How Automation is Overhauling Accounts Payable

SAP organizations are always searching for improved options to bolster the efficiency of their financial operations. Many top companies are implementing AI (artificial intelligence) and automation technologies to streamline important workflows, enhance accuracy, and improve planning.

While automation and AI hold promise in nearly every area of finance, some areas have shown greater adoption than others. SAPinsider’s recent AI and Automation in Finance 2024 Benchmark Research Report found that nearly half (48%) of companies have either implemented or are in the process of implementing AI and automation in invoice and payment processing. This is by far the highest share of any finance area.

Implementing Automation in AP

To help companies make the most of their AI and automation transformation projects, xSuite shared several key examples of customer success stories to help readers understand what they can accomplish.

xSuite revealed that manually handling invoices is one of the biggest time-drains that a typical organization faces. Going through each invoice one-by-one is not only time-consuming, but it also introduces the potential for errors.

Relying on automation to enter data speeds up the process both in terms of extracting information and entering it into SAP. Automated solutions handle both of these processes simultaneously. By automatically making this information available to all SAP users, decision-makers have greater transparency into granular insights, allowing for better communication with suppliers and vendors.

In a recent webinar, xSuite’s Tony Cheung shared the story of freight company Radiant Global Logistics. By infusing automation into its accounts payable process, it was able to improve accuracy in data entry and process 40% more invoices without increasing manpower. This allowed the company to scale while also improving worldwide transparency.

Streamlining Business Processes

The need to operate and execute financial processes more efficiently is a key driver for many SAP organizations. Siloes and bottlenecks are more than just frustrating – they keep key information away from decision-makers, forcing them to operate without optimal knowledge, which can lead companies down the wrong path. This is compounded when companies have different parts of their operation spread across different areas.

By adopting automation as part of an overall transformation, moving AP processes from manual to digital, companies can gain greater visibility into processes. This helps them receive approvals more quickly, identifying and moving past bottlenecks in these processes.

In another example, major film company Lionsgate overhauled its outdated manual process, replacing it with xSuite’s help. This allowed Lionsgate to have digital records accessible to key business leaders, so they can troubleshoot issues or better handle any potential audit threats.

What This Means for SAPinsiders

Organizations that are still using outdated manual processes for important finance functions risk falling behind, leaving themselves open to errors or inefficiencies. Leading SAP organizations are turning to partners like xSuite to improve AP and other essential workflows. Those who want to learn more can watch xSuite and SAPinsider’s recent webinar on this topic here.