Planning Smarter with Rightpath

 

In our previous posts, we explored the strategic layers of Accounts Payable (AP) transformation – understanding the broader Procure-to-Pay (P2P) journey, identifying key transformation  drivers, and walking through milestone events after a purchase order is raised. Now in Part 4,  we zoom in on the operational side: how invoices are received, processed, and paid. This is the  backbone of AP, where the right mix of systems and people creates flow, efficiency, and control. 

Invoice Receipt: The Starting Line of Execution 

Invoices can arrive in several ways, depending on your organization’s P2P maturity. While  rare, hard copies still show up via post or hand delivery. More commonly, invoices arrive as  soft copies – emailed directly to employees, sent to central invoice inboxes, uploaded to shared  folders, or submitted through supplier and workflow portals such as Coupa. 

This variety demands a clear intake process. Without consistency in how invoices are received  and captured, delays and inaccuracies can creep in right from the beginning. 

Invoice Indexing and Validation: Where Accuracy Takes Over 

Once received, invoices are typically scanned and digitized using OCR (Optical Character  Recognition) technology. Indexing involves verifying the extracted data – like supplier details,  invoice numbers, dates, PO references – and ensuring it’s complete and accurate. This step  prevents issues further down the line and ensures only clean invoices proceed to the next stage, Streamline your accounts payable with RightPath GS. 

Streamline Your Accounts Payable

Invoice Processing: Routing Based on Invoice Type 

At this stage, invoices are categorized and handled based on their type. For PO-based invoices  with a three-way match, the invoice is checked against the purchase order and the goods receipt.  If quantities and prices match, the invoice is either auto-posted or manually posted into the  ERP. 

In cases of two-way matching – typically in service-based organizations where a GRN isn’t  applicable – the invoice is matched to the PO and sent for approval. For non-PO invoices, the  AP team codes the invoice by assigning appropriate GL accounts and cost centres. Once coded,  it’s routed for approval. Some invoices, once validated, are already preapproved and can be  posted directly into the system, RightPath GS offers comprehensive accounts payable management services 

Invoice Approval: Ensuring Control and Accountability 

Approval processes vary by invoice type. A three-way matched PO invoice with no  discrepancies may not require separate approval and can be posted directly. Two-way matched  invoices need confirmation before posting. Non-PO invoices always require approval after  coding. This step builds financial governance into the process, ensuring spending is visible,  approved, and aligned with budgets.

Invoice Posting: Recording the Financial Obligation 

Once approved, the invoice is posted into the ERP system. This action records the liability,  updates the supplier’s account, and prepares the invoice for payment. In automated systems, this is typically seamless. In other workflows, the approved invoice may return to the AP team  for manual posting. 

Accurate and timely posting ensures clean financial records, supports reporting requirements,  and sets the stage for reliable cash flow management. 

Accounts Payable Solutions

Invoice Payment: Completing the AP Cycle 

The final step is payment. Organizations run payments on predefined schedules – weekly,  biweekly, or monthly – based on terms agreed with suppliers. The AP team initiates payment  runs for all due invoices. Whether payments are made through bank transfers, digital platforms,  or cheques, this step finalizes the AP process and closes the loop. 

Timely payments improve vendor relationships, reduce the risk of penalties, and open doors  for early payment discounts – transforming AP from a back-office function into a strategic asset. 

Transforming AP Execution Starts with Clarity 

Each step of the Accounts Payable process plays a role in building operational efficiency,  financial accuracy, and vendor trust. From how invoices arrive to how payments are released,  the journey needs clarity, structure, and the right tools. 

At Right Path, we help businesses uncover these hidden opportunities for streamlining. Our  Free Procure-to-Pay (P2P) Assessment is designed to evaluate your current workflow, flag  improvement areas, and offer custom recommendations – all tailored to your operational needs. Explore our website and claim your free assessment today. Let’s make your AP transformation  not just a project – but a business breakthrough.

 

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