However, the reality is that optimizing these practices, and thus your processes, becomes much more likely when you eliminate paper invoices and manual processes that are inherently costly, time consuming, and subject to human error. There are steps you can take, however, to eliminate or minimize those issues that keep your AP department from being the best it can be.ġ0 best practices to optimize accounts payableĮach of the practices in this list should be followed, whether or not you automate your processes with an AP software solution. That doesn’t even begin to address how much time an AP department spends on invoicing issues like handling exceptions, addressing supplier requests for payment information, tracking down paper (PO and Goods Receipt) and tracking down approvers to ensure that payment is made on time. ![]() At that point, the invoices are either sent straight through to your ERP or AP system or routed to the appropriate people for approval and then posted for payment. ![]() Then those invoices need to go through a three-way match or two-way match against purchase orders and, when possible, receiving notices. Companies now understand that, although the accounts payable process is just one step in the entire procure-to-pay (P2P) transaction cycle, it is the one step that is responsible for ensuring payments are accurate, timely, and free of fraud.Įssentially, the AP department receives invoices and the data on those invoices needs to be captured and coded with accurate accounts and cost center data, either through automation or manual keying.
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