As with any new concept, eProcurement has brought with it a number of new terms and phrases to describe certain functions within the process. One of the strangest phrases entering into the vocabulary of procurement and accounting professions is the “PO Flip”.
At the most basic level, a PO Flip is the conversion of a Purchase Order into an Invoice using the tools available in eProcurement or Electronic Invoice Presentment and Payment (EIPP) platforms, such as Celtrino’s own Smart Admin system. An eProcurement platform allows customers to submit their purchase orders electronically directly into the supplier’s accounting system. Using the automated tools available, the supplier can then automatically “flip” the purchase order into an electronic invoice for immediate return to the customer.
PO Flips have become massively popular with suppliers to the public sector as local councils and even central government carry out more procurement via online platforms which provide the function as standard. Both supplier and buyer then benefit from the reduced time spent on administration of the purchase.
Upon receipt of an electronic invoice (also known as an eInvoice), the buyer can approve the purchase and authorise a BACS payment at the click of a mouse button. By automating the purchasing process, buyers and suppliers reduce the margin for human error and unforeseen delays associated with posting invoices, cheques and remittance advice.
Reduction of time expenditure in accounts administration has the added benefit of freeing up finance staff to focus on other areas of their roles. If the resource requirements continue to be reduced through further implementation of eProcurement and the outsourcing of associated systems, significant costs savings can also be recognised through a reduction in headcount.
The PO Flip is but one of many time-saving devices available to users of outsourced EIPP gateways such as Smart Admin from Celtrino. To find out more how your business could benefit from outsourced EIPP, please visit www.celtrino.ie