Paper payment still reigns, but electronic solutions are gaining favor.(INVOICING SYSTEMS)

Manufacturing Business Technology, July, 2005

It takes a company an average of 40 to 45 days--sometimes as long as 120--to receive an invoice payment. That time is spent routing, reviewing, matching to accounts receivables, and approving for payment. It's said that even for electronic B2B transactions, more than 80 percent are paid by paper checks and reconciled with paper invoices and purchase orders (POs).

With the right purchasing and payables software, however, a company can receive and process invoices electronically, automatically matching them against POs before handing them off to a back-end accounts payable or ERP system for payment. According to a survey by MasterCard and supply chain software vendor Ariba, two out of every three U.S. companies with annual revenues exceeding $500...

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