Electronic data interchange (EDI) is another technology used in accounts payable automation. EDI involves the exchange of electronic documents between organizations, eliminating the need for paper-based invoicing and manual data entry.
EDI can be used to automate several aspects of the accounts payable process, including:
- Invoice delivery: EDI can be used to send electronic invoices directly to an organization's accounting system, eliminating the need for paper-based invoicing.
- Invoice processing: EDI can be used to automatically process invoices, extracting data and populating accounting systems.
- Invoice matching: EDI can be used to match invoice data with purchase orders and other documents, ensuring that invoices are accurate and complete.
- Payment processing: EDI can be used to initiate and process payments, reducing the need for manual payment processing.
By using EDI to automate these tasks, organizations can reduce costs, improve accuracy, and speed up invoice processing times.