7 Ways AP Automation Benefits Suppliers
Although AP automation benefits are designed for buyers to implement for their P2P processes, their suppliers will benefit from the upgrade as well. The benefits for suppliers are equally as significant as for buyers, which is good news for each. Let’s discuss this more by examining 7 ways AP automation benefits suppliers.
1. Track E-Invoice Status:
AP automation benefits suppliers when they can easily track the status of their invoices. This takes the mystery out of the invoice life-cycle and gives suppliers the visibility needed to effectively manage their billing.
By simply logging into the supplier portal, they’ll be able to see exactly where the invoice is (in real-time) in the P2P process. This reduces the suppliers need to call the buyer’s AP department to confirm delivery or check on the status of invoices. This also helps suppliers easily confirm if and when they sent e-invoices.
2. Issue Resolution Functions:
Instead of waiting for weeks to discover disputes and issues with invoices, AP automation solutions give suppliers issue resolution functions in real-time. Suppliers will be notified instantly if there is a dispute that stops processing of the e-invoice. Direct communication through the browser-based AP automation solution (between supplier and buyer) helps resolve invoice disputes and issues with ease.
Instead of having invoices slip through the proverbial cracks and get lost in a buyer’s P2P workflow, with AP automation suppliers will know instantly when there’s an issue or dispute. This drastically reduces delayed or late payments and gives suppliers real-time tools to resolve issues.
3. Quick Approvals and Payments:
Reducing the life-cycle for invoices from weeks to days is another way AP automation benefits suppliers. With dynamic discounting tools, suppliers can incentivize their buyers to pay early, which gives them more control over their cash flow.
Being able to control when payments are made helps suppliers with inventory planning and budgeting, giving them a more predictable cash flow for growth opportunities. Receiving payments for invoices early also makes tracking and managing workflows easier.
4. No Software to Download:
Buyers can onboard their suppliers without having them download AP automation software; they can simply be enlisted by the AP automation service for free and have access in the cloud to their supplier portal. Using the browser-based cloud solution, suppliers won’t have to worry about integrating new software solutions into their enterprise systems.
5. Full Audit History:
AP automation solutions give suppliers the ability to electronically access a full audit history for their invoices. New invoices can be made from old ones as well, which streamlines the creation of invoices. These functions empower suppliers with the information and visibility they need to properly organize their invoices.
6. File Upload Options:
Suppliers with large volumes of invoices can use AP automation file upload options to streamline the process. From their computer or network, suppliers can create an electronic invoice file to upload to the AP automation solution. They can also use automated FTP, which gives automated scheduling and status response capabilities.
7. Improves Buyer Relationships:
One of the biggest benefits of using AP automation technology for suppliers is how it improves their business relationships with buyers. By enlisting into the buyer’s AP automation solution, suppliers are allowing their business partners to reap the benefits of e-invoicing as well. This helps both parties streamline their invoicing processes and improve their bottom-lines.
Summary
B2B businesses are both buyers and suppliers to some degree, which means they’ll benefit both ways when using AP automation solutions. In order for suppliers and buyers to benefit from e-invoicing, they both need to adopt AP automation solutions into their workflow. The good news is there are many benefits for each when they do so.
The benefits of AP automation are best realized when businesses use a quality solution like iPayables. With iPayables’ AP automation solution, buyers can help their suppliers streamline their invoicing processes and reap the 7 benefits discussed. If interested in learning more please contact us today.