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Invoice Matching Software

The typical invoice processing routine may follow a certain set of steps, although invoice processing routines can vary to some extent from one team to the next. There are some characteristics that tend to remain consistent, however. The three main items of the routine are purchase orders, invoices, and bill payments. Also worth taking into account are the processing and approval steps that result in a completed transaction––in this case, a completed payment to a supplier.

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Unfortunately for customers and suppliers alike, mistakes may occur at any point in the accounts payable process. People can make mistakes, and these mistakes can delay bill payments, or at least make the process less efficient. Handling these processes manually could increase the risk of such errors. Moreover, an accounts payable department that depends on a traditional method to see them through the process can experience data-entry errors.

Invoice matching involves accounts payable departments checking an invoice to make sure the information coincides with the information on their purchase order (PO) or sales receipt. Matching these pieces of information is important because it can help ensure that companies only pay for the services rendered or products purchased. If the information doesn’t match—for example, the amount shown on the purchase order doesn’t equal the invoice amount—then the discrepancy should be investigated.

A company’s accounts payable team can use invoicing software to help reduce the need for paper-heavy invoice processing, potentially decrease the number of mistakes that can occur, and expedite the process as a whole. Invoicing software can help companies pay their suppliers more quickly than traditional methods.

After a company purchases products or services from a supplier, the supplier can email an invoice to their customer when the order has been processed. From there, a system like AvidXchange will match the purchase order and invoice for the customer. Invoice matching software is just one more tool companies can use to automate their accounts payable processes.

Purchase Order Automation Software

AvidXchange’s purchase order automation software can help companies automate their purchase order process by automatically creating requisitions for frequently purchased products. An automated purchasing system can also help reduce unapproved purchases, coding errors, and delays in the purchase order process.

Companies that automate their purchase order process can possibly receive the benefits of purchase order automation. Unapproved purchases can inflate expenses if they frequently occur. Decreasing the number of times they happen can help cut costs as well as steady a faltering bottom line. Coding errors can result in incorrect payment amounts, the wrong suppliers getting paid, or general confusion that can take precious time to resolve. Companies can possibly save time and reduce stress when they deal with fewer coding errors. Delays in the purchase order process can cause late payments—if payments are processed at all. These issues can strain the professional relationships between a company and its suppliers. An automated purchase order produced by invoicing software can help ensure that companies pay their suppliers on time according to their preferences. Purchase order automation software can reduce the time and financial costs a company can incur if they still process and pay invoices manually.

What Is 3 Way Matching In Accounts Payable

Understanding what is 3-way matching in accounts payable and its importance can be accomplished by either looking at examples of 3-way matching or reading an outright definition. Simply put, the 3-way match accounting practice helps safeguard companies from financial loss and ensure accurate payment.

The 3-way matching process matches the purchase order, invoice, and goods receipt note to validate a supplier’s invoice before payment is submitted. The 3-way match process helps determine if invoices should be partly or fully paid. A 3-way match internal control feature can help prevent the reimbursements of unauthorized purchases.

Automated 3 way invoice matching can greatly assist an accounts payable department that has to handle many invoices, purchase orders, and order receipts. The procedure itself can take time. If an inconsistency is found, then more time must be taken to investigate the issue. Automated matching provides accounts payable department better organization and a quicker turnaround with the process. Issues can be resolved more quickly when information can be found in one digital source.

A company can perform a 3-way match accounts payable in SAP via software integration with AvidBuy from AvidXchange. Other integrations exist so companies can do business their way as well as enjoy the benefits AvidXchange offers.

Purchase Order Software

Depending on the amount of invoices they must process, an accounts payable department that uses traditional invoice processing methods may become overwhelmed by the number. This heavy workload might also result in a disorganized system where one person doesn’t know what the other is doing. Similar products might be purchased from different suppliers. This can be viewed as a wasteful spending habit and negatively impact a company’s bottom line.

Searching for the relevant paperwork can be time consuming in a disorganized work environment. Regardless if a purchase order number generator was used during processing, staff members have to look for the paperwork. If they deal with a lot of suppliers, this can be a monumental chore.

A purchase order number lookup feature in purchase order software could help in a situation when an accounts payable staff member thinks their company bought the same items from separate suppliers. An ERP purchase order produced by such software might also help.

AvidXchange’s application can help accounts payable teams determine purchase patterns and inefficient spend in order to eliminate multiple purchases for similar products. This feature can help accounts payable departments stay organized and deal with any potential problems faster and more easily. Companies using the application can possibly avoid this situation.

Automated Invoice Matching Software

Order processing automation can assist accounts payable departments when they match their invoices, purchase orders, and receipts. Matching those three items helps ensure that companies only pay for the goods they bought.

Companies that use automated invoice matching software might be able to reduce their reliance on paper, cut manual processing errors, and hasten the overall process. Companies can pay their suppliers more quickly when the process isn’t slowed by mistakes caused by a number of factors. Automated invoice software can cut time and money expenses and possibly improve business relations between companies and suppliers.

Accounts payable departments can combine their purchase order software with AvidXchange’s solution so they can seamlessly match purchase orders with invoices. Relevant data can be exported to a company’s existing accounting system, allowing the flexibility and ease of use that can result in a more streamlined workflow. Software integrations can be the lifeline a struggling company needs in order to repair their finances.

Invoice Meaning

The invoice meaning is important because invoices are crucial when it comes to the accounts payable process. The supplier invoice is a document that states how much money a buyer owes a supplier for furnished products or services. Invoices typically show information such as the invoice number, supplier name and information, payment discounts, and payment schedule.

The invoice meaning in accounting can be perceived as the invoice meaning in business. A supplier payment invoice meaning differs somewhat from a customer invoice meaning in that the former shows what a buyer, or a company, owes a supplier. A customer invoice is usually given to a customer from a company. That said, both invoices will share similar information.

PO Number Meaning

The purchase order (PO) is a document that lists the types, quantities, and prices of products and services agreed upon by the buyer and supplier. A unique code generated in the PO is called a PO number. This number can be used as a tracking or reference number that is uniform with the invoice.

A PO number example is one that is given to a specific transaction. Ideally, they should be unique to avoid confusion with other transactions.

There might be a difference between PO number vs invoice number. The PO number meaning is that a purchase order shows what items or services have been purchased. Invoices document the money owed to suppliers. It’s possible that PO and invoice numbers are different. However, it’s a good practice that an invoice contains the relevant PO number to ensure accuracy. PO number invoice information can prove to be a useful tool in both the purchasing and payment processes as well as in dispute resolutions.

Accounts payable staff members who know how to get PO number information when they need to resolve a purchase order discrepancy can possibly settle the issue in a quick manner. PO number tracking can also help staff resolve any inconsistencies. Invoice processing software like AvidXchange can help accounts payable departments solve myriad issues that impact their work performance as well as their company’s financial performance.

AvidXchange’s purchase order application enables companies to automate the purchase order process in an effort to better control costs and prevent unwanted purchases. Companies that know who is buying what and when with company funds can use this visibility to gain financial efficiency and reduce fraud. AvidXchange can automatically match purchase orders and invoices so companies can possibly save more time and money.

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