Routing and Approval of e-Invoices in organizations

Starting 2024, companies in Romania have faced a series of significant challenges as they adapt to the e-Factura system, the national e-invoicing framework. While this system is designed to enhance transparency and streamline fiscal processes, it has introduced a range of obstacles, particularly in the realm of e-invoice approval workflows.

E-invoices typically go through several stages of approval before they are finalized. Each stage, whether it involves department heads, managers, directors, or the CFO, adds a layer of scrutiny that is essential for maintaining financial integrity. However, this also introduces potential delays and inefficiencies. Traditional paper-based systems or disjointed digital processes can lead to missed deadlines, lost invoices, and ultimately, strained supplier relationships.

Key challenges in E-Invoice approval workflows

1. Increased costs: The need to grant multiple users access to ERP systems for approval processes has led to skyrocketing licensing costs. For large organizations, this has made traditional ERP-based workflows prohibitively expensive.
2. Security risks: Expanding ERP access to numerous users inherently increases the risk of unauthorized data breaches or internal fraud. With sensitive financial information more widely accessible, the security of these systems becomes a critical concern.
3. Workflow complexity: Traditional ERP systems often lack the necessary flexibility to handle complex, multi-departmental approval workflows. This rigidity can result in bottlenecks, inefficiencies, and delays, significantly impacting overall operational efficiency.
4. The persistence of paper: Despite the shift to e-invoicing, some companies continue to print PDF versions of e-invoices, routing them through outdated, paper-based approval chains. This practice not only negates the efficiency gains of digital invoicing but also leads to increased processing times, higher operational costs, and a loss of real-time tracking capabilities.

A more efficient approach: how SenseTask addresses the e-Invoice workflow challenges

SenseTask offers a comprehensive solution that allows businesses to overcome these challenges by managing e-invoice approval workflows outside of their ERP systems. This smarter approach introduces several key benefits:

• Customizable approval workflows: SenseTask enables companies to create custom approval workflows tailored to their specific needs. By extracting key data from e-invoices, each department can manage its own approval process without complicating or slowing down the overall workflow. This customization ensures that even the most complex, multi-departmental processes are handled with efficiency.
• Departmental segmentation and access control: With SenseTask, companies can implement segmented access, allowing users to view only the documents relevant to their department. This targeted access reduces the risk of unauthorized exposure to sensitive financial information, significantly enhancing the security of the approval process.
• Cost-effective solution: By managing approvals within SenseTask, businesses can drastically reduce the number of users who need access to their ERP systems. This limitation not only cuts down on licensing costs but also avoids the substantial expenses associated with maintaining a large number of ERP users for approval workflows.
• Streamlined integration with ERP systems: Once an e-invoice has been approved through the customized workflow in SenseTask, it can be seamlessly integrated into the ERP system for final processing. This ensures that all data is accurate and that the process remains efficient from start to finish, without the delays often caused by traditional methods.
• Avoiding the paper trap: SenseTask fully digitizes the e-invoice approval process, eliminating the need to print documents for manual approval. By maintaining a digital workflow from beginning to end, companies can preserve the integrity of the e-invoicing process, ensuring real-time tracking, compliance, and significant time and resource savings.
• E-Invoice reconciliation: Beyond managing approval workflows, SenseTask also supports e-invoice reconciliation with inventory systems. This ensures that the goods or services invoiced are accurately matched with inventory records, providing a comprehensive view of stock levels and financial obligations. By automating this reconciliation process, SenseTask helps businesses maintain accurate inventory records, reduce discrepancies, and streamline financial reporting.

Case study: e-invoice workflow for supply chain management

SenseTask streamlines the incoming e-invoices approval process by automating the flow of invoices through the necessary stages of approval. A key part of this process is the Departmental Filtering stage, where the invoice is first evaluated and routed according to organizational needs. Here’s how this works in detail:

Departmental filtering: Ensuring accurate routing and approval chain

1. E-Invoice reception and initial routing - Once an e-invoice is received, it enters the SenseTask system, which automatically routes it to the relevant department for initial approval. This routing is based on predefined criteria such as the nature of the goods or services, the value of the invoice, or the supplier involved.
2. Supply Manager approval - If the e-invoice pertains to raw materials, equipment, or any other supplies, it is routed to the Supply Manager. The Supply Manager reviews the invoice to ensure that the quantities, prices, and terms align with the original purchase order or contract. Any discrepancies are flagged, and the invoice is either approved for further processing or sent back for clarification.
3. Warehouse Manager approval - In cases where the invoice is related to goods that have been received and stored, the invoice is directed to the Warehouse Manager. The Warehouse Manager verifies that the items listed on the invoice match the goods received in terms of quantity and quality. This step ensures that only goods that have been properly received and accepted are approved for payment.
4. General Director approval - For high-value invoices or those requiring top-level oversight, the invoice is routed to the General Director. The General Director’s role is to ensure that the expenditure aligns with the organization's strategic goals and budget. The director's approval signifies that the invoice has passed through rigorous scrutiny and is aligned with the company’s broader financial strategy.
5. Accounting Department integration - Once the necessary departmental approvals are completed, the invoice is routed to the Accounting Department. Here, SenseTask facilitates the seamless export of the invoice data into the organization’s accounting software or ERP system. This integration ensures that the financial records are up-to-date and that the payment process can proceed without delay. The automated invoice reconciliation and export process reduces the risk of errors associated with manual data entry, improves efficiency, and ensures that the company’s financial data is accurate and complete.

Customization: tailored to your organization’s needs

While the above workflow illustrates a common approval process, SenseTask is designed with flexibility in mind. The platform allows for extensive customization, ensuring that the workflow aligns perfectly with your organization’s unique structure and needs. Whether your approval process involves additional steps, different approval hierarchies, or specific compliance requirements, SenseTask can be configured to meet those demands. This adaptability makes it an ideal solution for organizations of all sizes and industries, providing a tailored approach to workflow automation.

The benefits: speed, accuracy, and compliance

By automating these workflows, SenseTask not only speeds up the approval process but also enhances the accuracy of financial operations. Errors that often occur with manual data entry are minimized, and the consistent, automated process ensures compliance with internal and external regulations. Additionally, the platform's ability to provide a complete audit trail for each invoice improves transparency and accountability within the organization.

SenseTask: the comprehensive solution for e-invoicing challenges

SenseTask is uniquely equipped to address all these challenges, offering companies a secure, cost-effective, and flexible solution for managing e-invoice approval workflows. Whether dealing with the complexities of e-Factura or any other e-invoicing system, SenseTask ensures compliance, efficiency, and security, making it an essential tool for modern businesses.