Invoice processing software and contract management: indispensable for CPOs

For CPOs, work has long since ceased to revolve exclusively around cost reduction. The focus is shifting to strategic risk management, process optimisation and full transparency within the procurement and financial chain.

The increasing demands on contract management and invoice processing require integrated technology solutions. CPOs need systems that not only automate contracting, but also provide continuous monitoring and reconciliation with orders and payments.

"Transparency is crucial for maintaining strong supplier relationships," says John Schouten, director of product management. invoice processing software offers complete control by mapping the entire procurement and accounts payable process and harmonising it with existing systems.

This results in automated invoice processing and increased compliance with contractual agreements. Integrating process automation of accounts payable also drastically reduces invoice processing time.

1. Managing the use of framework agreements

Framework agreements are an important foundation for contract management. They make it possible to maintain long-term relationships with suppliers while controlling costs.

Invoice processing software integration enables organisations to manage these framework agreements efficiently. Matching purchase orders and payments directly to contract terms creates a controlled process without discrepancies.

With automatic invoice processing, purchase requisitions and orders can be directly linked to existing framework agreements. This automatically checks price agreements, volumes and deadlines.

This leads to:

• Fewer errors in contract compliance.
• Higher efficiency in invoice processing.
• Faster payment of suppliers.
• Strengthening of supplier relationships.

"Implementing such digital functionalities not only focuses on efficiency," adds John, "but also strengthens collaboration and creates long-term value for all parties involved."


2. Entering purchase requests and purchase orders with reference to contract management

A key advantage of integrating invoice processing software with contract management is the ability to link purchase requests and orders directly to contracts.

The system automatically recognises whether an order falls within the framework agreement and checks whether price and conditions match the contract. This provides not only efficiency, but also accurate compliance checking.

For CPOs, this means real-time insight into:

• Purchasing transactions per contract.
• Deviations on a price or volume basis.
• Budget impact per supplier or category.

Moreover, this automation minimises the need for manual checks. Process automation of accounts payable allows complete streamlining of approval flows, matching and payment processing.

This way of working allows CPOs to proactively manage compliance and budget maintenance without relying on manual control layers.


3. Invoice control compared to contracts for continuing obligations and contracts without purchase orders

One of the biggest challenges in contract management is invoice reconciliation, especially for continuing obligations or contracts without a purchase order. Think licences, rental agreements and SLAs.

Invoice processing software makes it possible to automatically check even these invoices against contract dates. This is crucial for CPOs that want to ensure full compliance, without any additional administrative burden.

"The Invoice Status Portal provides suppliers with instant access to invoice updates," says John. "This results in fewer emails and phone calls for AP teams and therefore greater efficiency."

Automatic recognition, validation and matching of invoices lead to:

• Reduced error margins.
• Faster processing times.
• Timely payments.
• Better cash flow planning.

By fully automating this process, organisations not only keep a grip on contracts without PO, but also strengthen confidence in their financial workflows.

Wondering how CONO Kaasmakers digitalises their invoice processing with invoice processing software and Infor M3? Read the customer case and discover their approach.

The benefits of invoice processing software extend beyond contract management. Digitising the entire accounts payable process creates an end-to-end automation chain that is crucial for the modern CPO.

Organisations can:

• Eliminate manual tasks.
• Reduce lead times.
• Structure compliance.
• Automate audit processes.
• Gain insight into outstanding liabilities.

With real-time dashboards, it becomes possible to accurately manage cash flow, outstanding liabilities and budget realisation. This supports decision-making at strategic level and enables CPOs to further strengthen their role as business partners within the organisation.

Integrating contract management with invoice processing software is not a nice-to-have, but a must for any CPO striving for control, efficiency and transparency.

Thanks to this technology, organisations can:

• Better manage contractual obligations.
• Automatically link purchase requisitions to contracts.
• Automatically check invoices for contract terms.
• Achieve full process automation from procurement to payment.

By automating and digitising these processes, organisations create a solid foundation for growth, risk reduction and compliance.

CPOs that opt for integrated solutions strengthen their procurement function, increase the speed of decision-making and sustainably improve their competitive position.