Electronic invoice presentment and payment is a well known concept in the business world, and renowned as a method of mass mailing.
Often abbreviated to EIPP, electronic invoice presentment and payment is the computerized process of sending customer invoices and associated dunning letters; and the customer’s ability to then pay this invoice online.
Why is Electronic Invoice Presentment and Payment so Great?
Speed of EIPP
Electronic invoice presentment and payment speeds up the invoicing and payment processes. A document management system automatically sends invoices using EIPP as soon as they are required to be delivered. This means that electronic invoice presentment and payment allows customers to receive invoices fast, and they can then pay them sooner. This speed of EIPP is useful for customer and sending company because they will be able to remain ‘on top’ of their finances.
Cost of EIPP
Electronic invoice presentment and payment is a modern alternative to printing and posting invoices. This saves money in paper, printing and postage costs for the sending company. Also, electronic invoice presentment and payment is automatic so fewer staff will be required to manage a company’s invoicing needs.
In order that EIPP remains cost effective, many companies decided to have their system implemented and even managed by an outside specialist, such as Corcentric. This can avoid a difficult transition to electronic invoice presentment and payment, which might otherwise have resulted in customer dissatisfaction.
Convenience of EIPP
Electronic invoice presentment and payment is convenient for both company and client. For a company, EIPP is cheaper and easier to use; for a customer, EIPP allows them to receive invoices to their e-mail inbox. This means the customer can access and pay their invoice whenever they are online. This side to EIPP makes it easier for a customer to make payment and thus, avoid late payment charges.
The customer is able to make their invoice payment using an online banking system, or through a link on a company website. This ‘payment’ side to electronic invoice presentment and payment is also of use to the customer because money can be transferred in real time, meaning their account balance will change as soon as payment is made.
Environmental Factors to EIPP
The environment benefits from electronic invoice presentment and payment in a number of ways. Firstly, the reduced paper usage of EIPP when compared with postal methods is significant. Secondly, EIPP can be carried out from just one computer, so energy is saved.