Invoice Processing
The workflow of receiving, verifying, approving, and paying vendor invoices.
Definition
Invoice processing encompasses all the steps from when an invoice is received to when it's paid. This includes capture/data entry, validation, coding to GL accounts, matching to POs, routing for approval, and posting for payment. The efficiency of this process directly impacts AP costs and vendor relationships.
Why It Matters
Manual invoice processing is slow, error-prone, and expensive—often costing $15-25 per invoice. Efficient processing reduces costs, captures early payment discounts, and maintains vendor relationships.
Examples
Manual processing
An AP clerk receives an invoice, manually enters data, files it, routes for approval via email, then enters for payment—taking 2-3 weeks.
Automated processing
An invoice is emailed to AP, automatically captured, coded, matched, approved, and queued for payment—completed in hours.
How Nexus AP Helps
Nexus AP automates the entire invoice processing workflow. AI captures data, applies coding, performs matching, and routes for approval—reducing processing time from weeks to hours.
Start Free TrialFrequently Asked Questions
How long should invoice processing take?
Best-in-class organizations process invoices in 3-5 days. With automation, many invoices can be processed same-day.
What is the cost per invoice?
Manual processing costs $15-25 per invoice. Automated processing can reduce this to $2-5 per invoice.
Category
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