AP invoice automation
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What is: AP invoice automation

In this blog post, we’ll walk through the basis of AP invoice automation – what it is, how it works and how it benefits accounts payable teams as well as the organization as a whole.

What is AP invoice automation?

First things first: AP invoice automation means that supplier invoices are processed in a fully digital workflow where some – or all – steps are automatically managed by an AP invoice automation solution.

This way, AP invoice automation enables companies to eliminate management of paper invoices and remove most manual tasks, while invoices are processed more quickly and suppliers are paid on time, every time.

How AP invoice automation works

In order to work with AP invoice automation, you need to convert all invoice data to a single digital format, using an invoice scanning and data capture solution  or enabling digital reception of e-invoices.

An AP invoice automation solution can automatically code and distribute expense invoices to the right person for approval based on how the company’s chart of accounts, business rules and approval hierarchy are configured in the solution.

For order-based invoices with a corresponding purchase order and registered goods delivery receipt (GDR), the solution can automatically match the invoice to the correct order. If all of the information matches up, the invoice is automatically approved for payment in a completely touchless process. This might sound like a dream scenario that is hard to achieve in real life, but, in fact, our benchmark data shows that this is fully realistic and achievable. Our customers manage an average of 69% of all order-based invoices in a fully touchless process without any user intervention.

The benefits of AP invoice automation

The benefits of an automated accounts payable process are numerous. Here are just a few examples:

  • Time savings for the AP team as well as invoice approvers, who can complete their tasks in a digital, user-friendly solution in the office or on mobile devices
  • Full visibility and control of the accounts payable process with easy access to invoice status reports, process bottle-neck analysis and support for cash flow and forecast reports
  • Hard cost savings realized by paying suppliers on time, every time, opening up the opportunity for early payment discounts and eliminating late payment fees.

How to get started with AP invoice automation

Sign up to this complimentary Learning lab: Get started with AP automation

This eLearning series will provide you with educational resources that you can consume at your convenience. It will give you a comprehensive overview of AP automation and help you get ready to take the first steps introducing AP automation in your organization.

Get started with AP automation

Jenny Gruvfält

Jenny Gruvfält

AP Automation Editor

jenny.gruvfalt@medius-group.com
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