By Mary S. Schaeffer, Institute of Management and Administration (IOMA)
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Extra info for Accounts Payable: A Guide to Running an Efficient Department
D) E-INVOICING. Thanks to falling prices, companies that just a few years ago found imaging too expensive are now reevaluating it. This is not to say that this technology is cheap, but that it is now more affordable for certain organizations. Those companies that have been most successful with imaging use it to scan an invoice into their system the minute it enters their door. The (e) IMAGING AND WORKFLOW. 22 Handling Bills with Remittance Advices 21 original paper document is never touched by human hands again.
In addition, if your supplier knows when to expect that single check, it will be better able to predict its cashflow. By pointing out the benefits, you may even be able to get your terms stretched a little! Perhaps even more bothersome than many small payments to a few large vendors are many small payments to a wide variety of vendors. Most companies find that over 90 percent of invoices paid represent less than 10 percent of funds disbursed. In growing numbers these companies are turning to corporate procurement cards.
One barrier to success of ERS is that, in their zeal to get ERS up and running, upper management may cave in to unreasonable requests made by suppliers. In fact, they may not even realize that the demands are unrealistic. If the operating procedures are not written with input from someone who has in-depth knowledge of the way accounts payable functions, you may find yourself saddled with procedures that are difficult, if not impossible, to use. When ERS is implemented properly, it can be a real boon to accounts payable.
Accounts Payable: A Guide to Running an Efficient Department by Mary S. Schaeffer, Institute of Management and Administration (IOMA)