This document explains on an outline level how you get a rational control over your supplier payment flows. This includes simple and effective administration and control of supplier processing, payment processing, and follow-up of the suppliers’ accounts.
The controlled payment flow enables you to make decisions to increase the profitability of the company. You use the financial information retrieved to analyze and understand changes in your vendor relationship.
For more details on how M3 is affected, see listed documents in the See Also section.
The workflow is slimmed and easy to handle, supported by user-defined input formats and automated processes. The three key processes in accounts payable are presented in this figure:
Preparing Supplier Invoices for Payment
Use the highly flexible invoice entry in M3 to apply your own, custom workflows for your supplier invoices. You can process any type of invoice. The online matching to purchase order and goods receipt is completely integrated in the entry flow but can also be done separately. Authorizations, recodings, and approval of invoices are done efficiently using either the regular or simplified workflow.
You can automatically create payment documents based on payment proposals. You decide whether the proposal should relate to a particular payment method, suppliers with a particular payment priority or particular payment terms, for example. All matching and approved invoices are automatically included as well as all discounts for the period and any credit invoices. You can also manually enter payments made, for example, based on transaction notes from a bank.
Use any of the many inquiry functions to follow-up and search for specific information. These help you manage your supplier liabilities and forecast your need for liquid funds on a regular basis. You have instant and complete information on a supplier’s transactions over a certain period of time. For example, you also have all invoice information readily available on topped or disputed invoices or invoices requiring approval.