In the past, Accounts Payable (AP) and Accounts Receivable (AR) were rarely spoken about in the same breath. This is changing because automation is making it easier to implement processes across both departments. Particular job functions are blurring and reporting lines are disappearing.
This convergence is occurring because the technology is available that provides one software solution via the cloud to automate both the AP and AR processes. Labor intensive billing and payable processes are being replaced with electronic transactions that occur instantly when an invoice is generated. An AR invoice is delivered to the buyer’s AP system without human interaction. The buyer’s AP process begins instantly as a result of the use of technology. The technology auto codes GL, automates line item matches to a purchase order, moves the invoice through the approval chain using electronic work flow, and moves the invoice to the payment process. Payments can be released by established business rules or a person and be made electronically via ACH or virtual card.
The technology provides automation of straight-through processing of electronic transactions between buyer and seller to optimize working capital. The technology also provides real-time dispute management, automated cash application, dynamic discounting and dynamic 3rd party financing for the PO and AR process to improve working capital positions.
An example of the technology consisting of cloud based software platform for AR and AP is shown in a one minute animated video at Centreviews.com/video-landing-page.