25 Mar Format is the Key in Invoice Processing
The secure, ubiquitous global network that is the internet is established as an essential business tool that supports mission critical business processes on an industry wide scale. Messages of all kinds are transmitted between organisations: demand planning information, stock availability, real time commodity pricing, purchase orders, request for quotation and yes – invoices.
Purchase to Pay (P2P) Relies on a Common Understanding of Format for Invoice Processing
It is true that after the initial investment in implementation that eInvoicing gives a supplier a means to reduce the cost of invoice processing by eliminating paper and giving their customers a value add by allowing them to automatically reconcile invoices by offering them in an electronic format. And it’s the format that is key. The “f” word of eBusiness. Which format should the supplier use? CSV; Excel; Word? 97;2007? OB10 or Ariba? All of the above?
I think you’ll find that all of the above is your only option if you’re a supplier that wants to offer electronic invoicing. Which is not good news for you if you are. You see, you can’t dictate the format of your invoices in the eWorld. Your customers dictate it. And so that small implementation cost that was supposed to give you cost reduction on your invoices becomes many implementation costs and quite soon, your business case becomes like dry sand in your hands – unless of course you select an invoice format that is universally accepted.
Purchasing Cards may be a little overpriced – particularly when interest rates are close to zero – but don’t dismiss them. Whether they use the VISA or MasterCard format or the American Express standard, the transaction format is recognized world wide and has been for decades.
Take advantage of new ways of doing things. Embrace change and modernity – but don’t let anyone persuade you that the new wheel is a good idea.