Are you used to manually searching for purchase orders and goods receipt? You aren’t unknown to the fact that this job can get really tedious and bring down your productivity levels. Accounts Payable automation is the answer to all your woes. This would allow you to expedite invoice review, coding and the final approval that would fasten the return on investment. This does away with chances of misplacing paper invoices, human error during data entry, and invoice duplicates. Let us take you through some ways in which you add to your efficiency levels with Accounts Payable automation.Image Source: Wikipedia
Accurate Invoices – When you have an advanced capture system that automatically extracts data from invoices and validates it against ERP data it makes the process faster thus improving the productivity of your business. Such automation can also help enrich the data with additional associated data from the ERP system and also improves the accuracy of the captured data.
No Manual Checking – Anybody who has worked with invoices would agree to the fact that manual checking of invoices often acts as the bottleneck in the work-flow system. When this step is automated match invoice data can easily be matched with the purchase order and goods receipt data. You would be able to set the account tolerance matching rules thus doing away with the process of manually searching for purchase order and goods receipts.
Adds Efficiency To Match Exception Process – When AP is completely automated it can easily manage and match exceptions by routing price and quantity exceptions for the concerned and also handle the process with the supplier. It can also automatically route work items requiring goods receipts entered into the ERP system to warehouse or the recipients. Apart from this, the system, also automatically re-checks for goods receipts to be updated in the the ERP system for a specified number of days in case the invoice precedes goods receipts. This does away with the need to manually manage and track exceptions.
Synchronize With ERP System – This is one of the biggest advantages of this automation process as it would automatically post invoice transactions into the ERP system for. This process completely eliminates duplication of effort. Apart from this you would also be able to perform post-payment processing as needed in the ERP system.
Improves Visibility – This automated system captures invoices immediately upon receipt and thus there is no backlog of invoices in cases where the associated financial liability is unknown. All the accruals in the invoices can easily be pulled and posted thus improving the visibility and accuracy of your period-end financial reporting. If you have been manually tracking invoices and adjusting your data for reporting you would know about the hard labor associated with this task.
Tracking – With this automation in place you would be able to track and escalate invoices manually even with their respective spread sheets. You can easily define the rules of escalation and it would automatically escalate work items that haven’t been completed.