Despite the advancement of accounts payable technology, intelligent automation, and ERP software such as Microsoft Dynamics, many AP departments continue to use antiquated (or non-existent) technology solutions. Fortunately, more accounts payable departments recognize the need to modernize, and technological solutions like DHRP are continually evolving to meet and overcome the issues that AP departments confront.
According to JPMorgan’s 2019 AFP Electronic Payments Survey, 42% of corporate customer payments are still made by check. Checks are inconvenient, expensive, vulnerable to fraud, and unreliable. Companies that have been utilizing paper checks for decades, on the other hand, continue to use them in their operations. In addition to this discovery, Ardent Partners believes that over half of all invoices are still submitted by hand to the recipient, resulting in missed payments, delays, and inaccuracies. These kinds of problems are costly, and they make firms that continue to utilize them less competitive, dependable, and nimble. However, vendor invoice journal workflow d365, along with the vendor invoice automation dynamics 365, can be the savior of business.
In addition to these issues, NetSuite identified eight AP issues. Here’s what they discovered:
1. Slow Processing:
This is especially problematic when organizations prepare invoices on paper by hand. As documents are handed from desk to desk, printed, copied, stuffed into an envelope, and shipped, approval times increase. It frequently results in late fees, lowers reputation, and costs your organization money to pay personnel for menial chores that may be automated instead.
2. Matching Errors:
Automatic three-way matching is commonly used by AP automation systems, such as D365, to ensure that there are no duplicates in the system and that the invoice matches the purchase order and other paperwork. When automation software is not used, errors caused by human data entry, such as matching invoices, purchase orders, and line-item details, are more likely to occur.
3. Exception Invoices and Manual Follow-Up:
Exceptions are one of the most difficult problems that AP departments face. They lead to errors and discrepancies if they are not followed in a streamlined, consistent manner. Furthermore, they are exceedingly time-consuming. According to Aberdeen Group, approximately 20% of invoices contain erroneous or incomplete information regularly. To make matters worse, Ardent Partners discovered that the average AP department spends about a quarter of its time dealing with supplier inquiries, such as searching down missing information. Trust us when we say that your AP team is equipped for more than manual follow-up and document seeking!
4. Unauthorized Purchases:
Do you have any fraudulent purchases at your company? You may never know whether your processes are manual. AP departments spend a lot of time looking into allowed and disapproved purchases; therefore, if processes are manual, many of these purchases are likely pushed under the rug with no system in place to capture them.
5. Fraud and Theft:
According to NetSuite, “a typical organization loses 5% of its revenue to fraud each year, with a $125,000 median loss.” According to the findings of the Association of Certified Fraud Examiners (ACFE). Fraud, including phishing and other scams, is a major issue for everyone these days, but organizations that process payments and other critical business information insecurely and unsafely are more likely to be compromised.
6. Paying Invoices Before a Service or Product is Delivered:
It happens to even the strongest of us. We are so preoccupied with other daily tasks that we pay an invoice before the service or product has been completed. According to NetSuite, this lack of visibility can significantly burden organizations because it restricts cash flow and reduces liquidity.
7. Disappearing Invoices:
Raise your hand if you’ve attempted to solve the mystery of the missing invoice. When your office is dealing with piles of physical paperwork, invoices can easily (and literally) get lost in the shuffle, resulting in limited visibility, late or missing payments, and fees, as well as accounting issues. It also keeps your executive team in the dark about the company’s true financials.
8. Double Payment
The duplicate payment is the inverse of the disappearing invoice problem. Coding issues, missing and rediscovered invoices, and, once again, limited visibility can lead to team members making duplicate payments on goods or services, especially if multiple systems are in place that are not properly integrated.
How DHRP can fit:
As technology advances, you may be surprised to learn that many of the issues confronting today’s AP departments are not necessarily modern-day issues. However, cutting-edge, savvy technology is the key to eliminating old-school challenges and developing a strategy for your AP team’s future success.
DHRP has dynamics 365 business central ap automation that is constantly evolving to provide the functionality required to meet the needs of today’s businesses. Increasing ROI, effectiveness, visibility, and precision, solution experts are always on the lookout for trends to ensure that the features included with this cutting-edge document management system are exactly what end-users are looking for in order to perform daily tasks with greater efficiency and accuracy. Get in touch for more information about vendor invoice automation dynamics 365.
