EDI Academy - The Vendor Portal: How to Integrate the Reception of All of Your Electronic Invoices
Large companies that already utilize EDI (Electronic Data Interchange) integrated management systems know about the advantages it provides and the impact it has on costs, the reduction of time and security in terms of handling information.
When some companies use an EDI integrated management system and others don’t, mismatches and confusion occur when receiving documents as well as when handling information since companies have different systems for receiving and managing information from different channels. This reality poses challenges for many companies.
These challenges make it clear that a real need exists for companies to use EDI with their partners. This is why EDICOM’s Vendor portal was created.
How does a company integrate invoices from its suppliers?
It’s possible that small and medium-sized companies do not exchange their business documents electronically for reasons such as the volume of documents and the resources available to the company. A possible solution to deal with this problem is the implementation of a web portal directed to those suppliers with an average or low emission of invoices. It would allow them to enter required data via a web form on our website.
EDICOM makes it possible for large companies to utilize an online environment to publish their purchase orders, one from which its trading partners can generate and send documents such as delivery notices and invoices which will be integrated into the companies’ management systems. The portal allows companies to implement a two-way flow of information, making the pre shipment of purchase orders to suppliers possible. This happens automatically from the company’s management system. This way, purchase orders act as a document base allowing the company to reuse the information from the original order to issue the final invoice.
To put this solution into practice, a large company can make the portal available to its partners at no cost. The portal is accessible via the web with a username and password. On the portal’s platform, documents are configured to exchange between parties by using templates with validation mechanisms that guarantee that the registered information is what the recipient requires. When the supplier receives an order through the portal, the order form is filled out using pre-configured templates. The document is processed and is sent via EDI in a structured format so it can be integrated with the recipient’s management system.
What benefits does it offer suppliers?
This solution offers advantages for suppliers such as process automation, the ability to integrate management systems, the traceability of documents and control over transactions.
Two-way: Can be used to send purchase orders to your network of suppliers.
Invoice issuing assistant: Purchase orders received are taken as the basis to launch the invoice issuing process. This way, the invoices generated take the order data as reference, streamlining and simplifying the task of creating new documents for the supplier.
Importing invoices: It is possible to integrate data file importing functionalities. This way, if your supplier is able to generate a structured XML file, or CSV, text, etc., they can implement an import wizard to simplify the invoice issuing process.
Legal: The portal implements validation mechanisms that check compliance of the invoice generated with the technical legal specifications in force in each country.
It also allows suppliers to more efficiently organize their billing cycle and receipts. It facilitates the processing of documents and immediately sends invoices through electronic data interchange. This means that the invoice arrives quicker and shortens the billing cycle. Furthermore, a digital system decreases errors that may appear due to incorrect data registered or errors in the interpretation of some documents.