What is Invoice Processing?

Invoice processing refers to the entire process for handling a supplier invoice, from its receipt to when it has been posted in the ERP system and is ready for payment.

Invoice processing product image

When processing invoices, an invoice can be received in different formats – paper, PDF or e-invoice – and the invoice data must be scanned or manually entered in the recipient’s ERP system. The invoice amounts are then coded to the correct account, project, and/or cost center and the invoice is distributed to the responsible buyer or budget owner for review and invoice approval. With an AP invoice automation solution, this entire invoice processing procedure can be digitized and automated for quicker and more efficient invoice processing.


Further reading: A buyer’s guide to AP invoice automation solutions 
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 The invoice processing procedure

To understand invoice processing meaning, it’s important to learn the different steps of the invoice processing process:

  1. The invoice processing procedure starts with the reception of a supplier invoice
  2. In order to process invoices in a digital workflow the invoice data needs to be extracted and captured in a standardized format
  3. The accounts payable team is responsible for invoice handling and will then apply accurate coding either manually or automatically using an AP automation solution that is pre-configured with the specific organization’s business rules
  4. The invoice processing process continues with invoice approval. This part of the invoice processing procedure differs depending on the type of invoice: expense invoice or PO-based invoice. For PO-based invoices, the invoice processing process can be performed touchlessly using automated invoice matching through an AP automation solution.

 

 

Quicker invoice processing with MediusFlow

Companies using the MediusFlow AP invoice automation solution process up to 97% of their invoices in a fully automated – touchless – workflow. Do you want to increase your automation rate and shorten your lead times?