Invoice problems are the bane of procurement teams.
Picture this: You’re deep in a value-added task when your phone rings. It’s that vendor again. The one who hasn’t been paid for two months. They’re not happy, and frankly, you don’t blame them.
By the time these issues reach your desk in Procurement, they’ve typically bounced around your organisation with nobody taking ownership. It demands immediate attention, and postponing it only creates bigger headaches.
You need a solution, and you need it now.
In this article, I’ll break down the most common invoicing headaches. Then, I’ll show you how digital procurement solutions can not only solve them but prevent them entirely.
These solutions can dramatically increase your team’s productivity and performance by eliminating the administrative firefighting that consumes so much valuable time, time that could be spent on strategic activities that actually drive value for your business.
4 Ways Purchase Order Software Can Solve Your Accounts Payable Nightmares
There’s a multitude of reasons why things go wrong in the procure-to-pay process. Let’s dive into the most common problems and their solutions:
1. Taming Maverick Spend (Unauthorised Purchases)
The Problem:
Someone in your company agreed to pricing with a supplier but never raised a PO.
Now Accounts Payable has received an invoice they can’t process because there’s no budget code or cost centre to assign it to. This creates friction between departments, delays payment to suppliers, and damages vendor relationships.
“We need this ASAP! I already talked to the supplier and approved everything. Why can’t we just pay the invoice? They’re threatening to stop deliveries!”
How to Fix It:
First, determine whether Procurement should even be involved. Establish clear thresholds based on purchase value or strategic importance that dictate when formal procurement processes must be followed.
Consider implementing an intake solution to guide stakeholders to either self-serve through buying from an existing catalogue, or to send a request for quotation to a preferred vendor. Intake gives the stakeholder a user-friendly front end at the point of making the request. Because of this, you’ll increase compliance over time through not making them follow complex processes.
This gives employees the autonomy they need while maintaining appropriate controls and visibility.
Another excellent option is specialised tail spend management software that guides users to preferred suppliers for specific categories. This ensures compliance without creating bottlenecks.
For project purchases, ensure earlier procurement involvement with a project collaboration tool. When communication is transparent and visible from the project’s outset, compliance becomes much easier than trying to untangle email chains after the fact.
In more extreme cases, you might implement a strict “no PO, no payment” policy and make unauthorised spending a disciplinary offence.
But beware! If compliance becomes too burdensome, you’ll lose stakeholder support.
Don’t force users to raise requisitions in clunky ERP systems. Your stakeholders will find ways around your processes rather than struggle with difficult systems.
Instead, make collaboration between requisitioners and buyers seamless and intuitive. Replace confusing email chains with user-friendly procurement platforms. When compliance is easier than non-compliance, you’re already halfway towards winning the battle.
2. Conquering Human Error and Broken Processes
The Problem:
Invoices vanish into the ether: they’re either lost completely or buried in someone’s inbox. The usual suspects behind this frustrating phenomenon are:
- Human error (sending to wrong contacts, filing incorrectly)
- Poor housekeeping (disorganised filing systems, lack of follow-up)
- Outdated communication methods (relying solely on email, or even paper)
“I sent that invoice three times already! We’re a small business, and we can’t afford these payment delays!”
How to Fix It:
It’s truly baffling how many invoices get “lost” in the digital age.
The reality is that email delivery doesn’t guarantee action.
- People go on vacation, are on sick leave, or change roles
- Suppliers often send invoices to whoever placed the order rather than to Accounts Payable
- Important messages simply get buried under the daily avalanche of emails.
If your Accounts Payable department were a manufacturing process, lean experts would be swarming all over it. The solution is refreshingly simple:
Invest in purchasing software that digitises the entire process: from PO creation to invoice submission and payment approval. Look for these game-changing features:
- Portals or AI-driven communication, where suppliers can track their payment status in real-time
- Automatic PR to PO conversion to reduce manual data entry errors.
- Optical Character Recognition (OCR) and AI-powered invoice coding for accurate invoice scanning and data extraction. Especially for non-PO invoices and free text orders.
- Three-way matching capabilities that automatically verify PO, goods receipt, and invoice alignment.
- Automated communication between the customer and vendor to facilitate PO acknowledgement. AI agents can do much of this nowadays.
- Self-service vendor data management that reduces administrative burden
These features eliminate the need for constant back-and-forth communication and provide clear visibility into every stage of the process for all parties involved.
Need specific recommendations?
Check out our comprehensive roundup of the best procure-to-pay software options for mid-sized companies.
Or just reach out for an intro call and we’d be happy to guide you.
3. Solving the Incomplete Invoice Puzzle
The Problem:
Your supplier sends an invoice missing critical information, typically a PO number or detailed description of goods/services. Accounts Payable sets it aside without informing the supplier, who assumes everything is proceeding as normal. That is until payment deadlines pass and tensions rise.
“What do you mean the invoice is missing information? We’ve been waiting 60 days for payment! No one told us there was a problem with our documentation!”
How to Fix It:
Similar to the previous issue, automation technology can dramatically reduce these problems. Modern procurement systems can:
- Use OCR technology to scan invoices and automatically flag missing data fields.
- Reject incomplete documents before they are entered, and inform the supplier of the reason why.
- Notify suppliers automatically through an AI agent about exactly what information is missing.
- Provide templates and guidance to help suppliers submit compliant invoices first time.
This simple automation prevents frustration on both sides and eliminates unnecessary involvement from your Procurement and AP teams in what should be a straightforward process.
Affordable tech exists, even for SMEs. Whether you need basic invoice automation, or a comprehensive intake-to-pay solution, you’ll find an option that meets your needs.
4. Mastering Vendor Data Management
The Problem:
Outdated or incorrect vendor information causes payment delays, communication breakdowns, and compliance risks. Common culprits include:
- Outdated financial or tax data (changed bank accounts, company names, tax IDs)
- Incorrect contact information leading to communication gaps
- Conflicting payment terms between your system and supplier invoices
- Missing compliance documentation that puts your organisation at risk
“We’ve changed our bank details months ago and updated your system three times! How are payments still going to our old account? This is causing serious cash flow problems for us!”
How to Fix It:
Unlike the previous challenges, this one requires a more strategic approach and potentially greater investment. Start with the fundamentals:
Which department actually “owns” vendor master data?
Is it Procurement? Accounts Payable?
Often, the answer is unclear, creating a black hole of neglected, inaccurate information that nobody takes responsibility for maintaining.
Your solution path depends on your organisation’s size and commitment level:
- Implement a single source of truth that suppliers can access and update themselves
- Consider Vendor Lifecycle Management (VLM) software
- For advanced needs, explore Supplier Data Management systems that automatically refresh vendor data from internet sources
The right solution depends on your specific data requirements.
“Push” systems that automatically update vendor information work exceptionally well for tail spend suppliers. However, they don’t capture compliance documents like insurance certificates or ESG certification. These will typically require manual verification.
The obvious flaw in self-service vendor portals is that suppliers must proactively update their information. Meeting suppliers at the path of least resistance usually requires a clickable link from an email. If you’re expecting them to log in or register on an external portal, you’ll probably struggle to get adoption.
Intelligent supplier data enrichment systems include:
These pull data from reliable internet sources and enrich master data records in real-time.
The worst approach? Doing nothing. Dirty data is a disaster waiting to happen. No well-run organisation can afford to ignore it.
Time to Take Action
The solutions outlined above are straightforward in theory. The real challenge comes in effective implementation.
Once you’ve selected the right technology for your organisation, don’t rush the rollout. Take time to develop a thoughtful communication strategy for both external vendors and internal stakeholders. Clear change management is essential to ensure adoption and maximise your return on investment.
Without proper implementation, even the best procurement software will fail to deliver results. Avoid common digital procurement transformation mistakes by planning thoroughly and communicating effectively.
Here’s the provocative question I’ll leave you with:
Do you value your Buyers enough to free them from being your company’s highest-paid administrative assistants?
If your Procurement Managers are spending valuable time firefighting accounts payable issues instead of focusing on strategic sourcing, supplier relationship management, and value creation, the solution is clear. And you don’t need a 6-figure IT budget or an army of consultants to fix it.
Implementing the right procurement software could be the biggest productivity boost you give your team this year.
The technology exists, it’s affordable, and the benefits extend far beyond just solving invoice payment problems, though that alone would justify the investment.
Want to understand the costs and compare different solutions?
We’d love to help you navigate the options and find the perfect fit for your organisation’s specific needs and budget constraints.
Your procurement team and your suppliers will thank you. And you’ll finally be able to focus on strategic work instead of administrative firefighting.
Book a free intro call and let’s see how we can help.
