What is automated purchase-to-pay?
Typically, more than 50% of organizational spend bypasses purchasing. Now more than ever, companies need to see, control and reduce spending. How can you cut costs if you don’t even know what you are spending?
The concept of purchase-to-pay automation is simple: automatically track, control and analyze every purchase from beginning to end. By getting a clear picture of your spending from requisition to reconciliation, you can make informed, sound financial decisions.
To make true intelligent purchase-to-pay automation a reality, you need a technological solution. However, companies are finding that their current financial software and ERP packages cannot deliver purchase-to-pay in a cost-effective way.
As an alternative to costly add-on modules offered by the giant ERP systems, companies are employing “best of breed” solutions like Verian Technologies’ suite of purchase-to-pay applications. “Best of breed” software firms typically offer just a handful of core products that focus on one or two areas of expertise. This narrow focus allows your company to get more functionality, value and ROI from your automated purchase-to-pay solution.
To ensure user adoption and ease-of-use, the purchase-to-pay user interface should be consistent across all modules. Management embeds business rules into the application, which can be changed over time as business needs dictate.
What can a “best of breed” Purchase-to-Pay solution do for you?
- Reduce the cost of the goods and services you purchase
- Reduce approval workflow bottlenecks
- Gain visibility into spending
- Gain greater negotiating power and vendor accountability
- Increase efficiency and reduce paper in accounts payable
- Increase cycle times in the purchase-to-pay process
- Ensure compliance with Sarbanes-Oxley Act
- Ensure purchases comply with your internal policies
- Eliminate maverick spending
- Automatically split requisitions by line items if buyers have separate responsibilities.
- Prevent overspend and unauthorized spending
What are your options?
Depending on your needs, budget and timeline, you can choose to automate some or all of the purchase-to-pay process. Some companies choose to start with one module and then add in additional functionality over time. In addition, there are several more options to weigh:
- Do you want a Software-as-a-service (SaaS) solution or would you prefer to install the system on your infrastructure?
- How many users will need to access the system?
- How will the new system integrate with your ERP system and financial software?
- What kind of service after the sale will you need?
- Do you need a system that will grow and expand with your needs?
What is Invoice Automation?
It’s no surprise that AP departments live in a world of paper. According to the Aberdeen Group, an incredible 83% of inbound invoices are paper. But invoice automation is much more than moving paper into digital files. Invoice automation includes intelligent approval routing, automated workflow, GL coding, three-way matching and more. True invoice automation also includes detailed reporting to give you deeper level of visibility and control.
To make true invoice automation a reality, you need a technological solution. However, companies are finding that their current financial software and ERP packages cannot deliver invoice automation in a cost-effective way.
While financial software and ERP systems can automate parts of your invoicing process, only a “best of breed” solution can give you the tools to reduce the effort, cycle time and errors of processing inbound invoices while increasing visibility and control over payables.
What can a “best of breed” Invoice Automation solution do for you?
- Reduce cost-per-invoice from $34 to $5 (on average)
- Gain control over a greater portion of your organization’s expenditures
- Reduce the number of employees who circumvent your purchasing process
- Hold employees more accountable for approving or denying invoices
- Avoid late payment fees and take advantage of early payment discounts
- Eliminate duplicate payments and overpayments
- Reduce the number of vendor payment requests
- Reduce number of AP staff in clerical positions
- Maintain a complete audit trail of transactions for Sarbanes-Oxley and other regulations
- Eliminate or reduce invoice storage space
What are your options?
The beauty of invoice automation is that you have the option to do as much – or as little – of the invoice opening, sorting and scanning as you wish. If you want to push more invoicing responsibilities onto your vendors, you can set up what’s called a supplier portal where your vendors go to enter, manage and send invoices to you electronically. You also have the option to go completely touchless, where invoices are transmitted in industry-standard formats (EDI or XML) directly to you without any manual entry on either side. In addition, there are several more options to weigh:
- Do you want a Software-as-a-service (SaaS) solution or would you prefer to install the system on your infrastructure?
- How many users will need to access the system?
- How will the new system integrate with your ERP system and financial software?
- What kind of service after the sale will you need?
- Do you need a system that will grow and expand with your needs?