Electronic Invoicing With EDI
EDI…It’s All We Do!
DCS can help you lower the cost of operation by automating invoice and payment processing using EDI. For example, if your vendors invoice you electronically instead of by fax, phone, or e-mail, you can eliminate the data entry step. The Accounts Payable department can then focus upon errors and omissions. Now is the time to consider EDI invoicing and processing as the systems and processes are mature, reliable, secure, and economical.
Here’s How Vendor Oriented EDI Works:
- Receive invoices through EDI. This eliminates accounts payable data entry.
- Look to the existing payables screens for matches and exceptions from your receiving report.
- Set deductions if appropriate.
- Pay electronically. This ensures the cash flow is measured precisely. (E-payment is optional.)
For customer oriented EDI, the invoice is sent immediately after receiving the Shipment. At the time of payment, the Remittance Advice is received and posted.
The first step is to check your accounting or ERP system to learn if it has an EDI module, and then call us. Second, qualification is simple: ask the vendor if they support X12 EDI invoicing. They are likely to agree as they can eliminate mailing invoices.
A typical project takes about three weeks: one week for programming, a second week to contact and set up the first few vendors, and a third to provide training to your I.T. and A.P. staff and monitor the new processes. The accounts receivable group works with their existing application, not the financial EDI system, so little disruption occurs. After a few key vendors are successfully implemented, you can get the rest on board by “working the list” over time
Conclusion
DCS knows financial EDI and can link existing EDI and MRP system. Adding a few vendors can be done quickly and economically to prove the concept. A roll-out of only 24 months can then automate most vendors. Considerable savings and wider processing window can be achieved. Our DCS GROW™ Development Service ensures your implementation will be smooth and your cashflow uninterrupted. The first step is easy, e-mail DCS for your Free Assessment
Electronic Data Interchange (EDI) is the computer-to-computer exchange of routine business documents such as Purchase Orders, Shipment Notices, Invoices, and Remittance Advices without human intervention. Data moves from your customer’s computer system – through the Internet securely – to your computer system.