guide to reporting late and unpaid invoices

#Guide to reporting late and unpaid invoices manual#

While the end goal should always be to avoid late or missing payments, AP automation also puts essential data at the fingertips of the AP team and C-suite.

While in this instance, the missed payments to suppliers appear to be strategic on behalf of Sears, the problem of late payments is a problem across all industries and company sizes.Īutomated invoice processing puts corporations in control of their finances. The lawsuit, filed by InGear Fashions, accuses the corporation of misrepresenting its financial situation and states Sears owes the money due to merchandise breach-of-contract charges. And one of Sears Holdings’ vendors filed a suit, claiming almost $840,000 in outstanding invoices. Reports indicate Sears halted its payment to suppliers before its anticipated bankruptcy. Companies such as Sears have faced the stress and expense of defending lawsuits for making late payments to vendors.

#Guide to reporting late and unpaid invoices manual#

The use of manual processing could also mean staff working long hours and still missing payments. So how does it happen? Humans inevitably make errors, even when they are educated, hard-working, and well-trained.Īs a result, manual AP processing provides unpredictable results.

And this is a trend nobody wants to be a part of because it means lost profits. Suppliers expect large corporations to have the resources and organizational systems to pay invoices in a timely manner, making this a surprising trend. In financial news, it appears that many major corporate players are making late invoice payments. Automation accelerates the process as well as ensures compliance to policies and reduces the risk of errors. Manual AP processes are time-consuming, and leave room for human error. So how can businesses tackle this costly problem? Automated invoice processing is the answer. Failure to pay vendors on time impacts supplier relations could lead to product supply interruptions, and costs companies money. Late payments are a common problem for all types of companies worldwide, including major corporations such as Sears.