In this article, We’ll give you a refresher on how invoice coding works, how virtual accountant to automate coding for PO and non-PO invoices, and the benefits of using invoice processing automation for your AP workflows. Automating the accounts payable workflow centralizes all the operations and access to documents. Enhancing the accounts payable process through digital technology began as early as 1978 with Viscal, the first spreadsheet software that was used for accounts management. From then to the current scenario where most of the accounts payable procedures are automated, AP processing has come a long way. Centralizing all critical AP documents and automating processes on a single platform – centralizing all the processes in the accounts payable workflow enables end-to-end automation.
General Ledger Coding in Accounting Processes
GL coding is a hierarchy that determines how you categorize and organize financial transactions. Mastering GL coding is the key to reliable and actionable financial management. Ledger codes classify transactions as accounts receivable or accounts payable, which is essential for efficient organization and data entry. You can break GL codes down even further into sub-categories within accounts, retained earnings such as projects or vendors, providing a more detailed account structure.
Vendor invoice
This data includes vendor details, invoice numbers, dates, line items, amounts, and relevant account codes. In this article, we explore the traditional invoice coding process in accounts payable, including the challenges of manually coding invoices and the benefits of automating invoice processing. Artsyl’s InvoiceAction solution for invoice processing automation takes GL-Coding to the next level with its Enhanced GL-Coding feature. Your ERP system’s GL-Codes will be available to the Verification Station operator in real time, enhancing their work and ensuring that every invoice you receive will be processed correctly.
The Complete Guide to Invoice Coding in Accounts Payable
Correct GL codes for each transaction help identify where payment has gone and why it was processed. It allows you to identify spending and creates a paper trail for internal and external audits. GL coding also helps segregate your liabilities and expense accounts for your balance sheet, allowing you to report correct financial data and avoid legal issues. GL codes are unique alphanumeric codes assigned for each account in a company’s general ledger.
GL coding in Invoice Processing
Companies often create their own GL Code systems to align with their accounting practices invoice coding and reporting requirements. By aligning your GL codes with these regulations, you can avoid fines, penalties, and legal issues. Moreover, GL codes provide a common language across all departments and users. If your business has multiple departments or teams, they may use different terminologies and systems, which can create confusion and make collaboration challenging.