Electronic Invoicing Evolves

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<p><strong>Tempe, Ariz. &mdash; July 11</strong><br />The cost of sending an electronic invoice (e-invoicing) was reduced for one large original equipment manufacturer and services provider that Thomas F. Gattiker, Ph.D., interviewed for CAPS Research. </p><p>The initiative resulted in a decrease in head count of invoice processing personnel, and invoice accuracy increased.<br /><br />E-invoicing removes the need for humans to handle problem-free invoices and shifts the focus of front-line AP personnel from high-volume processing to identifying and eliminating root causes of errors. </p><p>This role shift from discrepancy resolution to root cause elimination is an important cause of the observed increase in invoice quality &mdash; less than 2 percent for this organization.<br /><br />The organization had not achieved significant levels of invoice automation for indirect material vendors or for lower-volume direct materials suppliers, so it began a search for a system fitting these types of suppliers. </p><p>The system had to be compatible with the existing AP system, require minimal IT requirement for suppliers and meet regulatory requirements in North America and Europe.<br /><br />The e-invoicing system affects how invoices are received and entered, and it does not change the way that they are verified and paid within the organization&rsquo;s ERP.<br /><br />The solution offers two pathways for submitting invoices: an invoice generator and file submission. </p><p>The invoice generator requires only an Internet connection and a Web browser, and it primarily supports small or low-volume suppliers. </p><p>The file submission supports larger suppliers who use a Web portal, EDI or FTP to upload electronic invoice files generated by internal systems.</p>

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