In the normal scenario involving the supplier receiving the invoices, the former is usually given the priority to submit invoices to initiate the process of aging. By handling the invoice manually, as per the cases that were discussed previously, the suppliers were under the impression that the thirty or sixty days of payment term will start from the time they turned in the invoice. In addition, the supplier will be willing to pay regularly because the sooner they submit their invoice for aging, the sooner they can receive their payment.
During a meeting with one of our customers, where the account payable and procurement team were both present an issue arose. The account payable team was blaming the procurement team for delay in processing the supplier invoices they had received. A majority of the invoices they had received, they had done so by hand.
The process of receiving incoming suppliers’ invoices can be very complex, depending on how suppliers send them. Suppliers usually send invoices through different channels like email, fax, and by hand delivery. This can be complex for most organizations.