How to Automate Supplier Invoices
Automating supplier invoices is possible through EDI technology (Electronic Data Interchange). The automation of the management of received invoices is one of the most beneficial for a company as it saves time, costs, and eliminates errors caused by manual data entry.
Automation and digitalization are key for companies with a high commercial transaction volume. EDICOM is an EDI and integration solution specialist that enables the integration of various workflows and partners that interact in a company’s ecosystem.
How Do We Integrate Supplier Invoices?
Companies can automate the integration of information from supplier invoices to their ERP through Integrated EDI solutions With Integrated EDI every time a user receives a transaction like an invoice from a supplier it will be automatically integrated into their system.
One of the main advantages of this solution is its scalability. EDI solutions can easily be scaled to not only include supplier invoices, but many other documents, data, and messages with any public or private partner.
How are supplier invoices automated with integrated EDI? EDICOM’s global e-invoicing platform receives invoices from different suppliers with EDI solutions. Conduct an e-invoicing pre-validation according to the legal and technical specifications of the country where the receiving company operates.
Received electronic invoices are mapped to a data structure that your ERP or accounts payable system can integrate automatically.
Integrated EDI solutions are provided in SaaS mode. This way users can access their hired EDI applications through the internet. The software is not physically installed in the client’s servers, applications and user data are stored in an external server.
EDICOM’s service is housed in a private cloud developed and managed by EDICOM, which manages all the applications and management resources necessary to guarantee an uninterrupted exchange of all your EDI transactions.
The main advantages of integrated EDI are:
- Automation: automatic issuance and reception of EDI documents from the ERP the platform sets up connections with the ERP, CRM, and all the management applications that participate in the electronic data interchange with clients.
- Cost savings: thanks to the reduction or elimination of errors, the reduction of response times, and better planning that enables efficient stock management and optimization of management processes that all departments can benefit from.
EDICOM offers the Supplier Portal Service for the automatic integration of received invoices. The web EDI solution integrates with client’s management systems to automatically send purchase orders to suppliers and receive invoices in electronic format. Suppliers will then be able to generate invoices directly from the received purchase order.
The advantages of this system are:
- Simplifies the issuance of electronic invoices since suppliers can generate them from the data in the purchase orders.
- Simplifies the cross-reference of the invoice with the purchase order enabling the automatic integration into the account payable application.
EDICOM’s supplier portal is a service that enables the companies to integrate 100% of their suppliers, whether they have EDI solutions or not. This service is very interesting because the company can continue to reap the benefits of EDI without having to deny service to small companies that do not have their EDI solutions.
How does it work? The EDI Web Portal solution identifies suppliers that do not have an EDI solution and automatically publish purchase orders in the portal, which then informs suppliers that there is an order in the web portal. The system provides traceability of purchase orders which enables constant status updates when processing orders. Once the order has been processed, the supplier enters the EDI portal, and from the purchase order proceeds to issue the invoice using webforms.
The EDI Web Portal is completely safe. The entire communication flow and integration processes are conducted using private electronic data interchange networks like EDICOMNet and secure protocols adapted to the nature of EDI transactions.
Complete Purchase to Pay Flow
The automation of invoice reception through the supplier portal is a part of this solution which can process the entire B2B purchasing cycle from the moment an order has been created in a client’s management system.
Clients can also implement other messages to inform their clients about stock information through INVRPT or X12 846 and reception confirmations when the merchandise has arrived at its destination through RECADV or X12 861 messages.
In the same way, suppliers can send messages like the DESADV or X12 856 to inform clients that merchandise is being shipped from a warehouse, or the PRICAT or X12 832 with merchandise information like pricing and other details.
EDICOM’s Supplier Portal adapts to any sector (health, logistics, retail, automotive, etc.). An important part of this solution enables clients to catalog different suppliers based on their characteristics and their document flow, adapted to the relationship with the buyer.
With EDICOM’s Suppler Portal companies will benefit in the following ways:
- The issuance of orders is conducted in real-time reducing response times by suppliers.
- Automation of procure-to-pay processes from the purchase order to the payment of suppliers.
- Personalized flows thanks to the solution’s scalability which enables the rapid implementation of new messages like reception advice messages or dispatch advice messages.
- Control and traceability of delivery through statuses of orders sent by suppliers.
- Better management and cost reduction through the automation of processes leading to faster, error-free, and more efficient purchasing processes.
- Supplier integration. The supplier portal enables the complete integration of suppliers even if they don’t have an EDI solution.
The supplier portal is part of a global solution to integrate a company’s trading partners. EDICOM has also developed a client portal that facilitates the integration of B2B clients without an EDI solution, as well as B2C clients. The solution established unidirectional flows for the delivery of key transactions like invoices, purchase orders, and other documents.
Why automate the receipt of supplier invoices?
Here we tell you how Unilever's accounts payable management has become a success story that can make a difference in your company. Download our Business Case and discover how to optimize your supplier invoice management.