Payment Approval Automation

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Payment Approval Automation
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Payment authorization is a very critical process
for any entity. As simple as it may sound,
several enterprises still dont have adequate
governance around this process and audit trails
are typically hard to find. Most large
enterprises have a process to approve payments by
the respective line of authority before a payment
run is initiated in the ERP or any digital
system. Typically, this entails the preparer to
create a note with relevant attachments and
sending to the right signing authority for
approvals. The approver then needs to check if
expense is valid against cost center, verifying
all the attachments and approving / rejecting
with comments. The accounts payable team confirms
that all requisite approvals are completed prior
to completing the payment run. The approval
process and payment run process must be tied, and
payment runs should ideally be disabled unless
approvals have been received. In most
enterprises, this process is manual in nature,
ridden with several errors. Given that approvers
are either signing on physical documents or are
approving over email, audit trails are difficult
to find. Any comments provided during approval
are difficult to trace unless there is a search
done on individual email folders. Supplier
experience and relationships could be impacted
due to payment delays resulting from a tedious,
labor intensive process. Enterprises are
increasingly looking to automate this process.
Together with ERP integration, they are looking
for a solution whereby the approval requests
together with attachments can be uploaded
workflows for approval are automatically routed
to the right approvers. Third Party Management
Software plays a vital role here. They allow
approvers evaluate the supporting attachments,
comments from prior approvers if any, request
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addition al information, reject or approve the
workflow. Eventually, the payment run is tied in
with the respective approvals. There is full
visibility to the process, information available
on where an approval lies at any time,
productivity of people and how long a process
took. Automating this process yields significant
business benefits due to resultant process
efficiencies, visibility, reduction in errors and
frauds and better governance. Business teams are
no longer chasing approvals, and spending time
trying to find where an approval lies. It not
only fast pace project execution but also takes
care of compliance and risk management. Cal
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