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It’s possible that you’ve suffered the frustration of receiving rejected invoices from your customers if you’re a supplier on SAP Business Network. Rejected invoices mean a delay in the entire invoicing process, which, in addition to causing you a headache, can also mean a delay in payment.
What does this look like? You as a supplier would unknowingly send the incorrect invoice, the invoice would be received by your customer, get rejected, and then get sent back to you to adjust and resend it... whew that’s a lot of steps!
So, what can be done to ensure a smoother invoicing process, a better experience for your customers, and fewer rejected invoices (or none at all)?
1. Ensure your invoice routing is set up correctly
One of the first things you should do when creating an account on SAP Business Network is to set up your invoice routing. If you haven’t done this before, you can learn how to do so here. If you set this up some time ago, take a few minutes to double-check that everything is still accurate.
2. Utilize the PO-flip feature
Suppliers can create an invoice directly from a customer’s purchase order (PO). This will automatically integrate all the purchase details into the invoice, including each line item and the customer’s information, and share it back with the customer through the invoice. Leveraging the PO and creating an invoice this way speeds up the invoicing process to help suppliers save time and reduce the chance for errors. See how it works here.
3. Work with your customers to make sure they have their invoice validation rules set up based on their requirements
If you try to send an invoice to a customer that does not comply with the invoicing rules they have set in place, then the system will not allow you to send the invoice. Why is that helpful? For buyers, it speeds up the procure-to-pay cycle by saving them the time and hassle of receiving an incorrect invoice, having to review it for accuracy, and sending it back to the supplier for correction. For the supplier, it speeds up the order-to-cash cycle by saving time and helping them get paid faster since there is no delay in the invoicing process.
When a buyer has a rule in place, such as “Invoice date cannot be back-dated for more than 10 days” (see below), and the supplier attempts to send the invoice that exceeds the limit, the system will stop them right there, show exactly what needs to be fixed, and then the supplier can submit it correctly the first time, meaning no delayed payment or prolonged turnaround time!
4. Use generative AI to summarize rejection
With the new intelligent invoice error categorization and summary feature available to all Business Network suppliers, you can better understand why your invoice was rejected, quickly resolve the issue, and avoid the costly error in the future. This feature summarizes your customers' response to a clear and concise reason why your invoice has been rejected so you can quickly edit and resubmit it to speed up payment. Please note that to utilize this feature, suppliers must ensure they have the feature enabled by navigating to Account Settings > Generative AI > Select 'Invoice' for Enable AI. Watch the video to learn more.
By implementing these tactics, you are sure to have a much smoother invoicing process: one that’s faster, more efficient, results in less errors, and a better chance of on-time payments. Login to your SAP Business Network account today and make sure you’re set up for success!
Be sure to check out our SAP Business Network for Suppliers page on SAP Community to stay up to date on the latest tools, tips and tricks for your network account.
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