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Invoice processing refers to the process of capturing, reviewing, approving, and posting invoices within a company. It is usually handled by an invoice management team in the finance department. It is a critical task that requires a high level of accuracy to ensure that financial transactions are recorded and accounted for correctly. By automating this process, companies can save time and resources that would be spent on manual tasks.
It is then an incoming invoice when it is sent by a supplier or service provider to a company to settle for goods or services rendered. It contains important information such as the invoice number, the invoice date, the supplier/service provider, a detailed description of the goods or services provided and the amount due. The purchase invoice serves as the basis for accounting and the payment process within the company. As such, it is a key document in the invoice processing process, ensuring that financial transactions are correctly recorded and settled.
The cost of processing an A/P invoice can vary depending on company size, industry and processes. Traditionally, there are costs associated with manual data entry, review, approval and archiving. These manual steps are time-consuming and prone to errors. With modern automated solutions like DocBits, companies can significantly reduce these costs by speeding up the process and minimizing human error.
Processing an incoming invoice is an important step in the invoice processing process. It can vary depending on the company and the process, but the basic steps are usually the same everywhere. The first step is to capture an invoice. Next, accurate data reconciliation is necessary to ensure that all captured information, such as vendor, invoice number, date, description of goods delivered and amount, is correct.
Data matching is followed by critical review and eventual approval of the invoice. Once the invoice is approved, it is posted to the accounting system. Last but not least, payment to the supplier or service provider is triggered, based on the processed and posted incoming invoice.
The posting record for A/P invoices is usually:
“Accounts payable/payable to cashier/bank/supplier”.
This posting record records the liability resulting from the received A/P invoice and the corresponding credit to the cash or bank account.
In a world where technology impacts our daily lives, FELLOWPRO AG #DocBits has developed a smart and simple software solution that revolutionizes invoice processing in your business. DocBits uses advanced technologies such as artificial intelligence (AI), machine learning (ML), and optical character recognition (OCR) to automate and streamline invoice capture and processing. With automated data capture, intelligent data matching, and seamless integration with your existing systems, DocBits significantly reduces manual effort. This allows your team to focus on value-added tasks while taking invoice processing accuracy and efficiency to a new level.
Overall, invoice processing can be a time-consuming and complicated task. But with advanced solutions like DocBits, businesses can increase efficiency and reduce costs while ensuring that their financial transactions are accurately recorded. Take the step into the future of invoice processing and discover how DocBits can take your business to the next level.
Image credits: Header- & featured image from rawpixel.com on Freepik
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