Smart invoice management: The foundation for a healthy financial supply chain
Invoice automation can lower processing costs by about 60 percent – reason enough to use invoice management software. But only SAP Ariba offers smart invoicing through SAP Business Network. With smart invoicing, network business rules alert suppliers about errors and prevent incorrect invoices from entering your process workflow or back-end system. What’s more, you can capture and automate the processing of all your invoices, including PDF invoices, non-PO invoices, and invoices for complex services. This enables close to 100 percent touchless processing, as well as:
- Accelerated cycle time
- Automated exception-handling
- Stronger compliance
- Reduced savings leakage
- Supplier visibility into payment status
- Improved cash flow for your suppliers
- Automated capture of negotiated terms
Now, instead of spending its time handling paper, exceptions, and phone calls, your AP team can focus on more strategic pursuits. Like helping to free up cash and optimize working capital.
Invoice Management Resources
Frequently Asked Questions
What is invoice management?
Invoice management is the process of receiving, extracting, and validating invoice information, all the way through to payment. Accounts payable departments can track and pay supplier invoices quickly and smoothly with a proper invoice management solution in place.
How do you manage invoices?
You manage invoices through adopting a digital-first or electronic solution. This is one of most efficient ways that your accounts payable team can keep track of payments, removing the need for manual, paper-driven processing. Using e-invoicing, you can more accurately and effectively reconcile any invoice exceptions, comply with tax and other global regulatory requirements, and take advantage of early-payment discounts.
Why is invoice management important?
Invoice management is important because it helps procurement, finance, and payables teams speed up and automate the invoicing experience. Having an efficient invoice management process in place can decrease human interventions for accounts payable teams looking to automate reconciliation and approval processes. Accounts payable teams can deliver accelerated cycle time and cost savings through automated exception-handling and capture of negotiated terms. They can also achieve stronger contract, non-PO, or PO compliance and improve conformance with global regulatory requirements.
What is invoice management software?
Invoice management software is software that allows you to manage the entire invoice management process, all in one place. You can get full visibility into everything related to an invoice, including the original order, any exceptions that have occurred, receipts, and payments. Configurable dashboards allow you to view the information that’s most important, automatically route approvals and tasks, collaborate with suppliers, and capture early-payment discounts.
What are the steps involved in invoice processing?
The steps involved in invoice processing are receipt, process, and payment. Receipt of invoices can involve paper, fax, e-mail, PDF, e-invoice, evaluated receipt settlement, or a PO-flip process. In the processing step, you define any business rules and validate the information through matching (two-way or three-way) to compare the PO, goods receipt, or contract with what’s on the invoice.
In addition, you route any approvals through the proper workflows and address any alerts or disputes, including invoice exceptions. In the final step of invoice processing, you make the payment by check, automated clearing house (ACH), wire, card, or other payment networks. This is also where you have the opportunity to take advantage of any supplier discounts, if paying early.