E-INVOICING: FAST, AFFORDABLE AND GOOD!
Automation or complete digitalization involves elimination of paper in AP— end-to-end.
The process of digitalization through a self-service portal starts right from raising a purchase order (PO) which can be converted into an invoice. POs are flipped into invoices, and the scope of error is cut down by a large margin and so are exceptions, thus, saving time and money for the company.
An e-invoice raised through a secure, self-service web-based supplier portal receives confirmation of receipt immediately. It provides additional information like approval status and allows the supplier to track payment status. Effectively, it cuts down the calls fielded by accounts departments to seek such information.
Even for Non-PO invoices, the field-level validations ensure that most of the information on the invoice is accurate and as per the supplier’s payment terms.
A large number of companies (suppliers included) are choosing cloud-based solutions to improve their processes, already. A self-service portal is an easy-to-use method, complete with confirmation of receipt, approvals, and payments besides many other status updates and advantages.
Workflow of e-Invoicing
The workflow of an e-invoice eliminates various steps associated with manual invoicing. A supplier portal can route invoices based on their nature to the right department depending on whether it is a PO-linked invoice or without a PO. The approval process of a non-PO e-invoice is quicker than that for a scanned non-PO invoice or non-PO paper invoice.
For PO e-invoices, the system provides for two-way or even three-way checks and eliminates time-consuming reviews that delay the process. The invoices are rerouted for review only if discrepancies are found. After approval, invoices are posted automatically to ERP / AP module for remittances. According to The Hackett Group’s 2015 e-invoicing poll, companies that use e-invoices have experienced a 31% reduction in invoice processing costs.
Scan-and-capture is nowhere close to the needs and requirements of a truly digital enterprise.
It’s simply a matter of time before the scan-and-capture will be rendered obsolete by e-invoicing solutions that deliver speed, accuracy, improved collaboration and deep insights at a substantially low total cost of ownership (TCO) and high overall return on investment.
Get in touch with us if you want to enjoy the advantages that the best processes of AP management and total digitalization.
If you want to read more about the current state of automation download our whitepaper on “Is scan and capture going the dinosaur way”.