What is AP automation?
Pegasus AP automation, as the name suggests, automates your accounts payable process by automating the manual processes involved. It means automating processes such as receiving invoices, coding, approval, payment and reconciliation. AP Automation software provide dashboards which allow you to see the entire journey of an invoice and its status in real-time, and everything is stored electronically for easier audits.
How does AP automation work?
A unique email address is used to capture your invoices, which are then automatically converted into a digital format, including any attachments, invoice header and line details. The Pegasus AP automation feature uses Optical Character Recognition (OCR) to extract all the relevant information from the invoices and Machine Learning (ML) is used to recognise repeated patterns and improve accuracy.
Finance teams have complete visibility and control over the status of every invoice processed to allow for smarter budgeting decisions, and a duplicate invoice check ensures no invoices are paid twice.
An automated bank account capture reduces the risk of fraud and the approval process can happen anytime, anywhere by the nominated approver. For security, you can create advanced workflow approvals and add as many approvers as you wish. Once approved the invoice will appear in Opera 3 SQL SE with a full audit trail and will be electronically stored for seven years to meet audit requirements.
Pegasus Opera SE AP Automation can help you reduce the risk of invoice fraud by automating your accounts payable function in 3 areas:
1. Duplicate invoices: the bank detail verification function detects any invoices with different payment details. They are flagged and frozen for manual intervention
2. CEO fraud occurs when a fraudster impersonates the CEO. PO matching and Purchase Approvals would raise flags straight away. With the clever central hub for financial controllers, any unauthorised payments are spotted immediately.
3. Shell companies exist only on paper for fraudulent purposes. With AP Automation every new supplier needs to be onboarded correctly before an invoice can be processed. No invoices will proceed until they’ve been formally checked and added.
Reportedly it costs up to £15 to process an invoice manually but this can be reduced by 60-80% using automation systems. For businesses processing 500 invoices a month, that is an eye-watering annual saving of £78,000! It gives also buyers access to Opera via the web without the need of more Opera licences.
A study by the Aberdeen Group has found automating AP processes can reduce approval time from 20.8 days down to 3.8 days on average – a staggering 17 day difference!
£609.8 million was lost to businesses in the first half of 2022 due to fraud payments, research has found, and 81% of businesses have been targets of fraud in the past. AP automation offers a layer of security against fraud , and approval workflows increase the likelihood of fraudulent invoices being flagged before they are mistakenly paid.
AP is an area where many manual errors can occur. Incorrect invoice headers being added, errors in line data or a mismatched PO can add costs to the invoice process and create significant delays.
It is recommended you keep financial records for seven years. Meeting compliance needs is easily done with automated AP as invoices can be stored electronically and recovered quickly and easily at the click of a button.
NL Coding Automation
Nominal Ledger coding is simple to automate by supplier, specific invoices, and for each and every line of the invoice. “Defaulting” capabilities for Nominal Ledger coding reduce repetitive processes.
AP automation can help you pay your invoices quickly and improve relationships with suppliers, essential for businesses to secure good rates, minimal disruption, greater availability of products and fewer quality issues.
Pegasus Opera SE AP Automation brings many other benefits that will help your business streamline mundane tasks so that you can focus valuable time on strategic decision-making, planning, and human-focused activities.
Store all your PL invoices digitally without having to scan
The Opera SE AP Automation works with most of main languages in the world
The Opera SE AP Automation works with most of main currencies in the world
Powerful dashboards give you a clear insight into the purchase lifecycle.
Export reports to Microsoft Excel for even more manipulation and analysis.
Our solutions are used by:
Having worked with Pegasus and Intsys for many years, we have absolute confidence in both the product and the support we receive, and look forward to reaping the productivity benefits that the latest Opera solutions will bring us. The enhanced reporting in Opera 3 enables us to export reports directly to Excel and benefit from real time management information
Helena Lapczynska, Payroll Manager, Hyde Park Residence
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