Xign Network Blocks Invoice Exceptions to Reduce Invoice Error Rates
Network Validation Reduces Invoice Exception Rates by 77% As Suppliers Learn To Consistently Submit Clean Invoices
PLEASANTON, Calif., Aug. 8 -- Xign Corporation, the operator of the leading settlement network for business, today reported the results of a study on the impact of Xign network validation on invoice exception processing.
According to the study, the rate of problem invoice submissions falls from 1 in every 8 invoices during initial deployment (13%) to 1 in every 33 invoices by year 3 (3%). This represents a 77% reduction in exception invoice rates over this period.
"Dirty" invoices are a leading cause of settlement delays and high processing costs. According to Xign Business Settlement Network (XBSN) statistics, the most common reasons for dirty invoice submissions include:
o Invalid or missing data (41%)
o Purchase order mismatches (15%)
o Price or quantity tolerance conditions (11%)
o Duplicate invoices (9%)
o Missing required data (4%)
o Invalid General Ledger account coding (3%)
With conventional accounting and ERP systems, these errors are typically left undetected until after invoice data is posted for processing -- leaving the burden of exception handling and dispute resolution to the buyer.
In contrast, the Xign network validates the accuracy of invoices before they have propagated into the ERP system for processing. By applying validation rules at the point of invoice submission, dirty invoices are detected and immediately returned back to suppliers for correction and resubmission. With this approach, buyers are able to avoid exceptions on 3- 13% of their invoices -- which can cost as much as $20 per invoice to resolve, according to Gartner estimates. Moreover, the marked decline in exception invoice rates shows that over time, suppliers increasingly learn to submit clean invoices up front, thus preventing the delays and high costs associated with resolving dirty invoices.
"Dirty invoices have long plagued accounts payable, causing settlement delays and higher processing costs," said George Fan, Xign vice president of marketing and general manager, Supplier Services. "Xign network validation repels invoice exceptions before they become problems, and as the study shows, helps suppliers develop the capacity to submit clean invoices the first time through."
Exception avoidance is one of 12 best practice metrics of financial settlement performance that are tracked by Xign's network benchmarking service, Xign Network Insight(TM). These metrics -- including cycle time, on- time payment, discount penetration and exception avoidance -- form the basis for tracking and benchmarking processing and working capital performance across the Xign Business Settlement Network.
About Xign Corporation
Xign Corporation operates the leading global settlement network for business. Xign's suite of on-demand applications is the first to automate the complete commerce cycle -- from electronic order delivery to electronic invoice and payment processing -- to streamline operations and monetize working capital. With more than $90 billion in transactions processed and a fast growing network of more than 30,000 global suppliers, Xign offers the most complete and widely deployed service of its kind. Customers include Fortune 2000 companies across many different industries such as Bristol-Myers Squibb, MetLife, Payless ShoeSource, RadioShack Corporation, Southern Company, Sprint, T-Mobile and United Rentals. Xign is headquartered in Pleasanton, CA. For more information, visit xign.com.
Source: Xign Corporation
CONTACT:
Christopher Rauen
Xign Corporation
Tel:+1-925-251-4514
chris.rauen@xign.com
Michelle Sabolich
Atomic Public Relations (for Xign Corporation)
Tel:+1-415-402-0230
michelle.sabolich@atomipr.com
Web site: xign.com/
