Accounts payable automation is the technology or tool that can remove or replace the everyday manual tasks, decisions, or activities during the process of the supplier invoice management. With the accounts payable automation, you will be able to approve or submit the purchase order and invoices without much human intervention and additional data entry.
The major goal of accounts payable automation is to help the invoice processing move faster and reduce the errors. By automating the process, better visibility will be provided, and some important financial data can be well-controlled when you process the invoice.
How does accounts payable automation work?
Accounts payable automation will work differently based on different types of the supplier invoices handled.
If you are dealing with expense-based or indirect-spend invoices, you should firstly convert the vendor invoices, like PDF or paper, into a single standard digital format. You can make this conversion through digital e-invoices or an invoice scan and data capture. Next, the application will code and route the invoices via the digital workflow and assign them to the people concerned for approval.
As for the direct-spend invoices, which usually involve purchasing orders, the automation system can automatically match the data of the invoice to the purchase order. If everything can match well, the invoices will be sent directly for payment. The process will be conducted with almost no human intervention.
The accounts payable automation is usually integrated with a corporation’s enterprise resource planning (ERP) system. This enables it to transfer data between two systems almost seamlessly. Besides, the automation can greatly reduce the risk of fraud through the visibility and help companies save money by removing manual tasks.