AP Automation and contract management: indispensable for CPOs

The increasing demands on contract management and invoice processing require integrated technology solutions. CPOs need systems that not only automate contracting, but also ensure continuous monitoring and reconciliation of contracts with orders and payments. This goes beyond invoice processing; it is about risk reduction and cost optimisation, especially through the seamless integration of E-Procurement tools and digital invoice processing.

"Transparency is crucial for maintaining strong supplier relationships," says John Schouten, Director Product Management. AP Automation software provides complete transparency and control by mapping and harmonising the entire procurement and accounts payable process with existing systems. This results in automated invoice processing and increased compliance with contractual agreements. Integrating process automation of accounts payable also drastically reduces invoice processing time.

1. Managing the use of framework agreements

Framework agreements are an important foundation for contract management. They make it possible to maintain long-term relationships with suppliers while optimising costs. AP Automation's integration enables companies to efficiently manage these framework agreements by directly matching purchase orders and payments with contractual agreements. This prevents discrepancies and ensures that companies benefit from automated invoice processing and better contract management.

"Implementing such digital functionalities not only focuses on efficiency," adds John, "but also strengthens collaboration and creates long-term value for all parties involved."

With automated invoice processing, purchase requisitions and orders can be linked directly to framework agreements, so that all orders are checked for price agreements and contract terms. This drastically reduces errors and discrepancies and increases compliance. Applying process automation within accounts payable further optimises this process, resulting in a fully digital and error-free invoice flow.

2. Entering purchase requests and purchase orders with reference to contract management

A key advantage of integrating AP Automation software with contract management is the ability to link purchase requests and orders directly to contracts. The system automatically recognises whether an order falls within the framework agreement and checks whether the price and terms match the contract.

This not only provides a huge efficiency gain, but also ensures accurate compliance monitoring. CPOs have real-time visibility into all procurement transactions and can ensure that all expenditure is within contractual terms. Moreover, this automation minimises the need for manual checking, making the accounts payable process smoother. Process automation of accounts payable plays a key role in this, as it not only streamlines the processing of purchase orders, but also ensures faster and more accurate invoice processing.

3. Invoice control compared to contracts for continuing obligations and contracts without purchase orders

One of the biggest challenges in contract management is invoice reconciliation, especially for ongoing commitments or contracts without a purchase order. In these cases, invoice processing can be directly reconciled to existing contract data without manual intervention. This is especially crucial for licence agreements, rental agreements and service level agreements (SLAs).

With digital invoice processing and automated invoicing, invoices are directly matched to contract data, leading to automated invoice verification. As a result, all payments are made correctly and on time.

"The Invoice Status Portal provides suppliers with instant access to invoice updates, resulting in fewer emails and phone calls for AP teams and therefore greater efficiency," John said.

By applying process automation to accounts payable, companies can further optimise this invoice control. Automatic recognition and matching minimise the margin of error, while paying suppliers faster and improving cash flow management.

The benefits of AP Automation go beyond contract management and procurement control. By automating accounts payable, organisations can achieve even greater efficiency gains. Processing purchase invoices, approving payments and checking contract terms are dramatically accelerated with an AP Automation solution.

Thanks to process automation of accounts payable, companies can:

• Minimise manual operations: Processing invoices and matching with orders is done automatically, reducing workload and preventing errors.
• Achieve faster invoice processing: Automatic approval flows ensure invoices are processed and paid on time.
• Gain better insight into cash flow and liabilities: Real-time dashboards provide a complete overview of outstanding invoices and payments, helping to optimise working capital management.
• Improve compliance and compliance: Strict control mechanisms and automated reporting ensure compliance with both internal and external audit requirements.

AP Automation's integration with contract management is an indispensable tool for CPOs to improve efficiency and accuracy within the procurement process. Thanks to this technology, companies can better manage framework agreements, automatically match procurement requests with contracts and check invoices directly against contract terms.

By automating and digitising these processes, companies can not only save costs, but also minimise the risk of errors and fraud. CPOs that choose invoice processing software create a high level of compliance, transparency and process optimisation. This leads to faster decision-making and a stronger competitive position for organisations.