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How to improve your international procure-to-pay process

This sponsored Viewpoint article has been provided by TransferMate
The content below does not express the views or opinions of Spend Matters.
Visit https://www.transfermate.com/procure-to-pay/ to learn more.
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Mismatched invoices. Lost payments. Hours of reconciliation. For companies operating in international markets it can be difficult to manage spending abroad and integrate that efficiently with accounts payable processes. Often the invoices are not aligned with payments, and too many times the payment received is not the full amount due to international fees and FX charges removed along the way.

There can be enough challenges with the procure-to-pay (P2P) process to begin with, and adding in international payments can cause even more of a headache. It’s important for companies to align their procure-to-pay processes across departments and enact software that streamlines systems.

Most common mistakes with procure-to-pay

Before we get into solutions, let’s look at some of the most common mistakes companies make with procure-to-pay:

  1. Limited automation – This is probably the most overarching problem among organizations. While there may be an ERP system in place, overall P2P lacks automation. It is important for organizations to eliminate any manual parts of the process and move to full automation.
  2. Multiple systems – Often each department has its own system, and sometimes even more than one ERP system. Companies need to reduce software redundancies and make sure one system is adopted across the organization.
  3. Adoption – Even if companies don’t have the above problems, it can sometimes be difficult to get everyone on board with adopting the new software or automated process. Identifying the gaps in your organization that are still allowing old or manual ways to get through is the first step.
  4. Lack of visibility – Companies often do not have an accurate read on their spend. This is sometimes due to multiple software or systems, or can even be blamed on invoices with missing purchase order (PO) numbers or supplier information. Getting control of this visibility can be tricky, but with an automated payments system, procure-to-pay is a little easier.
  5. Invoice issues – And as mentioned above, discrepancies in invoices can be a huge headache for finance teams, whether it’s missing PO numbers or payments not matching up.

If an organization has these above issues, then international payments can often incur high turnaround times, late payment fees or even go missing in the process.

There are a few ways companies can manage these payments, including procurement and spend management software. However, in order to truly and efficiently handle international payments, using an international payments technology like TransferMate Global Payments is a vital step.

Let’s walk through the benefits of integrating international payments with your ERP system.

  1. One platform – TransferMate’s payments technology allows companies to manage spend, invoices and international payments in one location, by linking in with current systems. This eliminates transferring information from one platform to another.
  2. Cost & time savings – International payments through a traditional bank often incur fees and FX mark up costs. Companies are able to save money by using advanced technology that bypasses intermediary banks. It also saves time and money for companies paying administrative professionals to reconcile invoices by supplying full tracking and visibility.
  3. Compliance due diligence – Companies no longer have to worry about managing local regulations for their international payments. For example, TransferMate has one of the largest payments regulations footprints globally.
  4. Better supplier relationships – A side effect of better procure-to-pay processes and on-time payments is that you will have better relationships with your international suppliers. Suppliers are happier when you pay on time and make the process seamless on their end as well.

A better way to receive payments

TransferMate’s receivables solution works in conjunction with your ERP and accounting software to automate accounts receivable, reduce debtor days and improve cash flow.

(Click image to enlarge)

For companies operating internationally, it is important to evaluate current P2P systems and see what is working well and what isn’t. Integrating international payments into current systems might be a great way to save time and money while improving relationships abroad.

If you would like to learn more about how you can make cross-country payments cheaper, easier, faster and more convivial to the supplier relationship, please join our webinar with Spend Matters on September 10:

Register here to learn about streamlining the purchase-to-pay cycle.

 

Steve Thompson is Senior Manager at TransferMate Global Payments.

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