What is Debt Collection?

The key steps for accounts receivable invoice processing include generating and tracking invoices.

• Generate Invoices: Create a document for the buyer with details like the goods or services provided, payment deadline, and cost.
• Deliver Invoices: Send the invoice using paper or electronic delivery.
• Track and Reconcile: Track status of invoice payment and reconcile payments with invoice data and accounts receivable ledger.
• Payment Collection: Send payment reminders and establish a collection process for past-due invoices.

The key steps to accounts payable invoice processing include collecting, recording, approving, and paying invoices.  Here’s how to process invoices:

• Invoice Creation and Receipt: After a customer order is fulfilled, the seller sends an invoice to the buyer’s accounts payable team requesting payment.
• Recording and Validation: Invoice details need to be recorded and verified against documentation like the purchase order to make sure there are no discrepancies.
• Approvals: After the invoice is verified by the accounts payable team, it’s sent to the relevant manager(s) for approvals.
• Payment: The finance department settles the payment with the seller.

The entire process can be streamlined if companies automate invoice processing.