An invoice goes through several stages from receipt to archiving or payment. In the past, this was a time-consuming process that largely consisted of manual handling. In this article, we explore the invoice lifecycle today from import to the ERP system for accounting and payment.
Today, invoices are automatically generated, distributed electronically, and processed with digital approval. Payments are electronic, follow-up is automated, and invoices are stored digitally for easy access. Efficient invoice management is critical to the financial operations of businesses today.
We explore the invoice lifecycle in an ERP system, from receipt to export, and how automation can streamline the process.
Receipt/Import
The lifecycle starts with receiving or importing invoices in various formats such as EHF, PDF or traditional paper. Digital invoices can be imported directly, while paper invoices need to be scanned and digitized to become part of the digital workflow.
Registration and validation
The next step is registration and validation. Systems like Compello use OCR technology or EHF standards to read and interpret the invoice information. Key elements such as supplier information, amounts and references are checked for accuracy.
Categorization and allocation
After registration, invoices are categorized by cost type or project and assigned to the right person or department for approval. This ensures that the right team reviews the invoice in line with internal procedures.
Approval flow
The approval process follows a predefined workflow where responsible parties review and approve the invoice. Discrepancies, such as price differences or missing references, are handled at this stage.
Invoice approval is now more efficient with automatic sending via web or app. Approvers receive email alerts and reminders can be set up for better workflow. Substitutes can take over in case of absence, parallel approval allows for simultaneous approval, and serial approval prioritizes vouchers. Alerts keep you up to date, amount limits can be set and user levels customize rights for each user.
Matching process
To ensure accuracy, invoices are automatically matched against purchase orders (PO matching). This confirms that goods or services received match the contents of the invoice, which is crucial for correct processing.
Security checks and audit trails
Compliance is central to invoice processing, with requirements for internal and external regulation, including VAT specifications. All activities are documented in a complete audit trail for future evaluations.
Posting and export
Once an invoice is approved, it is booked in the financial system and exported to the ERP system for further processing, such as payments and accounting. This ensures that all financial aspects are handled centrally.
Archive
Finally, the invoices are archived digitally in line with statutory requirements, providing easy access for future audits or requests.
Benefits of automation
Automated systems like Compello reduce manual tasks, minimize errors and provide a real-time overview of the invoice status. This increases efficiency, ensures correct processing and enables businesses to operate smoothly in an increasingly competitive market.
With an understanding of the invoice lifecycle and the benefits of automation, businesses can significantly improve their financial management and gain better control over financial processes.
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