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Invoice Processing

What is Invoice Processing?

Invoice processing is the workflow for handling invoices from receipt to payment. It includes steps like invoice capture, validation, approval and payment. Efficient invoice processing is important for maintaining accurate financial records, improving cash flow management and fostering good supplier relationships.

‍Automated invoice processing systems can significantly reduce manual errors, speed up processing times and enhance visibility into accounts payable. By streamlining invoice processing, businesses can ensure timely payments, avoid late fees and take advantage of early payment discounts. Improved invoice processing also contributes to better financial planning and control.

Related terms

3 Way Match
3-way matching refers to a three-step process of matching three key documents before processing a payment to a supplier.
ASC 606
Accounting Standards Codification (ASC) 606 is a standard framework for revenue recognition developed by the Financial Accounting Standards Board (FASB) for companies operating within the United States.
Account Reconciliation
Account reconciliation is the process of comparing two sets of records to ensure their accuracy and consistency.
Accounts Payable
Accounts payable (AP) refers to the amount of money that a business owes to its suppliers or creditors for goods or services purchased on credit.
Accounts Payable Automation
Accounts payable automation (AP Automation) refers to the use of technology and software solutions to streamline and optimize the accounts payable process within an organization.
Accounts Payable Days
Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.