The advantages & capabilities of electronic invoice verification
The advantages of electronic invoice verification
Companies can electronically verify and manage inbound invoices with the workflow and document management functions of an enterprise content management (ECM) system — and substantially reduce the disadvantages described above. And with an array of other commercial and operational benefits, that's not all electronic invoice verification has to offer:
- Faster invoice processing
- Each invoice is stored only once; no multiple copies in circulation
- Protection against loss and manipulation
- Easier to meet and monitor deadlines for payments and early payment discounts
- Improved ability to supply information
- Simple to retrieve invoices using powerful search functions
- Process automation (e.g. inbound invoice processing)
- Context-driven classification of invoices
- Audit-proof archiving
Advantages of invoice verification with Doxis4
What does invoice verification mean?
Invoice verification refers to the examination of inbound (i.e. vendor) invoices by the accounts department. This process is broken down into formal and substantive components, and can be carried out electronically using the document and workflow management (DMS) functions of an enterprise content management (ECM) system.
This step is to check for the existence of a payment obligation. Often, the invoice will be reconciled with context-related documents, such as the delivery note or original bid. Where an obligation is found to exist, the next step is to examine the contents of the invoice. The volume and type of items listed — i.e. goods delivered and services rendered — as well as the gross and net amounts are checked.
A formal verification of invoices checks whether the invoice contains all necessary data according to eInvoicing standards. According to many eInvoicing standards, an invoice must include the full name and address of the biller and recipient, the date of issue, an invoice number and date, plus the type and quantity of the services provided.
As soon as the form and content of the invoices are verified and found to be error-free, the invoices can be posted in the next step.
The hurdles of invoice verification
In 69 percent of companies, inbound eInvoices are printed out for verification and processing, as a study of the ibi research at the University of Regensburg revealed. They are usually copied multiple times before they are passed on to departments. The long transportation routes between individual departments - especially in companies spread across many locations - often mean that cash discount deadlines are missed and employees are unaware of invoice statuses. Delays in payment caused by such processes permanently damage the supplier relationship. In addition, the liquidity planning suffers because volumes and invoice amounts plus the exact number of invoices in circulation cannot be determined precisely. Reliable liquidity planning is therefore impossible.
A short definition
Before an incoming invoice can be released, it must be verified, because a company only wants to pay only the goods ordered and received. Formal verifications of invoices are required by many domestic tax laws.
Do you have questions?
We would be happy to answer your questions about invoice verification with enterprise content management.
Would you like to experience Doxis4 live? We would be pleased to present it to you in a live demo, either at your place of business or virtually. We look forward to hearing from you!