{"id":56746,"date":"2025-05-21T18:03:58","date_gmt":"2025-05-21T12:33:58","guid":{"rendered":"https:\/\/www.techjockey.com\/blog\/?p=56746"},"modified":"2025-05-21T18:38:11","modified_gmt":"2025-05-21T13:08:11","slug":"accounts-payable-invoice-processing","status":"publish","type":"post","link":"https:\/\/www.techjockey.com\/blog\/accounts-payable-invoice-processing","title":{"rendered":"What is Accounts Payable Invoice Processing and How it Works?"},"content":{"rendered":"\n

You might wonder why invoice processing holds such importance in Accounts Payable. After all, isn\u2019t it just about paying received invoices?<\/p>\n\n\n\n

But there\u2019s more to it. Invoice processing isn\u2019t just a critical part of Accounts Receivable; it plays a vital role in Accounts Payable, too, with several key factors that businesses need to manage effectively.<\/p>\n\n\n\n

Take an example,<\/p>\n\n\n\n

In the US, 55% of invoices are paid late, and only 36% are paid on time.<\/p>\n\n\n\n

\"Invoice<\/figure>\n\n\n\n

It means if making payments were so easy, then why are more than half of the invoices are getting paid late? Do you know this could lead to strained vendor relationships?<\/p>\n\n\n\n

So, what\u2019s behind this delay? Often, it\u2019s not the lack of funds, but the lack of a streamlined AP invoicing process.<\/p>\n\n\n\n

Thus, we\u2019ll explore everything about AP invoice processing, like what it is, how it works, and why automation is becoming a new trend for finance teams everywhere.<\/p>\n\n\n\n

<\/span>What is AP Invoice Processing?<\/span><\/h2>\n\n\n\n

Accounts Payable (AP) invoice processing means the overall process how the AP team complete payment after they receive an invoice from its vendor.<\/p>\n\n\n\n

It is important to understand, as it helps to manage the outward cash flow. This process involves many people from different departments at multiple levels of approval. Generally, the team has to approve two types of invoices, as explained below.<\/p>\n\n\n\n