Editing Accounts payable (section)

==Automation==
Many companies are involved in work to streamline or automate the business process of their accounts payable departments. This process is straightforward but can become very cumbersome, especially if the company has a very large number of invoices. This problem is compounded when invoices that require processing are on paper. This can lead to lost invoices, [[human error]] during data entry, and invoice duplicates. These and other problems lead to a high cost per invoice [[performance indicator|metric]]. The goal of automating the accounts payable department is to streamline this invoicing process, eliminate potential human error, and lower the cost per invoice.<ref name=pezza>The Aberdeen Group: Scott Pezza, w. j. (2010, October). The E-payables Solution Selection Report: A Buyer's Guide to Accounts Payable optimization, page 4. Retrieved from www.adp.com: {{cite web|url=http://www.adp.com/p2p/pdf/White_Papers/Aberdeen_ePayables_Solution.pdf |title=Archived copy |access-date=2013-06-14 |url-status=dead |archive-url=https://web.archive.org/web/20140123042107/http://www.adp.com/p2p/pdf/White_Papers/Aberdeen_ePayables_Solution.pdf |archive-date=2014-01-23 }}</ref>

Some of the most common AP automation solutions include [[e-invoicing]], scanning of documents, [[optical character recognition]], automation of workflow rules, online tracking, reporting capabilities, electronic invoice user interfaces, supplier networks, payment services and spend analytics for all invoices.<ref name=pezza /> Effective automation functions include freeform recognition (ability to interpret invoice documents regardless of layout or the need to create a supplier template) and automatic learning capabilities.<ref>Seeburger (2007), "Solutions for Automating Invoice Processing"</ref>

[[E-invoicing|Electronic Invoicing]] can be a very useful tool for the AP department. Electronic invoicing allows vendors to submit invoices over the internet and have those invoices automatically routed and processed. Because invoice arrival and presentation is almost immediate invoices are paid sooner; therefore, the amount of time and money it takes to process these invoices is greatly reduced. (Financial Operations Networks, 2008) These solutions usually involve a third-party company that provides and supports an application which allows a supplier to submit an electronic invoice to their customer for immediate routing, approval, and payment. These applications are tied to databases which archive transaction information between trading partners. (US Bank, Scott Hesse, 2010)  The invoices may be submitted in a number of ways, including [[Electronic Data Interchange|EDI]], [[Comma delimited|CSV]], or [[XML]] uploads, PDF files, or online invoice templates. Because E-invoicing includes so many different technologies and entry options, it is an umbrella category for any method by which an invoice is electronically presented to a customer for payment.<ref>tieto. (2009). The future of e-invoicing, Pg. 5. Retrieved from digitdoc: {{cite web|url=http://www.digitdoc.hu/downloads/e_invoicing.pdf |title=Archived copy |access-date=2013-06-17 |url-status=dead |archive-url=https://web.archive.org/web/20121021043042/http://www.digitdoc.hu/downloads/e_invoicing.pdf |archive-date=2012-10-21 }}</ref>

[[Enterprise resource planning]] systems typically use software to provide integrated business process management services to enterprises.<ref>{{Cite web|date=2021-10-22|title=A step-by-step scenario to AI-enabled Invoice Processing|url=https://www.nuaig.ai/a-step-by-step-scenario-to-ai-enabled-invoice-processing/|access-date=2021-11-25|website=NuAIg|language=en-US}}</ref>

===History===
Since the mid-1967s companies have begun to establish data links between their trading partners to transfer documents, such as invoices and purchase orders. Inspired by the idea of a paperless office and more reliable transfer of data, they developed the first [[Electronic data interchange|EDI]] systems. These systems were unique to the respective company that developed them, meaning they were difficult to deploy across a large number of corporations. Recognizing this, the [[Accredited Standards Committee|Accredited Standards Committee X12]]—a standards institution under the umbrella of ANSI—made preparations to standardize EDI processes. This resulted in what is known today as the [[ANSI ASC X12|ANSI X12 EDI]] standard.<ref>Hill, M. G. (n.d.). A brief history of Electronic Data Interchange, pg 6. Retrieved from BizTalk Server 2000: A beginner's Guide: http://books.mcgraw-hill.com/downloads/products/0072190116/0072190116_ch01.pdf {{Webarchive|url=https://web.archive.org/web/20140309014133/http://books.mcgraw-hill.com/downloads/products/0072190116/0072190116_ch01.pdf |date=2014-03-09 }}</ref>

This remained the main way to exchange transactional data between trading partners for nearly 3 decades. The 1990s came with advances in internet technology. Companies began to appear offering more robust user interface web applications with functions that catered to both supplier and customer. These new web-based applications allowed for online submission of individual invoices as well as EDI file uploads. Along with other methods of file uploads including CSV and XML. These services allow suppliers to present invoices to their customers for matching and approval via a user-friendly web application. Suppliers can also see a history of all the invoices they submitted to their customer without having direct access to the customers' systems. This is because all the transactional information is stored in the data centers of the third-party company that provides the invoicing web app. This proprietary information can be regulated by the customer in order to control how much transactional information the vendor is allowed to see. (For example, payment dates, or check information).<ref>GXS. (1997). A brief history. Retrieved from eInvoicing basics: http://www.einvoicingbasics.co.uk/what-is-e-invoicing/a-brief-history/</ref>

As companies advance into the digital era, more and more are switching to electronic invoicing services to automate their accounts payable departments to reduce errors and save costs.<ref>{{cite news | url=https://www.proactis.com/uk/resources/expert-articles/ap-automation-quick-returns-and-hard-savings/ | title=AP Automation: Quick returns and hard savings | work=Proactis | date=April 29, 2022}}</ref> According to a benchmark study conducted by the IOMA, 19% of organisations surveyed reported a duplicate payment rate of between 0.1% and 0.5%.<ref>{{cite news | url=https://www.proquest.com/docview/201313122?sourcetype=Trade%20Journals | title=Wetherby software firm Proactis returns to organic growth | work=Proquest | date=December 5, 2002}}</ref> Some even believe it to be an industry standard in the near future. According to a report done by the GXS team in 2013, Europe is adopting government legislation encouraging businesses to adopt electronic invoicing practices. The United States has no such legislation yet but does recognize the value of this technology. The US Treasury estimated that implementing e-invoicing across the entire federal government would reduce cost by 50% and save $450 million annually.<ref>Bruno Koch, G. (2013, April). E-Invoicing/ E-Billing. Retrieved from GSX: http://www.gxs.co.uk/wp-content/uploads/billentis-2013-report.pdf</ref>

With the increasing availability of robotic solutions, businesses are driving process improvement in AP even further. By applying end-to-end [[Robotic Process Automation|robotic process automation]] or RPA to their accounts payable department, organizations can accelerate invoice processing speed and accuracy while improving operational costs.<ref>{{Cite web|url=http://www.wns.com/insights/articles/articledetail?315=robotic-process-automation-in-accounts-payable-%25E2%2580%2593-tomorrow-is-today|title=Article : Robotic Process Automation in Accounts Payable – Tomorrow is Today|website=wns.com|access-date=2016-07-29}}</ref> Some organizations report that by implementing RPA they have managed to almost eliminate human intervention from the AP process, thus saving 65% to 75% of the time that was previously had spent on manual processing.<ref>{{Cite web|date=2016-04-13|title=KPMG Strategic Visions On The Sourcing Market 2016|url=http://www.slideshare.net/UiPath/kpmg-strategic-visions-on-the-sourcing-market-2016/}}</ref>