What are Invoice Processing Analytics?
When conducting a spend analysis, one of the best places to begin is by reviewing invoice processing analytics. This allows AP staff to determine errors during invoice processing and makes it easy for them to identify inefficiencies or overall processing invoice.
Invoice processing analytics are key metrics and details that help companies identify how invoice processes are performing, as well as areas of improvement. It often falls under the umbrella of business intelligence and lets companies review key processes.
Reviewing invoice processing analytics is important for companies as it allows them to identify overpayments and to understand basic invoice processing performance.
Generally, invoice processing analytics can help companies identify the following types of overpayments.
If goods were found to be defective and returned, the company is not liable to pay for them. However, in some cases, they may end up clearing invoices for rejected goods from the warehouse. If the vendor fails to credit the buyer, it’s regarded as an overpayment.
This generally happens when a payment isn’t cleared on time and the vendor reissues the invoice. Ultimately, the company ends up paying both when the duplicate invoice is re-entered into the system.
Invoice fraud is very common, and many companies succumb to it. The company is sent an invoice that seems valid, but the payment details are different. A fraudster, pretending to be from the vendor’s organization, claims that they have recently changed these details, and requests payment quickly.
If these instructions are not verified, the company could end up paying the invoice, resulting in fraudulent payments. The best way to mitigate fraudulent payments is to employ invoice matching and automate invoice processing.
Commonly used invoice processing analytics include:
SoftCo Accounts Payable Automation is one of the best tools for automating invoices and gaining more insight into your company’s overall invoice management process. With the release of SoftCo 10.5, users can take advantage of SoftCo Advanced Analytics, powered by AWS Quicksight, to review reports on payment and spend analysis, manage costs, and oversee operational effectiveness.
CFOs and finance leaders can create custom dashboards to receive important information and create custom dashboards to enable faster, more accurate decision making.