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Three Benefits of EDI Invoicing

Speed

One of the most tangible and readily evident benefits of EDI invoicing is the speed with which transactions are sent and received, specifically when compared to alternate invoicing methods. Paper invoices require the carrier or vendor to generate or manually key data, print and mail invoices. Invoices then spend a minimum of one business day in transit before reaching their intended location, where they require sorting, scanning, uploading and re-keying. Email submission is a more expeditious process than paper invoicing but still requires manual entry upon receipt. Once submitted, EDI invoices require no manual intervention and are more readily visible to all parties.

An increase of speed in the invoice submission method initiates greater efficiency in subsequent processes. Because EDI invoices are more readily visible, they can be analyzed and processed in a timelier manner. Streamlining the audit practice results in quicker access to invoice status by all parties as well as expedited payment to the billing party.

Accuracy

Electronic invoicing ensures greater accuracy from the onset of invoicing activity. This accuracy is achieved through automation, standardization and confirmation. The reduction of human intervention is the first measure toward ensuring greater accuracy in the invoicing process. The automation of EDI invoicing eliminates the need for a second round of data entry, drastically reducing the potential for human error. The preservation of the integrity of the invoice data results in greater accuracy for both auditing and payment purposes.

Standardization in EDI is an additional measure toward increasing invoice accuracy. With defined criteria for both content and format, the margin for erroneous records is diminished. Unique segments are assigned for individual fields, removing any need for data interpretation. EDI charge codes are uniform, which ensures consistency in even the highest of invoice volume.

While automation and standardization increase the accuracy of the content of an individual or group of invoices, the most basic element for assurance that a bill is processed for timely payment is receipt by the responsible party. An invoice sent via mail or email has the potential to be lost in transit, with

Optimizing efficiency is a fundamental objective within any company’s supply chain. The automation of standard processes through electronic commerce is a proven method for the achievement of this goal. Electronic Data Interchange (EDI), the transfer of standardized electronic documents between businesses, is a viable, value-adding solution for streamlining invoicing practices. The most significant benefits of EDI invoicing for your business include speed, accuracy and cost reduction.

Three Benefits of EDI Invoicing

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v i e w p o i n t

Three Benefits of EDI Invoicing

the billing party unaware of the failure of receipt. EDI invoicing provides a confirmation of receipt. This confirmation is automatically generated and sent for both successful and failed submissions, allowing for timely resubmission, when necessary.

Cost Reduction

Cost efficiency is a benefit of EDI, which is interlaced with the advantages of speed and accuracy. When invoices are received and processed in a timely manner, additional fees and late charges are avoided. The minimization of the risk of human error, afforded by the automation of EDI invoicing, is directly tied to a reduction in labor costs. Funds no longer have to be dedicated to the time-consuming manual process of keying invoices.

In addition to savings in both billed charges, fees and labor costs, EDI fosters a paperless environment, which results in a reduction of money spent on office supplies. The implementation of electronic invoicing allows for the elimination of paper, printing, physical storage space and postage, which aggregates to significant savings for your business.

Conclusion

EDI is a process designed to promote efficiency. Through standardization and automation, it ensures that organizations operate with greater speed and accuracy. Such advancements in speed and accuracy lend themselves to cost reduction. The improvements in procedure and price are proof that EDI can be a beneficial invoicing practice for your company.

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For more information, please contact

877-684-7700 or info@envistacorp.com.

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