Best Practices to Enhance Procure-to-Pay Cycles

A major challenge faced by financial organizations today is the ability to achieve efficient procure-to-pay (P2P) cycles. This is due in large part to the fact that most organizations still rely on outdated paper-based processing. And unfortunately, there’s no way your accounts payable department can reach its desired level of efficiency with manual procure-to-pay solutions.

4 Practices to Improve Procure-to-Pay Cycles

What do you get with manual procure-to-pay processing? Inefficiencies, inaccuracies and high operating costs. Not to mention, you’re not doing any favors for your organization’s cash flow and financial supply chain. In today’s highly competitive, high-risk environment, you can’t afford to rely on a lax P2P strategy. You need to rid your organization of paper-based processing methods, and implement practices that will enhance your procure-to-pay lifecycle:

  • Eliminate Paper – Paper-based invoices cause major bottlenecks for accounts payable departments. Not only are they more likely to contain inaccuracies, but generating paper invoices and purchase orders increases operational costs. Eliminate paper, and start delivering invoices and purchase orders electronically to save your AP department money and time.

  • Leverage Online Self-Service Portals – Handling paper work for suppliers and vendors can get messy fast. Implement a secure online portal where suppliers and vendors can log on to complete forms, view purchase order and invoices, and doesn’t require a lot of back and forth. For best results, select a portal that easily integrates with your organization’s existing technology.

  • Automate Dispute Management – At some point, disputed invoices will come up. How you handle these disputes can directly affect your procure-to-pay cycle. The last thing you – or your suppliers –want is to spend hours on the phone to resolve invoice-related issues. Automating dispute management means you can review and resolve disputes faster, keeping both parties happy.

  • Capture Supplier Discounts – Several suppliers offer early payment discounts when you settle invoices before the due date. You can take advantage of a solution that automatically captures early payment discounts, notifying your suppliers and vendors when payments have been submitted.

There’s a Better Way to Simplify Procure-to-Pay Processes

Cash is the lifeblood of business. Paper-based AP processes make it nearly impossible to effectively manage procurement and forecast cash flow. So we designed PAYBOX® AP, a comprehensive, automated accounts payable solution that improves your visibility into procure-to-pay lifecycles.

Benefits of PAYBOX® AP’s P2P features include:

  • Integration with legacy ERP and purchasing systems
  • Ability to deliver purchase orders electronically to suppliers
  • Automated dispute management tools
  • Enhanced tools for capturing supplier discounts

It’s time to introduce your accounts payable department to PAYBOX® AP. To learn more, contact us today.

AP Strategies