What is Invoice Management?
Sometimes also known as invoice processing, the invoice management process is how a business receives invoices from its vendors and manages them internally.
It is a crucial internal business function often related to procurement. This process includes the management and processing of invoices from suppliers and vendors.
Upon successful reception of the invoice, the company validates the document’s legitimacy before paying the supplier and recording the transaction.
Managing invoices and payments efficiently is crucial for the long-term success of any business. It enables the business to maintain profitability while also increasing revenue.
The steps involved in the invoice management process are as follows:
- Reception of invoice
- Extracting relevant information
- Validating the invoice information
- Payment approval
- Payment processing and recording of the transaction.
Verification and clearance are important tasks handled by procurement teams. When companies purchase products and services from vendors, they usually get an invoice from them, and the company is liable to pay the invoice to the vendor.
