Murphy achieves ‘No PO, No Pay’ policy using Proactis Invoice Capture

April 2021 - Proactis, the spend management experts, today revealed that engineering and construction company J Murphy and Sons is using Proactis Invoice Capture to automate invoice processing and help enforce its AP Best Practice principles including its policy of 'No PO, No Pay'.

Murphy operates a centralized Shared Service Center model, receiving over 150,000 invoices a year, and was looking for a way to reduce the time and resources associated with processing supplier invoices. In particular, reducing the cycle time from receipt of invoices to processing and approval for payment was a key objective.

To support this, Proactis Invoice Capture was implemented in December 2020. As part of the implementation, Proactis worked with Murphy to ensure that all incoming invoices (paper, emailed invoices, XML) are handled through the same automated process, providing cleansed validated electronic invoices directly into the ERP system.

This enables the Accounts Payable team to focus on more value-add activities, such as managing suppliers and driving down any ‘Query’ or non-conformant invoices. In addition, the team now has full visibility of all invoices and a clear audit trail. “It sometimes used to take us weeks to register invoices on our ERP system, but since working with Proactis, this has been reduced to up to 48 hours. All manual entry of invoices into our ERP has been eliminated from day one,” said Lubnah Alam, Head of Finance Shared Services at Murphy.

“Irrespective of source, 70% of invoices now flow electronically directly into our ERP for invoice matching and payment. The remaining 30% don’t conform to our business rules so are sent to the supplier or business area to resolve directly. This all takes place within the Proactis solution, giving us central visibility of the entire process both from an accruals and performance benchmarking perspective,” added Lubnah

About Murphy Group
J. Murphy & Sons Limited is a leading global, specialist engineering and construction company founded in 1951 that improves lives by delivering world-class infrastructure. Operating in the United Kingdom, Ireland and Canada, the organization provides better engineered solutions to infrastructure sectors including Transportation, Water, Power, Natural Resources, and Construction & Property.