Based on research from Ardent’s latest report – ePayables 2013: AP’s New Dawn, Ardent Partners’ annual market research report focused on the state of accounts payable. The report is available by clicking here, here, here, here, here, or here.
The primary role of these solutions/services is to take paper-based documents and transform the data that lies within them into a usable electronic format which can then be processed in a more automated and efficient manner. The three solutions mentioned below are often used together as they are complementary to each other and when used in concert, add greater value to the AP process.
This category of AP technology includes:
- Document Imaging – In the context of AP, document imaging solutions are used to scan paper invoices and produce an image of the invoice. According to Ardent’s research, these solutions are the most widely used type of ePayables solution today (70% of all enterprises). Since document imaging solutions fail to address invoice processing, they are increasingly used in combination with one or both of the technologies that follow.
- Data Capture– Using the scanned image of an invoice, a data capture solution uses OCR (optical character recognition) and self-learning algorithms to conduct document classification, separation, and data extraction. This process converts data into a digital format, which can then be processed more effectively and used to gain more intelligence around AP activities. Additionally, these solutions can perform validation and matching against ERP data and often include routing and approval workflow capabilities. A quarter of the market currently uses data capture solutions with just as many planning to invest in data capture solutions over the next yea
- Routing and Approval Workflow – The ability to route invoices for approval is critical for improving efficiency within the AP process. Routing and approval workflow solutions allow organizations to establish business rules to manage the approval process for both PO and non PO-based invoices. PO-based invoices that match all of the pre-configured business rules can be processed “straight-through” without any human intervention and scheduled for payment. If there are exceptions that need to managed, they are routed to the appropriate users for resolution. Ardent research shows that 41% of AP departments use automated routing and approval workflow solutions today.
