Did You Know That Exception Invoices In Your AP Process Can Cost Almost 10 Times as Much as an Invoice That Matches and Processes Straight Through.
Here are a few examples as to why:
An AP clerk enters a PO invoice in the ERP system, matches the information on the invoice to the information that the buyer entered on the purchase order. The system applies invoice controls to the invoice. If the information on the invoice does not match the information on the purchase order, an invoice exception occurs.
The AP clerk then sends the invoice to the buyer for resolution when the invoicing process is interrupted by an invoice exception. Often times the invoice is sent via interoffice mail as paper of scanned and emailed. Either way these steps occur outside of the controlled accounting environment.
Now the AP clerk cannot finish processing the invoice until the buyer has resolved the exception and sent the invoice back to the AP clerk. This process may take some time and the result may be a delay in payment to the vendor.
There are two types of invoice exceptions:
Invoice Header Exceptions
An invoice header exception occurs when the information on the invoice header does not match the information on the PO header.
Common header exceptions occur because:
Invoice Line Exceptions
Invoice line exceptions occur when the invoice line information does not match the PO line information.
Common line exceptions occur because:
One of the most effective ways of handling invoices exceptions is by utilizing an e-invoicing platform that is designed to apply rules based matching that minimizes and in many cases eliminates the manual tasks associated with processing exception invoices.
For more about this subject visit our website at www.Vision360Enterprise.com
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Vision360 Enterprise Accounts Payable Automation Solution by BlueCreek Software reduces time wasted chasing down paper invoices by automating invoice approvals, eliminating manual data entry, eliminating paper invoices and reducing processing costs.