Our unique 3-way match process is a breakthrough for AP Automation systems and opens up a new world of cost savings and efficiencies.
Most importantly, the ability to approve invoices at shipment means that suppliers (including exporters) can then be paid at shipment. Typical savings from achieving this outcome are up to 1% or more on landed costs.
Implement our 3-way match as part of your AP Automation process and start saving from day one.
How does it work?
Our platform sits between the buyer and its suppliers - as if it were a module of the buyer's accounting system ("ERP").
When suppliers ship, they upload their commercial invoices, inspection reports and transport documents to our platform. These are digitised in the upload process and the data is confirmed by the supplier. This means that the platform has both the documents (images) and high quality structured data covering all of the supplier's paperwork.
Buyers, optionally, can feed their purchase orders into the platform which are automatically allocated to suppliers. Suppliers then confirm which purchase orders, quantities and prices, are included in their shipment - and the platform then drives a reconciliation of the POs to the commercial invoice - again done by the supplier as part of his process.
With documents uploaded and digitised, with the POs included - we can then complete a 3-way match on the resulting dataset.
3-way match with a difference
This is a 3-way match with several differences to the usual situation:
The Supplier does the work.
Happens at shipment in real-time.
Partial approvals are supported (eg: 80%, 90% etc of the payable).
Can be completely automated against tolerances.
How does our 3-way match save money?
Once invoices can be approved at shipment, even if partially, then suppleirs can monetise the payable themselves - or access trade finance / supply chain finance immediately.
There are two wins here:
The Supplier can be paid before handing over control of the goods. This makes his own pre-shipment and local financing work properly.
Trade finance or supply chain finance can be immediately available - typically at a lower cost than the supplier's own marginal cost of capital.
Most suppliers will agree a discount of 1% or more on the invoice amount to get paid before they hand over the goods - depending on country and how long they might otherwise wait to get their invoice matched and approved normally.
What's the risk for the buyer?
Buyers control the risk via the partial approval - which provides room for later debit notes or other deductions to be made in case the goods, on later inspection, are not as they should be. Our system automates this process using automated rules that define the percentage approved and the discount requested for early payment.
Find out more on the www.prima.trade website or get in touch with us at email@example.com .