Payment tracking is a feature in vendor management software that allows businesses to track and manage payments to vendors. This feature helps to keep track of payments made, monitor vendor billing & payment cycles, and quickly identify any discrepancies or issues. It is also part of the final stage of the purchase-to-pay or procure-to-pay cycle in paying external vendors or suppliers by the business or company.
Payment Request Generation
When a vendor sends an invoice for products or services, the business can use vendor management software to create or track a purchase order and generate a payment request. The payment request will include relevant details, such as the invoice number, amount due, due date, and payment terms.
As payments are made, the vendor management software will update the payment accounting system to reflect the payment status. If there are any discrepancies between the invoice and the payment, the software can generate alerts to notify the business of the issue.
View Payment History
By tracking payments in vendor management software, businesses and companies can ensure that they are making timely payments to vendors, can avoid late fees or penalties, monitor vendor billing and payment cycles, and streamline their accounting and financial management processes accordingly. Additionally, payment tracking can help businesses, companies or enterprises to identify opportunities for cost savings or negotiate better payment terms with vendors based on their payment history.
The Vendor Management software can track the status of each payment, right from authorisation and processing to completion. Tracking ensures the payment is made on time and as per the terms & conditions of the contract or the PO.