E-Invoicing From The Buyer AP Perspective 2010

By Katherine Duran, Research Analyst and Erin McCune, Partner

Sophisticated buyers – large and small companies alike – recognize the benefits of streamlining accounts payable (AP) processes. Eliminating paper invoice processing can speed up approval, prevent manual key entry errors, facilitate accurate accounting entries, and often has the added benefit of ensuring that the same process is adhered to from region to region and department to department. Electronic payment further increases efficiency and decreases payment costs.

Yet for many companies, even early adopters, the e-invoicing benefits realized thus far have been modest. The IAPP, IARP, and TAWPI survey results presented in this report indicate that invoicing and business payments remain stubbornly paper-centric. There are a number of contributing factors, including limited budget for back office automation, IT complexity, and last but not least, supplier reluctance to submit invoices electronically.

It is clear that e-invoicing adoption will remain lackluster as long as solutions focus on buyer benefits at the exclusion of supplier process improvements and liquidity benefits.