eInvoicing cycle: improve your relationships with your suppliers

10 Jun, 2024

eInvoicing cycle

Within the eInvoicing cycle, some of AP documents received need to be approved.

Company expenses incurred are not always planned and invoices may not make reference to the purchase order, delivery note or other documents.
These expenses therefore require approval from a manager, or from appropriate cost centers.

There are two possible approaches to this process:


A linear approval workflow

In the ideal scenario and perfect company, an invoice is linearly received, approved, and subsequently recorded. This is a traditional process.
Before being posted, the accounting department assigns the invoice to someone who either approves or rejects it.
Thereafter, the approved document is posted to the company’s ERP system.


A non-linear approval workflow

In the non-linear approval workflow, posting of the document to the company’s ERP system takes place immediately without waiting for managerial approval.
Therefore, an invoice is received and assigned for approval and can be posted to the ERP without waiting for the manager’s response.
The accounting department manages the manager’s decision retrospectively.


The advantages of an automated Accounts Payable cycle

In both cycles, having an effective automated dispute resolution management process improves relationships with suppliers.

Manual procedures and communication difficulties between departments often make the approval process cumbersome resulting in a lengthy dispute resolution cycle.

A fully automated process is key to saving time and money and maintaining good relationships with suppliers.

Comply Platform enables AP cycles and dispute management to work in an automated manner to support the accounting department.
The benefits of an automated accounts payable cycle can be summarized as follows:

Reduction of errors and improved accuracy

Common human errors in manual invoice handling include data entry mistakes, duplications, or omissions. Automated systems on the other hand digitally extract and verify information from invoices, and match it with purchase orders and receipts, ensuring greater accuracy and consistency in the managed data.

Operational efficiency and time saving

Repetitive manual tasks can be accelerated and made more efficient and accurate with automation software. This frees time for staff to focus on higher-value tasks and also speeds up payment times, improving relationships with suppliers and potentially earning discounts for early payments.

Improved transparency and control

Automated systems provide complete and real-time visibility into the status of invoices, from receipt through posting to payment. This facilitates the monitoring and management of cash flow and allows for any issues or discrepancies to be quickly detected and resolved. Additionally, better traceability and process documentation make regulatory compliance easier and audits simpler and faster.

In summary, automating the accounts payable cycle offers tangible benefits in terms of error reduction, increased operational efficiency, and improved transparency and control, ultimately contributing to more effective financial management.