Accounts payable workflow explained simply: How to digitize your invoicing processes

Processing supplier invoices is one of the most time-consuming and error-prone administrative tasks in many companies. Media breaks, manual approvals, and a lack of transparency lead to unnecessary effort and delays. A digital supplier workflow ensures that you always know where an invoice is in the process and significantly reduces manual approvals.

But how does an accounts payable workflow actually work, and how can it be digitized?

In this article, we will show you step by step how a modern accounts payable workflow is structured and how you can make your invoicing processes more efficient and transparent.

the essentials in brief

A creditors workflow maps the entire invoice process from receipt to posting in the ERP system.
Digital workflows reduce errors, accelerate approvals, and create transparency.
A modular implementation allows for gradual expansion.
Microsoft 365 offers a flexible basis for the digitization of invoicing processes.

What is an accounts payable workflow?

An accounts payable workflow is the process for handling and approving incoming invoices – from receipt to posting in the ERP system.

If this process is digitized, invoices can be processed. be digitally reviewed, approved and released. This saves companies time, reduces errors, and allows them to keep track of the status of their invoices at all times.

Typical challenges in the manual process

In many companies, the accounts payable process has evolved organically over time and is heavily reliant on manual tasks. As a result, processing incoming invoices is error-prone and time-consuming. However, digitizing the accounts payable workflow proves to be the perfect first step towards... Digitization and automation Typical problems include:

Invoices are processed via email, paper, and various systems.
Approvals are granted via different channels and are delayed.
Responsibilities are not clearly defined
The status of invoices is unclear.

These media breaks lead to delays, unnecessary effort and a higher potential for errors.

How does a digital accounts payable workflow work?

invoice
Invoices arrive electronically or by post and are centrally recorded and digitized.
Data Capture & Data Structure
The relevant information is extracted and stored in a structured manner, so that all invoices are centrally available.
Audit & Accounting
Invoices are checked and supplemented with the necessary accounting information.
approval process
Approvals are granted according to defined processes with clear roles and deputies.
Transfer to ERP
Once approved, the data is automatically transferred to the ERP system.

👉 Result:

A seamless, transparent and efficient accounts payable workflow with Microsoft 365.

What are the advantages of a digital accounts payable workflow?

Time savings
The digitization and automation of tasks and processes as well as the reduction of errors delivers noticeable time savings.
Error reduction
Automated checks and postings reduce human errors, resulting in less time spent correcting errors.
Cost savings
Optimized processes and fewer errors lead to a reduction in costs within the company.
Transparency and traceability
Every step in the workflow is digitally documented so that it is always possible to trace who performed which action and where an invoice is in the approval process.
Better overview and control
Dashboards and reports enable employees and decision makers to track the status of invoices in real time.
Mobility and flexibility
Approvals and edits can be done anywhere, which is especially useful in a hybrid or remote work model.
Optimized resource utilization
Reducing physical processes makes it possible to use resources more efficiently.

Accounts payable workflow with Microsoft 365: Leverage existing tools

Our accounts payable workflow, based on Microsoft 365, uses standard Power Platform components such as Power Automate, Power Apps, and SharePoint. This allows for easy customization and personalization without complex additional development. Since many companies already have Microsoft licenses, additional licensing costs are usually unnecessary.

How our digital accounts payable workflow takes your productivity to the next level!

A digital accounts payable workflow can significantly increase your productivity by automating repetitive tasks, speeding up processes and reducing errors. This allows you to use your resources elsewhere and always keep track of your invoices.

Targeted measures and how they increase your productivity:

Automation of manual tasks: Many manual tasks, such as entering and processing invoices, are automated, allowing employees to focus on more value-added activities.

Digital approval processes: Digital approvals allow invoices to be processed more quickly, which shortens the time to payment and helps meet payment deadlines.

Direct connection to your ERP system: This enables seamless integration of the accounts payable workflow, whereby data is transferred automatically and invoices are processed more efficiently in the ERP.

Automatic bookings: After the invoice has been automatically entered into your ERP system, it can also be posted automatically, which leads to consistent and transparent invoice processing and minimizes manual effort.

Legally compliant archiving: Legal archiving is ensured by storing the posted documents in Microsoft SharePoint. All invoices are stored in an audit-proof manner, versioned and provided with clear access rights. This means that legal requirements for retention periods and data protection are easily met.

Practical examples

Our customer projects demonstrate how a digital accounts payable workflow can be implemented with Microsoft 365:

👉 Digitizing the accounts payable workflow at STS Systemtechnik Schänis GmbH
👉 Digitizing the accounts payable workflow at Fred Tschanz AG

There, paper-based processes were successfully digitized and made significantly more efficient.

Do you want to digitize your accounts payable workflow and make your invoicing processes more efficient? We would be happy to support you in implementing your new accounts payable workflow based on Microsoft 365.

👉 Digital Accounts Payable Workflow