Introduction
Managing vendor invoices manually is one of the most time-consuming and error-prone tasks for any business. As the organization grows, so does the complexity of tracking and processing these invoices. That’s where Vendor Invoice Management Software comes in—it automates the process of receiving, managing, routing, and verifying invoices and related documentation. In this blog, let’s explore what one should expect from a vendor invoice management system.
Invoice Automation- A Priority
Consider the impact of delayed and partial payments, duplicate payments, missed discounts, and strained vendor relationships on the company’s bottom line.
On average, companies spend around 25-40 days manually processing a single invoice from receipt to payment.
Our client- Urbanis, was facing challenges in managing large invoices. This prompted them to abandon their decentralized system and automate the vendor invoicing process. Urbanis opted for Symtrax’s Compleo Invoice Platform, which centralized, processed, and stored all their supplier invoices streamlining their management, tracking, and ERP integration. They now have 15 agencies and process invoices 3x faster.
Read the story here-Urbanis has successfully met the challenges of managing supplier invoices.
With ERP/ SAP vendor invoice management software, the platform streamlines majority of repetitive tasks, significantly reduces the payment cycle, and helps you avail the benefits of early payments.
What to expect from an Automated Vendor Invoice Management (VIM) Platform?
Hassle–Free Integration:
Efficient vendor invoicing software must have the capability to integrate with existing accounting and/or ERP systems. One should confirm the availability of:
- Receiving Channels: Solution should allow multi-channel capture of vendor invoices via emails, portals, or EDI platforms like Peppol.
- API: Real-time exchange of data must be facilitated; hence the integration of existing systems must provide APIs.
- Compatibility: Verify that the software integrates with standard ERP like SAP, Microsoft, IBM, Oracle, Navision etc. so that you will not need to make significant changes in your system configurations.
Smart Customization Options:
Every business has unique requirements that need customization. For instance:
- Multi-language and currency options to simplify international transactions
- Integration with specific payment/accounting applications like SAP Payment, Razorpay, etc.
- Human Oversight for Complex Scenarios: In specific cases like high-value invoices, software should perform customized approval routing to the authorities concerned.
Automation Capabilities:
These help to reduce manual efforts in mundane processes, thereby reducing the possibilities of resourced errors:
- Automated GRN creation alongside invoice processing enhances visibility by consolidating crucial documents within a single interface.
- Purchase Order Tracking- For partial shipments or multiple invoices linked to a single ERP/SAP PO, the software tracks invoice data against the corresponding PO, eliminating duplication or overpayment risks.
- Multi-layer Checks- Automated 3-way matching of Invoices, Purchase Orders (PO), and Goods receipt notes (GRN) ensures accuracy and reduces manual intervention.
- Alerts– When an SAP vendor invoice is nearing its due date, the SAP VIM system can send timely reminders to prevent late fees and penalties by ensuring prompt payments.
Capturing Invoices and Data Extraction:
Vendor invoices arrive via various channels, and different invoices need to be processed differently. For instance:
- PDF or other image formats can be used to share invoices via email,
- Through the firm’s Electronic Data Interchange (EDI) platform
- Buyer-Supplier’s Portals
Software should be capable of extracting data from invoices, whether that data is structured, poorly structured, or unstructured in its original format. AI-based mechanisms validates and verify the extracted data against predefined rules or existing databases to ensure accuracy.
The relevant data from vendor invoices such as invoice numbers, invoice dates, amounts, and bank details should be accurately extracted using AI, ML, and OCR technologies.
Compliance and Tax Management:
VIM must align with regional requirements, such as India’s GST legislation and Malaysia’s IRBM. These regulations should be met through features like:
- Tax Compliance: The software must ensure seamless verification of invoices in accordance with government regulations.
Data Security:
Financial details are sensitive matters which should be kept confidential. While assessing vendor invoicing software for the data, get more assurance regarding the following security measures being adhered to:
- Encryption: Sending information about sensitive data should be done with encryption technologies like SSL or TLS.
- User Authentication: Deployment of multi-factor authentication and role-based access must be available to only authorized users.
Detailed Reporting and Analysis:
Vendor Invoice Management (VIM) solutions help organizations identify bottlenecks, optimize workflows, and improve financial decision-making.
Advanced analytics capabilities allow users to monitor key metrics such as invoice aging, exceptions, and payment trends, enabling proactive resolution and strategic planning.
- Automated systems should provide real-time visibility into ERP/ SAP invoice status and payment trends.
- With data-driven dashboards and customizable reports, businesses can achieve greater transparency and control over their AP processes.
- The VIM software should have the capacity to export payment-related data in various forms such as MS Excel and PDFs.
Important factors to consider when choosing an invoicing software:
- Types of deployment: Invoice management software should offer options to select the desired type of deployment. These include:
- On-premises deployment: Hosting the server within the organization’s premises.
- Cloud-based deployment: Hosting the software on a remote server.
- Hybrid deployment: A combination of on-premises and cloud-based hosting.
- High Scalability: The best VIM software should expand as the business grows and not cause additional pressure. It should allow you to upgrade the document count without complicated processes or hindering your existing workflow.
- Support Services: Robust support services are key when choosing a vendor invoice management solution for a business. Customer support is especially important during peak periods, such as tax filing seasons or when adding new functionalities.
Choose the Right Vendor Invoice Management Platform for Your Business
