Accounts Payable automation (AP Automation) refers to technology that is used to streamline and automate accounts payable processes, removing manual tasks and providing better visibility and control over important financial data.

Accounts payable automation flow

Accounts payable automation (AP Automation) enables companies to toothlessly process supplier invoices without any human intervention by providing a digital workflow to manage steps previously handled by an AP staff member.

Holistic accounts payable automation starts with capturing invoice data in a digital format, usually through a form of scanning or capture method, such as optical character recognition (OCR).

Accounts payable automation will then manage the coding and routing of the invoice through the digital workflow, which functions based on specific logic configured in the organization`s accounts payable automation software.

Accounts payable automation (AP Automation) will be integrated with a company’s enterprise resource planning (ERP) system(s), seamlessly transferring data between the two systems without straining the ERP environment or business IT resources.

Accounts payable automation significantly reduced the risk of fraud by giving management and AP staff unprecedented visibility and reporting capabilities into the flow of invoices and transactions across the company.

Accounts payable automation can provide a significant cost savings for a company beyond the expected savings from eliminating manual tasks. Companies can optimize their vendor portfolio, avoid duplicate or erroneous payments, and take advantage of early payment discounts.