The Best Solution for Invoice Automation
in ERP Systems

What Is Invoice Automation?

Processing and managing invoices can be a daunting task in any business, consuming a vast amount of resources and time. Invoice automation, however, can streamline this process, making it more efficient.

Invoice automation refers to the use of technology to convert paper-based or manual invoicing workflows into automated ones. This type of automation is not only cost-effective but can also significantly enhance your business operations. Let us take a closer look at how it works and its benefits.

How Does Invoice Automation Work?

Invoice automation is made possible through the use of electronic invoices, software programs, and cloud-based solutions, which work in unison to streamline invoicing processes. Electronic invoices provide a structured data format that can be automatically processed, enabling the seamless exchange of information between software programs and departments.

Automated invoice workflows typically involve three primary steps:

• Data Capture — The first step involves capturing and digitizing paper-based invoices electronically, or extracting detail from e-invoices.
• Invoice Processing — Once captured, the electronic invoices are processed, validated and matched against purchase orders and goods received notes.
• Payment Management — Invoice automation workflows also provide for efficient and accurate payment processing, ensuring that vendors receive their payments on time and in the correct amount.

InvoiceAction Features for Invoice Automation

Modern ERP (Enterprise Resource Planning) systems have expanded their functionalities to encompass various advanced features that streamline and simplify operations. When it comes to invoice automation, these systems offer an array of functionalities to optimize the entire invoice management process. Here’s a breakdown of the invoice automation features you can expect to find in contemporary ERPs:

Automated Invoice Data Capture

• OCR (Optical Character Recognition): Scan and digitize printed or handwritten invoice details.
• E-invoice Integration: Directly import electronic invoices into the ERP.

Three-Way Invoice Matching — Automatically match invoices with purchase orders (POs) and delivery receipts to ensure accuracy.

Intelligent Workflow Management

• Approval Routing: Automatically send invoices to relevant personnel for approval based on predefined criteria.
• Alerts and Notifications: Instant alerts for any discrepancies, pending approvals, or approaching payment due dates.

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Real-time Analytics and Reporting — Monitor the entire invoicing process, from receipt to payment and access insightful reports on vendor performance, payment timelines, and discrepancy patterns. Users can also leverage artificial intelligence to gain predictive insights, such as optimizing payment times, evaluating vendor terms, or forecasting cash flow based on invoicing.

Compliance Management — Ensure that all invoices meet regulatory and company policy requirements, and in addition, automatically generate and store audit trails for every invoice action.

Integration with Payment Gateways — Facilitate faster and smoother payments by linking directly to payment systems or gateways.

These features aren’t just bells and whistles; they represent essential tools for businesses aiming to optimize their invoicing processes. Modern ERPs, by embedding these InvoiceAction functionalities, allow businesses to reduce errors, save time, enhance vendor relationships, and ultimately, improve their bottom line.

Do All ERPs Offer Invoice Automation?

No, not all ERPs offer invoice automation. While many modern ERPs have incorporated invoice automation features due to the growing demand for such functionalities, there are still many ERP systems, especially older versions or those designed for specific niches, that might not have advanced invoice automation capabilities.

Here are some factors to consider:

• Age and Version of the ERP: Older ERP systems or those that haven’t been updated in a long time may not have invoice automation capabilities. Businesses using such ERPs might rely on manual processes or integrate third-party solutions to achieve automation.
• Target Audience of the ERP: ERPs designed for specific industries or smaller businesses might not offer invoice automation if it’s deemed not essential for their target user base. For instance, an ERP designed specifically for a manufacturing niche might prioritize production-related functionalities over finance and invoicing.
• Modular vs. Comprehensive ERPs: Some ERPs are modular, meaning they offer a base system with additional modules that can be added as needed. In such cases, invoice automation might be available as a separate module that businesses can purchase and integrate.
• Integration Capabilities: While an ERP might not have native invoice automation capabilities, it might support integrations with third-party invoice automation tools. This way, businesses can still achieve automation by combining their ERP with another solution.
• Cost Implications: Advanced features like invoice automation might be present in the premium versions of some ERP systems, requiring businesses to pay more to access those functionalities.

If a business is considering implementing an ERP system, there’s no reason to delay. Invoice automation can significantly streamline operations, reduce errors, and save time. Hence, even if it’s not a native feature of a chosen ERP, it’s worth exploring integration options to ensure that the business can leverage this valuable functionality.

The Role of Invoice Automation in Modern ERPs

Enterprise Resource Planning (ERP) systems have been the backbone of major businesses for years, acting as the central hub for operations like finance, HR, manufacturing, and supply chain management. As ERP systems evolve, incorporating newer technologies and functionalities, invoice automation has emerged as a game-changing feature. Here’s why it’s pivotal in modern ERPs:

Seamless Integration with Financial Modules

Modern ERPs are comprehensive, and their financial modules are deeply interconnected with other business processes. Invoice automation ensures that once an invoice is processed, the financial data is readily available across other modules, ensuring real-time data consistency.

Boosting Operational Efficiency

With invoice automation, gone are the days of manual data entry, manual matching of invoices to POs, and chasing approvals. This leads to faster processing times, reduced errors, and enhanced overall productivity.

Enhanced Visibility and Control

Integrated invoice automation in ERPs offers a clear view of the accounts payable (AP) landscape. Managers can track invoice statuses, identify bottlenecks, monitor cash flow, and have immediate access to vital metrics and KPIs.

Improved Vendor Relationships

Quick, error-free invoice processing directly translates to timely payments. When vendors are paid on time, and discrepancies are addressed promptly, it leads to better, trust-based vendor relationships.

Scalability and Room for Growth

As businesses grow, the volume of invoices they handle increases exponentially. Invoice automation within ERPs ensures that businesses can handle this increased load without proportionally increasing their resources or facing efficiency bottlenecks.

Advanced AI and Machine Learning Features

Modern ERPs with invoice automation come packed with AI and machine learning capabilities. This means better data capture from invoices (including those in non-standard formats), intelligent matching, automated fraud detection, and predictive analytics for cash flow.

Enhanced Compliance and Auditability

Given the stringent regulatory landscape, having a clear, auditable trail of every invoice is crucial. Automation ensures every action is logged, approvals are recorded, and documents are stored, making audits a breeze.

Cost Savings

While there’s an initial cost of integrating or upgrading to an ERP with invoice automation, the long-term cost benefits are significant. Reduced manpower hours, lower error rates, and the associated savings, and early payment discounts can lead to substantial cost reductions.

The business landscape is becoming increasingly digital. E-invoicing, digital payments, and real-time data analytics are not just buzzwords but necessities. Integrating invoice automation ensures that businesses are future-ready.

The integration of invoice automation within ERPs is not just a trend but a reflection of the evolving needs of businesses. As ERPs continue to be the central nervous system of enterprises, having functionalities like invoice automation ensures they remain agile, efficient, and ahead of the curve.

Real Life Use Cases for ERP Invoice Automation with InvoiceAction

InvoiceAction, as suggested by its name, could be a solution focused on automating the invoicing process within ERP systems. Though the exact features and capabilities might vary, here are some real-life use cases for ERP invoice automation leveraging a tool like InvoiceAction.

Vendor Management

A large manufacturing company receives hundreds of invoices daily from different suppliers. With InvoiceAction, they can automate the input of these invoices into the ERP system, quickly matching them to the correct vendor, and verifying details without manual data entry.

Error Reduction

A retail chain previously faced discrepancies in their invoicing due to manual entry errors. With automated invoice processing, the ERP system ensures that all invoices are entered correctly, reducing financial discrepancies and oversights.

Audit and Compliance

A finance company needs to ensure they maintain accurate records for auditing and compliance purposes. InvoiceAction can automate the process, ensuring each invoice is stored, categorized, and easily retrievable for any future audits.

Scaling Operations

A rapidly growing eCommerce business sees an increasing volume of invoices as they onboard more vendors. To manage this growth without hiring a proportionate number of accountants, they use InvoiceAction to handle the growing volume of invoices.

Prompt Payments

A pharmaceutical company wants to ensure they take advantage of early payment discounts from their suppliers. The ERP system, integrated with InvoiceAction, ensures invoices are processed promptly, and payments are scheduled to maximize discounts.

Expense Management

A multinational corporation with various departments and subsidiaries wants to automate the process of verifying and approving expenses. By integrating InvoiceAction, they can set up automatic verification processes, cross-checking invoices against budget allocations, and departmental limits.

Integration with Existing ERP System

A logistics company uses multiple software solutions for their operations. Their ERP system, integrated with InvoiceAction, can seamlessly pull invoice data from these various systems, ensuring a unified financial overview.

Multi-currency Invoicing

A travel agency deals with vendors from around the world, receiving invoices in various currencies. With InvoiceAction, they can automate the conversion and processing of these invoices, ensuring accurate financial reporting.

Dispute Resolution

A software service provider sometimes faces disputes regarding invoiced amounts. Their ERP system, equipped with InvoiceAction, can automatically flag any invoice that doesn’t match a contract or agreed-upon terms, facilitating quicker resolution.

Forecasting and Analytics

A construction company wants to better predict their cash flow and manage their finances. By automating their invoicing process, they can easily pull real-time data on outstanding and paid invoices, aiding in more accurate financial forecasting.

For businesses considering such a solution, the key is to understand their unique invoicing challenges and see how automation can address them efficiently.

Steps to Integrate Artsyl InvoiceAction with ERP

Artsyl’s InvoiceAction is an indispensable tool for automating the invoicing process. Here are the steps to integrate Artsyl InvoiceAction with some of the most popular ERP systems.

Requirement Gathering

• Understand your current invoicing process, and identify the areas you want to automate.
• Decide the data fields from InvoiceAction you wish to transfer to your ERP.
• Determine the frequency of data synchronization between InvoiceAction and the ERP.

Choose the Right Integration Method

• Many modern ERPs offer APIs (Application Programming Interfaces) that third-party software can utilize for integration.
• Check if InvoiceAction has pre-built connectors or integrations for your specific ERP.

Installation & Configuration

• Install any required plugins or connectors on both the ERP system and InvoiceAction.
• Configure the connection settings, which might include endpoint URLs, authentication details, and other relevant parameters.

Mapping Data Fields

• Define how data from InvoiceAction will map to fields in your ERP.
• For instance, ensure that the «Invoice Number» in InvoiceAction matches the corresponding field in your ERP.

Test the Integration

• Before going live, perform tests to ensure data flows seamlessly between the two systems.
• Process a few test invoices through InvoiceAction and check if they appear correctly in the ERP.

Error Handling

• Set up procedures or notifications for any issues that might arise during data transfer, such as mismatched fields or connection failures.

Automation and Workflow Setup

• Depending on your processes, set up automation rules.
• For example, once an invoice is verified in InvoiceAction, it could be automatically posted to the ERP.

Training and Documentation

• Train your team on the new integrated system to ensure they understand the workflow and can troubleshoot basic issues.
• Document the integration process, configurations, and best practices for future reference.

Monitor and Optimize

• Regularly monitor the integration, ensuring it runs smoothly.
• Over time, assess if there are any areas for optimization or adjustments needed based on changing business requirements.

Ongoing Support and Updates

• Keep both your ERP and InvoiceAction updated to benefit from the latest features and security patches.
• Ensure you have access to support, either in-house or from the software providers, for any issues that might arise.

Lastly, consider consulting with both your ERP provider and Artsyl’s professional services team to ensure a smooth integration process. They might have specific guidelines or best practices tailored to your scenario.

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Overwhelmed with manual invoices? Let Artsyl InvoiceAction supercharge your ERP system, making invoicing smooth, efficient, and reliable. Start your journey to unparalleled growth now!

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Final Thoughts: The Best Solutions for Invoice Automation in ERPs

In conclusion, invoice automation solutions provide numerous benefits, including reduced costs, improved accuracy, enhanced efficiency, and increased productivity. With the right combination of features, businesses can optimize their invoice automation processes and take advantage of the latest technological advancements.

By embracing cloud-based solutions, OCR and machine learning technology, integrated payment solutions, collaborative tools and customizable workflows, and centralized document management, businesses can streamline their invoice management processes and focus on more critical business objectives.

Remember, invoice automation is not a one-size-fits-all solution, so it’s important to choose the right solution that will meet your specific business needs.

FAQ

What is invoice automation?

Invoice automation involves streamlining and automating the entire invoicing process, from receipt to payment. This means automatic capture of invoice data, its validation, matching against purchase orders, approval workflows, and payment processing, all managed with minimal manual intervention.

What are the benefits of invoice automation?

One of the primary benefits of invoice automation is its cost-saving capability. Research shows that businesses spend, on average, $12.90 to process one invoice manually. Conversely, automated invoicing can reduce that cost to approximately $3.50 per invoice.

Businesses engaging in manual invoice processing usually lose valuable man-hours manually inputting, verifying and processing invoices. Automating the process frees up an incredible amount of time that can be redirected to more productive business activities.

Invoice automation reduces manual errors associated with data entry, ensuring accuracy and compliance in invoicing. Automation provides a clear and concise view of your invoicing process, allowing you to better analyze and manage your cash flow and accounting.

Automated invoicing streamlines the payment process, ensuring timely payments to vendors, and good relationships with suppliers and customers.

As businesses expand and ramp up their invoicing operations, the burden on employees to handle all invoicing processes increases significantly. Invoice automation provides a structured and efficient workflow solution that can help businesses streamline their invoicing processes, reduce costs, and increase productivity.

And as automation becomes increasingly sophisticated, businesses can expect to see more benefits and efficiency gains from automated invoicing. If you are not already using automated invoicing, it’s time for you to consider adopting the technology and reaping the benefits.

How do small and medium businesses implement invoice automation?

Understand your current invoicing challenges and what you aim to achieve with automation. Look for solutions tailored for SMBs, keeping in mind your budget and requirements. Once implemented, ensure your team is trained and comfortable with the new system. As with all software, ensure you have the latest updates for security and new features.

All in all, in the dynamic world of SMBs, the efficiency of operations can often dictate success. Invoice automation is a step towards reducing operational complexities, focusing on growth, and ensuring customer and vendor satisfaction. As technology continues to evolve, embracing tools like invoice automation can position SMBs a step ahead of their competition.