Until recently, automation efforts in the accounts payable area were focused on invoice and payment management and the operational benefits that technology delivers – cost containment and productivity enhancement. However, all this is changing. Innovative financial managers are now recognizing AP automation as an area that offers significant strategic benefits as well - the ability to accelerate invoice processing to enhance discount capture, strengthen working capital positions and build stronger trading partner relationships.

Addressing these working capital factors, a new crop of AP automation networks are emerging, which deliver sophisticated functionality around electronic invoicing, front-end imaging, approval workflow, payment processing and discount management. Electronic invoices eliminate paper processing times including mail latency and desk float. A combination of services offered by Web invoicing solution providers – supplier recruitment for electronic invoice submission and the parallel conversion of paper invoices to electronic format – is enabling accounts payable operations to receive and process invoices quicker and in a more efficient manner.

Given the acceleration of invoice processing and faster payment cycles, finance managers are realizing that they not only have the ability to capture existing negotiated discounts but also the potential to create new ones dynamically.

Last 5 posts by Sushmitha Koka

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