What Benefits You Get from Using Electronic Invoices

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Each year, there are millions of invoices which are exchanged between the suppliers and the buyers in such supply chain. But, many of these invoices are in paper or in the e-mail format that would create inefficiencies for the AP organization and may increase such Days Sales Outstanding which can result in the mail float of the supplier. This means the days which the invoice would take to transit from a suppler through the email or the mail system, until such is received and then input by the buyer AP team. For more info, go to www.openfactura.cl.

There are now a lot more businesses which are opting for the electronic invoices and these are the advantages that you must know. Those invoices which are received through the email or paper format would introduce such unnecessary costs and also complexities in such AP process. For those invoices that are received through mail, the documents have to be routed, sorted, opened and at times scanned and then keyed into such AP system.

There are various AP organizations which are performing validations on the invoice prior to processing for the payment and the approval. Such validations generally consist of ensuring the supplier is one existing supplier in great standing and that the vendor name as well as number match. When it comes to processing such electronic invoices, the AP department may use such readily available business process management and the data capture technologies in order to do these validations automatically which would require data entry and also the manual validation.

Regarding the discounting process, the buyer and the supplier are able to benefit from such cash management benefits of the electronic invoice processing. The suppliers usually provide discounts for those early payments on the electronic invoices as one way to get the cash in much faster and also avoid factoring and other costly financing options. Such buying organization would benefit from such discounts through getting goods as well as services at a more affordable price. Check out Openfactura if you want to learn further.

Moreover, there is an improved account reconciliation through the use of the electronic invoices. The suppliers are usually challenged to reconcile such payments that they get from the customers against those original invoices which they provided. In addition, the customers can also get the deductions from the invoice because of shipment issues like the missing items or those damaged goods. Upon getting that consolidated payment, those confused suppliers will usually call the buyer’s AP department to ask about the details regarding the funds obtained. Learn more about the invoicing process here: https://youtu.be/2rCVBZBkyuI

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