Circulation of invoices in the
company – the traditional process
The traditional circulation of purchase invoices
becomes less and less effective as a company grows. Moving documents from desk
to desk, losing them, or mechanical damage to paper often delay the invoice
acceptance process. Employees lose valuable time, and the company incurs higher
costs due to the inefficient process. There comes a point in every growing
organisation when you have to ask yourself what to change to make work more
Current circulation of invoices – if it’s possible to make things more convenient, why
not do it?
The management board will start looking for a suitable solution when it realises how inefficient the company’s current invoice circulation is. It would seem quite simple. However, the number of solutions available on the market dedicated to specific processes, and even industries, might be surprising, and so choosing one can be a real challenge.
Making the decision itself, and above all,
thoroughly analysing the problem and the proposed solutions, is extremely
important to achieve maximum benefits. Don’t forget that moving the process of
describing, accepting, assigning, and accounting purchase invoices in the
electronic document archive system will significantly reduce the time of this
process, eliminating the problem of lost documents. At the same time, it’ll
enable ongoing control over the budget and cash flow.
However, the size of the company, the progress of the process, and the potential for its development must be taken into account when choosing a solution. While looking for the right answer, management may come across solutions that are dedicated, inexpensive, and limited in the possibilities of integration and future development. On the other hand, some systems are expensive and suitable for international corporations. That’s why it’s important to consider several offers. We recommend using frequently offered free pre-implementation analyses or test versions (pilot projects).
What are the benefits of electronic
In addition to what’s mentioned above, you’ll also save your employees time and the company’s budget. The circulation of invoices in an appropriate system will also bring other benefits. For example, in the traditional circulation of documents, only one person can approve the invoice at a given time. The invoice must be physically delivered to the desk or sent by e-mail, then forwarded. In a system like JobRouter®, access to the invoice is provided to all the listed individuals, approval levels can be determined top-down and invoices can be approved by multiple people at the same time. At the same time, the indicated persons have a preview of where the invoice is at the given moment, and who and when read or approved it.
Also, a modern invoice circulation system should be equipped with an OCR function. Invoice OCR is a method of recognising the content of an invoice from a scan or photo by algorithms embedded in the invoice circulation system and their automatic processing. This means sending to the appropriate people/departments based on pre-established rules for recognised content, or transferring information with financial and accounting systems, ERP systems, etc. while determining the accuracy of this information. OCR algorithms in a system such as JobRouter® with a built-in IDR module are constantly learning as the invoices increase, and expand their probability plot of a given value around specific phrases. Thanks to this, even mechanically damaged (e.g. stained) invoices can be read by the system.
What does a sample process of approving an invoice in the system looks like?
Below we present a sample process illustrating the
circulation of purchase invoices in a company using JobRouter®:
This process usually begins with receiving an e-mail with an invoice attached or with a paper invoice being scanned. The scan can be automatically downloaded to the document archive from a computer disk or from any folder to which the scanner sent the file after the appropriate configuration.
The document is then described in JobRouter® with header data. If possible, the contractor’s data are downloaded from the Finance and Accounting system based on the NIP (Tax ID) entered. Thanks to the OCR text recognition mechanism used, IDR allows you to quickly and conveniently select text on an invoice scan and paste it into the field describing the document.
The pre-described document is assigned to the relevant department, where the assistant further assigns the invoice to the person responsible for the substantive description.
The described invoice goes through one or many stages of approval.
Then, it goes to accounting. Thereafter accounting verification – the data are exported to the financial and accounting system.
The system automatically creates an invoice metric, which is an additional invoice page with a summary of the approval process and accounting assignment.
After the invoices are approved for payment, the system automatically creates a file with the definition of transfers to the electronic banking system.
Other departments can also use the information
contained in the document descriptions, for example, to quickly create reports
Why transfer invoice circulation to
Despite being under the same laws, differences in the organisational structure of companies make the process of approving purchase invoices unique in each organisation. JobRouter® is a system that we encourage companies from all kinds of industries to use (learn more about the industries in which we operate) because it has the advantage of great flexibility that’ll suit any size of the organisation.
The system aims to reflect the path of approval of paper documents in electronic circulation. The system’s integration options with banks, contractor databases, dictionaries, databases of Statistics Poland business entities, order databases, etc. as well as other systems used in the organisation are also extremely important. Once entered into the system, the data don’t have to be copied again. Besides, documents in circulation are always accompanied by a data sheet generated by the system. On the other hand, the management board has access to reports showing the company’s liabilities at any time. This includes those on invoices that are currently in circulation and are awaiting approval. All invoices passing through the organisation are automatically archived in the built-in electronic archive, access to which can be set by way of authorisations.
How much does electronic invoice circulation cost?
The cost of the system for electronic invoice circulation depends on the type of licence – in some cases, it’s a one-off payment, while in others the price depends on the period of use or the number of users. In the case of the JobRouter® system, the price depends on the progress of the process and is a one-off price. However, the system can be expanded, because invoice circulation is usually the first process in companies deciding to implement an electronic archive and document circulation. This means that when in the future a company that has used the IDR system and included the circulation of invoices in it decides to automate other processes, it’ll be able to buy such a process. They won’t need to change all software and risk losing existing data or integrate with other systems. This is definitely a cheaper solution and eliminates the need to train employees in operating new systems.
See an example of invoice
An example of the invoice circulation process is
described on our blog and is available here.
However, if you’d like to test the invoice circulation system, please contact
us and ask for access to the demo version of the system.
Check out the offer and try
To learn more about the JobRouter® system, please
contact us via e-mail: firstname.lastname@example.org or complete the form at the top of
the page. Our team of experts conducts free presentations and
pre-implementation analyses and is happy to provide all the necessary
information needed to choose the right tool for electronic invoice circulation
in your company.
Arrange a free presentation and business analysis today.
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