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.
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.
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