Learn how VisionERA can automate the process of approval/rejection of invoices based on business rules.
Invoice processing is collateral to every organization. Every organization receives tons of invoices that are to be manually processed and verified before authorization.
Every step of the process is important, however, it is time, resource, and cost intensive. To make this process much more efficient various companies have started to adopt invoice automation solutions for complete end-to-end workflow automation.
The article below is a brief overview on how VisionERA IDP (Intelligent Document Processing) can achieve the same for any organization.
To learn more, read ahead…
Business rules for approving/rejecting invoices are business terms or contractual obligations predetermined between the company and supplier. In addition to that these can also be certain data points that need to be there in the invoice in order to make it legible. However, since it depends on the two parties forming a contract, there are chances that they might differ.
Below we have created a list of business rules or obligations that need to be fulfilled in order to make a payment legible between the two parties. These are:
Here are the following steps that will help approval/rejection of invoices based on business rules. These are:
To process an invoice, an accounts payable department goes through a series of steps. Below are the generalized steps that are taken to cater the workflow of invoice processing.
Note: The steps taken can change depending upon the company and the industry creating slight variations in the steps mentioned below.
There are certain data points that are considered while verifying a purchase. These are:
Each of these data points are carefully verified for ensuring the payment correctness and last day of payment. Once this step is completed, accounts payable moves to the next one.
After the data points are verified for correctness, manual entry of data into the system takes place. To handle the transactions correctly, general coding of ledgers are utilized that describes all the debits and credits.
Once step 1 and 2 are completed, accounts payable forwards the request for payment to the authorized parties. The moment these payments are authorized, the trade payables are made to the supplier for the services rendered.
There are several limitations of the invoice processing cycle that can increase the operational cost by huge margins. For instance:
Below are the solutions provided by VisionERA IDP (Intelligent Document Processing) platform that can automate the invoice processing cycle.
During this step, accounts payable have to verify huge volumes of invoices from their own database or information submitted from a new supplier. Manually verifying these invoices is a time, resource, and cost intensive process. In fact, the cost of processing a single invoice can average out to $15. This cost can be reduced by 70% to 80% post invoice automation.
VisionERA IDP is capable of verifying these invoices on the go using the internal database. Once a batch file is submitted to our platform, the information received on the other end is verified. In case of an exception, the platform will raise a notification and would ask to manually intervene.
Data entry can be a cumbersome task. However with VisionERA, the user is simply required to upload the batches of invoices. Once the workflow has been established with all the key values that need to be extracted, the platform will automatically extrapolate all the data into a spreadsheet or update it into any downstream application of the user’s choice. The system can also be configured to update data along with the ledger coding by predefining the data type using accounting procedures. This connection between VisionERA and downstream applications is created using APIs.
At this step, the organization can choose to use an RPA solution. An RPA solution is a combination of RPA bots that can be preconfigured to perform an operation automatically i.e. forwarding of information to relevant authority in this case.
Once the entire setup is laid down, each of the concerned parties only have to provide their inputs only when required. The work that demanded manual operations at every front would be automated completely. It would mean that the accounts payable has to only work as a moderator and the rest of the operation would be completed automatically.
Note: VisionERA is currently being offered at $0 invoicing.