IOFM Finance Executive study this year stated that "finance executives believe that the benefits derived from automating accounts payable would exceed the benefits of automation on of any other finance and administration function".
By automating accounts payable processes, companies can not only cut costs but also eliminate routine tasks within the organization. Ultimately, invoice automation provides better, more timely, and more accurate information for finance organization to extract working capital gains through optimized financial processes. Key to this accuracy is going paperless with electronic invoices, and automatically matching purchase invoices to purchase orders or payment plans.
What about the exceptions?
There are always some invoices that cannot be processed automatically - for example, invoices that don't have an associated purchase order or contract from the procurement solution or from ERP. In these cases, your purchase to pay software should make invoice review and approval simple for the people who need to do it. To make invoice coding easier for the cost center managers, modern solutions can leverage templates to code the invoice based on historical information for a given supplier, or based on an automatic coding template.
Automatic coding templates
Basware Purchase-to-Pay provides invoice coding templates that can be used to save coding data for future use. Alternatively, it can create coding examples for specific suppliers and share them with other users. After the template has been selected, the coding rows from the template are copied to the invoice. The coding templates can also be used to code invoices automatically. The Accounts Payable organization can define automatic coding templates that apply coding on an invoice line level for incoming invoices without associated purchase orders or payment plans.
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The power of automatic coding templates lies in the ability to automatically code invoices on line level based on any information in the invoice - for example, based on product codes or product names. The automatic coding templates can have a remarkable efficiency impact especially in cases where invoice contains tens, if not hundreds of lines, which all have to be coded to number of accounts, project numbers and cost centers.
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Coding templates are applied after the invoice has been validated by Basware Purchase-to-Pay. When used effectively, automatic coding templates can improve cycle time of invoices sent for manual review and approval.
Improving invoice cycle time gives financial organizations more flexibility. Together with reporting and analytical capabilities of Basware Purchase-to-Pay, Accounts Payable managers are able to capture intelligence around invoices and payments, as well as help monitor and optimize key financial performance metrics. All this together enable them to determine the best moment to complete payments to the supplier - thereby leveraging accounts payable for working capital gains.
Learn more about Basware Purchase-to-Pay that combine the latest cloud, social, mobile and smart analytics technologies for the benefit of purchase to pay process. Find out how our customers save money and increase efficiency, and learn how different Accounts Payable organizations progress in their quest for operational efficiency, process automation and strategic importance.