Invoice management is the crucial internal business activity associated with a firm’s procurement process. An effective invoice management software can integrate invoice processing, manage international payments and reduce costs by reducing delay payments, duplicates, fake invoices.
Steps involved in Invoice processing
- Capturing general ledger code in accordance with supporting documents like purchase order and delivery receipt.
- Send receipts to approval authority for approve or rejecting billing.
- Authorize and submit receipts for payment in a financial system
- Process invoices for payment through common payment
- Archive Bills and payment details in the General Ledger(GL) and for the purpose of audit.
Benefits of Vendor Invoice Management
Automated invoice processing software is preferred by the accounts payable department to organize invoice processes, keep tracking of invoices and increasing the speed of the vendor invoice process. The automated invoice processing software supports for accounts payable department in terms of capture coding and sending receipts for approval and in allocating approvers. It increases the productivity and ROI.
Digitizing Invoice process
If you go with paperless invoice process, you will receive an electronic invoice from the vendor. It will save time and you can scan the vendor invoice through automated software. Vendor invoices are frequently obtained in various formats like paper, e-invoice and pdf. The vendor invoices should be digitized and convert it into a standard format. In some companies, accounts department staff will enter the data manually for the financial purpose that consumes more time.
Centralized data processing includes all accounts payable from various locations and controls it from one location. Through centralized data, the payment process can be simplified.
If you are interested to adapt a software for vendor invoice management and to know more about Vendor management, just give a call, our team of experts will provide guidance to implement a vendor invoice management software.