Simplifying ERP Systems for Wholesale Distribution and Manufacturing series continues with Accounts Payable Management for cash flow improvement.
Automated management of A/P invoice prices simplifies this previously manual process. Also, crucial to your competitive advantage is the ability to know at any given moment what you owe and to whom.
Key Performance Indicators Dashboard
Using a completely integrated ERP system you interact daily with key performance indicators (KPIs) via a centralized ERP dashboard. Knowing your financial standing helps you improve cash flow by intelligently interacting with your data so you can take proactive steps.
Accounts Payable Scenario 1:
By reviewing your global A/P from a centralized ERP dashboard on a daily basis, you can understand your cash flow needs-what you owe and to whom. By sorting each of your payables aging buckets in descending amounts you can see to whom you owe the most money.
• For further scrutiny, you can drill down into each invoice and analyze the detail of purchase orders making up any invoice.
• By reviewing your replenishment needs inside the centralized ERP dashboard, you can prioritize payments to each vendor you use.
Daily management of your accounts payable improves cash flow. It is also keeps your inventory optimized with vendor payment analysis.
Accounts Payable Scenario 2:
You can also verify purchase order pricing against vendor invoices from the same centralized ERP dashboard.
• Upon invoice receipt, your team verifies purchase prices on the invoice against your purchase order.
• You then receive automated notification of price discrepancies based on a variance threshold allowing you to take proactive measures to resolve the discrepancies.
• An A/P voucher gets created allowing you to record the inventory expense in the accounting period in which it was received.
• You can also review open accruals for receipts that have not had a purchase order price verification completed.
Automated management of A/P invoice prices simplifies this previously manual process. It assists you in verifying the vendor's pricing saving you time and potentially, cash, further improving your cash flow.
You may be surprised to see how easy ERP can really be. To see how you can increase productivity and thereby reduce operating costs, sign up for our ERP simplified series.