PO Flip is the new Must-Have procurement portal feature.
Just like any other process automation solution, eProcurement has introduced some new terms to offer a more understandable explanation and description for new functions within the process. Without any exaggeration, we can say that one of the most interesting terms to become a part of the eProcurement vocabulary is associated with the PO Flip concept. So, what is PO Flip, and why is it important for procurement and accounting professionals?
The Basics of PO Flip
In a nutshell, a PO Flip can be described as a Purchase Order conversion into an Invoice with the help of the following tools, such as:
- eProcurement systems or
- Electronic Invoice Presentment and Payment (EIPP) platforms.
Here’s one more way to explain this concept. eProcurement platforms allow customers to directly (electronically) submit their Purchase Orders into the suppliers’ accounting platforms and systems. Now, by using the automated tools, we’ve already mentioned above, a provider can automatically flip a particular Purchase Order into an Electronic Invoice, which can then be immediately returned to the customer. As such, PO Flips have gained massive popularity thanks to the suppliers in the public sector, including local councils and relevant government bodies, which had to conduct their numerous procurement tasks through the online platforms. Being able to quickly and efficiently flip the purchase order into the electronic invoices is undoubtedly an excellent way to ensure both significant time savings and simplification of the procurement administration process. It comes without saying that PO Flips allow a win-win scenario for both suppliers and buyers.
Once you get an electronic invoice, which is now an eInvoice thanks to the PO Flips, you can approve the purchase and authorize the payment in a matter of seconds by just clicking on your computer’s button. Also, thanks to the fully automated purchasing processes, both suppliers and buyers are significantly reducing the possibilities for unwanted scenarios, human errors, and undesirable delays, which are associated with the time and trouble you are going to go through while processing invoices, cheques, or remittance advice.
Finally, once you are able to reduce the time required for the accounting and administration processes, your finance staff will have more time and opportunities to focus on other obligations and roles. Moreover, this is only the beginning when it comes to the benefits derived from the PO Flip introduction and implementation. Additional resource requirements will be both saved and reduced with the further implementation of eProcurement processes and the outsourcing of related systems. You can expect to have more free time and available staff at your disposal for other tasks and priorities.