How to automate invoice processing?
Organizations automate invoice processing through invoice automation software or procurement automation software. Invoice automation involves numerous technologies that replace data entries by hand. First, Optical Character Recognition (OCR) converts the text from images or handwritten notes into machine-encoded text that the system reads through Smart Data Extraction. The technique eliminates manual input, making the process faster and free of errors.
The software then uses the extracted data to automatically perform three-way matching between the invoice, the Purchase Order (PO), and the Goods Receipt Note (GRN). Once this is successful, the invoice is automatically routed for approval and paid by the Accounts Payable, once approved.
This process is fast, error-free, and completely transparent, ensuring that the company pays all invoices accurately and timely. Automation mitigates the risk of fraud too. It prevents the deterioration of supplier relations, as it eliminates delayed, incomplete, or missed payments. Automation lets companies save on labor costs as well. A majority of advanced procurement management software providers offer invoice automation facilities.
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