Accounts Payable Automation has revolutionized the way businesses process their supplier invoices. The AP automation application can digitalize most of the processes in the supplier invoice management.
Though on a surface level, accounts payable may seem like a straightforward process, as the number of vendors and transactions increase, the complexity of the process also increases. As a result, the percentage of errors and discrepancies would rise. Accounts payable automation plays a significant role in eliminating these challenges through streamlined processes and minimized human interference.
How does Accounts Payable Automation work?
- The primary prerequisite to work with AP invoice automation is to convert vendor invoices—paper, PDF, e-invoice, XML, etc.— into a single standard digital format.This conversion can be done either by an invoice scan and data capture or by data transfer through digital e-invoices. One of the noteworthy features of the AP invoice automation is that it can process both supplier-based invoices and expense-based invoices.
- The application can code and assign the expense-based invoices to the concerned person for approval. For the assignment of the invoice approval, the configuration of the approval hierarchy of the organization needs to be set up in the solution
- AP automation application can match the supplier-based invoices with the respective purchase orders and GDRs (Goods Delivery Receipt) with little or no manual processing. Ideally, AP invoice automation can carry out a touchless process with automatic approval of payments after the invoice verification.
A complete automated process is not far-fetched at all with the right solution. Many customers, such as Tikkurila, have had the firsthand experience of a touchless process of up to 93% of their order-based invoices. With the fast-paced digital transformation of the business world, this percentage will only increase in the future.
Watch the video below to see how Accounts Payable Automation works
To-Increase Mediusflow, accounts payable automation software, can transform the AP process of your business. With an automated solution, you can turnaround your traditional paper-based error-prone invoice process to a faster, more accurate, and user-friendly digital program.
What are the benefits of Accounts Payable Automation?
The benefits of accounts payable automation are multifold. Let us take you through a few crucial benefits of this solution:
- Invoice automation fast-tracks the approval and payment cycles, which in turn cuts down the processing and labor costs of the businesses
- Digitization decreases errors in the invoice process and facilitates a seamless data flow
- It also promotes visibility and transparency of the invoice payment cycle. As a result, leadership and management can make informed decisions
- As AP automation manages the timelines of the invoice approvals and payments meticulously, it improves the working capital management of the business
- It saves considerable time and manual effort
- Accounts payable automation also helps the environment as it reduces the use of paper
In the next blog we will discuss each benefit in more detail.