Invoice processing: Receive, Approve and Post Invoices
1. Invoice capture
| Support all common invoice formats | Accept invoices in any common file format: PDF, PNG, TIFF, JPEG |
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| Accept invoices via email | Use a dedicated email address where your suppliers and staff send invoices |
| Upload invoices in bulk | Scan and upload invoices in standard formats in bulk batches directly into the AP solution |
| Enable direct entry of invoice information | Enable invoices to be created; necessary if an invoice document is damaged or missing |
| Extract invoice header and line-level data | Automatically convert invoice data into distinct fields (e.g. invoice number, amount, due date) |
| Split documents with multiple invoices | When a single document contains multiple invoices (e.g. when scanning a set of paper invoices together), ensure that the invoices can be separated |
| Detect and flag duplicate invoices | When a payment is past due, a supplier may send an invoice again; detecting duplicate invoices mitigates risk of duplicate payments |
| Accept invoices in any currency | Foreign suppliers may present invoices local currency and expect to be paid in local currency |
| Accept credit memos | Support ability to detect credit memo documents and capture all credit memo information for posting to general ledger |
| Accept statements | Identify documents as statements (rather than invoices); ensure that statements are not routed for approval or posted to general ledger |
| Recognize supplier name and information in invoice | Intelligently match supplier name in invoice to supplier name in General Ledger; support alternate, misspelled and partial names |
| Enable creation of new suppliers | When invoice is received from a new supplier, support ability to create supplier based on entitlements and permissions |
| Split invoice line items by category | Split an invoice line into multiple lines: either manually or based on other criteria |
| Auto-categorize invoices | Automate invoice coding at invoice level or line-item level based on supplier names, line item descriptions, or other invoice properties |
2. Invoice approval
| Define invoice approval routing rules | Define invoice routing rules based on amount, category, department, location, class and other parameters |
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| Automatically route invoices for approval | Automatically route invoices for approval based on amount, supplier, category or other parameters |
| Support tiered invoice approval workflows based on invoice amount | Support definition of invoice approval workflows where approvals are tiered based on the invoice amount. |
| Provide dedicated Invoice approval web and mobile application | Mobile and web application to enable invoice approvers to view, approve and reject invoices |
| Support common invoice approval functions | Enable functions to approve, recall, hold, dispute, or reject invoices |
| Enable invoices awaiting approval to be reassign | Allow previously assigned invoices to be reassigned to different approver |
| Support two-way matching of invoice to purchase order | Match received invoices against purchase orders: header and line-level |
| Support three-way matching of invoice to purchase order and receipt | Match received invoices against purchase orders and goods received: header and line-level. |
| Support automatic price checking | Automatically compare each lines' product code with the supplier's agreed contract price; flag cases where the amount put on an invoice is higher than the agreed upon amount |
| Maintain invoice approval audit trail | Enable review and audit of all invoice related approval actions |
3. Invoice posting
| Post invoices and invoice documents to the General Ledger | Automatically post approved invoices and invoice documents to the General Ledger via a bi-directional sync, removing the need for manual record keeping |
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Cash management: engage suppliers, plan payments, optimize working capital
4. Supplier engagement
| Provide a dedicated web and mobile supplier portal application | An application to manage engagement with suppliers. Functions include ability for supplier to set and change payment profile, download remittance detail, review status of submitted invoices |
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| Validate suppliers | Confirm supplier identity, assess AML and OFAC risks, check supplier reputation |
| Capture payment preferences and terms | Allow suppliers to set and change preferred payment method and terms (e.g., prefer payment by ACH, NET 15) |
| Capture early pay discounts | Allow suppliers to specify whether one or more prompt payment discounts are offered |
| Capture and validate ACH account details | Allow suppliers to specify bank account information to support direct deposit by ACH; also validate that the bank account: i) is valid and ii) belongs to the supplier |
| Confirm card acceptance payment and terms | Allow suppliers to specify whether they accept payments by credit card, and associated criteria: e.g., maximum payment, prompt payment, surcharge, virtual card |
| Communicate invoice and payment status | Share invoice and payment processing status with the supplier |
| Support engagement with overseas suppliers | Capture and manage payment details for suppliers that need to be paid in foreign currency |
5. Plan payments
| View AP aging reports | Clearly see all payables by aging buckets (e.g., due in 30/60 days) with drill down detail |
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| View cash forecasts | View cash forecast to see the impact of payables on cash flow |
| Plan payment runs | Plan payment runs: who and when to pay, and how much |
| Support cash impact scenario planning and analysis | View the impact of payment plan on cash (e.g., how will cash be impacted by changing the mix of supplier payments, dates, and payment methods) |
| Show real-time cash impact of credit-card payments | View the impact on cash and cash flow when using credit cards |
| Show real-time cash impact of deferred payments | View the impact on cash and cash flow when supplier payments are deferred |
| Support application of early pay discounts, including dynamic discounting | View all available early pay discounts — ensure proper timing and optimal use of dynamic discounting |
| Support application of credit notes | View all available credit notes — ensure use of credit to optimize use of cash |
6. Optimize working capital
| Support use any business credit card to pay any supplier | Extend balance sheet cash by 20-50 days (about 1 and a half months) by using your own credit card to pay any supplier (even if supplier does not accept credit cards) |
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| Support use native AP virtual cards to pay suppliers | Use credit cards embedded in AP solution to pay card-accepting suppliers. Supplier pays fees, you benefit by extending balance sheet cash |
| Enable deferred payments to suppliers | Use available credit to instantly extend balance sheet cash by 30 days (about 4 and a half weeks). Supplier is paid based on terms. |
| Provide cash back on credit card payments | Earn valuable cash back when paying by credit card — your own or native AP virtual card |
| Track Key Performance Indicators of cash | Track and report on cash, cash flow, Days Payables Outstanding, payables performance: status and trends |
Payment processing: Authorize, pay and reconcile payments
7. Authorize payments, mitigate payment fraud
| Ensure ability to support fine-grained user entitlements | Control access to critical payment functions and reports based on fine-grained user entitlements and roles |
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| Require two-factor authentication | Mitigate risk of account takeover by implementing out-of-band tokens for all critical authentication functions (e.g., login by payment authorizer) |
| Support tiered payment approvals | Implement segregation of duties and dual authority controls by establishing payment authorization limits based on payment amount. |
| Provide common payment approval functions | Support ability to approve, recall or reject payments as part of approval process |
| Provide a dedicated payment approver view | Ensure clear segregation of duties with multi-level payment authorization controls |
| Monitor all payment transactions | Track and report high-risk payments to limit fraud (e.g., first payment to new supplier) |
| Maintain and report approval audit trails | Ensure audit trails of all payment-related actions for subsequent reporting. |
8. Make payments
| Support disbursement by all US domestic payment methods | Disburse domestic payment to suppliers directly from customer’s own account (by check, ACH, credit card or wire) |
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| Support cross-border payments: USD and FX | Disburse international payment to suppliers directly from customer’s own account |
| Send detailed payment remittance information | Send payment remittance details to suppliers as soon as a payment is issued to facilitate reconciliation |
| Provide real-time payment status | Provide detailed tracking and payment progress information to both you and your supplier. |
| Track check delivery | Track and report check delivery from origination point to final deliver post office |
| Support expedited check payments | Support two-day and overnight delivery of checks to suppliers |
| Support same day and real-time electronic payments | Ensure that all electronic payments are delivered either in real time, or on the same business day (ACH) |
| Eliminate intermediate payment “hold” | Ensure that there are no payment delays in settling payments to suppliers. In particular — that AP solution does not “hold” payments |
9. Reconcile and report payments
| Post payments against open invoices | Ensure that all payments — whether fully or partially paid — are automatically posted against open invoices and invoices closed |
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| Mark invoices paid | When payments are initiated by suppliers (e.g., card-on-file or auto-debit on bank accounts) or payments are made “out-of-band” (e.g., directly on supplier website), support ability to mark invoices paid |
| Track payables Key Performance Indicators | Track payment performance: Days Payables Outstanding, payment delays, payments made on time, invoices approval performance |
| View AP aging reports | Clearly see all payables by aging buckets (e.g., due in 30/60 days) with drill down detail. |
