OB10, the e-Invoicing network, and sharedserviceslink.com, have carried out a survey of 200 accounts receivable professionals which found that 85% agree that eliminating exceptions would be one of the most effective ways to cut costs for Accounts Payable.
Invoice exceptions are the root cause for many inefficiencies and payment delays in the procure-to-pay process. According to the survey, 31% - or nearly one third – of all PO-backed invoices require expensive manual rework before they can be approved for payment. The top-three consequences of invoice exceptions are late payments, increased operating costs and unhappy suppliers.
The key sources of exceptions include discrepancies in price or quantity, no valid purchase order on the invoice, or goods not received. And despite invoice exceptions being the source of so many problems, only 43% of participants maintain formal tracking methods.
Rooting out invoice exceptions
Based on the survey's findings, OB10 has published 'Rooting out Invoice Exceptions, and the Path to Straight-Through Processing', an e-book offering practical guidance, written by Danny Thompson, VP Strategic Account Relations at OB10. This e-book includes the scope of the problem, the tools and technology available and the ten cultural / process changes for dramatic improvement.
To read more in the full ebook - recommended - see here.
E-invoicing will keep growing world-wide
Another indication of how e-invoicing will keep growing is the recent research for US-based e-commerce platform operator for ocean freight industry INTTRA.found that e-invoicing is emerging as a critical cost reduction tool for companies in or those impacted by the struggling ocean shipping industry. According to the survey, 81 percent of respondents expressed a wish to receive invoices electronically in 2013, while 77 percent were found to rate "managing disputes" as their greatest invoicing challenge, with reducing the "time and cost to process invoices" coming in as a close second at 68 percent.
Reduction of errors and disputes as a cost-cutting method remains the top driver of increased demand for e-invoicing in 2013. Survey respondents agreed: 93 percent of them indicated that they want to manage disputes electronically.
It has been clear for many years that e-invoicing cuts costs in many different ways; the global recession is ensuring that e-invoicing will boom in 2013. How can your company extend their use of e-invoicing?
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