{"id":7316,"date":"2025-06-03T02:38:22","date_gmt":"2025-06-03T02:38:22","guid":{"rendered":"https:\/\/sblog.seebiz.com\/blog\/?p=7316"},"modified":"2025-06-11T05:13:18","modified_gmt":"2025-06-11T05:13:18","slug":"what-is-vendor-invoice-management","status":"publish","type":"post","link":"https:\/\/sblog.seebiz.com\/blog\/what-is-vendor-invoice-management\/","title":{"rendered":"What Is Vendor Invoice Management? Key Steps & Tips"},"content":{"rendered":"

Vendor invoice management sounds like a mouthful, but it\u2019s really just a way to make sure you\u2019re paying your suppliers correctly and on time.\u00a0<\/span><\/p>\n

But it’s not as simple as it sounds.\u00a0<\/span><\/p>\n

Almost more than<\/span> 500 invoices<\/span><\/a> are processed each month, which takes an average of <\/span>5 days<\/span><\/a>. Each invoice may involve <\/span>2-3 people <\/span><\/a>until it finally passes the approval process. It’s a long process that takes time and resources and, if not done correctly, is prone to errors that ultimately disrupt supplier relationships, the procurement process, and cause poor cash cycle flow.\u00a0<\/span><\/p>\n

Different businesses operate on different models. Many businesses process their invoices manually (57%), while <\/span>37% send paper invoice receipts<\/span><\/a>, and 52% send electronically (via email). While only 5% of the accounts payable team use a fully automated process.\u00a0<\/span><\/p>\n

But with the increasing benefits of cost and time, companies are moving toward automation.<\/span><\/p>\n

\"what<\/p>\n

According to Levvel Research<\/span><\/a>, manually processing invoices costs $10 to $15, while some said it might cost up to 16%. However, with automated vendor invoicing, businesses can cut<\/span> costs as low as $3<\/span><\/a>. In this way, businesses can save a lot on operational costs with a single automation.\u00a0<\/span><\/p>\n

In this blog, we will learn about vendor invoice management and how proper invoice management can save costs.<\/span><\/p>\n

What is vendor invoice management?<\/b><\/h2>\n

Vendor invoice management (VIM) is the system your business uses to receive, review, approve, and pay supplier invoices. It ties directly into your procurement and accounts payable workflows.<\/span><\/p>\n

Let\u2019s say you order 500 units of product from a vendor. They ship the goods, and then send you an invoice. Your job is to verify the invoice matches what you ordered (cross-check with PI) and received, get it approved, and make sure payment goes out accurately and on time. That entire journey from receiving the invoice to issuing payment is vendor invoice management.<\/span><\/p>\n

In wholesale and distribution businesses, this can get complex fast, especially when dealing with international suppliers, varying terms, or bulk discount structures.<\/span><\/p>\n

Why it matters for wholesalers and distributors<\/b><\/h2>\n

When invoices pile up or go unpaid, your supplier relationships suffer. Worse, if your team misses details or duplicates payments, you end up losing money. <\/span>According to Ardent Partners’ 2024 State of ePayables report<\/span><\/a>, over 38% of invoices are still received in paper format, while 62% are received in email format, increasing the chance for manual error.<\/span><\/p>\n

Late or inaccurate payments can also affect your credit terms and disrupt your supply chain. That’s why having a streamlined invoice management process is so important, especially in high-volume environments like wholesale.<\/span><\/p>\n

Information on the vendor invoice (Supplier perspective)<\/b><\/h2>\n

The information on a vendor invoice might vary depending on your business and vendor type. Are you sourcing raw materials or finished goods? But the following information is universally considered on a vendor invoice.<\/span><\/p>\n

Invoice date<\/b><\/h3>\n

The date mentioned on the invoice represents the date the invoice was created. The due date will be mentioned on the invoice – the date when the invoice is supposed to be clear. If the invoice says 15 days, the invoice is supposed to be clear in 15 days.\u00a0<\/span><\/p>\n

Invoice Number<\/b><\/h3>\n

It’s a unique identifier mentioned on the vendor invoice. Every invoice is given a specific number, making it easy for the sender and receiver to record manually or in their system.\u00a0<\/span><\/p>\n

Contact information<\/b><\/h3>\n

Your vendor invoice should include all the information related to the supplier (Sender) and the organization (receiver) – name, address, email, website, etc.\u00a0<\/span><\/p>\n

Description of goods or services<\/b><\/h3>\n

Your invoice should contain all the information related to the product being delivered, including the number of products, their names, the amount related to each, color (if required), weight, or any other additional details.\u00a0<\/span><\/p>\n

Payment terms<\/b><\/h3>\n

To maintain a healthy cash flow, always try to use payment terms that clearly mention how many times or until the payment should be clear. Use terms that encourage early payment. This is equally beneficial for the sender and receiver as it clears the air about what is supposed to be done without being vague and questioning things.<\/span><\/p>\n

\"vendor<\/p>\n

Source<\/span><\/a><\/p>\n

Amount due<\/b><\/h3>\n

In the end, make sure to add the net payment due – any sales tax or additional cost must be mentioned in the last to maintain transparency.\u00a0<\/span><\/p>\n

The Vendor Invoice Management Process<\/b><\/h2>\n

Here\u2019s how the process typically works in a B2B setting:<\/span><\/p>\n