Steps to A Faster Invoice Approval Process

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An automated accounts payable solution can greatly speed up the invoice approval process and can make the payment mechanism more efficient and smooth. Invoice automation solutions are fast becoming a part of the enterprise across the world, and the AP department is gaining a significant level of competence using such solutions.

The invoice approval process could be made simpler and more organized by adopting some rules with the help of clearly-defined steps for a faster approval. In fact, invoices could be processed with no or minimal human intervention, if the following steps are incorporated:

Smart Routing

Based on defined parameters, invoices could be routed through the organization, without requiring any manual effort. It accelerates the turnaround time. Moreover, the AP team needs not to dedicate staff to manually scan, review and store paper invoices. However, an automated invoice system has provisions for scanning invoices and storing them for future use. It helps automate the process and saves time by channelizing the approval process by:

1.  Routing invoices for higher approval requirements
2. Defining account number allocation rules
3. Routing for PO match exceptions
4. Routing to Accounts Payable for payment disbursement

Invoice Work-flow

When invoices arrive in the AP department of an organization, users may send them for an approval or can keep them in pending to review them at a later period. This allows in the smart routing of invoices and helps in their speedy approval. It streamlines the whole process and users can forward the invoice where it is intended to be sent for review or approval.

 Forwarding to Approver

The invoices are then sent to the approver(s) for further action. Based on the nature, value and other parameters, the invoice could be sent to an initial approver or higher level of approvers. An automated system has a simple feature of delegating invoices to the concerned persons for their approval. Such a system can be configured to deliver invoices to the approvers and this saves time and speeds up the process.

An invoice automation system routes invoices electronically to the right person(s) for approval on the basis of the configured business rules prevalent in an organization. For example, invoices of above a certain amount can be forwarded to a higher level of approval. The system can allow users to set such parameters and can allow invoices to reach appropriate person(s) without any manual intervention. This speeds up the entire invoice approval process and also makes it an efficient and error-free process. The system can also allow to set up work-flow alarms and as soon an invoice arrives, the concerned person gets the notification and can look into the invoice for its processing.

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At the same time, the AP department can incorporate rules that help them track down the duplicate invoices. One can also set up different types of matching exceptions for faster approval of invoices. In many ways, an automated invoicing solution helps save both time and money and is a much-needed system for today’s business ecosystem.

 

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