An automated, data-driven purchase to pay (P2P) system delivers more control on business spend and less complexity of the total purchase to pay process. This requires a digital transformation and an integral approach involving procurement, accounts payable and suppliers.

From Sourcing to Spend Management

The purchase to payment process (P2P) encompasses all processes that help a company acquire products and services from suppliers. It is a process that typically lacks end-to-end transparency for procurement and accounts payable professionals.

The purchase to pay process consists of many fragmented subprocesses including sourcing, purchasing management, goods receipt and invoice processing, in which information regarding orders and invoices is often unstructured. It is then unclear how much cash is going into the front of a company and too much working capital is used and too often figures need to be corrected afterwards.

By automating the purchase to pay process, not only are the operational costs of processing printed, but insight is also gained into order and invoice flows, enabling professionals to optimize the cash flow.

Data is the new oil

The purchase to pay process can take place automatically as soon as information regarding contracts, payment plans, orders and invoices is available as data (XML). Without (standardized) data, no automation. Data can be automatically processed and stored, but also automatically compared with other data, on the basis of which automatic decisions can be taken.

Invoice processing, for instance, is handled 90% manually until today, because the invoices are delivered on paper or as a PDF by suppliers.

And because the organization also validates, codes and approves the invoices as such, and then imports them into an ERP system or accounting program.

With object character recogntion (OCR) software, from Basware or Kofax, PDF invoices and paper invoices, after being scanned, can be converted to a data file and processed automatically, or at least automatically presented to budget holders via a procuration schedule. With e-invoicing or e-invoicing, invoice processing is further automated because invoices are received as data files.

Towards an Integral Approach

The digital transformation of the purchase to pay process is step one. In order to truly automate the process and make it verifiable, the various subprocesses within and between purchase and creditor administration, such as sourcing, contract management, purchase, goods receipt and invoice processing, will be related. For example, when an order has been approved and the product has been received, the invoice can be matched automatically with the order and the receipt, without manual intervention. Straight-through processing. Basware, supplier of leading purchase to pay software (see Gartner), offers this integration in a total package.

By managing the entire purchase-to-pay process integrally and data-driven, insight is gained into the process. This not only benefits compliance, but also enables real-time spend analysis. With which suppliers does the invoice deviate marginally, but structurally from the purchase order? How do the turnaround times differ for different cost items? And how much indirect spend falls under management?

adoptie e-facturatie

White paper E-invoicing | Slow but Steady Adoption

E-invoicing is a typical exponent of our time. Terms such as “digital transformation”, “big data”, and “artificial intelligence” are often heard. But although data might be considered to be the new oil; it flows only moderately at financial departments.

In some regard, this may come as a suprise as the processing and storage of invoices in the form of data files entails merely advantages and no disadvantages. A lack of critical mass seems to play part in the slow adoption. You can read more about it in our latest white paper E-invoicing: Slow but steady adoption.

Note that the white paper is currently only available in the Dutch language.

Purchase-to-Pay and Suppliers

Standardized data is needed for automation of the P2P process. But the digital transformation appears to be a big hurdle for many companies. The fact that suppliers differ from each other in the way they receive orders and send invoices contributes to this.

Ideally, suppliers are included in the transformation to a data-driven and intelligent purchase-to-pay system. Every supplier usually has a large number of customers, who can be equally diverse in their wishes.

Any-to-any conversion

In order to make the digital transformation, without being dependent on the cooperation of suppliers, the receipt and sending of P2P-related documents such as orders and invoices can also be fully outsourced by connecting to the largest data-driven and open B2B and B2G transaction network in the world: the Basware Network.

In this network, documents of a different nature are converted into a standardized format. This is typically a data file, but can also be a PDF or even a paper document. Thanks to this network, suppliers and customers send and receive orders and invoices in the format and material of their choice. Even when this differs from each other.

Cashflow optimization

In addition, the Basware Network offers online archiving of invoices, a market place where suppliers can upload e-catalogs and which is linked to the customer’s purchase to pay system, and various financing services that allow you to decide when you want to pay, how you want pay and whether you want to finance payments for suppliers.

Why ICreative

ICreative helps enterprises, institutions and governments to achieve maximum control on spend and less complexity, and consequently less operational costs, of the purchase-to-pay process. Our services:

Technology Partner

ICreative supports many organizations with implementation of Basware and Kofax technology and connection to the largest open business network in the world.

Knowledge Partner

ICreative has gained a vast amount of knowledge in the fields of purchase-to-pay and e-invoicing. Knowledge which we like to share through our Academy.

Excellence Partner

ICreative offers additional services to attain operational (P2P) excellence (maximum level of automation), including automated quality control of invoices received from suppliers.

We love to hear from you!

As Basware and Kofax partner, ICreative offers e-invoicing and purchase-to-pay solutions to large companies, institutions and governments. Our solutions provide more controle on business spend and less complexity of the purchase-to-pay process.

We’d like to keep you posted regarding purchase-to-pay and e-invoicing matters. If you’d like to exchange thoughts with us on how to improve and automate these processes, feel free to contact us.

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