Invoice processing is a critical process in every business’s finance function. Invoice processing involves a lot of data checking and manual effort, which is very time-consuming. Multiple tiers in the approval process also impacted the accounts payable days and resulted in low supplier trust for many organizations. It is not just about automating invoice processing but also setting up a unified approvals process that will bring down these issues in invoice processing. Transparency and cohesiveness throughout the process can save a lot of manual effort and improve trust with the stakeholders involved. Let us dig deep into the details of automated invoice processing in this blog.
Steps involved in Automated Invoice Processing
Receiving and accepting the invoice
For any organization, this is the first step in invoice processing for the AP department. When you receive the goods from the supplier, they create an invoice with all the details. The generated invoice will be shared via different channels, such as email.
The AP department has to check all the details, such as bill number, quantity of goods, date of delivery, payment details, etc., to initiate the processing. After verifying the details, they are entered into an ERP system like SAP or any other accounting system.