Caspar Herzberg |
This article first appeared in the Spring 2017 issue of The Record.
Scrapping paper-based billing and accounting processes and moving to integrated electronic invoicing processes increases efficiency, improves visibility and can also help companies to get more out of their Microsoft Dynamics enterprise resource planning (ERP) solution. Paper-based processes can easily be eliminated by implementing a document management/accounts payable (AP) automation solution. However, an organisation’s progress towards becoming completely paper-free may be slowed if they are still receiving paper invoices from their vendors.
Vendor portals eliminate the need for invoices to be associated with paper and offer a way for companies and their vendors to save on document handling, processing invoices, and answering vendor calls. In fact, vendors should be just as excited about moving to electronic invoicing as a company’s AP team – it saves them from the unnecessary added fees associated with printing and mailing invoices.
Many document management solutions, such as Metafile Information Systems’ MetaViewer, include a vendor self-service portal that syncs with a company’s Microsoft Dynamics ERP system to ensure all vendor data is accurate and up to date. With this in place, vendors can track the progress of their invoice so they know when it has been received, approved and scheduled for payment, and when their payment has been submitted. Vendors can use the portal even if they are still manually mailing invoices, but they should switch to providing invoices digitally to fully reap the benefits of this technology.
Using a document management solution with an integrated vendor portal makes the invoicing process easy and seamless for both the vendor and the customer. One of several benefits is that companies can send automated e-mails with a link to their vendor portal, allowing vendors to securely access invoices and related transaction documents. Another is that being able to see the status of invoices reduces the time consuming search for documents when vendors enquire about payments.
Invoices are also paid more quickly because the vendor portal allows AP departments to prioritise invoices and better manage financial processes. Ultimately, companies and vendors that use vendor portals and digital invoices develop stronger and more satisfying relationships.
It’s important for companies to ensure that their vendors are involved in, and have visibility of, the payment process. By using smart AP technology wisely, companies can reduce the costs associated with invoice processing, electronic storage and document retrieval. Plus, they can gain full visibility into the total outstanding amount on invoices, and their available cash flow. Meanwhile, invoices can be sent quicker, printing costs reduced, and progress electronically monitored.
Alyssa Putzer is the marketing communications specialist at Metafile Information Systems