Automated invoice processing: make the process smarter!
Manual invoice processing is time-consuming, error-prone, and often expensive. It’s a process that not only burdens financial departments, but slows down the entire organization. By now, most larger organizations have digitized their invoice workflows.
The benefits of automated invoice processing are clear: processes are streamlined and standardized, reducing the need for (error-prone) manual work. But it’s time for the next step, with even more savings and speed…
In recent years, developers have been working hard to make invoice software smarter and faster. On this page, we highlight some of these innovations. Perhaps they will also inspire you to make your business processes more efficient!
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Automated invoices: 4 challenges
Invoice processing software providers often promise significant benefits and features to their customers, from more insights to a nearly automatic process. However, these promises sometimes fall short in practice. It often comes with limitations, especially when you're using software that is only a few years old. What can cause your invoice flow to stall?
Invoices are incorrect or incomplete
Every financial department deals with this: not all invoices received are of good quality. Crucial information may be missing, or the invoice may contain errors. Additionally, invoices may come in various formats, such as paper documents, PDFs, emails, or electronic data interchange.
Where’s the automation?
Invoice processing often involves complex workflows, including elements like multiple approval levels, complex accounting rules, various types of invoices (e.g., purchase invoices, expense reports, or credit notes), approvals, budgets, and payment terms.
The software isn't compliant
Since you purchased your software solution, much may have changed in terms of laws and regulations. In the worst-case scenario, your setup may no longer be compliant, leading to fines and reputational damage. You may even find that some processes need to be handled manually again.
This new legislation will impact your business
The European Accessibility Act mandates that any documents you share with customers must be accessible by screen readers. Read more about ViDA.
‘VAT in the Digital Age’ is Europese regelgeving die die e-facturering tussen bedrijven verplicht maakt.
Lees hier meer over ViDA.
The ERP integration is subpar
Most organizations choose their ERP solution first—usually SAP—and then look for invoice processing software. If these systems don’t integrate well, you'll end up doing twice the work, not to mention increase the chance of introducing errors. It may even require costly custom development.
Do these challenges sound familiar? Don’t panic!
Automated invoices: 4 innovations
Successful software companies listen to their customers. The challenges we discussed above have also reached the major software houses, with their experts regularly introducing new features that cater to customer needs. Let’s take a closer look at the four challenges mentioned above and see how innovative software companies are responding.
No more manual entry
If an invoice is received as a PDF or on paper, it needs to be scanned for processing. This used to be done manually– a time-consuming and fallible system. Today, we have Optical Character Recognition (OCR), a technology that transforms text embedded in an image into editable copy. Thanks to AI, OCR technology is continually improving. Even handwritten notes can now be converted into typed text!
Increasingly intelligent workflows
Setting up workflows correctly is essential for a well-functioning invoice processing system. Take the Purchase-to-Pay process, for example. This involves the entire chain: from purchase request, procurement, and delivery to the (automatic) invoice payment. When set up correctly, only pre-approved purchases are made, leaving the Finance department with little manual work to do. In addition, invoice coding can also be increasingly automated.
Software that’s up to date
Want to comply with regulations like ‘VAT in the Digital Age (ViDA)’? Modern invoicing software offers an increasing number of compliance options. Up-to-date invoicing systems include functions for archiving and managing invoices during the required retention period. They also support tax rules and rates in different jurisdictions; the software automatically calculates taxes based on the goods or services provided and the location of the transaction.
No hassle, no customization
Integrating an automated invoice processing system with an existing ERP solution can be complex and often requires customization. Fortunately, SAP has come up with a solution: SAP Solution Extensions. These are third-party solutions that SAP has qualified, tested, and validated to ensure they meet the correct standards for security, accessibility, functional accuracy, performance, and scalability. The leading solution extension for invoice processing is OpenText Vendor Invoice Management.
VIM + implementation partner = success
In our estimation, Vendor Invoice Management (VIM) is the leading solution for managing and processing invoices. Pre-configured rules, roles, and actions ensure that invoice receipt and posting are fully automated. Additionally, VIM helps track and process order confirmations, delivery notes, sales orders, and transfers.
Organizations stay compliant at every stage thanks to pre-configured rules, roles, and actions.
Hassle-free implementation
The success of VIM hinges on the right implementation. With over 15 years of experience, tcf. is the leading specialist in implementing OpenText solutions within SAP environments. Fully aligned with SAP's best practices, we follow the SAP Activate Methodology to seamlessly integrate VIM with existing or new SAP environments.
One of our specialties is implementing business rules. Thanks to our experience in a wide range of industries, each with its own processes and compliance rules, we know how to translate almost any arrangement within your company into a software rule. The result: streamlined and standardized processes, for real—no manual tasks required.
