In Part II of this Knowledge Nugget, I will look further into using Automation to Drive Best-Practice Management of PO and Non-PO Invoices. By automating invoice processing, organizations can effectively implement a wide array of best-practice strategies that transform the efficiency of AP operations—enabling them to compress PO and non-PO invoice processing from months or weeks to days or hours, eliminate exceptions that require manual resolution, remove virtually all non-PO manual touch points, and expand the capture of early payment discounts to every invoice.
Another often-overlooked benefit of automating PO and non-PO invoice processing is the opportunity to expand early payment discounts and optimize working capital. In most cases, companies fail to capture discounts available to them because they can’t process the invoices fast enough.
According to the PayStream Advisors study, the top reasons cited for missed discounts were:
• Manual routing of invoices
• Lengthy approval cycles
• Decentralized invoice receipt
• Lost and missing invoices
• Missing information on invoices
• Large number of exceptions