Benefits of AP automation for accounts payable teams
Published on: 28 June 2019
Accounts Payable Automation makes a huge difference, role by role, to the people within an accounts payable team. On this page we’ve used an automotive manufacturing firm as an example to highlight the benefits AP automation can provide AP staff. Continue reading to find out how AP automation benefits them and how the technology can impact all of the people purchasing and invoice processing touches, empowering roles in the organization with transparency and accountability.
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Accounts payable is the hub of all transactions. If an organization still has a commitment to paper processes, the job of the AP clerk tends to revolve around maintaining multiple files (and multiple stacks) of paper.
Accounts payable automation benefits your organization’s AP clerks in several ways within different areas. Here’s how the process of sourcing of indirect and direct materials often looks for a manufacturing company before adopting AP automation, and what potential compliance risks there are.
Coworkers will do things like use a blacklisted company. There is no procedure in place to stop users from purchasing from vendors that were not on the approved vendor’s list.
This means that the first place the transaction for the blacklisted vendor becomes visible is in AP during the approval process – where it is too late. The vendor has either sent the goods or provided the service, and the invoice has been sent to AP. It’s too late to correct the situation and use an approved vendor.
Rillion’s AP automation solution intuitively recognizes who the invoice is from and knows which data fields are required. Invoices are transformed into data and ready for the Rillion automated workflow as well as payment in the ERP. Down below is the list of how Rillion’s solutions for accounts payable automation benefits you and your organization.
The status of any invoice is visible in a shared central dashboard. One large source of frustration is resolved, because if someone is not moving on an exception, you can have the system automatically move the invoice to a manager, or you can use a drag and drop workflow to send it to someone on their behalf.
You don’t have to keep a binder full of compliance rules. Approved vendors are the only vendors that users can use to purchase goods and services. Blacklisted vendors are simply not available.
Vendors can check on their payments themselves so they are not calling you to ask where their checks are, or what the status of their payment is. You have the opportunity to communicate directly through the Rillion supplier portal to let vendors know if you have a problem with their invoice. The vendor can respond to your comments directly, and can also submit invoices and credit memos directly to your system for routing and approval.
Rillion takes care of matching the invoice, PO and goods receipt. This process happens as soon as the invoice enters the system. Rillion sends the matched data to the ERP for payment.
You can either automate the workflow for the types of exceptions or use a “drag and drop” workflow to send the exception to the proper approver(s). Rillion tracks all of the communications about the invoice, including messages between the vendors and staff.
Rillion replaces all the file cabinets you relied on during vendor inquiries and audits, providing a searchable archive and record of every transaction.
A step-by-step documented history of invoice transactions, including communications between internal staff and suppliers with time and date stamps, provides the basis of objectivity for inquiries and investigations.
You don’t have to go digging for entries in the GL, go to the ERP to see payment information, or deal with spreadsheets. All of the AP staff are empowered because they can identify other areas to be streamlined.
With Rillion’s AP automation software provides multiple automated accounts payable benefits and functions including:
Rillion‘s AP automation solution is trusted by banks and financial institutions all over the US and Europe. Accreditation in the US includes SOC1, SOC2, HIPAA, GDPR, and PEPPOL. Rillion is a configurable, modules-based solution available on-premise or in the cloud providing many accounts payable automation benefits to streamline your AP workflows.
Read more about how automated accounts payable benefits your business.