• Ferret Blog


What is Accounts Payable Automation?

Updated: August 29, 2016

Accounts Payable (AP) Automation refers to the process of streamlining company’s payments to its suppliers.

When a company receives an Accounts Payable Invoice they must review, receipt, approve, code, and pay the invoice. When a company receives hundreds of invoices per month this becomes less of a repetitive ‘must-do’ task and becomes an opportunity for productivity gains via Accounts Payable Automation.

This diagram explains the basic Accounts Payable Process:

 

Let’s look at each step of this process and identify the opportunities for Accounts Payable Automation using Ferret Software as the Accounts Payable Automation provider.

1. Invoice Arrives

 Invoices arrive via paper – Ferret Bulk Scanning Technology will enable you to bulk scan Accounts Payable Invoices from your existing scanning device, enabling you to process an electronic invoice rather than passing around the paper copy. Visit this link to learn more about Bulk Scanning Accounts        Payable Invoices

Invoices arrive electronically – Ferret Drag It In Data Entry Software enables you to simply drag and drop invoices received electronically via email and the data and invoice image is ready for processing. This eliminates data entry of the invoice details and removes the need for printing invoices. Visit this link to learn more about Data Entry Software

 

2. Ensure Invoice items were received

Electronically check off that the invoice items were received

 

3. Approving & Coding Invoice

Approvals can be done electronically using Ferret Accounts Payable Approvals System. The invoice is routed to the appropriate staff member for electronic approval. The approver can view the invoice, compare it to the Purchase Order, check that it has been received and the details are correct before approving the invoice with one click of a button – for more information see Ferret Accounts Payable Approvals System

Coding the invoice can be done by the approvers or by Accounts staff – Using Ferret AP Approvals and coding tool your line items can be coded very quickly because your GL account codes are integrated with your Accounting System. This enables the approver to code the invoice themselves or approve the codes being used on a per invoice or per item/ line item basis.

 

4. Paying the Invoice

Paying the invoice is typically done via your accounting system – Using Ferret the approved and coded invoices are batched and the batches are approved. These approved batches are automatically imported into your accounting system ready for approval.

 

5. Filing the invoice

There is an IRD requirement to store invoices for at least 7 years. This can be done electronically using Ferret. All paper invoices are scanned in bulk and stored electronically instead of within paper folders. All invoices received electronically are not printed but are electronically filed along with the scanned paper invoices.

 

 

Diagram of the role of Accounts Payable Automation Software

Summary - What is Accounts Payable Automation?

In summary Accounts Payable Automation is a process of looking into streamlining the different parts of your Accounts Payable Invoice process. There are a number of opportunities to automate and improve your Accounts Payable process using technology such as that provided by Ferret Software.

If you are interested in reviewing the benefits of Accounts Payable Automation visit – What are the benefits of Accounts Payable Automation

If your business is interested in automating the Accounts Payable process, please contact the friendly staff as Ferret Software (Ferret Phone 0800 FERRET) or via email – info@ferretsoftware.co.nz 

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