Do you think your organization has a grasp of EAP, AP Automation, Integrated Payables, Accounts Payable, Accounts Receivable, Supplier Enablement AND how it all works together? Maybe, maybe not? There are many views of what these mean and how they work and very few of them are the same view. Even fewer are correct!
What Integrated Payables IS and what it is NOT
Integrated Payables is widely misunderstood. It is a solution that incorporates all payment types – Virtual Card, ACH, Check and Wire – into a single payment process.
It is available to organizations to automate the payment portion of their electronic accounts payables (EAP) process. This differs from AP automation which is only the automation of the invoice processing that comes prior to the payment itself. Many organizations today realize that they have automated the invoice process, but don’t have a payment hub built into their process to actually complete the payment. This leads to buyer remorse.
Integrated Payables Trend
Suppliers are still resistant to accepting electronic payments. There are disparate approaches for virtual card and ACH payments which result in a fragmented supplier onboarding experience. But today, solution providers are focusing on the convergence of AP and AR processes to make it easy for suppliers to accept electronic payments.
Align the stakeholders
Sourcing an Integrated Payables solution does not have to be a daunting task for organizations. However, ensuring that the solution selected is successful does require input from treasury and finance, as well as a partner that understands the importance of the supplier side of the equation. Your partner should also support technology solutions that require minimal dependencies on your IT staff.
Solving payment challenges for you and your supplies
Moving beyond AP automation to develop an effective, integrated payables solution and supplier enablement strategy will lead to a stronger overall value proposition for both buyers and suppliers. Education about the solutions available for corporate finance executives and their banks is the first step.
Read this article, which pulls back the curtain on the common misconceptions around AP Automation.
View our webinar to learn more about commercial payment types and trends.
Contact us to discuss any payment challenges you may be facing.