What is invoice processing?

Invoice processing is the handling of invoices, from the moment they are received, to when they are ready for payment.

Who handles invoice processing?

Invoice processing is usually handled by a business’ Accounts Payable (AP) department, forming part of the AP process.

Processing supplier invoices

When invoices are received from suppliers, they may be in a number of different formats, depending on the supplier’s setup. Formats include e-invoice, paper, PDF, XML, and EDI.

Today, the majority of businesses use an automated AP solution, which automatically captures the data from invoices when they are received. But, for companies that haven’t adopted automation, this will mean manually entering the data into their business’ finance system (unless you’re working with Basware). This takes up time and resources and leaves room for human error.

What steps are involved in invoice processing?

There are several steps involved in processing invoices, including:

  • The invoice received - A supplier invoice is received by the business. This is usually sent by the supplier once a service has been provided, a product has been delivered, or the work is complete.
  • Data capture - The necessary data is extracted from the invoice and captured in the standardized format used by the business.
  • Invoice handling - The accounts payable team handles the invoice (i.e., inputting accurate invoicing codes, etc.) either manually or automatically, depending on if their AP processes are automated.
  • Invoice approval - Once assigned a code, the invoice must be approved by the relevant individual or department, depending on the business’ specific processes.
  • Paid - Once approved, the invoice is then paid.

What is touchless invoice processing?

Touchless invoice processing uses AI-powered automation technology to automate the invoice process, so that invoices are processed without the need for human intervention unless there is a discrepancy.

Explore our Invoice Processing guides

To learn more about the benefits of touchless invoicing processing solutions and how Basware can support all your accounts payable automation needs, please reach out to one of our solutions experts.