Purchase is where the profits are. But where does it go afterwards?

Big savings potential through faster processes

In this area, there is great potential for further benefits through faster processes, through better access to a wider range of supply sources and therefore better options to negotiate more favorable business terms. But all to often a considerable amount of these benefits is swept off during the processes coming afterwards. Sluggish and error-prone invoice management is one of the most important reasons for this restraint in efficiency.      

Invoices often cost to much: between 5 and 15 Euro.

What does everyday life look like in the accounting department? The incoming invoice is duplicated - just to be on the safe side. A piece of paper is attached and a big stamp is put on it. Afterwards, the data has to be entered manually. Then there is the search for the associated purchase order. The document itself is sent around for approval. It moves through many hands, from desk to desk. If someone is on vacation the document remains on this desk, afterwards it is forwarded to the next clerk, then it is put into the secretary´s pigeon hole and in the end it might have got lost. And even if the invoice was finally released, paid and afterwards put into the files, you might need to retrieve it some day, because a vendor has "a question about the last two items on that specific invoice". This seems to be an extreme case, but certainly not an isolated one. It has been found out that the average costs for processing an ordinary invoice is 8 euros. These are hidden costs which easily sum up to a 6-digit total based on a quantity of 100 invoices per day.      

Direct control: Automated invoice management

Companies with a high volume of invoices make great efforts to unify their business processes, to increase their speed and accuracy. Modern IT systems - and SAP® systems are in the leads in this area - make an important contribution to business process control. However, optimum increase in efficiency can only be reached if all business processes are integrated into the SAP® Business Workflow. This has to include the entry of invoice data, revision-secure archiving of the invoice for external and internal audits, sending the data to SAP objects and finally releasing the invoice through the accounting department. A comprehensive and integrated solution has to cover all aspects of this process. DirectInvoiceControl is such a solution ensuring the complete and accurate processing of invoices.  

To learn more about the solution follow this link to the product section of DirectInvoiceControl.