EIPP Boosts Accounts Receivables Efficiencies
Enterprises globally are demanding EIPP (electronic invoice presentment and payment) software in part because vendors are offering cash and payment management functions to improve cash flow. Demand from enterprises for rules-based automated solutions that process paper invoices and decide whether and how to pay them is fueling the EIPP market, a new Forrester Research paper shows. In short, EIPP software provides cost savings and efficiencies by electronically managing invoice data, disputes, approvals, payment disbursement and reconciliation processes.For its survey, ôAccounts Payable EIPP Q3 2005ö, Forrester classified EIPP into accounts receivable (AR) solutions for sellers wanting to get invoices to buyers, and accounts payable solutions for buyers who want to receive all invoices electronically. EIPP offers five key areas of savings for AR, namely delivery, improved AR efficiency, release of working capital, reprint requests and reduced customer service calls, while achieving variable per-invoice savings of 82 per cent by replacing traditional paper-based invoices with electronic delivered invoices.
Automated EIPP processes substantially reduce invoice deliv
ery costs and simplify data flow during accounting processes. EIPP is estimated by the Hackett Group to improve AR efficiency by a third due to eliminating or reducing error rates during processing. Invoicing is accelerated, with NACHA reporting that Days Sales Outstanding can be reduced by four days in the year after EIPP implementation by more quickly addressing disputes or queries. The cash that is released can subsequently be reinvested at the cost of capital, to the benefit of the companyÆs bottom line. Related Links:
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