Financial Collaboration with eInvoicing Software

Automate invoicing and collaborate with suppliers to optimize cash flow, take advantage of discounts and eliminate the high cost of poor productivity

What if you could collaborate with your suppliers and capture all of their invoice data in a common digital format, then align it with the payment terms and conditions agreed to in your contracts, POs and catalogs – and then integrate with your ERP/AP systems?

What if you never had to see another paper invoice?

How about never having to receive an invoice for an amount not received in your ordering system?

Xeeva has enabled all of this through our eInvoicing software capabilities – fully integrated with our procure to pay solution (P2P). Why not have your suppliers correct their invoices before they’re even submitted to you – they’ll appreciate the faster goods receipt and payment cycle. You’ll benefit from fewer manual touches, the accounts payable team can focus on higher-value-add activity like cash management instead of hunting down invoices, and management benefits from better visibility into your overall supplier commitments.

Paradise is a 100% touch less eInvoicing software environment, and while you may not get there because many smaller vendors lack the digital capabilities of larger suppliers, you can get a lot closer. Invoice rejection rate is a huge pain point for most organizations (we see between 20% and 40% at many of our clients before implementing our solution) which results in significant non-value-added time chasing down the details behind those rejections. At times rejection occurs because of the goods receipting process, at other times it occurs due to mismatch in terms and conditions, e.g., PO numbers or cost centers.

Our eInvoicing Software solution enables a robust 3-way match process (between POs, receipts and supplier invoices) – a benefit of interconnecting eInvoicing with our P2P and supplier collaboration capabilities. It starts up front by implementing configurable business rules that don’t require a bit of IT intervention for invoice validation and matching at point of supplier submission. Suppliers submit invoices that conform to the business rules you’ve established. Once an invoice is received, electronic workflows take over for automated accept / reject of invoices.

The result is a fully reconciled (i.e. 3-way-matched) ok-to-pay output that is directly interfaced into your AP system. This can reduce the “touches” to a small fraction (<5%) of what’s processed.

Accounts payable staff and business approvers can then focus on exceptions to manage invoice approvals, apply cost codes, and quickly resolve invoice disputes.

Suppliers can check status, collaborate with AP, resolve dispute all online through a single interface.

As more invoices are processed through the system, advanced analytics go into action to produce action oriented insights into process and operational savings potential that your team can then go and validate and implement.

Dynamic Discounting

A key feature in our financial management module is the ability to apply dynamic discounting logic to your invoices. Working with treasury and finance, the procurement organization can identify candidate invoices for early payment and the terms under which payment would be rendered. As a user, you set the parameters based on commodity, size of invoice, nature of the supplier relationship among others. Once triggered, suppliers are notified of the option to accept early payment in exchange for a discount – allowing them to make the trade-off between quicker cash flow and a lower net payment. If approved by the supplier, payment is triggered. Rich transaction history provides intelligence that allows you to better target execution of your next dynamic discounting event.

Results

Contract compliance and adherence. Another step in the process of translating hard fought sourcing activity into realized budget savings is ensuring that supplier invoices comply with the new terms of the agreements your buyers have negotiated. Our business rules configuration prevents presentation of invoices that don’t adhere to agreed to terms and conditions.

Happier Suppliers. Not to be underestimated, in our experience happier suppliers are 20% more likely to provide pricing concessions or other favorable business terms down the road, and collaborating with them to avoid the hassle of misplaced, mismatched, mismanaged invoices and payment on agreed to terms goes a long way to a better business relationship.

Increased AP productivity. Invoice processing cycle times can be reduced by up to 75% – leaving it up to you to figure out what to do with all the extra time on APs hands.

Lower costs associated with invoice processing costs and payment settlement. Average manual invoice processing costs of $16.33 can be reduced by 65% to $5.65 and remittance costs from an average $18.79 to $7.75 with automation.

Manage cash more effectively. With an accurate picture of what is due when and to whom, AP and treasury can have improved visibility into approvals, early pay discounts, payments, pending and cash flow / cash management demands.

Rejection rates to below 5% of invoices. At a processing cost of $16.33 per invoice, this adds up quickly and frees up resources to expedite exception handling.