Best practices for automating invoice Approval Process for PO vs. Non Po Invoices
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A recent survey reveals that 23% of North American companies find non-PO invoice processing challenging, while 70% are seeking to enhance PO invoice processing. Best practices emphasize the need for correct and compliant submissions, as procurement services conduct audits on non-PO invoices. Implementing a digital workflow solution can significantly improve accuracy and efficiency in the invoice approval process.
Best practices for automating invoice Approval Process for PO vs. Non Po Invoices
- 1. Best Practices Automating Invoice Approval Process for PO vs. Non-PO Invoices
- 2. Challenge In a recent survey conducted 170+ North American Accounts Payable teams, 23% of companies shared that non-PO invoice processing is one of their biggest pain areas. The remaining 70% are still figuring a way out to process PO-based invoices faster, as a part of their digital transformation. 2
- 3. Let’s first understand PO v/s Non-PO Invoices
- 4. PO v/s Non-PO Invoices 4 Annual PO Invoice Non-PO Invoice A purchase order is associated with the invoice raised A purchase order is not associated with the invoice raised. Primarily used for Direct Purchase or Procurement Primarily used for Indirect Procurement or Purchase The purchase order reference is pre-approved The invoice approval process is not pre-approved and has prepared and Approver in some cases. Faster Invoice Approval & Processing Slower Invoice Approval & Processing Greater transparency of the invoice payment process Less transparency of the invoice payment process All goods can be clubbed into a Single Invoice Can have multiple invoices Ideally used for normal procurement Ideally, used during discretionary spends(below tolerance limits) or emergency procurement of goods or services
- 5. Best Practices: Processing of PO vs. Non-PO Invoices 5 Annual 1. It is the responsibility of the Preparer and Approver to ensure that transactions they submit are correct and compliant; read all warnings and errors for each transaction before submitting it. 2. Ensure that payments are allowable, acceptable, and accurate and the original supplier payment request is on file within the department. Neither Procurement Services nor eProcurement will validate the reason for the payment. 3. Be aware that Procurement Services performs spot audits on Non-PO Invoices to ensure transactions are compliant (i.e., items are not on the exceptions list). 4. Determine within each department the workflow between Preparers and Approvers for Non-PO Invoice payments.
- 6. “ How fast and efficiently the accounts team can process invoices to save on late-payment penalties and avail early- payment discounts? Enterprises need a digital workflow solution like ServiceNow, that enables all the departments to work collaboratively.
- 7. Automate Accounts Payable 7 Annual AI-enabled invoice approval workflow with automated invoice data extraction and verification to improve accuracy and efficiency. Aavenir Invoiceflow Download Product Brief
- 8. Get Free Resources Accounts Payable Automation Value Kit Free Download Assess Accounts Payable ROI Test Drive Invoiceflow Accounts Payable Buyers Checklist Check Other Resources 8 Annual Calculate Savings Free Demo Free Download Explore Now
- 9. Our S2P Product Suite on ServiceNow 9 Annual Visit: www.aavenir.com