Now
a day’s many SME’s are becoming a part of global economy and this is the reason
behind the rapid growth of ERP systems. Electronic invoicing system is one of
the core functionalities of supply chain systems. Millions of invoices are
exchanged between buyers and suppliers every year and many researches show that
most of these invoices are in paper or in email format which maximize the work
load of buyer payable department which results the sufficient increase of day
sales outstanding of suppliers. On other side those supplier who submit the
e-Invoice to the buyer organizations get paid faster and experience less
payment issues from keying errors in the buyers account payable department.
An
e-Invoice is a form of invoice document which is created electronically via the
Supplier’s ERP, or software system and received by the Buyer’s ERP system or
Workflow Software without any necessity of manual processing. These types of
platforms also ensure the authenticity of tax compliance by using an electronic
signature. There are countless benefits of e-Invoicing but primarily financial
benefits of e-Invoicing are elimination of printing, scanning and mailing cost.
Below please find some of the core advantages of electronic invoice.
Financial Controls:
With e-Invoicing customers can send an electronic remittance advice with the
payment, providing detailed accounting of invoices paid as well as debits,
credits and adjustments taken.
Payment Choices:
e-Invoice gives a privilege to buyer for choosing different mode of payments
like Cheque or cash.
Productive Efficiency:
Buyer organizations Improve accuracy resulting from e-Invoicing which reduces
the amount of rework required.
Email reminders:
Avoiding late payments and fees is easier when a reminder is sent out on or
near the due date of a payment.
Quick Payments:
e-Invoice also knocks out the delays caused by manual email, routing and
sorting of invoices in result buyer can easily route the invoices for fast
processing and approval because the data is immediately available
electronically in their workflow systems.