For many years companies like DataDevice have been focused on Accounts Payable automation, and implementing technology solutions to help control companies outgoings. Over time, we have come to the realisation that whilst there are many benefits to be had from implementing technology solutions around Accounts Payable, they aren’t holistic enough to enable pro-active cost control.
Once a creditor invoice hits the Accounts Payable department, that cost (Excluding a minority of instances) has ALREADY been incurred, and the company is placed in a position where they must fulfill their obligations to that supplier by paying the invoice.
Where this creates a challenge for business owners and their management teams, is that their only means of controlling their cash flow, and sticking within their budgets or cost centres, is by either postponing payment to the vendor, or attempting to negotiate down the invoiced amount. This is a sure fire way to damage your relationship with your vendors, putting at risk your ability to deliver the goods and services you provide to your clients.
So what can be done to remedy this issue?
DataDevice has found that by implementing our Digital Procure to Pay Automation solution, businesses get the benefit of both a purchase control solution, and an Accounts Payable automation solution in one turn-key system.
For Procurement, ground level staff have the ability to raise a purchase requisition or request from their mobile, tablet or computer which requires approval. Based on need, cash flow, budgeting or cost centre requirement, a request can either be approved or rejected. You also have the opportunity to find a better priced supplier if you identify the price is too high.
This is how you gain true control of your outgoings, and align them to your cash flow and budget requirements.
Once approved for purchase, the vendor receives and fulfils the purchase order, goods are receipted through the same interface the request is generated, and the vendor bill is received and matched to order and goods receipt. Assuming they match, this represents “pre-approval” and the invoice can be posted to your ERP or Financial Accounting System for vendor payment.
In short, there is no need to run the risk of cutting yourself short on cash, exceeding job and monthly budgets, or risking vendor relationships. All you require, is a digital purchasing system.