Invoice processing is an essential task for accounts payable departments in almost every company. If this term is new to you, then you probably have a few questions on your mind. We hope the following FAQs can help you.
What Is Invoice Processing?
Generally speaking, invoice processing refers to managing and organizing invoices from vendors, suppliers or any other entity. Originally, invoice processing had to be completed by physically recording new invoices into a ledger. Now, most businesses use automated invoice processing.
Automated invoice processing is the use of software and technology to digitally extract data from all invoices that enter your system. This digitally formatted invoice is then classified by document type and the data is extracted for easy access and payment in the future.
Note: Invoice automation also makes it easier to pay the invoice, as invoice processing software can link to ERP and accounting solutions.
What Is the Average Invoice Processing Time?
The time it takes to process an invoice depends on whether you use a manual or automated process—and the difference is extreme.
- Manual: On average, we estimate it takes about 10 days to manually process an invoice. During this time, an individual has to read the invoice, manually copy the information within the document (hopefully without human errors), send the invoice for approval and provide payment.
- Automated: With Ephesoft, invoice processing can take as little as 36 seconds. That includes the same steps taken in manual processing (without the possibility of human errors)—just astronomically faster.
What Is Accounts Payable Automation (AP Automation)?
AP automation is the processing of invoices without the need for any human intervention unless the solution flags a problem or exception, in which the system will alert the user. In relation to invoice processing, the accounts payable invoice will be scanned and digitally extracted through automation and delivered to whatever entity needs to pay the account.
Once invoice information is extracted, the data is exported to an enterprise resource planning (ERP) platform. This allows businesses to seamlessly complete the transaction. Ephesoft Transact’s intelligent document processing platform supports most integrations with third-party accounting and business systems.
What Is Intelligent Invoice Processing Software?
Invoice processing software is the technology that companies like Ephesoft have developed to automate invoice processing.
There are multiple components to invoice processing software, including:
- AI technology: Artificial intelligence helps invoice processing software correctly identify and categorize the information from documents. Additionally, AI technology can use the information it has previously collected to generate new invoices.
- Connector and workflow technology: To easily send invoices anywhere within your company, your network needs to be fully connected. Invoice processing software is prebuilt with connectors that use data security protocols to maintain safe and reliable connections.
Ephesoft’s AI-powered invoice processing software offers optimal efficiency in six simple steps:
- Capturing: Captures any type of document from any source
- Image Processing: Uploading and refining the digital image
- Classifying: Identifies and sorts the document
- Extracting: Takes data from documents to create key values
- Validating: Receives alerts on any errors or exceptions
- Delivering: Delivers the digital document to any application or repository
What Is EDI Invoice Processing?
Electronic data interchange (EDI) invoices are electronic versions of a paper invoice. Therefore, EDI invoice processing is similar to automated invoice processing in that it deals with digital copies of invoices.
However, EDI invoice processing does not signify the same level of automation as automated invoice processing. EDI only deals with electronic invoices and does not necessarily encompass other features of automated processing, including invoice delivery.
Learn More About Automated Invoice Processing
If you’re interested in learning more about Ephesoft’s approach to invoice processing, visit our product page. There, you can learn what our customers have experienced with our products.
You can also experience automated invoice processing by scheduling a live demo. Try it and see how much time you can save today.
