How to Achieve a 50 Percent Reduction in Invoice Processing Costs
Did you know that, on average, companies that utilize Enterprise Content Management (ECM) software in their AP department report a 50 percent reduction in invoice processing costs? Furthermore, by leveraging their ECM platform’s AP Automation capabilities, many achieve straight-through processing (STP) rates of 75 percent or more when processing PO-based invoices.
These savings boil down to two major factors:
- Capturing invoices and indexing them in your ERP system faster and more efficiently
- Eliminating manual data entry and other time-consuming tasks with intelligent automation
1. Capturing Invoices With OCR Ensures Nothing Goes Missing
When you get an invoice, it has to make its way to your ERP. That could mean taking time out of an invoice processor’s day just to type in every individual line or information.
Optical Character Recognition (OCR) software, an ECM staple, makes the latter scenario possible. It actively collects all paper-based and electronic files and documentation and syncs it with your ERP. Designed specifically for organizations that are looking to automate the Accounts Payable process, organizations can cut down on manual invoice matching, voucher creation, and ERP data keying with the right solution. Here’s how it works:
Invoices received as paper documents, email attachments, fax, or otherwise are scanned or imported directly into an OCR interface. This software creates a digital replica of the document and routes its information to an archive. Information is extracted from the header, body, and footer of each document.
This information is then verified by a combination of AI and machine learning and validated by utilizing automated database lookups, defined business rules, calculations, and defined confidence thresholds. The vendor information associated with each invoice is automatically identified, along with other critical information from line items and unstructured fields. IntelliChief Capture Enterprise, an industry-leading OCR software solution, even works on multiple-page invoices and batch invoices.
2. Eliminating Manual Data Entry Drives Significant Cost Savings
As a central component of our highly sophisticated AP Automation solution, Capture Enterprise has built-in invoice validation features, allowing it to process two- and three-way matches without user input through highly configurable workflows.
Invoices that fail validations, fall below confidence thresholds, or fail the invoice matching process can be reviewed and resolved immediately. Or, they can be routed through workflow for exception handling. Non-PO based invoices can be easily routed for GL coding and approval.
After all invoice types have been fully matched, approved, coded, or resolved, the data extracted and validated via Capture Enterprise for AP invoices will be delivered for ERP voucher creation.
Do You Want to Achieve a 50 Percent Reduction in Invoice Processing Costs? We Can Help
IntelliChief can help you substantially reduce invoice cycle times. Organizations with IntelliChief are better positioned to take advantage of early payment vendor discounts or negotiate more favorable terms with their suppliers. IntelliChief also eliminates common invoice processing errors like duplicate invoices, and it can help your organization avoid wasting money on finding or reproducing lost or damaged documents.
Ready to achieve these benefits for yourself? Contact IntelliChief to get started.
