Tipalti vs Medius: Which is the best AP automation tool for you?

Tipalti vs Medius

Many finance departments are facing increased pressure to find efficiencies and cost savings. Automation technology provides an opportunity to free up resources for strategic initiatives, while enabling scalability without the need to add headcount. 

Tipalti and Medius are two accounts payable automation systems designed to increase efficiency and alleviate the manual burden on AP clerks and finance teams.  However, both systems are not created equal, so which solution best fits the requirements of your business needs?

What does Tipalti do?

Tipalti offers end-to-end payables automation functionality, with solutions covering PO management, AP automation and global payments. In addition to traditional invoice-based AP workflows, Tipalti also specialises in handling mass global partner payments – a solution that enables digital companies such as Amazon, Twitch, and Roblox to automate and scale invoice-less payouts to large partner networks.

Tipalti Product Capabilities Overview

• Invoice Management – Automated invoice processing with header and line level OCR, machine learning, advanced approvals, and 2 & 3 way PO matching
• Global Payments – A licensed E-Money institution, Tipalti offers 50+ payment methods and can process payments in 120 currencies to 196 countries. 
• Partner Portal – A white labelled portal where payees can provide and update their own payment details, upload invoices and access real-time payment status updates.
• PO Management – Collect purchase and vendor requests, customise approval routings, generate POs and closely monitor spending
• Multi Entity – Well suited to multi-entity, global businesses, allowing for customisable AP workflows per entity and extensive consolidated reporting
• Tax Compliance – Collect supplier tax information via digital forms, and validate details across 49 countries with 3000+ automated rules
• Integrations – A NetSuite Gold Partner and NetSuite SuiteApp of the year, Tipalti boasts a powerful native integration with Oracle NetSuite. It also offers real-time APIs to QuickBooks, Sage Intacct and Xero, alongside flat file integrations to countless other ERPs and finance systems

Tipalti Pricing

Tipalti uses a SaaS subscription pricing model starting at $149 per month for the platform fee, with additional fees based upon usage. To upgrade from the basic platform, you can add advanced functionality such as tax forms and multi entities as your business grows.

What does Medius do?

Initially focusing on AP automation and invoice capture, in 2019 Medius acquired Wax Digital in order to add procurement solutions to its offering. In 2022, the company then acquired OnPay Solutions, integrating payment processing to their range and enabling Medius to offer a suite of solutions to automate the “entire source-to-pay process.” This covers accounts payable, payments, procurement, sourcing, contract management and supplier management.

Founded in Sweden, Medius primarily serves Sweden, Norway, Denmark and the Netherlands, but also has some market share in the UK, US and Australia.

Medius Product Capabilities Overview

With a modular approach, Medius offers a range of products serving each stage of the payables process.

• Invoice Management – electronically capture & process invoices using AI/ML and OCR. 
• Payments – 3 payment methods to choose from: check, ACH and card payments.
• Supplier Portal – Medius offer vendors an online portal where they can view POs & invoices, upload invoices, and invoice via PO flip. 
• Procurement – Automate purchase approvals and generate POs. 
• Sourcing – consolidate all sourcing events in one place. Rank & evaluate suppliers based on responses to sourcing events that includes RFX, auction, or quote.
• Contract Management – create new contracts via templates, receive alerts for renewals and access analytics aimed at aiding contract negotiation. Includes a DocuSign integration. 
• Integrations – As a Microsoft Gold Partner Medius has immediate connectivity to Microsoft Dynamics, as well as connections to SAP, Infor M3 and Iptor (IBS). 

Medius Pricing

Medius prices their solution based on 3 tiers – professional, enterprise, & unlimited – with a flat monthly SaaS subscription fee for each. All 3 of these packages include AP automation, invoice capture, Payments, the Supplier Portal and some analytics capabilities along with unlimited employee access. Volume based add-ons include standard / power users (with operator / admin permissions), invoices, POs, countries, & payment accounts. Module add-ons include procurement, sourcing and contract management.

Features of Tipalti vs Medius

While Tipalti and Medius both offer AP automation, this is a broad term that can meet different things to different providers. Below we’ve made a direct comparison between Tipalti and Medius for key areas of functionality.

Functionality
*Has limited functionality
Invoice Management	OCR invoice processing with header & line level data capture, 2 & 3 way PO matching, with machine learning and managed service error corrections / system training.	OCR invoice processing with header & line level data capture, 2 & 3 way PO matching, with machine learning error corrections, but no managed services option available.
Global Payments	Hold a US Money Transmitter Licence, a UK FCA E-Money licence, and a Dutch Central Bank E-money licence for the EU. 12 payment methods to choose include; SEPA, Global ACH, US ACH, Wire, BACS, and Paypal and prepaid debit card. Payments can be made to 196 countries in 120 currencies.	Payment methods include Card, US ACH, check and wire, but no global ACH, PayPal, or prepaid debit card.
Tax & Regulatory Compliance	KPMG approved tax engine, collect and validate tax IDs for 49 countries, utilising 3,000+ validation rules.	None.
PO Management	Integrated PO solution. Collect purchase and vendor requests, generate POs, and custom electronic authorisation flows.	Comparable capabilites.
FX Solutions	Advanced FX solutions with Intercompany Bank Transfers, FX Hedging, and Payee FX.	None
Multi Entity	Manage multiple entities with different AP processes and workflows, gain consolidated views. Instant reconciliation across methods, entities, geos, currencies, and payable workflows.	Multi entity support but no option for custom workflows per entity.
ERP Integrations	Native API integrations with major ERPs (NetSuite, Intacct, QuickBooks & Xero). Seamless integration with all other ERP’s, finance systems and performance marketing software via pre built connectors.	API integrations with Microsoft Dynamics suite alongside “certified integration” to SAP, Infor M3, Iptor (IBS), Oracle, JD Edwards. However lacking integrations for a number of other key ERPs, particularly those common in mid-market organisations.

Which solution works best for you?

When to choose Tipalti?

• You are a mid-market business experiencing manual pains as you scale
• You are a global business with either multiple entities or international payment requirements
• You want to integrate with NetSuite, Xero, QuickBooks, or Intacct

When to choose Medius?

• You are a large enterprise with a big budget
• You want to integrate with Microsoft Dynamics
• You are in Scandinavia and want a local language solution

Signs it’s time to consider AP Automation

Below are a few reasons why you should consider Tipalti’s end-to-end AP automation versus manual processes or a less robust system. 

1. You Operate a Multi-Entity / Multi-Subsidiary Business

Tipalti Multi-Entity supports a consolidated headquarter payer account with multiple sub-entities associated with it so you can manage all entities’ payables operations from a single Tipalti model, enabling each entity to operate with its own unique workflow and enabling you to manage a large number of entities. 

2. You need Multiple Supplier Payment Options and Broader Global Payment Coverage

Tipalti makes supplier payments to 196 countries and in 120 local currencies for worldwide coverage with six different available payment options. Tipalti also offers advanced FX solutions including intercompany transfers, FX hedging, and Payee FX optimization to help streamline your global payments processes. 

3. You Need Help Streamlining Your Tax Compliance

Tipalti supports local & VAT tax ID collection in 49 countries with a built-in tax engine that validates against 3,000+ rules to prevent ID errors & issues. Additionally, Tipalti supports document collection so partners can provide additional information when needed and self-billing invoices where partners must approve invoices before payments can be processed.

4. You Have an Increasing Number of Reconciliation Challenges

Payables reconciliation takes time and can delay your financial close. With Tipalti, global payment remittance using multiple payment methods is automated and consolidated into real-time reports for more accurate and faster payment reconciliation, allowing you to accelerate financial close by 25%. 

“I wish we’d known about Tipalti probably a year earlier because we probably would have started (automating) even earlier. It would have saved me a year of every month-end racing around and trying to just make payments, which is not a very useful use of time, particularly if you’re a more senior person.“
– Alex Rogers
CFO, Design Cuts

“It was to a point where either we get someone else in, or we look at a better way of doing something. So, the choice was to invest in Tipalti and not in headcount.“
– Maria Liston
CFO, Basebone