Validation and Reconciliation of Bank Transactions using Power Automate RPA 

Client Overview  

Our client has been in the postal service industry for more than 160 years and is well-known for its trustworthy delivery services both domestically and globally. Handling large volumes of shipments and financial operations, the client wanted to improve their financial workflows and process, ensuring accuracy, efficiency and growth in their financial workflows. 

Challenge  

Our client was struggling with their profit and loss (P&L) verification process including V-Post, PayPal, Merchant Solutions, and CyberSource that was very manual and cumbersome. First, stakeholders needed to fetch P&L reports from SAP manually, and this was a tedious and time-consuming process that delayed reporting and simply added the workload on finance teams. 

Verifying P&L numbers consisted of cross-checking SAP and Excel reports which was tedious, paper driven work prone to human errors. Errors were inevitable in financial records of that complexity, and reliability of the accounts lessened, increasing the odds of inaccuracy. These errors led to not only more work but also the risk of compliance issues or poor decisions being made. 

Manual reconciliation of Reconciliation Codes (RCs) proved to be yet another sore point. This step was particularly prone to human error, which led to even less accurate financial records than before, and great effort was needed to identify and correct them. 

As the organization grew, the process became even less efficient due to the increasing amount of financial data. The manual workflow was unable to scale to meet these needs without adding arms and legs which is impractical and infeasible. 

These inefficiencies resulted in delayed financial reporting, record discrepancies, and a potential risk to error. The client, however, required an automated solution to streamline the P&L verification process to improve data accuracy and enable their growth ambitions. 

Manual Data Retrieval 

stakeholders had to manually download P&L from SAP which was a tedious task increasing lags and work-load within the finance team. 

Error-Prone Cross-Checking 

Ensuring the accuracy of net P&L figures involved painstakingly cross-referencing SAP with Excel reports — a process that was prone to human error, given the volume and complexity of the financial data. 

Limited Scalability 

As data quantities grew, so did the inefficiency. In trying to scale it there were many opportunities for mistakes and high costs of operation. 

These challenges resulted in delays, inconsistent financial reporting, and an increased potential for errors, making it essential to automate the process of extracting, comparing and verifying the P&L data to streamline the effort. 

Solution  

We deployed an advanced Robotic Process Automation (RPA) powered solution using Microsoft Power Automate to simplify and optimize the Profit and Loss (P&L) validation process. By automating the critical processes with this solution, manual intervention was minimized, accuracy was enhanced, and it positioned the organization well for further scaling to meet increasing operational needs. 

Automating the P&L report download from SAP as the first step of the workflow Utilizing the Power Automate Desktop (PAD), the RPA bot logged into the SAP system and collected the required P&L reports without any manual input. It also saved time and reduced the risk of errors when extracting data, helping to ensure that financial data was accurate from the start. 

Once downloaded the reports & a validation process automated was frozen. This was through a process that involved a macro cross-referencing P&L financial data, Kuch Tore RCs se. This process ensures that inconsistencies don’t get lost in the cracks and allows the system to maintain a clean and accurate system without having to manually cross-reference data. 

Automation was another big part of the equation — it ensured all the changes made to SAP were applied rigorously, free of any interference, so the financial records were an accurate reflection and were available in real time. Streamlining an error-free process across multiple processes significantly improved the correctness of the client’s financial reporting, which is vital to their business. 

Solution architecture that scaled to increasing volumes of financial data. This enabled the client to scale with growth without the need for additional resources or manual work while maintaining efficiency and consistency across their operations. 

Automated P&L Report Download 

• The RPA bot powered by Power Automate Desktop (PAD) logged on to SAP and automatically downloaded the latest P&L reports. 

• Removed the requirement of manual data downloads removing time waste and provided real-time access to financial records 

Automated Validation of P&L Entries  

• We added a macro to check that our financial data within the P&L report was reconciling on Reconciliation Codes (RCs). 

• This macro runs a cross check on any entries that were made, be it to track down errors or incorrect information which needed to be amended. 

Error-Free Financial Reporting  

• Automation provided error-free data updates?in SAP preserving the client financials. 

 Scalability for Growing Financial Data  

• As the data volume scaled up, the native solution was able to handle an increased data processing capability without the need for any human intervention. 

Key Benefits of the Solution  

• Efficiency Gains: Automation eliminated the need for manual data retrieval and cross-checking, leading to a drastic reduction in time spent for P&L verification. 

• Improved Accuracy: Automation in validation minimized errors leading to precise financial records. 

• Scalability: The system scaled with increasing amounts of financial data, accommodating the client’s expansion.  

• Consistency: Accurate and consistent P&L figures were delivered with the solution, improving reliability of financial reporting. 

Results  

Implementing the Automated P&L Verification Process led to significant improvements in Operational Efficiency, Scalability, and Accuracy. 

Time and Resource Savings: The result was reduction of 30+ hours of manual effort every month for P&L verification to just 5 hours. It allowed employees to spend their time on tasks with greater value, increasing overall productivity. 

Faster Processing Times: Automating data retrieval and validation reduced processing time per task from 45 minutes to less than 5, leading to faster finance reporting cycles. 

Improved Accuracy and Reliability: The automation eliminated errors to an almost negligible number, bringing the error from ~7% to < 0.5%. It enhanced the integrity of financial data and reduced discrepancies. 

Seamless Scalability: It seamlessly managed rising volumes of financial data and allowed the client?to grow with no extra costs or delays. 

Consistent Financial Reporting: Automation made sure that P&L numbers were checked and updated continuously, creating greater trust in the client’s numbers. 

Business Impact 

Power Automate RPA Implementation Services delivered transformative results, significantly improving financial process efficiency and accuracy while enabling seamless scalability. 

Key Performance Improvements: 

 Tools Used 

Microsoft 365, Power Automate Cloud, Power Automate Desktop, SAP and Excel