By Andy Hamilton, UK Business Development Manager
In part one of this series we looked at how a strong P2P process drives value back into your business strategy
through planning, forecasting and cost control.
It’s now time to establish how a well implemented and adopted agile P2P solution drives value up the chain into the Accounts Payable (AP) department. This is possible in two main ways: improved efficiency and the elimination of overpayment and fraud reduction.
A common objective, and challenge, I often hear is how Finance functions can improve process efficiency – after all, no one likes wasting resources. A strong P2P process, underpinned by well-integrated technology, supports a ‘right first time’ invoice submission. This in turn reduces invoice queries and processing time.
Imagine the value when an invoice can be matched first time to an approved PO, goods receipted and suppliers validated – AP will spend less time on admin and suppliers can focus more on their core business.
Elimination of overpayment and fraud reduction
Another important goal for Finance teams is the elimination of overpayment and the reduction of invoice fraud. Well adopted and efficient P2P processes prevent payments to unknown suppliers, duplicate payments or payments where missing goods or services are involved. This can mean a significant reduction in wasted resources for the buying organisation.
Both of these benefits are certainly possible. Integration with wider solutions such as ERP and Accounts Payable may be required, along with strong user adoption from the wider buyers and suppliers, but the benefits are within reach. You can read more about these in our guide: Next Generation Purchase-to-Pay - Transforming P2P into a strategic spend management linchpin
It would be interesting to hear how you use your P2P to support your organisations strategy, and if you have any questions or need any help you can contact me at firstname.lastname@example.org
Part 3 of the series explains how a truly agile P2P system will integrate seamlessly with your core financial platform.