22
Mar
2017

Invoice Processing : Manual Vs. Automated

Invoice processing today, for any business which may belong to any industry and can be of any size, has become a challenging process. Its importance can’t be denied nor can it be overlooked, this being a mandatory step for all business operations, starting right from the place where the business operates. Interiors, branding, marketing, agencies, procurement from light bulbs (ok! They are now replaced by LEDs) to laptops, in fact every day to day business running involves handling of invoices. But, at the same time, it is a time consuming and redundant kind of job with at times needing the un-necessary but un-avoidable follow-ups with senior management who are required to approve the invoices before they are cleared. Therefore it becomes a very important step of the whole process of invoice processing, that a proper record keeping and tracking of the document / invoice / payments movements is done. This alone impacts the TATs and at times the efficiency of the team handling the processing. Standardising and automating the process has been a boon for many businesses, saving time and improving the entire process. Here comes the need that we standardise the AP process With SAP and Workflow.

Challenges In Manual Invoice Processing

  1. Receiving all details from vendor : Receiving documents/invoices from vendor with full details is a basic requirement. But at times, vendors overlook some important details and teams struggle to ensure that all invoices are complete with all relevant details filled in place to be processes further.
  2. Invoice approval TATs : It is a time taking process for any team to get invoice approval or the service confirmation from the user/s of service. Sometimes the approval request just stays on the table or in the drawer of the approver, this being the less important task than KPIs, nonetheless it might be the KRA of the requester.
  3. Correct GL and asset mapping : Risk is high in terms of error occurrence at the data entry level.
  4. Greater TATs : It is a time taking process for invoice processing after expense booking because manual follow-up and tracking is required at almost every stage. In most cases, stake holders and approvers are different from the process owners.
  5. Lack of transparency : It is a major challenge generally in the form of process flow at all the stages.
  6. Confidentiality concerns : With financial data in terms of invoices available on paper, loosely available on desks, creates confidentiality of data issues.

EBEX Solutions For The Concerns Raised

  1. We have bill desks at multiple locations all across India to collect the invoices from vendors.
  2. All the collected documents are scanned to create a digital copy and are given a unique number through BAR coding system, fully loaded WITH necessary details and attached relevant documents required for future use and audit purpose.
  3. Automatically route invoice with support document/s for user/approver confirmation and then for approval with a defined TAT.
  4. 3 tier cross checking and matching of invoice and expense booking.
  5. Automatically AP (Account payable) number moved further for invoice posting.

At EBEX, We Facilitate

  1. Tools for measuring TAT and AP metrics
  2. Complete interlinked P2P process
  3. Fully automated process with no manual tasks
  4. Documents storage facility
  5. Data confidentiality

 

EBEX has a strong and experienced team that plays a key role in making your processes smooth and easy. We leverage our experience to ensure that the elements of a sourcing alternative are fully evaluated in the context of local conditions and wherever possible, the processes are re-engineered to make them automated with clearly defined stakeholders and TATs. EBEX has a diverse and cross industry experience for advising clients, establishing automated innovative solutions and improving operations.

About Manoj Aggarwal

With 20 years of diversified experience in Financial Operations in various sectors like, Print Media, Ecommerce, Manufacturing, Retail , FMCG, Media & Broadcasting, Manoj is spearheading various functional areas such as financial accounting & reporting, finance, taxation, audit, Processes, commercial assignments, system & process development.

He has played pivotal role in driving many key projects in his past organisations. He has proven his expertise in many ways - in formation of Cricket League under ICL banner with successful execution of 3 tournaments, in setting up of sports distribution business of TEN SPORTS and other channels under the bouquet of TEN SPORTS, in successful implementation of Reliance retail petroleum business decentralisation and expansion in northern India and many more.

Manoj’s previous experience comprises of leadership roles in HINDUSTAN TIMES, Snapdeal, Big RTL Thrill channels, TEN Sports, Modicare and ECE, in various commercial roles of business and was responsible for the financial and commercial function for revenue control system.

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