What is E-invoicing and why is it a necessity?
- 16 Jul 2021
- AP Automation
Tedious manual processing means spending endless hours on data validation, invoice matching, and invoice approvals. The month-end reports are a time-consuming project requiring intensive human labor - which means a strong possibility of human error during the rush to complete them. E-invoicing is easier because automation performs repetitive tasks efficiently and accurately - without human intervention.
However, many companies are still not processing e-invoices today because implementing e-invoicing and EDI is too technical and requires a lengthy onboarding process where close collaboration with the suppliers and their VAN operator is needed. Overcoming these obstacles is crucial to realize the advantages of touchless processing, including remote collaboration and financial updates in real-time. From one organization who recently made the switch to automated e-invoicing, “I was afraid receiving e-invoices would be complicated, but this will allow us to be more automated without any work at all!” As organizations around the world adopt automation, companies that fail to automate will be left behind. Discover why e-invoicing is a necessity in the modern business world.
Why is e-invoicing such a challenge?
What is e-invoicing and why is it such a challenge? E-invoicing is challenging because though one standard exists, each supplier has its own interpretation of the standard. As a result, there is one version per supplier, leading to ongoing maintenance with no clear ownership when issues arise. With no end-to-end reporting or analytics, the challenge continues. The data found in the XML must be modified because each supplier has its own version, creating additional problems.
Medius has an evolved e-invoicing solution with machine learning and AI and a user-friend UI to overcome these challenges. The process of automating capture is the differentiator that can take semi-automation to truly touchless invoice through payment. Relevant data is captured and converted into a compatible digital format to process invoices without common pain points - quickly. As a result, invoices are instantly transformed and ready for payment.
Overcoming e-invoicing challenges
The concept of e-invoicing is touchless, yet it still takes up to 50 days for invoice processing due to each supplier having its own version. With an XML mapping tool and VAN operator, it is costly to pay per hour or call the supplier. Other common issues are also stumbling blocks, such as an order number containing unwanted characters, a contract field containing unwanted characters, misspellings, and supplier master data that does not match the supplier on the invoice.
Fortunately, there is a more effective and cost-efficient e-invoicing solution from Medius. Our solution dynamically generates an XML invoice made to look like a PDF invoice. Plus, the user can change the layout of the invoice in a user-friendly manner, eliminating the challenges currently associated with e-invoicing. Another Medius customer noted, “Processing an e-invoice is now as simple as processing a PDF invoice.”
Technology advancements have also evolved to include Artificial Intelligence and Machine Learning, which help prevent having to re-correct the same errors that are encountered. It’s the technology that gets smarter the more it’s used.
Eliminate costly onboarding projects
Management and the AP team dread facing time-consuming and costly onboarding projects. Medius acts as a Peppol Access Point to simplify receiving e-invoices, allowing clients to receive e-invoices without expensive onboarding projects or interruptions automatically. It also accounts for the learning of new XML standards and formats and different dialects when suppliers interpret the standard in their own way.
Ease of use streamlines operations and makes e-invoicing simpler without the confusion typically associated with onboarding. The real differentiator with Medius e-invoicing is it makes the end-to-end process completely touchless, making it possible to process e-invoices in seconds or minutes rather than days or weeks. As a result, payments are made on time or early to build strong supplier relationships and take advantage of discounts for early payment.
Making the transition
While organizations dread onboarding projects, the transition to touchless e-invoicing is easy for Medius clients. No technical skills are required with a system that is plug-and-play. The ease of implementation means minimal interruption of operations to realize the time-saving and money-saving benefits of touchless e-invoicing.
One of our clients went from 47 percent touchless to 97 percent touchless in just a few days, positively impacting business, including increased productivity and improved supplier relationships. Touchless invoice processing eliminates errors and inconsistencies, helping to boost the bottom line. Companies that pay on time or early enjoy the best discounts and service from suppliers -and can pass these advantages to their customers.
Medius e-invoicing is a quick and efficient way to make the transition to touchless processing. No technical skills are required, and you can be up and running quickly to realize the many advantages of a touchless invoice instantly. Get started today to save time and money tomorrow - and remain competitive in the future.