Manufacturing Automation That Fuels Efficiency

Accounts payable (AP) in manufacturing refers to a financial process in which an organisation manages its obligations to pay off short-term debts to suppliers or creditors.

Manufacturing AP involves tracking invoices, managing terms, making payments, and maintaining vendor relationships. 

In manufacturing, efficient AP management is crucial—especially when handling large volumes of transactions. You also need intelligent AP automation software to maintain smooth operations within the supply chain, handle discrepancies, and avoid late payments.

Tipalti offers a variety of AP automation tools that can smoothly integrate with your existing manufacturing systems. 

Integrations include:

ERP Integration

Tipalti can seamlessly integrate with manufacturing ERPs like SAP, Microsoft Dynamics, and Oracle. It can synchronize financial data in real-time, reducing errors and manual entry.

API

Tipalti offers robust API capabilities that enable custom integrations with various MRPs (Manufacturing Resource Planning) systems and other specialized platforms. Ensure all AP processes offer scalability and can be customized to fit specific workflows in a manufacturing business.

Supplier Portal

Suppliers and vendors can upload invoices and track payments through a self-service portal. This portal typically integrates with the manufacturing company’s legacy systems, ensuring instant communication and real-time updates. 

File Import/Export

Tipalti allows information to be imported and exported using standard formats like XML or CSV for systems that might not support direct integration.

Accounts payable can be integrated with various centralized systems, including MRP (Manufacturing Resource Planning) or ERP (Enterprise Resource Planning) systems. 

Benefits of integrating accounts include:

• Automated workflows: Streamline invoice management, including approvals, payments, and reconciliations.
• Central data management: Ensure all financial and inventory data is unified, leading to better control and visibility.
• Real-time analytics: Provides up-to-date financial and inventory data, aiding in decision-making.

Improved accuracy: Automate data transfer between systems, reducing the need for manual data entry and human errors.

AP automation will significantly improve efficiency in manufacturing supply chains. 

Benefits of AP automation include:

Improved Accuracy
It minimizes human error associated with manual data entry, leading to more accurate financial records, fewer bottlenecks, and fewer disruptions in payment.

Reduced Processing Times
AP automation speeds up the invoicing process and the entire AP cycle. You’ll be assured that timely payments and strong supplier relationships are forged.

Streamlined Manufacturing Operations
Systems with AP automation should integrate seamlessly with other business processes, facilitating smoother operations throughout the entire organisation.

Improved Cash Flow Management
Accounts payable automation provides better visibility into cash flow and upcoming liabilities, enabling AP departments in the manufacturing industry to make more informed decisions. 

Optimised Compliance and Audit
AP automation solutions help manufacturing companies maintain accurate audit trails and records, which allows them to comply with financial regulations and approval processes.

The accounts payable process in manufacturing typically follows these steps:

1. Invoice receipt: The first step is receiving supplier invoices for goods and services purchased. OCR scans invoices for data capture using artificial intelligence and machine learning.
2. Verifying invoice data: This is the next step in processing invoices. PO matching involves pairing invoices with purchase orders and other documents.
3. Approval workflows: The next step for any AP solution is approvals. Routing invoices for approval from relevant managers or departments is an automated process.
4. Payment processing: Invoice automation also includes scheduling and processing supplier payments based on agreed terms.
5. Recording transactions: The manual process of entering payment details into the system and reconciling accounts.

Reporting and analytics: Generating reports to analyse cash flow, spend, and supplier performance.

Yes. AP teams use automation to manage inventory in the following ways better:

Integrations
Automated AP systems easily integrate with inventory management systems to ensure the accurate, real-time tracking of inventory levels and costs.

Supplier Management
AP automation leads to faster invoice approvals and payments. Faster processing enhances supplier relationships and reliability, which is critical for inventory planning. 

Cash Flow
Implementing an AP automation system streamlines payment processes, ensuring more funds are available for inventory purchases. Available funds help maintain optimal stock levels and manage inventory efficiently.

Real-Time Data
AP automation software for manufacturing firms ensures that financial data related to inventory is accurate and up-to-date in real-time. This data aids in more informed inventory management systems.

Forecasting
Tools for AP automation provide detailed insights into past trends and expenses, which helps forecast future inventory needs.