Invoice automation is one of the key elements of supply chain software. This feature can assist most supply chain functions in running more smoothly. Here is what you should know about this automation process:
Invoice Automation: What To Know
An invoice is created by suppliers and sent to buyers. Once the buyer has the invoice, they can pay suppliers, which can be done digitally or manually. Instead of physically creating invoices, supply chain software will automate your payment processes. This can streamline your supply chain operation in many different ways. Here is how this software can automate your invoices:
Digitizing Invoices
The first step of invoice automation is reading and digitizing your invoices. Once you receive a supplier invoice, this system automatically adds it to the software. You can receive invoices in PDFs, word docs, and other formats that can be easily digitized and added to the system. This makes it easy for suppliers as they do not need to change how they create invoices.
This type of software compares each invoice line item to the correlated purchase order rather than comparing the total costs. Because of this, the room for error should be minimized for all parties involved. These digitized invoices can make your supply chain more efficient.
Matching Invoice to Purchase Order
Invoice automation then looks at older purchase orders to make sure the invoice lines match. This software can match single-line orders or orders with several line items, and the automation process can assist in finding and making changes more easily.
This software can find mismatches easily. You should be notified when a mismatch occurs. When you are notified, you can fix the purchase order, ask a vendor for an updated invoice, or go through with the payment process. These situations can be difficult for both parties, and automation can make them easier to deal with.
Using Matching Rules Set by You
The software designed to automate your invoices allows you to choose matching rules. It then automatically compares line items from PO to invoice and then on to the receipt of goods. This system was created to find issues and quickly notify suppliers and buyers. It gives all parties a chance to see what the issue is and then make the proper corrections.
When you use supply chain invoice automation, you choose your own matching rules. You can set quantity, total line amounts, and tolerances for costs. You can also customize the settings by the supplier. When invoices are specified to your needs, it is easier for your process to be streamlined. This also allows the supply chain software to match each invoice to PO more effectively.
Paying Made Quicker
When an invoice has matched, the system allows for quick vouchering. You can get a voucher and receive payment with a click of a button. This allows all parties to get paid more quickly. If there happens to be a mismatch, it can be easily detected by the software. When the mismatch has been corrected, a new voucher can be accepted just as easily as the original.
Creating Better Relationships Through Communication
When you choose to automate your invoices through supply chain software, you can create better relationships with your vendors, customers, and partner companies. This can happen because supply chain software can be used by all parties involved. The software records a history between suppliers and buyers. This allows for fewer misunderstandings and better internal communication. All communication can happen in the supply chain software, so everyone is on the same page.
Invoice Automation Through Supply Chain Software
The automation of invoices can be a great addition to any supply chain. When you invest in supply chain software, there are several benefits to reap. One of these benefits is the automation of your invoices. The performance of your supply chain relies on the creation and completion of invoices. The easier the invoice process is, the more time you can spend making other areas of your process competitive.
Take the time to choose a supply chain software that not only automates invoices but assists in streamlining your entire operation through its system. To learn more about invoice automation, find a supply chain software company best suited for the needs of your business.
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