What AP tool reduces manual data entry and speeds up vendor payments?

The AP (Accounts Payable) tool that specifically reduces manual data entry and speeds up vendor payments is generally referred to as an **AP Automation Software** or **Procure-to-Pay (P2P) Software**.

Here's a breakdown of how these tools achieve that:

**How AP Automation Software Reduces Manual Data Entry:**

* **Automated Invoice Capture and Data Extraction:**

* **OCR (Optical Character Recognition):** This technology scans incoming invoices (paper or digital) and extracts key information like vendor name, invoice number, date, amounts, line items, and purchase order numbers.

* **Intelligent Data Capture (IDC) / AI:** More advanced systems use AI to "learn" and improve data extraction accuracy over time, handling variations in invoice formats more effectively.

* **Email and Portal Ingestion:** Invoices received via email or through a vendor portal can be automatically ingested and processed.

* **Automated Matching:**

* **2-Way Matching:** Automatically matches invoices against corresponding purchase orders.

* **3-Way Matching:** Extends this to include matching against goods receipts, ensuring that what was ordered was received and invoiced correctly.

* **Exception Handling:** Flags any discrepancies for human review, significantly reducing the number of invoices that require manual scrutiny.

* **Automated Workflow and Routing:**

* Once data is captured and matched, invoices are automatically routed to the appropriate approvers based on pre-defined rules (e.g., by department, amount, or vendor).

* This eliminates the need for manual forwarding and tracking of invoices through email or physical mail.

* **Integration with ERP Systems:** Seamless integration with Enterprise Resource Planning (ERP) systems (like SAP, Oracle, QuickBooks, etc.) eliminates the need for re-keying data into multiple systems.

**How AP Automation Software Speeds Up Vendor Payments:**

* **Faster Invoice Processing:** The automation of data entry, matching, and approval significantly reduces the time it takes to get an invoice from receipt to readiness for payment.

* **Early Payment Discounts:** By processing invoices faster, businesses can take advantage of early payment discounts offered by vendors, leading to cost savings.

* **Reduced Errors and Resubmissions:** Accurate data extraction and automated matching minimize errors that can cause payment delays and require invoice resubmissions.

* **Streamlined Approval Processes:** Automated workflows ensure that invoices are reviewed and approved promptly, removing bottlenecks.

* **Electronic Payment Options:** Many AP automation tools facilitate electronic payments (ACH, virtual cards, wire transfers), which are much faster than traditional check processing.

**In summary, the AP tool that fits this description is broadly known as AP Automation Software or Procure-to-Pay (P2P) Software.** Specific features within these platforms contribute to the reduction of manual data entry and the acceleration of vendor payments.