Maximizing Procurement System Efficiency Through Invoice Verification
WHICH OF THE FOLLOWING DATA ARE NEEDED FOR INVOICE VERIFICATION
Organizations devoted to maintaining competitive advantage in the marketplace are constantly seeking ways to reduce costs and produce lasting impacts on the bottom line. Automation of accounts payable systems is widely seen as an optimal means to achieve these goals, and invoice verification is an important element of such system. judicious approach to the evaluation process can help finance executive find the right accounts payable automation software, and ensure the procurement system yields tangible and meaningful cost savings.
First and foremost, the desired level of automation must be taken into account. Depending on the complexity of the invoice verification task, from basic data entry to embracing full off-the-shelf accounts payable automation software, the scope of the investment must be determined. For example, basic, legacy system for automating accounts payable might use existing data, such as purchase orders and invoice information, with manual data entry for certain fields. On the other hand, more sophisticated and powerful system can offer workflow automation, capture vendor-provided invoice data, match the invoice information with the purchase order data, and instantly provide feedback from the system back to the vendor.
The selection of the optimal invoice verification system calls for an exhaustive evaluation of the technical infrastructure already in place. Overall system performance, compatibility with prior versions, method of integration with legacy software, level of user interface customization, and potential need for hardware investment, must all be taken into consideration. Furthermore, the costs associated with the upkeep and support of the system must be considered. If accessed on the cloud, uncovering any fees and service levels associated with the package must be taken into account to determine value.
In addition to technical capacity, the data needed to facilitate the verification of invoices should also be accounted for prior to selecting the relevant accounts payable automation software. It is essential to ascertain what information will or may be necessary for the efficient implementation of invoice verification from financial references and payment terms, to primary and secondary supporting documentation. Capturing this kind of data, as well as the final information residing in the system must be carefully considered.
The overall evaluation of the system should pay special attention to the capability of the active accounts payable automation software to identify and resolve exceptions. For example, does the system alert in the case of purchase orders with incomplete data? Can it detect out-of-tolerance variations? Can it flag poorly matching vendors and enable approval through an electronic workflow?
When deliberating on invoice verification systems, it is also advisable to gauge the degree to which an accounts payable automation software can minimize the time spent at key stages of the process. Note that tasks like document capture by vendors and data processing are achievable in real-time if the right system is chosen. In this way, considerable cost savings can be realized.
To enhance value further, the user of an invoice verification system should think about the potential to improve security through stringent access permissions and unique credentials, as well as to update protocols in accordance with evolving payment regulations.
Staff training can produce major return on investment as well. Usually, concerted shift in personnel mindset is necessary for successful transition to an automated system. Resourceful planning and rigorous workflow schemes help to ensure user adoption, boosting system use and ultimately delivering better results.
In todays unpredictable economic climate, achieving optimal procurement system performance through invoice verification is imperative. Utilizing the right accounts payable automation software backed by thoughtful approach to an effective evaluation process, can place an organization on the right path to maximize its cost savings, yield tangible benefits, and cement its competitive edge.
