Wednesday, September 11, 2019

3 Key Benefits of EDI Invoice Processing Over Manual Systems for Your Business


Companies of all sizes strive to streamline their invoice processing system in order to ease the pressure on their cashflow. Only then can these businesses improve the overall efficiency of their supply chains. Managers of these corporate enterprises do not think twice about introducing electronic data interchange (EDI) into the system. The technology allows them to transmit and transfer vital commercial documents between their trading partners in a standard electronic format. Taking such a step enables these managers to avoid many of the drawbacks of manually processing such bills. The managers know their customers expedite the amount they owe for the purchases they make on receiving their invoices.

EDI invoice processing – Why do companies opt for this system over manually processing invoices?

Prominent experts in EDI say companies issue invoices for their customers after receiving their purchase orders. Such documents contain detailed information relating to such purchases. These include the date of the transaction, product description, quantity ordered, price of each product, and the total sale value.  The invoices are then sent to the customers via mail. On receiving such sales bills, the customers pay up the amount they owe to the companies. The most important drawback of this system is that it is a time-consuming process. Fortunately, this not the case with EDI invoicing processing. Specialists in EDI go to point out the following three advantages of this system:

1.      Boost transaction speed 

Under the paper invoicing system, employees have to type all relevant data before printing the sales bills manually. After doing so, they dispatch the invoices to the customers via mail. The invoices normally remain in transit for at least one business day before reaching the recipients. On the other hand, the customers can receive their invoices in matter seconds under EDI invoice processing.

2.      Reduction of human errors
Manually processing an invoice is prone to inadvertent human errors. The employees preparing and dispatching such sales bills are normally responsible for the accuracy of the system. Introducing electronic data interchange into the invoice system minimize human intervention. This saves a lot of time on correcting mistakes and getting approval to dispatch such sales bills to the customers.

3.      Cost savings
Companies find preparing and dispatching paper invoices to be an expensive process. Such businesses tend to spend a lot of money on procuring paper, printing the relevant data, and storing such financial documents. The companies incur an additional cost at the time of dispatching such invoices to the customers. With EDI invoice processing, companies can avoid such expenses.

Companies notice that EDI invoice processing drastically improves the efficiency of their supply chains. The managers of such businesses see a significant reduction in human errors at the time of preparing such financial documents. This helps them to save a lot of money. Moreover, they are in a position to dispatch invoices to their customers in a matter of seconds. On receiving such financial documents, these purchases normally pay up their dues immediately. This helps the managers to get the necessary funds they need to conduct their commercial activities in the market with success.

Author: verified_user