While almost every aspect of business is becoming digitally native, the B2B invoicing process remains medieval. It’s 2024, yet so many businesses are either stuck with traditional paper invoicing or using legacy software that provides only basic features and does not adapt to changing business requirements.
In a time when everything happens in the blink of an eye, a slower invoicing process hinders revenue growth and reduces analysts’ productivity. This is where electronic invoicing presentment and payment, often shortened to EIPP, comes into play.
EIPP software helps you create and manage invoices electronically, accelerating payment. It also enables you to adapt to changing payment methods, improve analysts’ productivity by eliminating manual efforts, auto-deliver customer invoices, and comply with regulatory requirements.
Want to know how EIPP works and how you can leverage it to get the best results? This blog has got you covered.
EIPP or electronic invoicing presentment and payment, helps the accounts receivable team manage invoices electronically. With an EIPP, businesses can automate sending invoices and account statements to customers. It also offers an online payment portal to accept payments against invoices from customers.
A common feature of an EIPP is an online invoicing and payments portal, a centralized hub where your team and customers can track invoice activities, make payments, and resolve billing queries directly.
Switching to e-invoicing presentment and payment doesn’t just simplify your Accounts Receivable (AR) operations; it’s also a step towards sustainability. Say goodbye to mountains of paperwork, along with the associated costs and carbon footprint. Most e-invoicing platforms allow you to attach electronic supporting documents like proof of delivery or installation, all of which can be stored in a cloud-based portal for easy access.
Invoicing is one of the most critical functions of the account receivables process, unlocking efficiency, ensuring a seamless customer experience, and removing payment bottlenecks. However, manual or paper invoicing processes are far from overcoming the frictions that make the process costly, time-consuming, and error-prone.
An EIPP software eliminates these roadblocks and fosters a seamless customer experience. It also ensures adherence to regulatory requirements, logs disputes, and tracks every step of the process. By implementing automated e-invoicing in your infrastructure you can:
A good e-invoicing software has many benefits, like facilitating seamless payment processes, tracking physical delivery of invoices, auto-delivering them to AP portals, generating invoice using templates, reducing day sales outstanding (DSO), run and track campaigns for physical adoption, and more.
Solutions like HighRadius EIPP Cloud have a payment gateway that customers can use to make payments against their respective invoices. The cherry on top is that you can make these payment gateways available within your EIPP portal, so your customers won’t have to wander or be redirected to different links. This, resulting in a seamless payment process and reduced DSO.
A fully automated e-invoicing delivery helps you reduce the manual effort to track invoices that are delivered physically to customers. Some small businesses and contractors still prefer physical delivery of invoices for bookkeeping. A good e-invoicing like HighRadius EIPP can send hard copies of invoices to customers through HighRadius print and mail partners or other vendors of your customers’ choice.
For example, Wolverine has 10,000+ customers and generates 3M+ invoices every year. A small percentage of these customers require hard copy invoices delivered. Electronic Invoicing helps deliver these invoices to customers. Wolverine’s billing users can track the delivery status and send the invoices to alternate contacts if required.
A self-service customer portal that comes with an automated electronic invoice presentment enables your team to collaborate with your customers and perform various tasks such as push notifications, provide buyer summary reports, and collaborate over emails or chat. The portal provides a complete dashboard view to the users and ensures enhanced customer experience.
Implementing a self-service portal for customers and allowing them to manage the transactional part of the relationship ensures enhanced customer service and reduces friction in the collections process.
Automated, advanced EIPP helps you facilitate data driven campaigns, enabling you to segment and develop messaging targeted for each segment and increase buyer adoption. Additionally, you can build targeted campaigns that will help you drive buyers to move from high-cost payment methods to low cost methods like ACH.
When you give customers invoices to pay using credit cards or ACH, they will get processed more quickly and efficiently than traditional methods like checks or wire transfers. It means you get timely payments while improving cash flows and reducing DSO by effectively managing your exposure.
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The solution architecture of an electronic invoice presentment has three elements. It has the business’ ERP systems at one end and the customers’ accounting platform at the other end. In between are the e-invoicing and B2B payment solutions.
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A legacy invoice presentment solution often fails to provide advanced features to run invoice campaigns and increase adoption rates. Moreover, they do not offer any advanced functionalities to adapt to the changes to the customer portal and need additional costs to process complex B2B transactions.
EIPPs with a self-service customer portal must support campaign management, track campaign performance by providing insights like the number of links clicked and customers enrolled, and help increase customer adoption.
Unfortunately, traditional EIPP payment solutions do not provide such functionality, and you have to rely on your marketing department to run such campaigns and increase adoption. A low adoption rate defeats the entire purpose of an EIPP self-service customer portal.
More and more companies today are determined to build their accounts payable portals. They are asking all their suppliers to upload invoices into these portals and track status there.
However, legacy software has no out-of-the-box features to support auto-uploading of invoices on these customer portals. To build one, you have to rely on third-party tools like UIPath, BluePrism, etc. Moreover, they are often fragile and break at the slightest change to the websites. It doesn’t end here; your IT team has to take care of integrations and maintenance that should otherwise come to you from your vendors without any additional costs.
Level 3 transactions refer to the large B2B purchases that have the highest level of details for billing and reporting to lower the processing costs. Typically, a level 3 credit card transaction costs 1.7 – 2.5% of the invoice amount. Your EIPP software must reduce this transaction overhead and pass on surcharging and convenience fees to the customer.
Traditional EIPP software does not support a level 3 transaction. To achieve level 2 or level 3 B2B transaction processing, you need to go for heavy customization. You have to implement additional third-party integrations for a Digital Payment Add-on(DPA) to the credit card processor, which comes at an additional cost. Also, your internal IT would have to maintain these programs in the future.
When a business expands its operations across the globe, it has to support various modern payment methods like PayPal or Alipay, ensuring quick payments and a good customer experience. However, traditional software supports only basic payment methods like credit cards or ACH.
HighRadius EIPP brings you a high-grade enterprise invoice presentment and payment solution offering robust support to all your global requirements. HighRadius EIPP Cloud solution is built in-house and is fully integrated into the account receivables platform. Here’s how our cutting-edge solution helps you navigate the challenges of a legacy EIPP platform.
Our features for the self-serve buyer portal ensure an easy-to-use interface for your customers to view and perform actions on invoices. This end-to-end self-service portal enables your customers to view and download invoice PDFs and account statements, make payments at both invoice and account levels, and log disputes.
For example, Wolverine Worldwide (Merchant) is a footwear manufacturer for retailers globally and BootBarn is a US footwear retailer and a Wolverine customer. Through EIPP, BootBarn’s accounts payable team can view invoices, and statements and make payments with a card or bank account. They can save their transaction details for future use.
Our AP portal invoicing feature enables you to upload invoices to customers’ AP Portals or their websites automatically, eliminating all the hassles of manually delivering invoices via portals. This automated invoice delivery feature lets you not only upload invoices but also send statements and attachments to end customers via their AP portals. You can also automate the delivery of invoices, tracking every step of the process, and eliminating the need for human intervention. Our solution supports 20+ customer-specific portals along with widely used third-party AP portals like Ariba, Coupa, Taulia, Tungsten, and others.
For instance, Dicks Sporting Goods (DSG), a nationwide retailer of outdoor wear and one of the largest customers of Wolverine, requires all merchant invoices to be delivered to their vendor portal C2FO. So, billing analysts of Wolverine would log into C2FO, search and retrieve the Purchase Order (PO), and upload the invoice against the PO. EIPP here will help the merchant deliver these invoices to C2FO without any human intervention.
Our e-adoption campaign management feature allows you to move buyers to electronic payment methods so you can segment customers and send targeted email campaigns with appropriate messaging. Additionally, you can track the campaign success by measuring parameters like delivery and open rate of emails, registration, and buyer adoption and make changes to the campaigns.
For example, Wolverine has 10,000+ customers, mostly mom-and-pop shops or local retailers. These small customers predominantly make payments via checks. The cost (people, lockbox, key-in, and mail float) to Wolverine for accepting and processing check payments is very high ($5-$15 per check payment), so they want to convert these small customers to cheaper ACH ($0.15-$0.30 per ACH payment). Our EIPP can help Wolverine run targeted campaigns using the e-Adoption Campaign Management module to get these customers to switch to ACH payments.
Our automated email invoice delivery feature can automatically send customers invoices when an invoice is created in the ERP. You can also add supporting documents like Proof-of-Delivery (PODs) along with the invoices and send them through email or FAX, as preferred by your customers. The cherry on top is that you can embed smart payment links into emails for customers to view and pay their invoices.
For instance, Wolverine has 10000+ customers and generates 3M+ invoices every year. A majority of the small customers require invoices delivered to them via email. Our electronic invoicing can help deliver these invoices to customers via email or fax after they are created in the ERP. Wolverine’s billing analysts can track the delivery status in real-time and send the invoices to alternate contacts if required.
An advanced EIPP solution like ours enables you and your customers to collaborate and exchange information and documents on the portal itself. This digital collaboration feature lets you request customers to submit remittance information for cash applications, additional documents for disputes, tax certificates, and others. They can provide the requested information via the buyers’ self-serve portal.
For Example, a large regional footwear retailer has made a check payment of $10,000 to Wolverine but hasn’t sent the remittance advice. Wolverine’s billing team, through the Merchant Administration Portal, can submit a request for remittance for the $10,000 payment. A notification is sent to the buyer via the self-serve portal and email. Buyer’s users can log into the self-serve portal, identify the payment, select the invoices they paid for, and submit the remittance.
Our feature for the merchant administration portal serves as an administration console for your billing team to manage customers. The billing team can set customer preferences like invoice/statement delivery frequencies, enable/disable payment methods, and set up auto-pay, surcharges or convenience fees. They can also perform actions on behalf of the customers, like initiating payments, logging disputes, adding/removing users, etc.
For example, A large regional customer of Wolverine consistently makes credit card payments over $100,000 via the EIPP. The interchange fee on these transactions is 2.95%, and Wolverine is paying up to $3,000 on every payment and would like to steer the customer toward ACH payments which are significantly less expensive. Billing analysts can disable the credit card payment option for the retailer or set a limit for credit card transactions from the merchant’s admin console.
A good electronic invoicing presentment and payment software must provide easy-to-handle integrations, support campaign management, increase billing analysts’ productivity, and automate invoice delivery. Keep these points in mind when choosing an EIPP solution.
While most of the EIPP solutions offer a self-serve buyers portal, not all of them will help customers make payments in the portal or raise disputes. A good EIPP software should allow customers to log in, view invoices, and make payments digitally in the portal, freeing up their collector’s time and increasing convenience.
For companies with a global presence, pre-built integrations with global payment methods are a must. In addition, the EIPP payment features should support level 2 and level 3 B2B transactions and help lower the processing costs.
Your EIPP must help you increase active self-service portals and increase your billing analysts’ productivity. Our state-of-the-art invoice presentment features will help increase your billing analysts’ productivity by a remarkable 30% while allowing you to devise campaign strategies, execute call campaigns, etc.
Functionalities to support the auto-uploading of invoices to customers’ AP portals are critical to ensuring customer satisfaction. Most businesses require you to upload invoices on your website, and a robust EIPP solution must be able to do this on your behalf. You should also be able to choose from various templates, customize invoices, and automate sending them through emails to customers.
To keep up with digitally native customers, you need a robust and agile solution that helps you stay ahead of the curve and ensure a seamless customer experience. However, neither manual paper invoicing nor legacy solutions with basic functionalities will help you improve your invoicing efficiency and streamline your processes.
An EIPP software solution like ours will not only save you the hassles of manual paperwork and heavy customizations with traditional invoicing solutions but will also help you unlock 100% automation for electronic invoice generation and delivery to customers while increasing your adoption rates. Our EIPP supports 20+ customer-specific portals, 100+ invoice templates, 0.5-1% reduction in credit card processing costs, 100% recovery of surcharge, and 30-50% FTE (Full Time Equivalent) productivity.
EBPP, or Electronic Bill Presentment and Payment, and EIPP, or Electronic Invoicing Presentment and Payment, are often used interchangeably. Both are used to collect payments from customers electronically. EBPP is mostly used for B2C transactions, and EIPP is used for B2B transactions.
Invoice presentment is the process of sending invoices to customers for collections through postal services, emails, or uploading them to customers’ AP portals. A streamlined invoice presentment not only helps improve cash flows but also reduces DSO and improves billing analysts’ productivity.
Earlier, it used to be a manual paperwork process. Now, it has been replaced by e-invoicing presentment where you can automate invoice delivery.
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In the AR Invoice Automation Landscape Report, Q1 2023, Forrester acknowledges HighRadius’ significant contribution to the industry, particularly for large enterprises in North America and EMEA, reinforcing its position as the sole vendor that comprehensively meets the complex needs of this segment.
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