Magazine for Senior Financial Executives: One step behind

One step behind – Letters to the Editor

IT SEEMS TO ME that the practice of processing invoices–be they paper or electronic–is one step behind the game (“Show Me the Savings,” April). If an organization’s processes are under control, a case can be made for automatic settlement of payables based on business transactions between a buyer and a seller. This can be based on the receipt of goods or services, or, better still, if a collaborative relationship exists between a buyer and seller (or service provider), payment is triggered on the basis of a requirement for a good or service being recorded. There is little value in proponents of E-billing solutions going down that path, as their revenue opportunities are minimized.

When automatic settlement is coupled with electronic payment, the potential savings are enormous.

Ray Klein

Via E-mail

COPYRIGHT 2002 CFO Publishing Corp.

COPYRIGHT 2002 Gale Group