Invoice Processing Using A Document Management System

Invoice Processing Using A Document Management System

by

chloeleves1298

Accounts Payable (AP) departments are under increased pressure to strengthen controls, drive out costs, and increase efficiencies of manual and time-consuming processes. This can be difficult to accomplish when considering the distributed nature of AP processes. For instance, invoice approval typically takes place on several levels and generates large volumes of documentation that are hard to manage effectively.

In addition, departments face increased pressure for legal compliance issues.As these issues continue to progress, the case for accounts payable automation becomes stronger. By automating paper-intensive processing, AP departments are able to optimise the invoice approval and payment process. One of the innovative ways businesses are achieving this automation is by utilizing imaging and workflow solutions.With a typical imaging and workflow solution, AP staff are able to view invoices images as part of an automatic routing system. Everything from the receipt of an invoice and approval to vendor payment is documented in the system. The process begins when a vendor invoice is received.

The paper-based invoices and related documentation are converted into images which can then be accessed by authorised users in the finance system. The invoices are automatically routed using defined notifications and conditions to support the business process. This automated, step-by-step processing of AP invoices is the most effective way to keep the flow of documents steadily moving.By eliminating the physical movement of paper-based documents, the time spent trying to find files is dramatically reduced, leading to increased staff productivity.

The system enables customized internal controls to be created for each business process, resulting in immediate access to documents, faster approval time and reduced cycle time.There are numerous benefits associated with the use of imaging and workflow in terms of helping accounting departments increase efficiencies. The workflow management solution offers a significant reduction of costs, stronger internal controls, and the overall streamlining of the AP invoice review and approval process. In addition, the automated internal controls and instant access to documents eliminates the chance of misplacing or losing paper, duplicating or overpaying invoices, or making late payments attracting late payment fees or interest charges.Another important benefit of a comprehensive workflow management solution is that it allows numerous staff of a organisation to securely collaborate in real time.

Since the documents are stored in a centralized repository, other staff can be given instant access as well, cutting copying, shipping, and faxing costs. The improved electronic audit trails can also be hugely valuable, especially during audit reviews.Accounting

invoice processing

can actually be transformed into a “zero touch” environment with the right imaging and workflow automation solution. This means that accounting is able to enter the paperless office everyone talks about no one in the division has to touch paper.In order to create a “zero touch” process, vendors are required by the accounting department to remit all invoices to a central Post Office Box location, which is received by the accounting department.

Staff then scan and index all invoices using batch scanners into a

document management system

, capturing important data elements automatically such as point of contact, vendor name, invoice number and more into the business’s finance system.As soon as the invoice enters the system, the internal controls set up by the accounting department go into action. An automated e-mail notification is sent to each approver informing the person that an invoice is awaiting review. The point of contact then has several options such as approving the invoice, routing it to another manager, declining, or pending invoices for later approval.Once supplier invoice is approved, it is routed to a higher approval level or to accounts payable for a final review and payment.

Chloe writes for the leading

document management software

authority

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ArticleRich.com