4 Way Matching In Accounts Payable: Improving Operational Performance With Accounts Payable Automation Tool
4 Way Matching In Accounts Payable
The operational performance of accounts payable (AP) departments can be greatly improved with the use of accounts payable automation software. With automated matching of invoices and purchase orders, accounts payable processes become streamlined, resulting in an increase in both efficiency and accuracy. By reducing the amount of paperwork and manual data entry, accounts payable departments can free up resources to focus on more important tasks.
When choosing accounts payable automation software, it is important to ensure that it meets the organizations specific needs. In particular, four-way matching should be priority for financial executives. This type of matching requires two-way matching between the invoice, the purchase order, and the goods received note, in addition to third check to ensure that the date of the shipment is within reasonable amount of time from the date of the invoice.
With accounts payable automation software, organizations can leverage advanced capabilities such as built-in business rules and automated exception reporting. When such system is properly configured, it can help reduce invoice processing time, minimize manual errors, and improve visibility into the AP process.
One critical element in any accounts payable automation solution is dynamic workflow. This lets organizations set up multiple levels of approval and issue resolutions. For instance, if the initial level of approval doesn’t work out, then it can be automatically routed to the next level or assignee along the chain of command. This feature enables organizations to move towards automation while still maintaining rigorous level of control and compliance.
To ensure successful implementation, finance executives should determine the current AP process and make clear list of objectives and desired outcomes. Involving stakeholders from various departments in the engagement can ensure that the software design is tailored to the organizations specific needs. After the installation and configuration of the software, it is important to continuously monitor it and adjust the settings based on business results.
Automating accounts payable processes can help organizations reduce errors, accelerate the invoice processing cycle, and reduce paperwork. With the proper accounts payable automation software, executives can streamline business operations and improve operational performance.
