Any processes that automate the receiving, approving, and paying of invoices can help streamline accounts payable. Primarily, avoiding invoice exceptions is a critical automation tool as invoice exceptions cause delays and a lot of needless back and forth between suppliers and accounts payable.
Secondly, automation tools that speed up the approvals process are also highly desirable by AP departments. See our post Make Accounts Payable More Productive Through Automation for more information on the benefits.
Also known as e-invoicing, this is a broad term to describe methods by which an accounts payable document is submitted for payment in an electronic form. Documents can include purchase orders (POs), invoices, debit memos, credit memos, and remittance documents.
NOTE: Not all electronic methods offer the same quality or readability and accuracy. See our articles for more information:
See the above definition for “electronic invoice”.
Invoice exceptions occur when there are discrepancies between an invoice and a PO or if required information is missing on an invoice. A high rate of invoice exceptions occurs due to supplier error and missing POs. Invoice exceptions arguably cost AP departments the most time and money in resolving. See our article Invoice Validation Through Invoice Inspect for more information.
OCR, or Optical Character Recognition, is when OCR software is used to interpret data that has been scanned into a payment system from a paper invoice. OCR is better than a manual process; however, it is flawed by a high error rate that results in invoice exceptions. Invoice exceptions are issues that accounts must troubleshoot and follow up on, thus negating the original beneficial intent of OCR in saving the accounts department time. See our articles:
See the above definition for “Is OCR good for accounts payable?”.
Straight-through invoicing is a process that enables invoice data to come from a supplier straight into a business’ accounts payable processing system. A straight-through process shortens invoice cycle time, diminishes invoice exceptions, improves the connections a business has with its suppliers, and drastically reduces accounts payable costs.
See our white paper: How to Achieve Straight-Through AP Invoice Processing for more information.
See the above definition for “What is straight-through invoicing.”
Remove manual processes to improve approval time frames and eliminate bottlenecks. Accounts should use a system that gives instant visibility into the entire process of receiving, approving, and paying invoices. The system should be easily accessible by accounts, approvers, and auditors through a cloud-based accounting system. The system needs to incorporate the approval process and eliminate paper copy and email approving.
Removing manual processes improves accountability, helps reduce compliance issues, and helps management identify process gaps. Watch our Recorded Webinar: Straight-Through Process Your AP Invoices for more information.
If your company is looking for a digital solution to automate AP invoice processing, please read our white paper that explains how it all works in detail.
Transcepta’s solutions:
White Paper: How To Achieve Straight-Through AP Invoice Processing