Processing accounts payable invoices can be a time-consuming, labor-intensive process. Statistics indicate that traditional accounts payable operators process about 28 invoices per hour. Customers using automated accounts payable processing increase processing speeds to about 150 invoices an hour per operator. Automated accounts payable processing can also help accounts payable departments reduce the number of errors, including payments to incorrect vendors and payments for incorrect amounts.

These automated systems utilize the latest in capture technology to identify required information on the page and extract it in a format that can be used by the existing accounting system. Red Eagle Consulting works with industry-leading software solutions to help customers achieve the best possible results. Before engaging with any customer we examine their existing methods and systems to determine whether an automated system would work well and provide a cost benefit to their company.

Learn more about the advantages of AP Automation.

Common Questions About Automated Accounts Payable Processing
How will the system know which vendor number to select?	Many times, customers have thousands of vendors in their accounting systems. Data capture software solutions utilize name and address information, phone numbers, or fax numbers to select the correct vendor from the customer's vendor database, much the same way an operator would. By considering various data elements, the system can handle invoices from vendors with multiple remit to addresses. If no match exists in the system, or if two vendor records exist with the same information, the system will present the choice to an operator.
How does the system find the necessary information?	In most cases, formats for invoices vary greatly. The systems used to automate accounts payable processing use a set of rules to locate information that is required, such as invoice number, invoice date, current amount due, remit to name, and remit to address. Red Eagle Consulting works with customers to identify required fields and test the implementations for optimal performance with their vendor invoices.
Can the system associate an invoice to one of my cost centers?	Many companies associate vendor invoices back to specific business units within their organization. Depending on the business rules for this association, data capture software may be set up to automate this association using table information provided by the customer and associating it to key information on the invoice. An example might be selecting a business unit based on the shipping address of the invoice.
Is it possible to automate G/L coding?	The automation of G/L coding can be challenging. Customers often choose to workflow processed invoices to knowledge workers who will add the appropriate G/L codes. Some solutions provide the ability to locate table data and gather line item detail for those environments where this information is needed. In addition, the software may utilize special business rules or purchase order information to assist in coding invoices.
How does an automated accounts payable system reduce errors?	Automating accounts payable processing can reduce data entry errors in several ways. First, automated systems are useful tools in making more accurate matches to the correct vendor number. Also, because operators only need to key corrections, the opportunity for "typos" is reduced.
How does an accounts payable processing system reduce the department's overall cost?	Automating accounts payable processing can significantly reduce the amount of time that operators spend entering data from AP invoices. By reducing the amount of data entry necessary, operators are free to focus on more important tasks and can process a significantly greater number of invoices per hour. Because of the faster processing times, companies can also take advantage of early pay discounts in order to add additional dollars to the bottom line.