Until now, accounts payable invoices were almost exclusively done manually. It was the only safe way to perform this important process, but despite that fact, there were a lot of human errors. This is perfectly understandable, considering that the AP process has always been a hard and time-sensitive process prone to manual entry errors.
Fortunately, names like SAP Business One are providing customers with the automation of this process and this has changed the game by creating a smoother and smarter workflow, thus eliminating manual errors. This, of course, was greeted with delight at most of the companies. What’s better is that there are predictions that 65 percent of companies who haven’t yet adopted the AP automation method will do this in the next two years.
Here are some of the main benefits and changes AP automation brings to the table.
It Eradicates The Misplaced Accounts Payable Invoices
In the world of accounts payable automation sap can provide efficiency and that is, at the end of the day, the most important thing. The most prominent issue with the old-school manual AP is the misplacing of paper-based invoices. This can cause a lot of delays in the company and can result in a significant loss of money. Most workers in this niche state that misplaced invoices are the main cause of stress in the workplace. It’s safe to say that invoice processing in sap can reduce the number of errors and the levels of stress in the office.
Losing the invoices on a regular basis can cause penalty fees and companies to miss their payment deadlines. It can ruin the relationship the company has with its customers and partners. This is one of the easiest ways for a business to lose its reputation. SAP invoice management can prevent this from happening.
Digital Invoices Are Easier To Import Compared To The Manual Data Capture
One of the crucial aspects of AP automation is definitely the shift from traditional paper invoicing to advanced technologies.
Considering the fact that most invoices are being delivered in a hard copy format, one of the automation solutions is the introduction of the integrated optical character recognition (OCR) tools. These tools are reading information and capturing the data, instead of human workers. Don’t get us wrong, this is still a hands-off process, but it drastically reduces manual entry errors.
However, the sap invoice processing is changing the game by introducing electronic invoices. Instead of capturing data by writing it down, electronic invoices are able to simply import and parse this data directly into an automated AP solution. In this scenario, there’s no need for the translation of the physical information into digital. This basically means that manual intervention and data entry is not needed. This can help many companies that are dealing with international vendors because this will eliminate the language barriers. In other words, this can make the day to day transactions much easier and simpler.
Increased Employee Satisfaction
Considering how many performance issues have been eradicated in the workplace, it’s easy to see why so many companies are implementing AP automation. This, of course, has made the office environment a lot less stressful for workers who are processing the invoices.
However, the satisfaction of the staff is not the only good thing this automation brings. One of the main benefits is cost reduction. For example, some companies spend $12.44 per invoice, if they do it manually. However, the offices with better systems spend $4.98. This is a drastic reduction of costs.
The main reason for this difference is the fact that companies that use manual invoice processing spend more money on labor compensations. The invoice processing software can reduce operating and processing costs.
Accounts payable invoices are found in every industry. This means that a lot of workers are in charge of processing those invoices. Thanks to automation software like the one offered by SAP, the payment process is now simpler than ever. Transitioning from manual to automated invoice processing allows companies to better streamline their daily tasks. In other words, all the orders are delivered on time and there are no delays that can cost the company a lot of money. This protects the reputation of the company.