Invoicing represents the last step of the procurement process whether it is completed within the eProcurement software or integrated with a third party accounting package like QuickBooks or SAP. Proper invoicing is quintessential both for the service seekers and service providers. Service providers want all their payments to be honored seamlessly on time and as a service seeker one would only like to pay for the services provided.
Figure 1.1 explains the various steps involved in the procurement cycle from purchase requisitioning to its completion post invoicing. However, in order to achieve hassle-free completion of the procurement cycle, one needs to pay attention to few other aspects too:
Clarity of budget approval & allocation
Whatever be the size of an organization, most departments have a pre-allocated annual budget. Once the need for a particular service or product is identified, it is important to look into budgetary constraints. While in most cases the department’s head is the approving authority and also the one who finally signs off the invoices, both for requisition and budget – in some cases, the accounts team is also a part of the budgeting and invoicing process. To ensure smooth clearance of invoices, the approval workflow must be clearly identified.E-Synchronization of the Teams
The process of eProcurement is usually a multi-departmental function, which primarily involves the Requisition Team, the Procurement Team and the Accounts Team. Interestingly, all three handle distinct aspects of procurement. The Requisition Team, for instance, is concerned with placing the requirement and receiving the end product and service. The Procurement Team’s primary focus is on vendor management, while the Accounts Team looks into the invoice settlement. Since all three teams at times end-up working in isolation, it becomes extremely important to integrate them with a common thread, which holds the entire process together. The Eyvo team truly understands the importance of this function and deploys its Invoice Matching Module to ensure the desired checks are taken care of with a promise of accuracy and transparency.Choose your Invoicing Software with care
The hallmark of a good Invoicing Software is the extent of flexibility offered by it. It must be easy to manage, keep track of the timelines and above all should have reports and alerts that keep all people informed about payment schedules and status. For instance, some vendors need to be partially paid at the onset of the project and rest on its completion. Or some invoices are even recurring. An Invoicing Software must allow you to manage your invoices as desired. At Eyvo, along with all of the above, users have the option to get approvals from the concerned departments before invoices are paid out. Our software, eBuyerAssist, has the ability to send frequent payment reminders, compute the dues as per advance payments made and cross check invoices against orders and good received thereby, preventing the client from overpaying. In a nutshell – seamless procurement and invoicing with a few clicks.Ability to integrate with external accounting software
Some organisations may have a pre-existing online invoicing software or process in place. An efficient invoicing module must have the ability to integrate with 3rd Party Software without much hassle. Integration with an external software is another one of our ancillary functions here at Eyvo. It is not only a comfortable proposition for the client but also helps the vendor to understand the desired checks and balances, thereby, bringing the requisition partner, the eProcurement facilitator and the vendor on the same page.
So, mind these steps and get ahead of your game by adopting a pragmatic Invoice Approval workflow in place.