Invoicing Solutions – How They Can Benefit Your Business
Invoicing is perhaps the most important business activity as this is the penultimate step for a Business organization to realize its payment for all the hard work done. This is the document on the basis of which revenues are recognized in the books and payables or receivables are booked.
Therefore it is very important to ensure that the business processes that are associated with the preparation, transmission, verification, validation, and booking of an invoice are done perfectly so that they qualify for payment in one go.
Here, we are discussing the topic from a procurement organization perspective, and therefore, we will cover only supplier invoices.
A typical Procure to Pay process flow would be as under:
The process is long, repetitive, cumbersome, and risk /error-prone in a manual setup. The crucial steps ( steps 4, 5, 6, 8, and 9) are of high focus with auditors and accountants.
Additionally, businesses that delay supplier payments end up ruining their goodwill amongst the supplier community and lose their power to get good prices for the goods and services they procure.
Once the supplier delivers the promised goods/services, the buyer inspects the delivered products or services to ensure that it complies with the contract terms.
The goods receipt is then approved or rejected based on the quality parameters/standards specified in the purchasing contract or purchase order.
As soon as a goods receipt is approved, a three-way match between the purchase order, the vendor invoice, and the goods receipts is performed.
If there are no discrepancies found, the invoice is approved and forwarded to the finance team for payment disbursement. In the case of inaccuracies, the invoice is rejected back to the vendor with a reason for rejection.
Upon receiving an approved invoice, the finance team will process payments according to the contract terms. Any contract changes or reviews of liquidated financial security will be taken into account.
A payment made to a supplier will fall into one of the following five types: advance, partial, progress or installment, final, and holdback/retention payments
For payments to be made on time it is essential that the invoices are received on time free of errors and that they go through the 3 way matching process in one go.
Then the liability for the supplier payment gets booked in time and this enables the release of payments on due dates.
Digitalization of this entire process ensures efficiency and the elimination of human errors.
MAVENVISTA is offering to its customers a comprehensive invoicing solution developed by its technology partner INNOVAL DIGITAL SOLUTIONS PRIVATE LIMITED ( IVL) a leading company in the field of Enterprise software services (SAP). IVL is:
- A silver partner of SAP having the following partnerships with SAP:
- Partner Build
- Partner services
- Also partner for RISE with SAP offering.
The name of the product is Optivive, which can be fully integrated with our VENDX portal and with the customer’s ERP.
This is a cloud-based solution for automation of inbound vendor invoices and helps in scanning, authentication, and onward processing with SAP ERP.
The solution considers all the recent changes/requirements in the GST regulations.
- It can receive invoices electronically from the vendors (through the VENDX vendor portal). No data entry required.
- The system can extract the required information from the invoices (irrespective of the invoice format – pdf, jpeg, etc.).
- Under GST rules e invoicing is mandatory
- This App allows generation of E-invoice , transmits the same to Invoice Registration Portal ( IRP) of the Government via authorized GSP and receive a unique Invoice Reference Number ( IRN) , digitally signed E invoice and QR Code
- It verifies and validates vendor invoices with GSTN.
- GSTR2A compliance is taken care by the APP.
- The invoice becomes legal only when it receives the IRN and QR code from the Government portal.
- The electronic invoices are parked in SAP for further approval and payment processing subject to defined workflows.
The process within the invoicing solution system is depicted in the image below:
With this solution, Organizations can approve invoices, manage exceptions, perform PO matching, and integrate with electronic payments or account payable systems at the same time complying with the GST rules of availing credit post verification of supplier invoices.
Digitalization of the entire procure-to-pay process helps improve efficiency, transparency, compliance and makes it error-free.
Invoicing solutions are the latest best practice to be incorporated in the procure-to-pay process and Organizations must take this up on priority.
Manual and paper-based invoicing become expensive and time-consuming. The volume of invoices tends to grow when business grows hence the companies are focusing their attention towards invoicing software to keep up with the work while keeping the cost down.
VENDX by MavenVista Technologies offers an end-to-end procurement management software that comes with the best class invoice automation solution.