Invoice Processing Services
In a typical transaction cycle, an invoice is generated after the conclusion of the contractual and sale process. The traditional billing process has always been part of a broader set of business processes in the trade that include placing and accepting an order, processing the order, delivering the goods and final payment. This is a buy-to-pay process from the buyer’s perspective, and one order-to-cash from the seller’s perspective. Together they are called the “commercial process”. Therefore, from a business process point of view, an invoice is never an isolated document, but is always the result-and is linked to-other activities.
The aspects of payment of an invoice generally involve the generation of a payment by the recipient of the invoice in response to the payment details that appear on it. Because an invoice is partly a request for payment, there are clear synergies between the payment systems and the billing process. Note that the invoice is not a bank document. Billing process links and banks can provide additional services such as processing, invoice distribution and supply chain financing.
Disadvantages of paper-based systems
All parties perceive that the issuance and exchange of printed invoices cause that there is no optimal control or visibility regarding current and estimated expenses and receipts. The lack of controls, sequential manual approval processes and the lack of a company-wide perspective of accounts receivable and payable can delay payments. This prolongation occurs mainly because the billing process depends on other types of actions within the commercial process such as orders and delivery. This generates costs in terms of interest and discounts that are lost. The main disadvantages of the traditional billing process are:
-Errors on both sides at the time of data processing and entry;
-High operating costs per invoice on both the seller and receiver side;
-Even higher costs in the case of errors or controversies; Y
-Participation of multiple systems.
-Avoid fines for late payments and focus more on the fundamental tasks of the company
-Increase in efficiency
-Reduce the time spent in processing invoices while reducing human errors
-Improved visibility of cash flow
-Complete the state’s follow-up and make more informed decisions
-Get more reinforced and compliant audit trails and avoid fraud