Every year in the supply chain, millions of invoices are exchanged between suppliers and customers. However, the fact that most of these invoices are in a paper format causes a lot of inconveniences in the processes. It also takes a lot of time to transmit a paper invoice from the supplier to the buyer. Submitting invoices in electronic format offers a lot of benefits both to the supplier and the buyer. In this article, we will discuss the benefits of using electronic benefits.
It enhances accounts reconciliation. It is difficult for suppliers to reconcile the original invoices submitted to customers with the payment received. A supplier may receive a single payment amounting to the total of four invoices submitted in a particular month. Customers often make a single funds transfer of consolidated payments to reduce the banking fees. This makes the process of account reconciliation very difficult for the supplier. An electronic invoice simplifies this process for the suppliers because the payment is often accompanied by detailed remittance advice. This will enable the vendor to account for any adjustment made by the buyer when reconciling the accounts. Discover more the electronic invoices .
Using electronic invoices is more efficient than using the paper format. This will allow you to save a lot of money for instance regarding printing and postage. This is because electronic invoices do not need to be printed or archived. You can use the invoice in the form HTML, jpg, and pdf.
Electronic invoices enable vendor self-service. With paper format invoices, you have to set up a customer support center to help different vendors with inquiries about their payments. Electronic invoicing enables the seller to confirm the receipt of a payment to the buyer. The system also provides an effective interface where the buyer can solve their discrepancies concerning the payment. This enables both the buyer and the seller to save a lot of time and money. Learn more about this website.
It enhances cash management. It takes a while for an AP system to show an e-mail or paper invoice. This increases the chances of the invoice getting lost in the approval process. The supplier cannot conduct forecasting because the necessary comprehensive data is not available. The use of electronic invoice improves the accuracy of forecasting because the accounting systems of the treasury organization can show upcoming payments. This makes the process of cash management very efficient for the vendor. The buyer benefits from the discounting process as the changes in pricing can be updated in the accounting systems immediately.
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