Never Lose Track of Payables: A Guide to Supplier Invoice Management

You're sitting at your desk, staring at a sea of invoices that multiply by the minute. Each document is buried somewhere—some in spreadsheets, others scattered across different platforms. No matter how hard you try to track them, you can't keep a solid grip on each one. 

Suppliers are getting impatient, and the pressure is building. You risk strained relationships, and every missed or late payment becomes a potential negotiation nightmare. The finance team pushes for tighter control, but you are too swamped to keep up.

With no streamlined system in place, every invoice feels like a ticking time bomb, one that might explode into bigger issues like delayed payments, lost discounts, double payments and tarnished supplier relations.

But it doesn’t have to be this way. 

This blog post will explore how to manage supplier invoices efficiently, keeping both your procurement team and supplier relationships intact. 

Procurement Team Needs a Centralized Platform That Supports Decentralized Spending

Decentralized spending means invoices flow in from multiple departments without centralized oversight. This lack of visibility creates chaos when invoices arrive, leaving teams without enough context to verify their legitimacy. 

Were these items ordered and received? Have we already paid for this? Was this even authorized?

While it’s easier to spot issues with larger direct expenses, small indirect invoices slip through without thorough checks. When accumulated, unchecked invoices impact cash flow and lead to financial strain.

The scattered nature of documents across emails, Slack threads, and other platforms adds another layer of complexity, with approvals dragging on for days. This delay not only means missing early payment discounts but also increases the risk of late payments, damaging supplier relationships.

A centralized platform solves these issues by consolidating all stakeholders, documents, and workflows in one place. It ensures invoices are tracked, verified, and processed with ease, improving accuracy and efficiency.

However, not all platforms handle the nuances of decentralized spending. 

Some cannot implement intricate approval hierarchies or rely on external channels for collaboration, leading to inefficiencies. Others fail to link invoices with their corresponding purchase orders, exposing teams to risks like duplicate payments or processing incorrect invoices.

So, what procurement teams truly need is a platform that bridges this gap—a centralized solution that streamlines document management and collaboration without adding unnecessary complexity or delays.

 ERPs Are Not Built for Decentralized Spending

Enterprise resource planning (ERP) systems are designed to create a single source of truth with a streamlined process. But when it comes to managing decentralized spending, they fall short. 

ERPs process all invoices uniformly, whether they are minor expenses like AED 500 for marketing or significant ones like AED 50,000 for operations. This one-size-fits-all approach fails to address the unique requirements of decentralized spending.

For instance, a marketing expense exceeding AED 8,000 needs to trigger additional review, but ERPs don’t provide the granular control to flag such exceptions. Similarly, a high-value invoice requiring approval from multiple departments and specialized teams is delayed due to ERP rigidity. 

To address these gaps, teams resort to emails and Slack to communicate and manage approvals. This workaround negates the benefits of centralization, introducing inefficiencies, delays, and limited visibility into spending.

So, teams need a unified platform that allows frictionless collaboration and supports detailed rules and workflows, ensuring compliance and faster invoice processing.

Get Unified Platform for Supplier Invoice Management

To effectively manage supplier invoices, you need a platform to automate three-way matching, create intricate approvals workflows, and flag discrepancies early on. Once approved and verified, invoices await payment.

This is the foundation of a frictionless, efficient supplier invoice management system. 

Here’s how Pluto helps you achieve this seamless supplier invoice management system. 

Capture Invoices with OCR

Upload invoices via e-mail forwarding, WhatsApp images, or simply drag & drop them into Pluto’s Invoice Inbox. 

Pluto’s optical character recognition (OCR) instantly automates invoice capture, extracting key details like invoice numbers, amounts, and supplier information while adding respective general ledger and tax codes. This eliminates manual data entry, reducing errors and saving time.

Streamlined Approval Workflows

Customize approval hierarchies to suit your organization’s structure. Whether it’s a small expense or a high-value invoice, Pluto ensures approvals are routed to the relevant stakeholders, maintaining compliance and efficiency.

GRN Matching

Pluto matches invoices with purchase orders and goods received notes (GRNs), ensuring accuracy at every step. This prevents duplicate payments and guarantees that only legitimate invoices are processed.

Reconcile with ERPs — Simplify Data Recording

Pluto integrates effortlessly with ERPs, automating reconciliation and ensuring accurate data recording. This eliminates duplication of effort and streamlines financial reporting.

Invoice Batching, Scheduling, and Reminders

Group multiple invoices for bulk processing, schedule payments to optimize cash flow, and set reminders to avoid missed deadlines. These features ensure smooth payment cycles without manual intervention.

Complete Audit Trail

Every action taken on an invoice is recorded in Pluto, providing a comprehensive audit trail. This transparency enhances accountability, simplifies compliance reporting, and makes audit season a breeze.

Reporting

Pluto gives detailed reports based on various criteria, such as department, employee, location, or vendor. These reports provide valuable insights into your organization’s spending patterns, approval timelines, and departmental budgets. 

Creating a Collaborative, Efficient Invoice Management System

A rigid, centralized system that isolates teams into specialized functions, much like a traditional assembly line, is prone to inefficiencies. 

When one piece of the process slows down or fails, it creates a ripple effect, delaying the entire workflow and leaving teams stuck waiting on others. This lack of agility not only impacts invoice processing but also strains internal operations and supplier relationships.

What you need is a collaborative platform that connects all departments, creating a seamless flow of information and tasks. 

By bringing stakeholders together on a single platform, every team has the visibility and tools to move invoices forward without unnecessary bottlenecks or delays. This ensures faster, more efficient, and more reliable invoice processing across your organization.

Pluto provides a collaborative centralized solution to transform your supplier invoice management process. Book a Demo to see how Pluto streamlines your workflows and improves efficiency today!