What does an AP automation solution do?

    Automating accounts payable delivers significant tactical and strategic benefits.

    Automated solutions achieve these benefits by combining seven fundamental capabilities:

     

      1. 1.  Scan paper invoices:  Paper invoices are converted to digital format.
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    2. 2.  Capture electronic invoices:  Electronic invoices such as e-mail invoices (including PDF attachments), FTP file uploads and invoices that arrive via a supplier portal, are captured in their native format. The technology also receives invoices that suppliers created by converting (or “flipping”) purchase orders that buyers delivered through their online portal.   
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    4. 3.  Aggregate invoices onto a single platform:  Leading accounts payable solutions aggregate all invoices onto a single, secure platform, streamlining invoice approval processes and eliminating data silos. Once invoices are aggregated, organizations have total visibility into the status of processes, documents and content, as well as compliance requirements.
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    6. 4.  Extract and validate invoice data:  As invoices are captured, relevant data is extracted and validated against information residing in the buyer’s ERP application or other system of record. Invoices then are matched against purchase orders and/or proof-of-delivery documents.  Matched invoices are posted directly to the buyer’s ERP application. 
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    8. 5.  Route documents based on pre-established rules:  Any invoices that require review or approval are electronically routed to processes, databases or systems and/or exceptions handling based on pre-configured business rules. Users can define and manage workflows based on their business rules as well as the requirements for the invoice type or supplier. Automation also enables buyers and sellers to collaborate online to resolve exceptions.
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    10. 6.  Integrate with systems of record:  Invoices and related information are seamlessly posted to the buyer’s ERP or other financial systems to accelerate posting and streamline research.
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    12. 7.  Real-time reporting:  Automated solutions provide real-time visibility into the status of invoices. Dashboards display configurable charts and threshold options to empower users to manage operations, cash, spend and risks and to adapt to changing business conditions.

     

    These are the seven capabilities provided by automated accounts payable solutions.