How To Measure AP Performance

Data is one of the driving forces in the success and efficiency of businesses today. When it comes to your company’s accounts payable (AP) performance, data measuring and tracking are key components to your overall productivity and financial growth.

In the digital age, more and more businesses are moving to paperless processes and technology software that tracks key performance indicators (KPIs). By measuring your AP performance with these KPIs, your business can speed up processes, cut down on losses, and improve efficiency.

Why Measure AP Performance?

If you’re asking why your company should measure your AP performance the answer is simple: if you can measure it then you can improve it.

Today’s world is all about improving and increasing efficiency. Your company may be losing valuable time, money, and resources by failing to accurately track and measure your AP performance.

The future of accounts payable is AP automation for this exact reason. AP automation removes the object of human error that comes with manual invoice processing and offers the luxury of tracking and measuring KPIs that will benefit your business.

Measuring your AP performance is the first step in increasing efficiency and smoothing the daily processes of your company, but what KPI should you be tracking? 

These four KPIs will help you analyze and evaluate your AP department’s efficiency so you can adjust and improve.

Average Number of Invoices

To measure other AP KPIs you must first begin by tracking the number of invoices received in a given time period. The time period may vary depending on the size of your company and the volume of invoices that run through your AP department.

If you see a significant number of invoices per day then it may be best to measure per day but you can also measure by week, month, or year depending on the sheer volume of invoices that your company sees and your AP efficiency goals. Once you determine your time value of measurement, you can use that daily or annual invoice volume to track the number of invoices received in relation to the number of invoices processed. 

Average Invoice Processing Time

The average invoice processing time is a metric that should always be tracked when it comes to AP. Especially if your company is still manually processing invoices with an AP team, the invoice cycle times are a KPI that should be put at priority.

If your average invoice processing time is longer than 14 business days, then your team may need to reevaluate the speed of your approval steps and productivity rates. Once you measure the average time it takes to process an invoice, you can identify potential bottlenecks in the process.

Your company’s invoice processing time may be slowed when key employees that are required in the approval process are out of the office. AP automation fixes the approval process with tools like on-the-go invoice approval features through mobile access that significantly speeds up the processing time to only two to three days.

The payable department may also be slowed down with mere manual data entry that may be taking longer than expected. Once you measure the average time it takes to process an invoice, management can reassess department productivity and evaluate if an AP automation software will be the remedy to increase timely payments.

Average Invoice Processing Time versus Average Invoices Received

Remember that time measurement that we talked about early? Take that period of time that you chose for your company (per day, per month, etc) and compare the number of invoices processed in that time period to the number of invoices received.

By tracking this KPI, you can accurately measure your AP efficiency. You should be aiming to process as many invoices as the volume that you receive within that month. If your company’s number of invoices processed in the given period is significantly lower than the number of invoices received, then it’s time to re-evaluate.

Look for areas to increase the speed of your invoicing process and then track your AP processing performance over time to see which process efficiency practices are working.

Average Cost per Invoice

The average cost per invoice is a crucial KPI to track and measure when it comes to APs. Many companies are shocked to see just how much they are losing in profit margins when they evaluate cost metrics.

APs can have significant hidden costs due to operational costs like staff salaries, managerial overhead, software costs, printing fees, and hardware expenses. Organizations may be paying anywhere from $15 to $40 per invoice, but with the simple technology implementation of AP automation, costs per invoice can be reduced to only $2. 

Beyond just operating costs, human error in the manual entry may lead to bad payments, duplicate payments, late payment penalties, and unclaimed discounts that add up. Within the broader KPI of average cost per invoice, you can increase your efficiency metric measures by tracking specific costs like the average number of wrong payments and the volume of discounts missed.

By specifying these areas of costs, you can improve AP efficiency tracking and narrow down the problem areas that need improvement. For example, if the percentage of invoice costs is the highest in the category of duplicate payments, then you should reevaluate how you review new invoices in comparison to those that were already paid.

Once you measure your company’s average cost per invoice, you can implement strategic tasks to reduce losses or consider adopting AP automation software. Cost savings is one of the most common reasons companies automate B2B payments.

The software can also track these KPIs for you so that all you are left to do is analyze the data and do some organizational restructuring according to the areas that need improvement. Electronic invoices through AP automation software also increase the accuracy of invoices and prevent erroneous payments by scanning the document to ensure that it isn’t a duplicate invoice. 

AP automation delivers speedy and accurate payments by trimming down the slow manual steps in physical review tasks that human processing relies on. Advancements in technology have simply accelerated our business processes and it’s time to take advantage of it.

To accurately measure your company’s APs, speed up your invoice processing cycles, and reduce invoice costs, check out our AP Automation Software and Contact Us today to get started.

How AP Automation Fixes the Invoice Approval Process

Paying for services/products after they have been delivered allows businesses to save large amounts of money while establishing trust between vendors. Not paying accounts on time results in bad credit for the business, while early payment often results in good credit and percentage discounts on future orders. This places a tremendous amount of responsibility on the accounts payable division.

The accounts payable process can be a relatively simple, straightforward process, but unfortunately, there are many common mistakes and complications that take place along the way. Human error, high processing costs, long invoice processing time, lack of visibility into accounts payable or cash flow, and regulatory compliance issues are some of the biggest problems facing manual AP processing. This article will first explain the manual AP process and then explain how AP digital transformation can help fix all of the aforementioned issues. 

Manual Processes

The AP process can be broken down into four distinct steps: 

  1. Receive Invoice


    Once the product is delivered or the service is finished, an invoice is produced which details the specifics of the product or service, as well as an itemized breakdown of the costs and charges. The invoice is either hand delivered by a representative of the vendor, mailed, or a pdf is sent via email. The information is then entered manually into the computer or ledger by a clerk or receptionist.

    The risk for error here is obvious. The employee could enter the wrong information, not enter it in a timely manner, or forget to enter the invoice altogether. All simple mistakes that could be easily fixed by AP automation.

  2. Copy and File Invoice

    With paper documents, the invoice is copied and filed into whatever filing system your company uses. With electronic invoices,  the invoice is scanned and filed away into the computer. This is done as a type of backup system to ensure that any future issues or discrepancies can be dealt with.

    The problem is that this still requires attention to detail as well as storage space on your hardware system or physical storage space in your business in the way of metal filing cabinets. The majority of business is done electronically so having a paper filing system is very outdated.

  3. Invoice Approval Process

    Invoice approval is a responsibility only given to a very small number of employees – usually only one or two. Paper-based companies have the receptionist or clerk hand deliver the invoice to whoever is approved to sign it. If that person is not in the office, then the invoice is left in a mailbox or on their desk. It is not uncommon for the invoice to get lost along the way, delivered to the wrong person, or simply forgotten by the recipient. If electronic, the invoice is sent to the signer to approve and send back. The emails are sometimes lost, ignored, accidentally deleted, or forgotten.

    When these simple errors occur, payment is not given to the vendor on time, resulting in late payment fees, penalties, bad credit, and damaged buyer-vender relationships. Ultimately, financial loss is the final result.

  4. Invoice Management and Payment


    After the correct person approves the invoice, it then has to be paid to the vendor. Unfortunately, the employee who approves the invoice is not typically the same person who pays it. This is done by a different person such as a corporate officer or accounting department.

    As mentioned before, this additional step takes time and effort, further opening the door for potential mistakes and human error. Paper gets lost or filed incorrectly, and emails get ignored or deleted mistakenly. 

As we can see in the steps outlined above, manual AP involves three separate departments with three different employees to ensure that an account is paid correctly and on time. In today’s world of digital technology, this lengthy and error-prone process should be obsolete.

Read more about IT Automation Trends in 2021

AP Invoice Automation

AP automation software gives you a single platform from which to handle all steps of the AP process from receiving to payment and everything in between. The software is designed to detect any mistakes, and vendor information is stored for future use. Furthermore, the purchase order is digitally matched to the invoice to detect any mistakes in the same way a human would, only the software will not make any simple clerical errors. The program will then send the payment to the correct, designated person for approval. There are no emails to verify and no paper slips waiting in the mailbox. Everything is all done in one centralized location which maximizes efficiency, time, and money.

The system can also prevent overpayment by using digital purchase orders that match the payment to the invoice, ultimately saving time and money. An accidental overpayment can take weeks, sometimes months to rectify, if it is even noticed at all. Businesses lose thousands of dollars without even realizing it through overpayment of invoices.

A few other benefits of AP automation include increased credit score, reduced financial fraud, and improved vendor relationships. By paying invoices on-time, sometimes even early, your business’ credit score will increase, thus opening the business up to future discounts as well as extended payment time. Not only that, but the relationship with the vendor will strengthen as they learn they can trust your business to deliver payment in a timely manner on a consistent basis. 

Fraud occurs through false billing, bad checks, overpayment, and wrongful data entry. AP automation corrects these mistakes by adhering to budgets set by administrators and automatically approving invoices without the need for a manual signature. The system also leaves an electronic audit record for accounting teams to utilize as well as future auditors, should the need arise. 

Digital Transformation Consulting

Perhaps the greatest benefit of all regarding AP transformation is increased profitability! When the AP process is handled through automation software, bills are paid on time and you ultimately take advantage of improved credit discounts, as well as early payment incentives. You also avoid late payment charges and canceled orders. AP automation also requires fewer workers and offers time savings as the software system itself replaces many roles traditionally held by lower-level employees, thus saving money on payroll. 

Are you interested in learning more? Contact us today to get the AP automation process started!

The Future of Accounts Payable

Evolving your company and keeping up with the constant rollout of new technologies and new ways to handle traditional tasks can help streamline your operations while helping you focus on the core of your business.

More and more organizations are adopting paperless solutions every year because the value of having electronically organized information at the ready, anywhere you are, is a convenience and time-saver that can’t be ignored.

One of these solutions is Accounts Payable Automation. Even if your business has been running like a well-oiled machine when it comes to having your finance operations covered, it only takes a day for a situation to arise where a wrench is thrown into your cogs to throw things off and the prior way of doing things suddenly becomes more of a hurdle.

Today we will be discussing the benefits of Accounts Payable Automation and why it is worth taking a deeper look into this evolved payment solution. If you would like to stick around, we would appreciate your time and take a deeper look into this ever-growing method of managing your finances.

AP Trends and Changes

These days, we have a host of software and services available that simply were not there 15 years ago, and this is important because it means businesses have the luxury of deciding how they can streamline and make their operations more efficient. And with remote work being so common for obvious reasons in recent history, these services are more important than ever.

AP (Accounts Payable) Automation has been one of these solutions and has been constantly evolving and helping businesses manage their finances while being the most accessible it has ever been.

Because of this, it is making it more viable for organizations to look into their future and decide how they want to improve their financial operations.

Improving Back-office Operations

While customer-focused processes are often prioritized, back-office operations have been better supported as the years gone by. The truth is that more businesses are starting up and are relying on the help of software that can assist them towards a successful future.

However, even if you run an established business, you can still highly benefit from looking into AP automation.

Is AP Automation Right for Your Organization?

There are certain patterns and cues that can tell if your business is right for AP Automation. While choosing to forgo AP Automation may not be a do-or-die situation, it can take a burden off of your organization if there are things that indicate that there would be benefits to looking into new accounts payable trends and reevaluating the situation.

Change can seem difficult when you’ve been running things “well enough” for a long time, suddenly making such a major switch overnight may be daunting, but eventually, some things can be highly beneficial in the long run.

If you are processing 500 or more invoices in a month, and have more than 2 full-time AP clerks, AP Automation is certainly worth consideration. It will save you time and money by streamlining the entire process of manually pouring over payment information. Additionally, if you are outsourcing your AP or processing your invoices in multiple locations, you can also highly benefit from AP Automation.

Lastly, if you find yourself struggling with late payments, have data entry errors, and missing out on early payment benefits, then AP Automation is a viable solution for your organization and is worth your consideration.

Think of it as having one person filling 100 buckets of water vs an automated machine doing it in one fell swoop. Automation in general has become a core part of society to make things more efficient overall.

Overall, this is a topic that can be healthy to have a sit down discussion with your team regarding the future of your organization.

Making the Switch: Integrating Cloud-Based AP Automation

African American man in suit with face mask on

The coronavirus pandemic has presented unique workforce challenges in industries ranging from supply chain to fast food. In its wake, an increased necessity for secure, cloud-based document systems has also become evident. It is especially true of accounts payable departments who work remotely to ensure their team is safe while assuring the company’s creditors and suppliers get compensated on time.

Transitioning your company’s financial records from their locked file cabinets to electronic files can be quite the task, but your team does not have to do it alone. A systems integrator, like the paperless guys at Mosaic, can help put your AP documents at your fingertips with accuracy and transparency. But how do you objectively determine the best integration resource for your project? As with choosing any vendor, we recommend completing a full vendor analysis.

Understanding Your Scope of Work

To begin your search for the most appropriate integrator, you are encouraged to first be clear on your scope of automation. Know what you want to accomplish, when you need it taken care of, and how the integration will affect your teams. It’s also not a bad idea to reference your standard operating practices when unraveling your project’s scope. 

Be sure to outline your payable processes in steps as well as your accounting department’s invoice management and approval processes. Also, include any known pain-points to be addressed during this integration.

Let’s consider this the discovery process, during which you may also seek to develop a project timeline that could be adjusted in real-time. Accounting for system upgrades and human error will afford you additional time to implement the automation software you choose. Taking adequate time to define the scope of work and implementation process expectation before vendor selection could help eliminate costly mistakes later in the process.

Software automation process spelled out on wooden blocks

Selecting an Integrator

Getting the most out of your accounts payable automation software solution is critical to your company’s bottom line. Selecting the integrator who best fits your needs will help provide the framework to improve your organization’s expense-to-revenue. Once you’ve identified the scope of your integration process, research your vendor’s entire organization. Peruse their website for positive results. Pay close attention to customer success stories. Do not hesitate to reach out to other customers about the potential vendor’s professional services. To inquire about an integrator’s business and viability, our recommended questions include, but are not limited to the following:

  • How long have you been in business?
  • Do you have licensed engineers on staff?
  • What is your process for hiring and equipping new engineers as veteran engineers retire?
  • How will the integrator learn your business?

Deciphering the AP Automation Process

“Accounts Payable automation (AP Automation) refers to the technology used to streamline and automate accounts payable processes, removing manual tasks, and providing better visibility and control over important financial data.”

The Institute of Financial Management reports that 73 percent of organizations used AP automated software in 2020. Whether you use Microsoft Dynamics, Sage, Infor, Syspro, SAP, or any other ERP system, a viable accounts payable automation software should make it easier to retrieve data for reporting, reviewing invoices and purchase orders, and immediately knowing your company’s cash flow. AP automation tools synergistically improve invoice processing and the overall workflow of the accounts payable department.

Incorporating AP automation software is an ideal solution for circumventing common issues with manual accounts payable processes. Now’s the perfect time to switch if your company:

  • Processes 500 or more invoices per month.
  • Has more than 2 full-time AP clerks
  • Outsources your AP
  • Has too many late payment penalties
  • Misses early payment discounts

Take a look at our recent blog posts for more on the benefits of AP automation.

Stacks of paper in filing folders

Mosaic Can Help with Integration

Our accounts payable tools can help free up your team, and a path for you to continue growing your business. Together, we can facilitate business optimizations that yield results your entire company will feel. Our DocStar solution integrates with accounting software to: 

  • Stimulate productivity through intelligent automated capture of invoice data
  • Capture early payment discounts
  • Automate your company’s AP approval process
  • Reduce accounts payable processing labor costs
  • Securely store electronic versions of your company’s financial documents

Why You Should Tour our DocStar Tools

Give your accounting department a break! Decide to automate your AP solutions and allow your accounting systems to do the heavy lifting. Your team’s day-to-day objectives will shift, giving way to the capacity for more revenue-generating activities that your current process may not have room for. 

Accounts payable automation solutions with paperless invoice processing are critical in transforming your AP Department. Take a tour of our DocStar automation software to see how the integration of our software can make your team and stakeholders happy.

Start your journey to AP automation with us today.

AP Automation Explained

Accounts Payable is a crucial arm of any successful organization. Managing outgoing expenses and vendor and supplier partnerships is not an easy task, and without an effective process in place things can slip through the cracks.

The way the industry is moving, it’s no longer a question of if your organization will automate, it’s a question of when and how. To further understand the necessity of automating accounts payable, we’ll look at the technical definition, specific use cases, and how you can implement AP automation.

Defining AP Automation

In technical terms, Accounts Payable automation (AP Automation) refers to the technology used to streamline and automate accounts payable processes, removing manual tasks and providing better visibility and control over important financial data.

AP Automation isn’t just a piece of software you install on your computer, it’s a set of connected tools that work as one unified solution to simplify your organization’s processes.

These tools can include:

Using manual methods, the average invoice takes two weeks to process and requires approval from two to five people before it is fully processed. If your organization is processing hundreds of invoices monthly, relying on manual payment processing is simply inefficient. In a study on AP automation by the Ardent Group, best in class companies process invoices in less than 4 days while others can take over 13 days to process them.

By implementing AP Automation, your organization can:

  • Decrease invoice processing costs
  • Decrease invoice processing time
  • Capture more early payment discounts
  • Avoid late payment penalties and interest
  • Improve visibility over cash flow and liabilities

Cost-Driven Reasons to Automate AP

Manually processing an invoice tends to vary in cost. Some organizations with relatively streamlined processes may pay as low as $15 per invoice, while others may pay upwards of $40 per invoice. This accounts for labor, software systems, outsourcing, overhead costs, and other miscellaneous expenses. Unfortunately with manual processing comes human error. With each error made, your organization is faced with overpayments, duplicate payments, unused credit notes, and unclaimed discounts which ultimately drives costs up as well. Just a few mistakes over time can quickly cost your organization thousands of dollars.

With automation, the cost can be reduced to as low as $2 per invoice. AP Automation moves invoices along quicker than employees, and it eliminates the error associated with manual data entry (or any mishaps that may happen in the office). It’s more efficient, which means it works quicker, which means it can save both resources and money over time. The more efficient the system, the greater the cost savings.

How do I know if I should implement AP Automation?

Every organization is different in terms of need, ability, timeline, and budget to automate their current processes. Having executed hundreds of AP Automation projects, we’ve noticed patterns among our most successful deployments. If the following problems apply to your organization, you’re a perfect candidate for AP automation:

  • Process 500 or more invoices per month.
  • More than 2 full-time AP clerks
  • You are outsourcing your AP
  • Too many late payment penalties
  • Missing early payment discounts
  • Invoices processed in more than one location.
  • Manual data entry errors
  • Misplaced invoices and other documents take up to much time
  • There is a lack of visibility of cash flow

More often than not, some organizations that need a solution the most don’t realize it. Their current state of managing their processes is “good enough” so they’re resistant to change.

Why Implement AP Automation:

Beyond the clear cost incentives, AP Automation is a solution you can easily implement now to help your organization succeed long term.

  • Reduce the time required to process invoices
  • Eliminate the manual processes associated with routing, approving, and GL coding invoices
  • Process invoices faster and more accurately reducing payment errors
  • Reduced paper and improved operational efficiency
  • Better data visibility
  • Means real-time access across your organization
  • Streamline vendor invoice processing and manage discounts to improve cash flow
  • Ensure record retention compliance and keep documents safe and secure
  • Say goodbye to filing cabinets
  • Saves headaches come audit time – have peace of mind that you will find documents you need

How to implement it

As previously mentioned, AP Automation isn’t software you can simply download and install. There are many moving parts to an effective system, but by working with a partner that can design a solution that fits your exact needs, moving to a fully automated process becomes so much simpler.

Mosaic has vast experience in implementing smart automation solutions, and we constantly evolve to offer innovative solutions to transform our clients’ business processes.

Give us a call at 1-800-387-7859 to discuss your current AP process and learn how we can help transform your business. 

The Future of Accounts Payable

Focusing on the future of your business is always important, especially during times of change or uncertainty. When you’re faced with circumstances you can’t control, you should focus on things that you can. Evaluating your current processes and determining if they’ll be sustainable long-term is one of the best things you can focus on at any time, but especially right now. One process that is often overlooked due to misconceived notions that it’s working “well enough,” is Accounts Payable. After all, it can be a department where it’s difficult to see problems until they’re too big to handle. If your invoices are usually paid on time and you haven’t had any major problems, then seeing the value of investing in a solution to automate your current process may require a deeper look. 

Understanding what the future of accounts payable looks like as a whole can help influence your decision to focus on accounts payable within your organization right now. We’ll walk through some insights and trends that are guiding the future of accounting, and share how we can help implement this investment.

Mosaic’s partner, DocStar partly sponsored a report from Levvel Research reviewing insights from 2019 and predicting what the future of accounts payable might look like. 

What they found

Solutions are becoming more accessible.

The market looks much different now than it has in the past. With more and more software options available, businesses of all sizes and industries now have access to the same resources that were previously only available to enterprise accounts. The solutions on the market today are more widely available, more cost-effective, and more flexible. Businesses can choose what they want their deployment model to look like and can customize it to be on-premise or in the cloud. 

Back-office operations are being better supported.

Customer-facing processes typically are the focus for most technology initiatives, which can benefit an organization’s overall success but doesn’t solve key issues. Companies are recognizing that investing in technology for back-office operations can benefit financial and operational health just as much as targeting customer-facing initiatives. These processes in the past were typically put on the back burner to focus on front-facing efforts, under the guise that back-office processes didn’t have as much of an impact. For many of those processes, specifically Accounts Payable, their success carries much of the organization’s success. Businesses are realizing this, and are investing accordingly to focus on their company’s overall wellbeing vs. simply looking good on the surface.  

Scalability is key.

Simple, single-point solutions are no longer effective for businesses in today’s environment. Businesses are seeking out solutions that can scale and transform entire departments rather than a single pain point. Automation within Accounts Payable can be utilized to enable scalable growth. This creates a competitive advantage and can help companies leverage their AP Automation investment across different areas of their business, including Human Resources and sales, further helping organizations gain a competitive advantage and succeed long term.

How to tell if AP Automation is right for your organization

While there’s no checklist of the exact qualifications a good AP Automation candidate has, there are patterns among organizations that indicate whether or not they can benefit from an AP overhaul. More often than not, organizations that need a solution the most don’t realize it. Their current state of managing their processes is “good enough” so they’re resistant to change, but they don’t realize how many small issues are adding up to create a much larger problem. 

Some key indicators include processing 500 or more invoices per month with more than 2 full-time AP clerks, or if you’re outsourcing your AP or are processing invoices in more than one location. If your organization is finding itself saddled with late payment penalties and are missing out on early payment discounts, have manual data entry errors, misplaced invoices and other documents, and a lack of visibility of your cash flow, that’s also a crucial indicator of your organization’s need.

Even if you don’t hit all of the checkmarks, your organization may still be a good candidate for AP Automation. Making the decision to transform your current process isn’t one that should be made lightly, but it is also one that comes with little risk and high reward. By working with a partner who has seen projects of all types be successfully deployed, you can feel even more confident in your decision.

How Mosaic can help

We’ve deployed a wide range of AP Automation projects, and understand the individual needs of organizations and departments. We can work with you to assess your needs and determine the process that will work best for you. Give us a call at 1-800-387-7859 to discuss your current process and how our solutions can simplify it. 

How to Automate Purchase Requisitions

At some point or another, an organization needs to purchase products, services, or other items for their business. Some of these are recurring purchases like stationary or cleaning supplies, but what about other necessary purchases that are less frequent? Successful organizations need to manage these purchases in a way that ensures funds are being responsibly spent and are being tracked. The most common and effective way to do this is through purchase requisitions. We’ll cover what a purchase requisition is, how they work, and how Mosaic can help your organization automate this process to be even more effective for your organization’s needs.

What is a Purchase Requisition? 

Purchase requisitions are a key document in the accounting process for many organizations. Unlike a purchase order, which is the document used to acquire goods or services, a purchase requisition is a document that employees utilize to request the purchase of goods or services, essentially it’s the step required before the purchase order. 

How do purchase requisitions work?

Traditionally, a purchase requisition starts with an employee wanting to purchase something, whether it’s a physical item, digital software, training, or a service, in most organizations, employees need to get internal approval from their manager, department head, leadership, or accounting. Some organizations require a purchase requisition for every form, others have a set dollar threshold, and others only require it for specific departments.

For some organizations, this may be a physical form that employees need to fill out and drop off to those who need to approve it, for others, there may be no real process beyond employees emailing their request, which makes it impossible to track and difficult to approve. 

Typically the information needed to complete this request includes, Product description and quantity, name of vendor, price, name and department of purchaser, and other company or department specific information. 

Purchase requisitions are important to plan for future spending, avoid mistakes or unpaid invoices, and can simplify the procurement process. 

To better understand the importance of this process, consider this:

An employee in one department at an organization realizes that they are running low on a specific item that they use daily, so they simply go ahead and purchase it using their company credit card. A few days later, before the shipment has arrived, an employee in a different department realizes the same item is running low, so they do the same thing and purchase the item, in the same quantity, to be used for the same purpose. Without either of them realizing it, that item has been double purchased and now the company is paying double what they should have. Now in this scenario it’s not the end of the world, but if this scenario happens frequently, it leads to overspending and a surplus of items. 

How the Purchase Requisitions process can be automated

To avoid the situation described above, it’s important to establish a clear and easy-to-use process for employees to utilize for future purchases. Just using a standard form isn’t enough to create an efficient and effective process, but with web forms and document management, you can easily create a process that works for your organization’s needs. 

By building your purchase requisition form as a web form, employees can access it from anywhere at any time. You can create the fields to match the requirements, and can even include fields such as department, e-signatures, and others that pertain to your existing accounting process. 

It’s important to utilize a holistic approach with purchase requisitions in this process rather than simply using a form and completing the rest of the tasks manually. If a form gets sent via email to a manager who needs to approve it, they may not see it, or may not properly notify the employee of the approval.  

AP specialist then needs to manually enter it into their ERP system, which is prone to mistakes from misreading the form, accidentally clicking the wrong keys, or other human error. Once the information is gathered from the form, where does it go? Does it get printed and filed away? Does it go into a shared folder that isn’t searchable or secure? While creating a web form solves one problem, it leaves others unanswered, but automation can change all that. 

With a complete automation suite, things can be streamlined even further. Once a web form is created and is completed by an employee, it can get automatically sent to their manager, who can quickly approve it and notify the employee of the approval. That form can then get automatically pushed to your ERP, where your accounting department can then properly plan for the costs, and also get filed into your document management system, which will establish a record of spending history with that employee. 

This process is simple and secure, and can save your employees time, money, and resources. 

Mosaic has experience in creating custom automation solutions for purchase requisitions for organizations of all sizes and across industries. Give us a call at 1-800-387-7859 to discuss your options.  

Understanding Procure to Payment Automation

One of the most common problem areas for organizations is Accounts Payable. Typically this part of the organization relies on outdated processes, antiquated technology, and overall operates nowhere near as efficiently as it should. Because of this, you may end up with late payments, frustrated vendors, and burnt-out employees. Automating Accounts Payable is a crucial step in creating a completely automated organization.

When looking to improve your organization’s Accounts Payable processes, a good place to start is within the Procure to Pay (P2P) process. Some common pain points within your process may be that it differs across departments, the technology you use is inadequate, there’s too much paper in the process, and that you are using several disjointed systems.

Almost half of organizations don’t have centralized procurement, which alone can cause a completely inefficient process cross-departmentally. By not having a simplified, standardized procurement process, you risk late payments and hiccups within your process. In fact, 25% of organizations don’t even have a formal process for managing and monitoring budgets, which if left unaddressed, can be detrimental to an organization.

What does a typical P2P process look like?

  1. Create requisitions
  2. Approve requisitions
  3. Create a purchase order
  4. Approve purchase order
  5. Accept or reject receipt
  6. Evaluate supplier
  7. Approve invoice
  8. Pay vendor

 

Typically each of these steps are done manually. You have someone create the requisitions, someone else to approve them, someone who creates the PO, someone who approves it, and each step is passing paper back and forth between employees and departments until you reach the final step. The biggest issue is that there is a large margin for error within each of these steps. Maintaining consistent communication throughout the process can be difficult, and may lead to problems.

How can you automate each of these steps? It may be assumed that you would need to implement a separate solution for each part of the process, but a holistic, smartly integrated automation suite can solve your workflow woes all in one place.

Invoice Matching

Easily match vendor invoice, purchase order, and product receipt information. A state-of-the-art ECM (such as DocStar) makes matching and routing invoices to their correct recipients is incredibly simple. Many top organizations get started by using an ECM then progress to a system that combines workflow enabled logic with Artificial Intelligence to make their process even smarter (and faster). Quickly identify discrepancies with little manual work by utilizing Smart Optical Character Recognition (OCR).

Create & approve requisitions and purchase orders

By utilizing our web forms product you can create custom forms for requisitions and purchase orders. These can easily be completed by employees and immediately sent to managers for approval.

ERP Integration

Utilizing an intuitive system that integrates with your ERP is crucial. The key to a successful fully automated P2P process is working with an ECM and solution provider that has pre-built integrations, and the experience to do it successfully. The best ECM providers can work to create an integration in areas where you use an API or where prebuilt integration does not exist by leveraging Robotic Process Automation (RPA) to scrape the UI, extract the data, then push it to your line of business application. With integration, key tasks can be automated with close to no manual efforts and it’s much simpler to monitor procurements and budgets.

How we can help

Automating your entire P2P process can seem overwhelming, but we’ve had over 20 years of experience in helping customers simplify complex processes. With pre-built in ERP integration, Artificial Intelligence capabilities, and smart OCR and RPA, Mosaic can create a fully customized automation plan for your procure to payment process. We’ll help you save time, money, and resources while moving towards complete automation.

Schedule a demo with us!

Call 1-800-387-7859

Automation in the Procure to Pay process

When looking for opportunities to improve business functions and save money, many organizations look to their existing accounting processes. Accounts Payable processes specifically are typically antiquated, slow, and costly, and there are plenty of opportunities for improvement. A good place to start your accounting department’s digital transformation is within the Procure to Pay (P2P) process.

In PayStream Advisors’ 2018 Procurement Insight Report, they identified some of the biggest pain points within the P2P process. Some of the top pain points reported were that their process differs across departments, the technology they use is inadequate, there’s too much paper in the process, and that they are using several disjointed systems.

In digging deeper, they identified that almost half of all organizations don’t have centralized procurement, which alone can cause a completely inefficient process cross-departmentally. By not having a simplified, standardized procurement process, you risk late-payments and hiccups within your process. In fact, 25% of organizations don’t even have a formal process for managing and monitoring budgets, which if left unaddressed, can be detrimental to an organization.

What does a typical P2P process look like?

  1. Create requisitions
  2. Approve requisitions
  3. Create a purchase order
  4. Approve purchase order
  5. Accept or reject the receipt
  6. Evaluate supplier
  7. Approve invoice
  8. Pay vendor

Typically each of these steps are done manually. You have someone create the requisitions, someone else to approve them, someone who creates the PO, someone who approves it, and each step is passing paper back and forth between employees and departments until you reach the final step. The biggest issue is that there is a large margin for error within each of these steps. Maintaining consistent communication throughout the process can be difficult, and may lead to problems.

How can you automate each of these steps? It may be assumed that you would need to implement a separate solution for each part of the process, but a holistic, smartly integrated automation suite can solve your workflow woes all in one place.

Invoice Matching

Easily match vendor invoice, purchase order, and product receipt information. A state-of-the-art ECM (such as DocStar) makes matching and routing invoices to their correct recipients is incredibly simple. Many top organizations get started by using an ECM then progress to a system that combines workflow enabled logic with Artificial Intelligence to make their process even smarter (and faster). Quickly identify discrepancies with little manual work by utilizing Smart Optical Character Recognition (OCR).

Create & approve requisitions and purchase orders

Create custom forms for requisitions and purchase orders. These can easily be completed by employees and immediately sent to managers for approval.

ERP Integration

Utilizing an intuitive system that integrates with your ERP is crucial. The key to a successful fully automated P2P process is working with an ECM and solution provider that has pre-built integrations, and the experience to do it successfully. The best ECM providers can work to create integration in areas where you an API or prebuilt integration does not exist by leveraging Robotic Process Automation (RPA) to scrape the UI, extract the data, then push it to your line of business application. With integration, key tasks can be automated with close to no manual efforts and it’s much simpler to monitor procurements and budgets.

How Mosaic can help

Automating your entire P2P process can seem overwhelming, but we’ve had plenty of experience in helping customers simplify complex processes. We can create a fully customized automation plan for your Procure to Payment process. We’ll help you save time, money, and resources while moving towards complete automation.

Schedule a demo with us! Call 1-800-387-7859