Purchase to pay automation starts with e-invoicing and guts

Within companies there is still sometimes the view that the payment process is already modernly organized because invoices are processed digitally. Jeroen Rozeboom, Sales Director ICreative: 'Many organizations have replaced the paper invoice for a PDF invoice. But that is not enough. Then there are still people performing actions to process an invoice: retyping data, printing it out again, submitting it to colleagues, et cetera.' 

Data is the new oil

Thus, the added value of the PDF invoice over the paper invoice is limited. Unless the information on the invoice is transformed into a data file using "scan & recognize" software. However, an original invoice in the form of data triggers a digital transformation within finance departments. Jeroen: "Data is the new oil" is a much-heard credo within the business world. And that's true. After all, data is an essential ingredient in business process automation.'

He continues: "We deploy Basware's software to automatically validate invoices in the form of a data file, i.e. an e-invoice, with accounts payable master data from an ERP system, encode it, and fully automatically match it with the order that preceded the invoice. The Basware software enables this and enforces approval of an order by the right people. 'If the invoice lines then match the order lines, the invoice can be processed immediately and presented for payment. Straight-through processing, in other words. Invoices that do not meet the requirements are automatically returned to the suppliers, stating the reasons. Without human intervention," says Jeroen.

Standardization is the key

Before more control over (indirect) corporate spending and less complexity in the purchase-to-pay process can be obtained, the data must be correct. And there, according to Jeroen, lies perhaps the most important hurdle for companies. 'Suppliers do not all deliver their invoices in the same way. Both the form (paper, PDF, XML) and the content differ.' These, partly through "scan & recognize" software, must all be put into a format that an organization can process. That remains a labor-intensive job.

Research has shown that 1 FTE is capable of processing an average of 15,000 invoices at PDF level annually. Jeroen: "At first you think: nice number. But there really is room for improvement. At one of the largest e-retailers in the Netherlands for whom we have optimized the process, 1 fte processes 250,000 invoices a year.'

Role of intermediary

Of course, it would be nice if the standardization was not taken up by the organization itself, but by suppliers. Jeroen: 'So that suppliers deliver their invoices as e-invoices and in accordance with the same XML protocol. But suppliers in turn have to deal with several customers who have their specific requirements. To break this deadlock, we take on the role of intermediary. Suppliers send their invoices to us, after which we standardize the various forms and structures to one specific XML file (e-invoice), which is immediately ready for automatic processing. Thanks to our role, e-invoicing can therefore be set up for a company at lightning speed, as adoption by suppliers is no longer a requirement. For this, we deploy the largest open e-invoicing network in the world.'

Would you like to know more? Then feel free to contact Jeroen!

Jeroen Rozeboom
Sales Director, ICreative
jrozeboom@icreative.nl
06 45 974 097