digitalize supplier invoices, a solution for overdue payments.

Nov 19, 2020 | Digitalization documents, Digitalization invoices, EDI

Late payments: a reality that penalizes all companies in France.

When you consider that 98% of France's businesses are small and medium-sized enterprises (SMEs), late payment is a key issue. "These delays are the result of malfunctions and sometimes unacceptable deliberate behavior. All companies, especially the largest, must be committed to respecting payment deadlines", admonished Alain Griset, Minister Delegate for Small and Medium-sized Enterprises.

Reinforced control policy

Last year, the amount of penalties imposed for late payment reached a record 22.4 million euros, up 30% year-on-year. A total of 1,517 establishments were inspected by DGCCRF teams, with an anomaly rate of 31%, resulting in 209 sanction decisions.

Breakdown of payment times by tranche and company size in 2018

Breakdown of payment times by bracket and company size in 2018. Source : LE FIGARO

What are the advantages of Digitalization ?

Digitalization offers several advantages for both supplier and customer:

  • Simplify invoice processing
  • Automate the invoice validation circuit
  • Facilitate the entry of incoming invoices
  • Reduce processing costs
  • Eliminate disputes caused by human error
  • Pay bills on time
  • Building trust with suppliers

What solutions can we put in place?

According to a study by EY (Ernest & Young), 86% of companies opt for SaaS solutions.

What's more, they are flexible, allowing you to make the transition to digitalization at your own level of maturity. The solutions described below may be complementary, depending on the range of suppliers and their heterogeneity.

It's a quick and easy way for suppliers to submit their invoices. This platform also provides visibility of the invoice life cycle. invoice. It checks the difference between the invoice and the date of submission. In this way, the customer can be sure that the invoice and its integration into the validation circuit for payment.

This portal is usually complemented by anOCR solution. This system reads the content of the invoice on the one hand, and extracts the fields essential for integration into a computer system on the other.

  • EDI (Electronic Data Interchange) solution

EDI solutions also have the advantage of receiving and processing invoices more quickly, as they are automatically integrated into the customer's IT system.

The solutions guarantee invoice tracking with follow-up, monitoring, alert and notification tools.

Whichever solution you choose, it must be scalable and take into account your operating mode and trading volumes.

However, investments inEDI implementation must reflect the ROI calculated upstream. With quality support, the budgets allocated for the solutions adopted are rapidly transformed into monetizable gains.

digitalize supplier invoicing is the first step towards Digitalization your complete processes and all your accounting, financial, logistics and sales flows.

Ultimately, it will enable you to build better supplier relationships and, above all, a more balanced cash flow.

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