Invoice collection, automatic data recognition, cost allocation according to the established company procedure, approval and data export to ERP systems.
What is the purchase account management process?
The process of managing received invoices includes:
- Reconciliation of the received account data
- Assignment to cost centers
- Approval of the responsible persons
- Linking the account to the purchase order
- Transfer to accounting for payment.
The Invoice Management process is part of a broader Procurement Management solution.
Why use an account management solution?
- Remote work:
Nowadays, working from home has become commonplace. Processing or validation of paper invoices by e-mail mail becomes difficult to manage. And when there are enough accounts in a company, managing them without a dedicated system becomes a real nightmare for the company’s employees.
- Saved time:
The difference between manual or low-automated and fully automated processing of purchase invoices can vary up to 20 times. When compiling data, a frequent accountant spends about half the time compiling account data into one environment or another. The transfer of paper invoices and the collection of visas between company employees is one of the administrative processes that distract employees from their core business. A few minutes devoted to a paper bill disturbs an employee for several minutes. Time is extended several times when, due to human error, data do not match, accounts go to the wrong people and get lost between departments. The larger the organization, the more complex the rules for clearing accounts and allocating costs.
The Invoice Management solution helps to ensure control over whether purchased goods or services are purchased at the same price as confirmed in the purchase order. If the purchase price or amount does not match in the purchase order, the system automatically indicates the responsible persons.
Linking the accounts to the project budget line ensures that procurement is carried out within the budget. As invoice amounts approach budget limits, responsible staff are aware of purchasing trends in advance and can undertake appropriate communication or budget re-planning.
Payments without delay:
Missed or incomplete payments to suppliers can cost you extra interest, credit rating downgrades, lower discounts, or even the loss of a supplier altogether. Sometimes it happens that one or another payment is missed, but if it happens constantly, you have serious problems. If you manage payments and make payments on agreed terms, you can get additional benefits: requesting additional discounts for earlier payment, improving delivery terms, being pro-active, and arranging a subsequent payment when funds are lacking.
- Electronic invoice archive:
The electronic archive allows you to dispense with paper documents. Link accounting records to primary documents. It’s a huge time saver when you need to find something. It also saves money on paper archiving of accounts