Are you a victim of invoice creep? Are the invoices received by your Accounts Payable department accurate? There is a good chance that if your organization is not using a purchase order (PO) management solution, this is happening to you.
There are many reasons to use a PO Management solution:
- They help avoid duplicate orders.
- They help avoid invoice creep by managing the PO and incoming invoice.
- Since the PO is contractual, it leaves no question regarding the legitimacy of the order.
- They can provide a standardized purchasing process that can make your entire system more accountable and predictable.
A PO Management solution integrates with your organization's accounting (and, in some cases, your fleet maintenance systems) to utilize vendor codes and individual purchasing limits to control individual purchases.
Here is an example:
Your Accounts Payable clerk receives an invoice for $37,000 from a vendor for tires. There was no knowledge that this order had even been placed. However, the other departments had been working with this vendor for the past three months, and it fell within their annual budgeted spend. In this situation, your Finance department most likely would require the invoice to be approved before payment. If the invoice amount is above a certain threshold, it may also need additional approval. In this particular example, there are several advantages to having a PO system versus not having one:
- Being able to forecast spend
- Being proactive -- not reactive -- when it comes to managing vendors
- Gaining visibility to spend and managing cash flow
- Being able to prevent invoice creep
In addition to budget control, when a PO Management solution is implemented and used throughout the organization, it brings the added benefit of an audit trail for tracking invoice creation and approval. With full visibility to purchasing transactions, your organization is more likely to focus on making the right purchase decisions – and improve your bottom line.
EBE's PO Management solution combined with our Accounts Payable Management solution ensures your organization is utilizing the best practices for tracking purchases. To learn more, visit www.ebeships.com or call 800.447.0612.
EBE is the leading provider of Transportation Specific Content and Process Management Applications. Serving nearly 600 clients, EBE has made a positive impact throughout their organizations in the areas of billing, settlements and accounts payable; recruiting, onboarding, safety, risk and training; carrier management, fleet maintenance and mobile and data capture. Our next generation of workflow solutions allow our clients to work by exception to maximize productivity, control costs, and increase profits across the Enterprise through the use of Automated Decision Support. Our integrated approach positions our clients to maximize their legacy system investments while extending the value of EBE's solution portfolio.