Introduction to Electronic Invoice Management (eInvoicing)

Amid the tougher economic climate of 2009, the need for commercial enterprises and public sector organisations to drive cost out of the business has never been greater. Many have cut back already and will continue to do so, but ever mindful that service levels must be maintained. What eludes many of them is a business-transforming solution that will use proven technology to actually enhance what they do but cost less to manage.

A growing number of organisations have discovered that electronic procurement can make this a reality. Buying from multiple approved suppliers using the same system – with purchase orders (POs) raised and sent automatically – can reduce purchasing costs significantly, while enabling organisations to rationalise their supplier base and avoid wasteful maverick spending. So far, so good.

However, achieving a truly end-to-end, purchase-to-pay (P2P) system isn’t so easy. The most difficult part is the return journey from the supplier. Firstly, how can an organisation get hundreds, or even thousands, of suppliers to submit their invoices in a common electronic format? And secondly, how can the buying organisation’s finance system (whatever that may be) accept these electronic invoices securely, ready for hands-free automatic matching and payment. Only then can organisations accelerate the benefits of an electronic P2P system.

This white paper examines the reasons for adopting electronic invoice management (eInvoicing), the challenges and key recommendations for a successful deployment.