What does an automated invoice processing system do?

     

    Automated invoice processing solutions facilitate the processing and posting of invoices using four vital processes: invoice receipt, intelligent data capture, dynamic workflows and ERP integration.

    • Invoice receipt: all paper and electronic invoices received from suppliers (including invoices delivered via the mail and through e-mail, e-invoicing, supplier portal, FTP landing page and fax) are digitized and aggregated onto a single platform for standardized processing. Accounts payable managers have visibility into invoices from the time they are received.
    • Intelligent data capture: any header and line-item data from invoices is extracted and validated with guaranteed 99.95 percent accuracy. Captured data is then matched against any purchase order and proof-of-delivery information (two-way and three-way matching). If an invoice matches within tolerances specified and managed by the organization, the invoice is posted directly to an ERP or accounting system without any additional human intervention.
    • Dynamic workflows: unmatched invoices or invoices that require approval (such as those from new suppliers or high-dollar invoices) are digitally routed based on pre-configured business rules. Unlike e-mail routing of invoices, dynamic workflows ensure chain of custody and separation of duties, provide visibility across the approval lifecycle, incorporate alerts, notifications and escalation procedures to keep processes flowing, and eliminate the possibility that images and data will be deleted ahead of set deadlines, even by well-intentioned staff. Dynamic workflows with mobile approval capabilities also facilitate fast approvals no matter where staff work – from their homes, on-the-go or in the office. Complete audit trails and logging of all actions taken on an invoice help ensure security.
    • ERP integration: Automated invoice processing systems seamlessly integrate with any ERP application, including those from SAP, Oracle, NetSuite, Sage, and PeopleSoft. Data on approved invoices can be uploaded directly to an ERP without the need for manual keying. Images of approved invoices are archived in an invoice processing solution and can be instantly retrieved by authorized employees as well as by suppliers through a portal.
    These capabilities enable users of invoice processing systems to significantly decrease accounts payable costs, accelerate invoice approvals, eliminate duplicate payments and other invoice processing errors, reduce the number of invoices from suppliers and achieve transparency.