Invoice Automation Beyond ERP: Best-of-Breed Benefits

If you’re looking to implement a solution for automated invoice processing, you need to take into consideration your legacy ERP system, where your master data, order and billing data is stored. Invoice automation raises the question of whether to choose a solution that is tied to the existing ERP system, or whether a best-of-breed, ERP-independent solution is the better option. Let’s explore some of the reasons why so many businesses are opting for the best-of-breed approach.

What is invoice automation?

Invoice automation refers to end-to-end touchless processing of invoices, where manual intervention occurs solely by exception. Unlike basic electronic workflows that simply transfer invoices for manual checking and approval, true invoice automation captures invoices from all channels - hard copy, PDF emails, EDI, or supplier portals - in a centralized system with standardized formatting. The technology automatically extracts data, validates information against purchase orders and master data, routes for approval when necessary, and posts to accounting systems. This comprehensive automation eliminates manual data entry, reduces processing time, and minimizes human error throughout the accounts payable process.

What is invoice automation in ERP?

Invoice automation within ERP systems typically refers to electronic workflows that efficiently transfer invoices to designated personnel for checking, approval, and posting. However, this approach has significant limitations compared to true automation. ERP-based solutions are often restricted by the system's inherent invoicing processing functionality, which may lack advanced features. They struggle with diverse data formats from multiple sources and cannot provide the specialized user interface designed specifically for accounts payable processes. While ERP vendors may market these workflows as "automated invoice processing," they primarily digitize existing manual processes rather than achieving genuine end-to-end touchless automation.

1 – Greater flexibility for dynamic companies

Ideally, businesses would rely on a single, centralized ERP system. However, in practice, it’s not uncommon (especially in global enterprises) to find a diverse ERP landscape comprised of vastly different systems, architectures and data formats, arising from acquisitions, growth or restructuring activity. Even if the business has standardized an enterprise-wide ERP solution, multiple instances dotted around the globe can complicate the integration of workflow tools and make it difficult to set up a shared services center. An ERP-neutral solution for invoice processing can be simultaneously connected to multiple ERP platforms, and works independently of any modifications. This imposes no restrictions on the selection, standardization or upgrading of the ERP systems used, giving the business more flexibility in future.

2 – Centralized invoice capture and standardized billing

One of the major advantages of a single system for invoice processing is centralized invoice capture, in a defined format, for all channels through which invoices are received. This enables 100% of invoices to be processed centrally, regardless of whether they are sent as hard copy, via email as a PDF, or electronically though EDI or a supplier portal. For companies with multiple ERP systems, choosing a best-of-breed independent solution enables all inbound invoices to be processed within a single system, which also standardises the billing process across business units and international borders.

3 – Achieving “true” automation

Independence from the ERP system also means that the invoice automation solution is not restricted by the ERP’s invoicing processing functionality (or lack thereof). While some ERP vendors use the term “automated invoice processing” to describe an electronic workflow that efficiently transfers invoices to those responsible for checking, approval and posting, this is misleading. True invoice automation refers to end-to-end touchless processing, where manual intervention is solely by exception. 

4 – User-friendly interface promotes adoption

ERP-independent systems for invoice processing are specially developed by AP experts, for AP users, to address the realities of AP processes, which is reflected in the user interface. We put great stock in Basware’s unique blend of ease of use and functionality, which have been continuously optimized over time. What’s more, if a business runs multiple ERP systems, users do not have to switch between them but instead can work through the common, familiar interface of the central invoice processing system, enhancing productivity.

5 – Enterprise wide data for transparency and control

By processing all invoices in a single system, all associated data can be viewed centrally at any time, and across all organizational units. With add-on modules such as Basware Analytics, the data can be easily analyzed and evaluated, providing end-to-end transparency and control over the invoice process.

6 – Reduced implementation effort

An ERP-independent solution for invoice processing can usually be connected to the ERP system through standard interfaces to simplify integration. For example, Basware’s automation solution provides interfaces to over 250 popular ERP systems. This reduces the effort and cost of performing integrations from scratch and keeps business disruption to a minimum.

Create more efficient invoice processing with Basware

Basware's ERP-independent automation solution delivers true end-to-end touchless processing with interfaces to over 250 popular ERP systems. Our platform captures 100% of invoices from all channels - hard copy, PDF, EDI, or supplier portals - within a single, centralized system. The user-friendly interface, developed specifically by AP experts for AP users, enhances productivity and promotes adoption across teams. With Basware Analytics, gain enterprise-wide data visibility and transparency across all organizational units. Our standardized integration approach reduces implementation effort, minimizes business disruption, and provides the flexibility to support diverse ERP landscapes without restrictions on future system upgrades.

To learn more about how a best-of-breed, ERP-independent solution for invoice processing can support a truly automated workflow, get in touch for a no-obligation chat.