Invoice management is an internal business function linked to procurement and is responsible for managing and processing invoice documents from vendors and suppliers.
1. Receiving the invoice
2. Extracting the invoice information
3. Validating and verifying the invoice information
4. Approving payments
5. Archiving the invoice for future reference
Verifying and clearing invoices is an essential task of procurement teams. When companies purchase products and services from different vendors, they receive invoices from these vendors requesting payment. The company has to pay this invoice to the vendor to maintain an uninterrupted supply of materials/services.
But often, there is a delay in clearing invoices because of a lack of coordination between the procurement and finance divisions of the organization. That’s where an automated invoice management software comes into the picture. When an order is placed, the software can automatically generate an internal payment calculation from the details of the contract signed between the vendor and the company.
After product/service delivery, when the vendor sends the invoice to the company, this software compares and verifies the two figures. If the figures match, the invoice is sent for approval. Once the approval is provided, the software automatically initiates payment to the vendor.
A software-powered invoice management system ensures that vendors always get paid on time. This keeps vendors happy and satisfied. The regular payment schedule also helps the vendor maintain cash flow which it needs to avoid delays in the supply chain.
Another significant advantage of the invoice management system is the ability to store earlier invoices. These records become very important when the supplier contract has to be re-evaluated periodically.
GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.
GEP NEXXE is a uniﬁed and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artiﬁcial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.