Replacing EDI Software with Automated Invoice Processing
EDI, or electronic data interchange, is a system that allows two parties to transfer electronic documents between accounts payable and accounts receivable. Compared to traditional methods of invoice processing, EDI is quicker and more efficient.
This platform replaces the cumbersome task of handling a variety of invoices received via email, fax or postal mail. EDI is commonly used between companies to increase the efficiency of data transfer. Working with invoices in electronic format eliminates the time and costs associated with sorting paper documents.
However, EDI is not a perfect solution and comes with its own costs, namely those related to its intermediary services. Automated invoice processing software can achieve the same results as EDI but without the costs.
Despite its popularity in many accounting departments, many suppliers don’t have EDI implemented, and have no plans to do so due to its costs and the training involved. As a result, the accounts payable team will often deal with a variety of both paper- and EDI-based formats, which create additional bottlenecks and more work.