
Amazing Benefits of E-Invoicing
After receiving PDF or paper invoices from suppliers, buyers need to sort, rout, re-key, and finally submit the invoices for approval
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CIO Applications Europe | Monday, November 02, 2020

After receiving PDF or paper invoices from suppliers, buyers need to sort, rout, re-key, and finally submit the invoices for approval. This process is extremely time-consuming. Apart from this, there is also a risk of invoices being lost.
FREMONT, CA: Electronic invoicing refers to the transmission, processing, and reception of digital transactional documents between suppliers and buyers. A complete e-invoicing method must be entirely electronic so that data from suppliers can be integrated directly into buyers’ systems.
For example, a scanned invoice in Adobe PDF format sent through email is not a true e-invoice since it may require additional tasks like data re-entry, which is error-prone and time-absorbing.
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Let us look at some advantages of e-invoicing for suppliers:
Faster Payment and Better Cash Flow
After receiving PDF or paper invoices from suppliers, buyers need to sort, rout, re-key, and finally submit the invoices for approval. This process is extremely time-consuming. Apart from this, there is also a risk of invoices being lost.
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On the other hand, e-invoices are quite convenient for buyers as they can immediately access the invoice and get routed and approved much faster. As a consequence, payments are made on time, improving cash flow.
Decreased Costs
The adoption of e-invoicing enables suppliers to significantly reduce costs associated with processing, printing, storage, and delivery of paper invoices. If every invoice is accurate, there would be fewer customer calls to attend. This is why e-invoicing is a great option.
Minimum Errors and Rejected Invoices
Invoice rejections and disputes can be costly. It can also take a lot of time to resolve, which can lead to late payments. In contrast, with e-invoicing, data from the supplier’s AR (accounts receivable) system is transferred directly to the customer’s AP system, which minimizes the risk of errors caused by data re-entry. Hence, the chances of invoices being rejected is decreased.
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