Defining AP Automation Functional Requirements (Part 1): Core Invoicing (Set-Up, Creation, Submission and Receiving)

AP Automation is getting a lot of attention recently from multiple angles. This includes both finance/procurement organizations considering these solutions independently or as a component of broader invoice-to-pay or procure-to-pay investments. And it also counts the investment community, which continues to throw support behind a broad range of providers (just recently MineralTree raising $50 million).

As we’ve noted before, from a breadth perspective, AP automation technology can encompass the following functional areas on the highest level, which include electronic invoice capture, paper/PDF invoice capture (scan/capture), core invoice processing, invoice validations/matching (e.g., match to a PO or goods receipt), invoice approvals, supplier portal, supplier enablement services, systems integration, pre-onboarded suppliers payment integration and payment.

As part of our continuing coverage of AP automation, this Spend Matters PRO series will explore the functional requirements that finance and procurement organizations should look for in a solution with “foundational” and “advanced” capabilities.

Part 1 takes our first look at the core invoicing requirements for AP automation and some of the criteria that Global 2000 and middle market organizations should consider when selecting solutions (i.e., invoicing set-up, paper scan/capture support and e-invoicing). Subsequent briefs in this series will analyze other AP automation requirements that customers should look for in a solution.