If you’ve invested in an ERP like Oracle EBS, it’s because you already know that the tools it offers can help boost your operational efficiency. You’ve begun a process to optimize and document all of your business units and get a sense of the big picture so that you can make informed decisions.
ERPs are designed to do just that. But did you know you can add functionalities to your ERP that will help you go the extra mile by automating certain tasks such as managing accounts payable (AP)? In this article, we’re going to explain the advantages of such functionalities and the impact Oracle EBS can have on the everyday performance of your teams.
Automating AP with Oracle EBS
Your ERP entails manual processing
ERPs let you structure your operations and organize your processes. Everything from supply chain and human resources to accounting is documented in your ERP, affording a more comprehensive overview and better control of your operations. However, one of the limitations of an ERP is that it doesn’t automate data input and sharing functions, meaning data needs to be entered manually.
Integrating AP automation in your ERP to streamline operational efficiency
Reducing invoice processing costs
As previously mentioned, a traditional ERP like Oracle EBS Accounts Payable usually requires manual invoice processing. One of the most obvious benefits of adding AP automation to your ERP is the elimination of manual input, which lets you process invoices faster.
A positive impact on your supply chain
A major advantage of ERPs is that they can optimize and streamline your supply chain for the purpose of tracking inventory and the raw materials needed for production. This provides your teams with indicators that let them work more efficiently.
AP automation lets you cut your invoice processing time by 73%, improving supplier relationships and reducing approval times by up to 70%.
Eliminating duplicate invoice and payment errors
When suppliers aren’t familiar with your payment process, they might resend the same invoice several times within a short space of time in an attempt to get paid more quickly. If you’re inputting data manually, you might end up processing those invoices separately, leading to additional work and checks for your staff. When you automate the AP process in your ERP, each invoice is automatically linked to the correct PO number and duplicates are detected as soon as the invoice enters the system.
Better risk management
Secure your data and control access to it
An ERP already centralizes a portion of your company’s data. You can define different access levels with user-based permissions, thus ensuring each user has the access they require.
However, when part of your AP processing is handled manually, you lose control over data access. Your information gets saved in shared files, emailed or filed in paper folders, all of which can lead to breaches in confidentiality. Managing follow-ups and reminders also becomes tedious.
Improved transaction traceability
Another advantage to integrating AP automation with your ERP is transaction traceability. The system instantly links the PO number with the corresponding invoice. So instead of having to reconcile the various data, your teams simply need to verify it. In just a few seconds, you can ensure that your payments correspond to placed orders, eliminating the risk of fraud as well as incomplete payments or overpayments. All of this works out to sound management of your finances and cash flow.
Encourage staff to work from home, securely
After months of working remotely due to health and safety measures, many employees and managers are keen to establish a work-from-home policy.
This can be problematic if your AP department isn’t automated, because managing paper documents and accessing shared files from home poses a data security risk. Someone still needs to be at the office to digitize the documents so that they can be integrated with your ERP.