In an enterprise environment, processing a large number of paper invoices can be a humongous task. Manually checking every invoice may cost up to INR 1000 for every invoice. A cloud based invoice verification process helps in reducing the cost and time involved in managing a large number of clients and their invoices.
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The first step to invoice verification is compliance. Compliance is verified with the help of consumer transaction data. This data includes the date of purchase, name of the merchant and the credit processed. The next level of data can include the sales tax amount, more detailed information about the merchant, information about the purchase order and any other basic elements. It also includes details of online Invoicing Software product like product codes, descriptions, unit costs and quantities, shipping costs and the VAT amount.
The invoices are then checked for completeness, accuracy, and validity. Checking for completeness includes checking that all data elements have been included. Every client has some basic data requirements. Only those invoices that meet these requirements are approved, else rejected. Automating this process saves a lot of time and effort, for the business as well as the client. Get the idea behind How to save money using Online Invoicing Software. The next step would be to check the validity of the invoice. This includes verifying the PO number, the transaction date and the customer details. This is followed by checking the accuracy of the data. This includes verifying all the calculations, that is, all subtotals, totals and taxes etc. After all the calculations have been checked, the bills have to go through a duplicate filter check.
This process reduces the number of duplicate invoices sent to customers. The process is very helpful in improving the productivity of billing in invoice software and reconciliation while providing opportunities for staff reduction and cost savings. Here are invoicing tips for small business in India.
Price verification too forms an important part of the invoice verification process. For contracts related to the product sale, it is an automated process of identifying the specific product contract. The contract is then used as a reference to verify if the price charged for the product is correct. The system also ensures that only those products mentioned in the contract are sold within the said contract.
Price tolerance is also set for those products that are sold regularly. The minimum and maximum price of the particular product is defined. The system notifies for any goods sold outside of this price range.
Merchant verification helps in minimizing the efficiency losses, having made the purchase from the wrong invoice software vendor. In this case, the vendors are classified into industrial codes and geographic locations, to avoid any such discrepancies.
An automated invoice verification process, clearly reduces time, effort and costs. It reduces invoice exceptions by many times and very useful in for large enterprises where discrepancies often become common. It reduces man-hours and repetitive reconciliations, making the accounts receivable and payable process much simpler and productive. The process can be customized according to the needs and size of a business. An appropriate online invoice software can help meet specific business requirements and improve the ROI and productivity of the process.