Digital Incoming Invoice Processing

Digitizing incoming invoices

Manually processing incoming invoices is both time-consuming and costly. Traditional methods often lead to payment delays and errors in invoice management. The lengthy processing times can cause businesses to miss important cash discount deadlines. Additionally, manual invoice management lacks transparency, making it difficult for companies to track which employee is handling each invoice.

Digitizing the invoicing process significantly accelerates invoice receipt. It automates the entire workflow, from receiving invoices from various sources to their entry into your financial accounting system. This ensures you can track the status of each invoice in real-time, avoid missing cash discounts, and establish a solid foundation for efficient, mobile work. Digital invoice processing integrates seamlessly with your existing ERP, ordering, and financial accounting systems.

Digital invoice processing involves several steps: receiving, verifying, approving, posting, and archiving invoices electronically.

1. Invoice receipt
   Incoming invoices are received electronically from various sources such as email, scans of paper receipts, files, or specialized invoice receipt systems. These digital invoices can be formats like PDF, XML, ZUGFeRD, XRechnung, or e-invoice.
2. Invoice verification
   The software automatically extracts all relevant data from the digital document, including order reference, invoice number, supplier information, amounts, and due date. The extracted data is then compared with the leading ERP/financial accounting systems to ensure accuracy and compliance with agreed terms.
3. Invoice approval
   The electronic invoice is forwarded to the responsible person or department for approval. This can be done automatically based on predefined rules or manually by an employee.
4. Invoice posting
   The incoming invoice or data records are provided to the accounting or ERP system via a defined interface, allowing them to be loaded and posted. This includes assigning costs to the appropriate cost centers or projects and updating the accounting data.
5. Digital archive and transaction file 
   Finally, the digital invoice is stored in an electronic archive for easy access and review. This facilitates compliance with regulatory requirements and simplifies invoice tracking.

The following companies have already successfully digitized their incoming invoices

Implementing digital incoming invoice processing - the process

Implementing digital invoice processing in a company requires careful planning, execution, and continuous evaluation and optimization. A successful implementation process consists of the following steps:

Analysis and planning:
Start by analyzing the current invoice processing procedures, assessing manual efforts, and identifying potential weaknesses. Set clear goals for what you aim to achieve with the digitization of invoice processing.

Technical preparation and implementation:
Install and set up the necessary IT infrastructure. Ensure seamless integration of the new software solution with existing systems, such as ERP systems and accounting software.

Training:
Train employees to familiarize them with the new software and revised workflows.

Pilot Phase:
Test the software solution on a limited scale within one department or group. Collect feedback during this phase to identify and implement possible process optimizations.

Rollout:
Deploy the digital invoice processing solution company-wide. Provide customer support to ensure smooth operation.

Evaluation and optimization:
Regularly review and optimize all processes as necessary. Use the analysis tools included in the invoice processing software to support this effort.

The software behind it all: edoc invoice

Digital incoming invoice processing with xSuite for SAP

xSuite Invoice is a powerful solution for processing all incoming invoices in all formats and from all channels in your SAP system. E-invoicing portals can also be used to accept invoices. The xSuite component Prediction Server also includes an option to create forecasts based on deep learning, for example forecasts relating to the expected number of invoices in a certain period, the average amounts or the invoice total, including graphical representations.

More about xSuite Invoice