Vendor Invoice Management(VIM)
What is VIM?
Vendor Invoice Management (VIM) from OpenText is an SAP-integrated solution designed to streamline the procure-to-pay process. From document capture to validation, approval, posting, and archival, VIM automates invoice processing to deliver transparency, control, and efficiency in Accounts Payable operations.
Vendor Invoice Management is a specialized module that automates the processing of vendor invoices received by a company. Traditionally, invoices arrive in different formats – paper, PDF, or electronic documents which are processed manually. This manual handling often results in inefficiencies, errors, and delays. VIMaddresses these challenges by digitizing the entire invoice lifecycle from capture, validation, approval workflow, to posting in SAP. The core features of VIM include document capture, data extraction, validation, workflow routing, and seamless integrationwithSAP’s FI (Financial Accounting) and MM (Materials Management) modules. WithVIM, organizations gain transparency in invoice tracking, avoid duplicate payments, and ensure that invoices are processed according to compliance rules. It also supports multi-channel input, enabling invoices to be captured from email, scanning, or electronic exchange.
OpenText VIM offers a variety of options to support different business requirements. The Invoice Capture Center (ICC) / Intelligent Capture for SAP Solutions (IC4SAP) provides OCR (Optical Character Recognition) and intelligent document recognition capabilities. It automates the reading of invoice data such as vendor name, invoice number, amounts, and tax details. Standard Invoice Processing is about handling PO-
based and non-PO-based invoices, integrating directly with SAP transactions like MIRO and FB60.
It provides configurable workflows for invoice approval, exception handling, and compliance checks. Managers can review, approve, or reject invoices through SAPGUI or Fiori apps. VIM includes dashboards and reports for monitoring KPIs like invoice cycle time, blocked invoices, and exception trends, helping organizations improve process efficiency. With SAP Fiori apps, users can approve invoices on the go, enhancing flexibility and user adoption. Centralized Invoice Processing enables shared service centers to manage invoices across multiple company codes and regions
OpenText Vendor Invoice Management (VIM), integrated with SAP ECC / S/4HANA, automates and optimizes this process. Automation of Invoice Capture Uses OCRandIntelligent Capture to read invoices from PDFs, emails, or scans. VIMReduces manual data entry significantly. Seamless SAP Integration enables directly connects with SAP modules (FI, MM, S/4HANA Fiori). VIM automatically validates invoices against Purchase Orders (PO), Goods Receipt (GR), and contracts. The standardized workflows in VIM automates approvals (multi-level based on rules) and provides exceptions handling when invoices don’t match. Every invoice is trackable in real- time.
Archiving in VIM
Archiving in OpenText VIM within an SAP S/4HANA environment plays a critical role in managing large volumes of vendor invoices and related business documents efficiently. Instead of storing invoice images and documents directly in the SAP database, which can increase database size and impact system performance, VIMleverages the OpenText Content Server or other certified Enterprise Content Management (ECM) systems. Each document, whether a scanned PDF, email attachment, or EDI invoice – is captured and stored securely, while a unique ArchiveDocument ID links it to the corresponding SAP business object, such as an FI invoice or a purchase order invoice. This ensures that all documents are readily retrievable for display in SAP transactions like FB03, MIR4, or through the VIM Workplace without bloating the database.
It also enhances operational efficiency by providing instant access to invoice images and audit trails, enabling quicker approvals, dispute resolution, and reporting. Finally, cloud and hybrid deployment options of the OpenText Archive Center allow organizations to scale archiving solutions securely while maintaining integration with both on-premise and cloud-based S/4HANA environments, ensuring long-term flexibility and compliance.
Validation in VIM
In Vendor Invoice Management (VIM), validation ensures that invoices are accurate and comply with business rules before posting. Key components include ValidationClient, which manages the setup and configuration for invoice validation; Capture
Validation Workplace, where users can review and verify invoice data, check for errors, and make necessary corrections and the Validation Workflow, which defines the automated steps for validation, approvals, and exception handling. Together, these elements streamline invoice processing, reduce manual errors, and ensure compliance with organizational policies while providing a structured environment for handling exceptions efficiently.
Document types in VIM with approval workflow In VIM, DP (Document Processing) document types categorize invoices and other financial documents based on processing rules, such as PO-based, Non-PO, or Credit Memo invoices. Each type can have distinct workflows, validation rules, and approval paths to ensure accurate processing. The Chart of Authority (COA) is customizable, allowing organizations to define approval hierarchies, thresholds, and routing rules for different DP document types. By configuring COA, businesses can enforce proper authorization controls, ensure compliance with corporate policies, and automate approval workflows. This enhances operational efficiency, reduces bottlenecks, and provides a clear audit trail for financial governance.
In Vendor Invoice Management (VIM), the approval workflow is a core component that automates the invoice approval process. It ensures that invoices are routed to the right approvers based on predefined rules, such as invoice amount, document type, or organizational hierarchy. The workflow supports multiple approval levels, parallel or sequential routing, and exception handling, allowing organizations to maintain control while reducing manual intervention. A key speciality of VIM’s approval workflow is its integration with the SAP backend, enabling automatic validation against purchase orders, contracts, and budget checks. It also provides real-time visibility into invoice status, pending approvals, and bottlenecks through the VIM Work Center, empowering managers to take timely action. Additionally, the workflow is highly configurable, allowing businesses to customize approval paths, escalation rules, and delegation. This ensures compliance with internal policies, improves efficiency, and reduces errors, making invoice processing faster and more reliable.
Implementing VIM
The VIM implementation process begins with detailed requirement gathering. The project team works closely with stakeholders to understand the organization’s invoicing processes, types of invoices (PO-based, Non-PO, Credit Memos), approval hierarchies, validation rules, and integration requirements with SAP. This phase also identifies compliance, reporting, and exception-handling needs. The outcome is a clear functional specification and process blueprint that forms the foundation for VIM configuration.
System Design and Configuration Once requirements are defined, the next step is system design and configuration. This includes setting up the VIMlandscape, integrating with SAP, defining DP document types, configuring validation workflows, capture workplaces, and approval workflows. The Chart of Authority (CoA) is customized to align with organizational approval hierarchies. Additional components like OCR settings, invoice validation rules, and exception handling workflows are also configured to ensure accurate processing.
Testing and Validation After configuration, rigorous testing is performed, including unit testing, integration testing, and user acceptance testing (UAT). Sample invoices are uploaded to validate the workflow, approval routing, and exception handling. This phase ensures that all processes comply with business rules, invoices are correctly validated, and approvals are routed properly. Any discrepancies or errors are documented and corrected before moving to production.
The final phase involves deployment to the production environment and training end-users. Key users and approvers are trained to use the VIM Work Center, manage invoices, handle exceptions, and monitor approvals. Post-deployment support ensures smooth adoption, and periodic reviews are conducted to optimize workflows and maintain compliance. Continuous monitoring and improvements help achieve efficiency, reduce errors, and enhance overall invoice processing performance.