, and invoice details are updated by AP Executive and he/she submits the request for AP
Manager’s approval. Once AP Manager approves the request, the request will be processed, and
case will be closed.

KPIs
• Improved speed, usability and performance of procure to pay process
• Helps organisations to streamline procurement to pay process avoiding manual work and
reduces fraud
• All the PO and invoices related documents are readily available in a centralised location
• Less risk and improved compliance
• Efficient and effective integration with ERP systems
• Various tasks involved in the AP process, such as GRN Creation/, Invoice Processing
(Overseas and Domestic) are automated
• Visibility of every transaction at every step of AP process.

Implementation time
On already installed environment, AP app can be deployed in one to two weeks of time, followed
by additional time required for tweaking the app, product version mismatch, UAT and go live.

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
 AR (Account Receivables)

Description
Accounts receivable are legally enforceable Cheque/Remittance details will be posted to
claims for payment held by a business for ERP System and the Cash Receipt Number
goods supplied and/or services rendered that received from ERP System will be updated in
customers/clients have ordered but not paid request page. If posting is success, the request
for. These are generally in the form of invoices will be completed. else, an alert will be shown
raised by a business and delivered to the to AR executive saying that the posting is failed.
customer for payment within an agreed time AR Executive can verify error message under
frame. cash receipt number field against each invoice
Business user provides cheque submission row. Email notification sent after successful
details in request page, uploads necessary posting in ERP System.
documents and submits the request. Based Business user/AR Executive provides Refund
on the advance amount, the request is moved details in request page and submits the
to Partner approval (advance amount>0) else request. Based on the initiator of request,
moved to AR Executive approval. If Partner the request is moved to for further approval.
rejects the request, it will be moved to If request is submitted by Business user, it
Business user along with email notification. goes for Partner approval, else it will be moved
AR Executive can discuss any queries with to Finance manager approval. After Partner
business team using query management tool. Approval, the request will then be moved to
AR Executive should select payment method AR executive. After AR executive approval,
details, upload the cheque copy and payment it will be sent to Finance manager approval.
advice documents and Approve/Reject the After Finance Manager approvals, request
request. If Rejected, the request will be moved will be sent to AR executive for approval. AR
to Business team for review and resubmission. Executive provides Receipt and Refund details
Business team can resubmit or terminate and approve the request. If Refund details are
the case. If Business user selects Terminate, successfully posted to ERP System, system
request will be terminated. Business user by will show “Success” message on “Refund
selecting Resubmit, resubmits the request to status” field, else an alert will be shown saying
the AR Executive. If AR Executive approves, the posting is failed.

KPIs
• Prevention of invoices getting lost in manual punching
• Auto allocation of cases based on workload of AP Executive
• Tracking of invoices being processed by Finance team
• Easier communication with the right person and quicker resolution in timely fashion
• Elimination of manual mistakes by Finance while entering invoice data
• Email notification to Finance at every stage
• Easy retrieval of soft copy of invoices for manual verification
• Easy extraction of reports
• Invoices with queries being sent to right person and queries resolved in timely fashion
• Automatic workflow for query resolution with emails and reminders
• Processing of user invoices within SLA defined in application
• User can track the status of invoices at any instant
• Email notification to users on successful processing of invoices along with payment details
• Email notification to vendors on successful payment.

Implementation time
On already installed environment, AR app can be deployed in one to two weeks of time, followed
by additional time required for tweaking the app, product version mismatch, UAT and go live.

© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
KPMG in India contacts:
Prasanth Shanthakumaran
Partner
DTI – BE Tech
T: +91 80952 01489
E: [email protected]

Ramesh Krishnamurthy
Director
DTI – BE Tech
T: +919845252210
E: [email protected]

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© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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