The key to effective account payables management: e-invoicing + automated workflow + e-paymen
by CTMfile
According to a group of experienced Acount Payables(AP) experts at the AFP Annual Conference, effective account payables management is quite simple: you just automate the whole Purchase Order (PO) to Pay process by:
- introducing automated procurement systems to ensure that electronic POs are placed with approved suppliers
- centralizing AP so all invoices are sent to AP
- aiming for 100% e-invoicing and ensuring that there is a web-site where suppliers can enquire as to status on invoice and when they will receive payment
- using the shorter invoice processing time to exploit available trade discounts
- installing a system that automates the whole AP process ―Matching, Approval Routing, Document Handling, and Reporting.
Not surprisingly, the Key Performance Indicators of this group - Days Payables Outstanding, total cost per invoice processed, etc. - were some of the best in the AP business.
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