Why Are Invoice Matching and Efficient Approvals Important?

The procurement process cannot be complete without receiving and invoice matching. Businesses consider this aspect of procurement the most crucial. Digital procurement is changing with the changing trends and hence, we have to be technologically updated.

Our eProcurement software is up to date with the latest technologies. This ensures our procurement processes are handled smoothly and our system can handle these processes efficiently.

Invoicing represents the last step of the procurement process. At times it is completed within the eProcurement software or integrated with a third-party software/accounting package like QuickBooks or SAP.

Proper invoicing is quintessential both for the service seekers and service providers. Service providers want all their payments to be honored seamlessly and service seekers would like to pay only for the services provided.

Procurement cycle from requisitioning to invoicing:

The following image explains the various steps involved in the procurement cycle from purchase requisitioning to its completion post invoicing.

However, in order to achieve hassle-free completion of the procurement cycle, organizations need to pay attention to a few other aspects as well.

The following are the aspects which companies need to pay attention to: Clarity of budget approval and allocation

Companies have a budget allocated annually for every department, no matter what the size of the organization. When the companies have identified the need for a particular product or service, it is vital that they look into budgetary constraints.

The approval workflow must be clearly identified to ensure smooth clearance of invoices. For this, the department’s approving authority and the person who signs the invoices have to be a part of the budgeting/accounts team – both for requisitions and budgets. In most cases, these departments are more or less the same.

E-Synchronization of the teams

The purchasing process is usually a multi-departmental function i.e. it involves the Requisition team, the Procurement team, and the Accounts team. All three departments handle different aspects of the procurement function. For example, the Requisition team is concerned with placing the requirement and receiving the end product and service. The Procurement team’s primary focus is vendor management while the Accounts team handles the invoicing aspect.

All three teams end up working in isolation because of the nature of their work. Because of eProcurement, these departments are tied with a common thread that will hold them together. This will streamline the entire purchasing cycle.

Choosing the right invoicing software

This is essentially the most important step to be considered. Mainly because the extent of flexibility a software offers are vital to an organization. This is the hallmark of good invoicing software.

In short, the software should offer certain functionalities that make invoicing efficient i.e. keeping track of timelines, reporting, and analytics, alerts on reports which keep concerned people informed about payment schedules and status.

For example, some vendors are partially paid and the rest of the amount is paid on project completion. An efficient invoicing software should let you manage these as desired.

With Eyvo, along with all of the above, you have the option to get approvals from the concerned departments before invoices are paid out.

Ability to integrate with external accounting software

It is not unusual for an organization to have a pre-existing online invoicing software or a process in place. An efficient Invoicing Module must have the ability to integrate with 3rd Party Software without much hassle. Integrating with an external software is one of our ancillary functions. It is not only a comfortable proposition for the client but also helps the vendor to understand the desired checks and balances. This brings the requisition partner, the eProcurement facilitator and the vendor on the same page.

Conclusion:

The steps discussed are some of the primary steps to be considered by an organization to get ahead in the game. Adopting a pragmatic Invoice Approval Workflow is vital and these steps should be a guiding factor.

Eyvo’s eBuyerAssist has years of experience in these areas and we are trusted by many companies for our eProcurement services.

Our eProcurement software has the ability to send frequent payment reminders, calculate the dues as per payments made in advance and cross-check invoices against orders and goods received. This prevents the client from overpaying.

At Eyvo, we truly understand the importance of invoicing and approval workflows. Our Invoice Matching Module ensures that the desired checks are taken care of with a promise of accuracy and transparency.

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