November 9, 2012 Essential Keys to Effective EIPP
EIPP, Electronic Invoicing Presentment and Payment, is a great way for your organization to gain huge efficiency gains, not to mention an unprecedented opportunity for cash flow options. Utilizing the internet to allow vendors the opportunity to invoice you at any time, means that you will receive your invoices quicker because there is no mail float.
It also means that your invoices will be approved quicker, usually within 5 days if you are using a quality EIPP provider like iPayables. When discussing EIPP, it is important to remember that first “P” is presentment. A lot of people forget how important it is for the invoice to be presented and routed in a way that is easy to view, maintain, code, distribute, etc. Making sure that it is easy for your supplier, as well as free, is one of the keys to a successful Electronic Invoicing Presentment and Payment initiative.
Another key to a successful EIPP initiative is being able to show a healthy return on investment. One way is with the huge efficiency gains, another is with the last “P” in EIPP, namely payment. By having invoices routed, coded, and approved quickly, you can now have payment options that can really make a CFOs eyes shine. By utilizing dynamic discounting, you can lower your overall company spend. This works because vendors are cash hungry these days and want to get paid as soon as possible.
They are willing to give up a discount for that to happen. This will work for a significant number of your vendors, but it is not the only option. Some of your vendors are willing to take a credit card as a form of payment. This will allow you to extend your terms as well as receive a rebate from your card provider.
There are so many benefits to a successful EIPP implementation that sometimes can be overlooked. If done well, you will be a hero to your organization, and elevate the status of the entire Accounts Payable department. That is why it is so important to select a world class provider like iPayables when you decide that it is time to take that plunge.