For almost any business, invoicing is an aspect that can not be avoided by any chance. The benefits of cost-effective, quick invoicing practices can make the difference between merely breaking even and turning a profit. Electronic invoicing gives a business the chance to have their invoice processing automated. For this reason suppliers, managers and buyers are in a position to enjoy several strategic and operational benefits. Part form cost savings, the capability to have an invoice process automated and integrated with other systems of the business gives business efficiency and an opportunity to generate revenue. Here are some of the benefits that a business can enjoy using electronic invoices.
The first benefit is the ability to capture digital invoices. The AP process encounters unnecessary cost and complexities when invoices are received through the mail or even paper format. When invoices are received through email, there is need to route, sort, open or even scan the documents before their input into the AP system. As for the invoices received through email, there is a need to save, store the documents depending on the process being used, printed and keyed in the event there is no automatic data extraction technology.
The second benefit is on validating automated invoices. Most AP organizations carry out validations on the invoice prior to processing for approval and payment. The validations usually entail ensuring the supplier is not a fake and has good standing, the vendor number, and name match. In the event of processing this electronic invoices AP departments can make use of business processing management that is readily available as well as technologies used for capturing data, to carry out these validations automatically that have required manual validation and data entry. View here for more.
Lastly, it enables vendor self-service. Usually, the most expensive aspect of invoice processing is staffing call centers to enable support of vendor inquiries about payments. A lot of expense and time is usually incurred in order to give a response to vendor calls and research the status of the invoice. One of the important elements of any electronic invoicing program is a vendor and supplier portal that offers vendors the chance to confirm the status of approval processing, work together with the buyer online to solve any disputes on payment, have their invoices submitted via the portal or upload supporting documentation. It also gives them a chance to participate in discounting that is dynamic and other programs of supply chain finance via the vendor portal such as Openfactura.