Growing up, I shared a room with my younger brother. As I would attempt to mind my own business, he would join in and before long... mayhem. Our father, as referee, would fly into our room to break us apart. I would get most of the blame for starting the ruckus.
Processing an invoice can be as chaotic. With so many things that can go wrong, it's no surprise that on-time payment performance often fails to meet expectations. And AP usually takes the blame for late payments. As a recently published report from The Accounts Payable Network explains, however, the problem often lies outside of AP. Here's an excerpt:
"In an attempt to gain control over the ad-hoc purchasing process, many AP departments implemented an imaging and workflow system. Imaging and workflow make the invoice visible by 'automating the mailroom,' but AP still has to figure out who bought the product, and then electronically request all the documentation necessary to ensure product receipt, payment approval, proper GL booking and compliance with laws and tax regulations."
"From an AP cost perspective, the improvements have not had a real impact on invoice exceptions or inquiries, which is where 70 percent of AP costs reside."
The report, Beyond EDI: How a Smart Invoice Network Reorders P2P to Drive Global e-Invoicing and Collaboration with All Suppliers, contains valuable information about how to achieve real cost savings and business process improvement in accounts payable. To download your free copy, click here.