The implementation can be seen in four stages:

• CONVERT paper documents to electronic. This can be achieved with a high degree of automation, including OCR, and does not involve extensive keying. Electronic invoices can be more easily reconciled with purchase orders, circulated for approval and swiftly passed through the system using standard workflow processes, devoting time only to the exceptions containing errors that involve resolution of disputes. For the percentage of instances where OCR does not work, it needs to be augmented by manual approaches for exception management located out of low-cost geographies like India.
• Automate financial transactions. The move from manual to e-payments gives full control over the payment process, paying when you want to pay. E-payment does not necessarily shorten your payment cycle; if you want to maintain 30-day payment terms, then e-payment enables you to pay on exactly that last day. However, with e-payments, companies can negotiate improved terms for shorter payment periods based on their newfound ability to meet payment dates with full reliability. E-payments can be made precisely on time. The biggest myth that needs to be debunked here is the perceived benefit of float built into the delays caused by paper processes. For most companies, the benefits derived from operational efficiencies when paired with the CAPABILITY of scheduling payments at-will more than compensates for any real loss in float revenue. Also, with automation it is more practical to implement strategies like controlled disbursements to optimize cash POSITIONS.
• Automate liability management. Sarbanes-Oxley has IMPOSED new compliance burdens onto an already onerous area of operation. Requirements for accurate, rapid and transparent reporting cannot be realistically achieved without end-to-end automation solutions. Furthermore, the thousands of sales/use tax jurisdictions and rates, and the hundreds of changes each year, make tax compliance an increased cost and an increased worry. Again the benefits of automation can provide savings and, just as IMPORTANT, corporate confidence in compliance.
• Implement working capital management. Once the processes are automated, contact with the supply chain financial departments is improved and most of the uncertainties are taken out of the payment chain, companies can begin to optimize their cash management. This may be a purely internal process, managing cash against precise knowledge of daily payables and receivables, and improving credit decisions. There is also the option to explore external finance sources, such as factoring, which can be obtained at advantageous rates once the evidence of the effectiveness of the financial supply chain can be presented.

The implementation can be seen in four stages: