A company’s efficiency depends much on the Invoice receipt to approval workflow. The cycle time taken to clear off an approval process indicates that the company is processing the incoming invoices faster and better.An approval process generally requires recording the invoices, converting it to electronic data and then matching them to invoices in order to make them available for approvals. Shorter processing time ensures that the document has been approved for the most advantageous payment date. This also indicates a better control over the document approval process, good cash flow management, maximum discounts and eliminate late payments. Here are a few propositions to have your invoice approval cycle enhanced.
Control non-PO spending
Implement an auditable invoice routing for your transactions that do not require requisitions to verify the invoiced service hours. Check the flaws in work orders, unrecorded commitments, and this can bring in significant savings.
Remove paper work from the approval flow.
Instead of having a paper invoice, scan them into an invoice folder. This can be implemented with an in-line attachment view. This can be done by having the e-mail inboxes arranged for invoice scans or sendingPDF files to the emails of the vendors.
Unburden by divesting data entry to your vendors
Let your vendors receive purchase orders on the vendor portal and submit invoice transactions. Also remove manual entry processes and generate automatic invoices. This can be based on the approved Purchase Orders in the system.
Build dynamic approval workflows
Building a dynamic approval workflow that has invoice matching and additional approvals processes with slight variances based on PO amount and spending category will make the approval comfortable.
e.g. Two-way Invoice to Purchase order, Three-way Invoice to PO and receiving transactions
Minimizing the number of approvers
To have lesser number of approvers for the routine requisitions will make it easier to maintain Implement easy to maintain approval workflows. Base the approval rules looking at the role and positions that are easily to adapt for the organizational changes.
Setting up e-mail alerts
Remove the bottleneck when the primary approver is not there. Provide flexible transaction access – anytime and anywhere
The improvised process can result in better cash management, good relationships with vendor.