Accounts Payable Invoice Processing Best Practices

Accounts Payable (AP) departments are underworkflow management solution is that it allows
increased pressure to strengthen controls, drivenumerous members of a company to securely
out costs, and increase efficiencies of manual andcollaborate in real time. Since the documents are
time-consuming processes. This can be difficult tostored in a centralized repository, other personnel
accomplish when considering the distributed naturecan be given instant access as well, cutting
of AP processes. For instance, invoice approvalcopying, shipping, and faxing costs. The improved
typically takes place on several levels andelectronic audit trails can also be extremely
generates large volumes of documentation thatvaluable, especially during audit reviews.
are hard to manage effectively. In addition,AP invoice processing can actually be transformed
departments face increased pressure frominto a "zero touch" environment with the right
compliance issues such as the Sarbanes-Oxleyimaging and workflow automation solution. This
Act to better manage paper-based processes.means that AP is able to enter the paperless
As these issues continue to progress, the caseworld everyone dreams about – no one in the
for accounts payable automation becomesdepartment has to touch paper.
stronger. By automating paper-intensiveIn order to create a "zero touch" process,
processing, AP departments are able to optimizevendors are directed by the AP department to
the invoice approval and payment process. Oneremit all invoices to a central Post Office Box
of the innovative ways organizations are achievinglocation, which is received by the service provider.
this automation is by utilizing imaging and workflowThe provider’s staff then prep, scan and
solutions.index all invoices each day, capturing important
With a typical imaging and workflow solution, APdata elements such as point of contact, vendor
staffs are able to view invoices images as part ofname, invoice number and more.
an automatic routing system. Everything from theAs soon as the invoice enters the system, the
receipt of an invoice and approval to vendorinternal controls set up by the AP department go
payment is documented in the system. Theinto action. An automated e-mail notification is
process begins when a vendor invoice is received.sent to each approver informing the person that
The paper-based invoices and relatedan invoice is awaiting review. The point of contact
documentation are converted into images whichthen has several options such as approving the
can then be accessed by authorized users. Theinvoice, routing it to another approver, declining, or
invoices are automatically routed using definedpending invoices for later approval.
notifications and conditions to support the businessOnce an invoice is approved, it is routed to a
process. This automated, step-by-step processinghigher approval level or to accounts payable for a
of AP invoices is the most effective way to keepfinal review. Invoice data is then transferred
the flow of documents steadily moving.through EDI into the organization’s accounting
By eliminating the physical movement ofsystem and payments are scheduled.
paper-based documents, the time spent trying toAn imaging and workflow solution provided in a
find files is dramatically reduced, leading toSoftware-as-a-Service model can be configured
increased employee productivity. The systemto provide notification of duplicate invoices, route
enables customized internal controls to be createdinvoices above a certain amount to particular
for each business process, resulting in immediatestaff, create and maintain approval timers, and
access to documents, faster approval time andperform workload balancing. Invoice coding is
reduced cycle time.tracked in Web-based workflow forms and
There are numerous benefits associated with thecross-checked and validated against accounting
use of imaging and workflow in terms of helpingsystem tables.
AP departments increase efficiencies. TheThere’s no software to install, no hardware
workflow management solution offers a significantto manage, and no infrastructure for IT to
reduction of costs, stronger internal controls, andsupport with a Software-as-a-Service solution.
the overall streamlining of the AP invoice reviewOverall, the Software-as-a-Service solution allows
and approval process. In addition, the automatedAP professionals to maintain tighter controls over
internal controls and instant access to documentsthe entire payable process and reduce costs.
eliminates the chance of misplacing or losing paper,Productivity also increases with the workflow
duplicating or overpaying invoices, or making lateautomation process, enabling AP departments to
payments.handle growing invoice volumes without adding
Another important benefit of a comprehensivepeople or reassigning resources.