How mid-sized organizations can improve efficiency and visibility into purchase order and payment processes...all in one workspace
Purchase orders are a common element within the accounts payable workflow and set clear expectations from the start of the ordering process. For most businesses, the PO serves as the catalyst for the AP process, providing clarity around needs, setting clear expectations with vendors, managing orders and helping to stay within budget limits. Because POs are part of the purchasing function, companies require solutions that merge PO and AP processes into a single, streamlined workflow.
The value of automating the purchase order workflow
There’s no denying that automation drives efficiency. And when you consider the complexity of the overall AP process—including POs, invoices, approvals, payments and reconciliation—automating workflow from start to finish is key in elevating operational productivity while also lessening the risk of human error.
With the right technology in place, non-inventory, mid-sized companies can easily merge PO and AP processes into a single, streamlined workflow to enjoy the following benefits:
Increase efficiencies across departments and roles:
Reduce back-and-forth communications between PO creator and AP manager.
Quickly associate and link multiple PO line items to an invoice within a single workspace.
Easily handle one PO to many invoices that come in at different points of time.
Easily send matched invoices into an automatic approval workflow.
Eliminate the need to toggle between systems with two-way match.
Replace manual data entry with artificial intelligence functionality, which auto-fills the PO number.
Auto sync completed payments with your accounting system for accurate records.
Automatically close out POs when billing information is synced back to the accounting system.
Extend control and visibility into your AP workflow:
Track progress of all POs via an intuitive, dedicated space (e.g., a dashboard).
Assign permissions based on role—control who has permission to view, link, and match purchase orders.
Achieving purchase order-to-payment-to-reconciliation automation with Bill.com
Bill.com POs support an automated AP workflow and the benefits that come with it. For non-inventory mid-sized businesses that utilize POs as part of the AP process, an automated workflow can result in time and resource savings since you no longer have to hop back and forth between systems to reconcile the PO to payment.
At a high level, the automated PO process within Bill.com can be described in five succinct steps:
Step 1 - Sync PO from accounting platform
The purchaser kicks off the process by creating a PO on their accounting platform and then syncing it to Bill.com. Bill.com syncs information needed to support the PO-to-invoice matching process.
Step 2 - Link and match bills with the PO
The vendor submits an invoice to the purchaser once a portion of services or all services are rendered. The invoice is automatically uploaded to Bill.com via email, or upload. Bill.com assists with the linking process with its Intelligent Virtual Assistant (IVA). IVA then pulls in the PO number to link the invoice and PO. Associated PO line items are also loaded to assist in two-way matching with the invoice. The approver compares and verifies items, quantities and prices.
Step 3 - Approval workflow
Once matching is completed, a bill is automatically sent through the payment approval workflow. Auto approval workflows are preassigned by the administrator so the billing approval process moves forward as soon as you hit “Save.”
Step 4 - Payment
Payments can be scheduled and paid through a variety of different formats including ACH, Bill.com International Payment wire transfer, virtual card and check.
Step 5 - Reconcile on accounting system
Billing information syncs back to the accounting system once approved for payment. Because the PO and bill are linked, a PO will automatically close out on the accounting system once it's paid in full.
With automatic sync capabilities, an automated invoice-to-payment-to-reconciliation workflow is now a reality for Bill.com subscribers.
Merging PO and AP activity into a single, end-to-end workflow working with your accounting software is a great answer to accelerating operational efficiency, improving accuracy and reducing human error for those tasked with purchasing duties.
A streamlined workflow also expands visibility into the AP process by offering data within a single workspace—supporting more reliable budget forecasting and analysis. The ability to set permissions further expands control over the broad process…while auto-fill capabilities, two-way matching and other helpful features enable businesses to enjoy a highly efficient automated accounts payable workflow.
About Bill.com Purchase Orders
The company’s new Purchase Order feature is designed specifically for non-inventory mid-sized businesses. POs sync directly from Sage Intacct and Oracle NetSuite into Bill.com. Bill.com provides a single screen view that eliminates the need to switch between systems for two-way matching and reduces the back-and-forth communication between PO creators and AP managers. Bill.com Purchase Orders is a more efficient and less error-prone way for finance teams to manage their invoice-to-payment-to-reconciliation workflow.
To learn more, schedule a personalized consultation.