Vendor Invoice Management: How to Automate Your AP Process
Processing vendor invoices manually is slow, error-prone, and expensive. The average company spends €10-15 per invoice on manual processing. With hundreds or thousands of invoices per month, that adds up fast. E-invoicing via Peppol eliminates most of this cost by delivering structured, machine-readable invoices directly into your system.
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Receive vendor invoices as structured data via Peppol. No more manual data entry, no more OCR errors. Integrate directly with your ERP or accounting software via our API.
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1. What is vendor invoice management?
Vendor invoice management is the process of receiving, validating, approving, and paying invoices from your suppliers. It is the core of accounts payable (AP). Every business does it, but most still rely on manual steps that waste time and introduce errors.
The process typically involves receiving invoices (by email, post, or portal), entering the data into your accounting system, matching it against purchase orders, getting approval, and scheduling payment. Each step is an opportunity for delay or mistakes.
2. Manual vs automated invoice processing
Manual processing
- 15-25 days average processing time per invoice
- €10-15 cost per invoice in labor and overhead
- 1-3% error rate in manual data entry
- Invoices lost in email, missed discounts
Automated with e-invoicing
- Seconds to receive and parse structured data
- Under €1 per invoice in processing costs
- Zero data entry errors (data is structured)
- Automatic delivery, nothing gets lost
3. The typical AP process (and where it breaks)
Here is what the invoice-to-payment process looks like in most companies. The bottlenecks are highlighted.
Invoice receipt
Invoices arrive by email, post, PDF attachment, or supplier portal. Each channel requires different handling. This creates chaos when you have dozens of suppliers.
Data entry (bottleneck)
Someone must manually type invoice data into the accounting system. Supplier name, amounts, VAT, line items, due date. This is where most errors happen and where most time is wasted.
Validation and matching
The invoice is checked against purchase orders and delivery notes. Discrepancies require back-and-forth with the supplier. This can take days.
Approval routing (bottleneck)
Invoices need approval from the right person. In many companies, this means forwarding emails or passing paper around. Invoices sit on desks for days waiting for a signature.
Payment scheduling
Once approved, the invoice is queued for payment. Late payments mean missed early-payment discounts and strained supplier relationships.
4. How e-invoicing solves the AP problem
Peppol e-invoicing eliminates the two biggest bottlenecks at once: receipt and data entry. Instead of receiving a PDF that someone must re-type, you receive a structured UBL file with all invoice data already in machine-readable format.
No more data entry
E-invoices arrive as structured data. Supplier name, VAT number, line items, amounts, payment terms. Everything is already in the right format. Your accounting system can import it automatically.
Automatic validation
E-invoices are validated against the Peppol BIS Billing 3.0 standard before they even reach you. Invalid invoices are rejected at the network level. No more chasing suppliers for missing fields.
Single channel for all suppliers
Every invoice arrives through the same Peppol channel. No more checking five email inboxes, three supplier portals, and the postal mail. One inbox for all vendor invoices.
Real-time visibility
Because invoices are processed instantly, you always have an up-to-date view of your outstanding payables. No more surprises at month-end.
Already using OCR or AI for invoice scanning?
OCR and AI extraction tools are a step up from manual entry, but they still have error rates of 2-5%. They also require training, maintenance, and someone to verify edge cases. With Peppol e-invoicing, the data is already structured. There is nothing to scan or extract. The accuracy is 100% by design.
5. How to implement automated vendor invoice processing
Getting started with automated AP is simpler than you might think. Here are the main approaches:
Option A: Use e-invoice.be as your inbox
Register your company on Peppol via e-invoice.be. All vendor e-invoices arrive in your dashboard. You can review, approve, and export them to your accounting software. Good for SMEs that want a quick start.
- Set up in minutes
- No technical integration needed
- Export to CSV, UBL, or PDF
Option B: Integrate via API
Use the e-invoice.be API to receive e-invoices directly into your ERP, accounting system, or custom workflow. Incoming invoices trigger a webhook so your system processes them automatically. Ideal for larger companies or businesses with custom workflows.
- Full REST API with webhooks
- SDKs for Python, TypeScript, Java, PHP, Ruby
- Zero-touch processing possible
Option C: PDF to Peppol for your suppliers
Not all suppliers send e-invoices yet. For those still sending PDFs, you can use our PDF to UBL conversion to convert their invoices into structured data. This way you get the benefits of automation even for non-Peppol suppliers.
6. Benefits of automated AP
80% faster processing
From 15-25 days down to same-day processing. Invoices are ready for approval the moment they arrive.
90% cost reduction
From €10-15 per invoice down to under €1. The savings scale with volume.
Zero entry errors
No manual typing means no typos, no wrong amounts, no mismatched VAT numbers.
Early payment discounts
Faster processing means you can take advantage of payment terms and commercial discounts.
120% tax deduction in Belgium
All e-invoicing costs in Belgium qualify for a 120% tax deduction. Your investment in AP automation is effectively subsidized. Read more about Peppol costs and tax benefits.
7. Frequently asked questions
What is the difference between AP automation and e-invoicing?
E-invoicing (via Peppol) handles the delivery and format of invoices. AP automation is the broader process of managing those invoices internally (approval, matching, payment). E-invoicing makes AP automation much easier because it eliminates the data entry step entirely.
Do all my suppliers need to use Peppol?
Since January 2026, all Belgian B2B suppliers are required to send e-invoices via Peppol. For international suppliers not yet on Peppol, you can still use our PDF to UBL conversion to get structured data from their invoices.
Can I integrate with my existing ERP?
Yes. Our REST API lets you receive e-invoices directly in your ERP or accounting system. We provide SDKs for Python, TypeScript, Java, PHP, and Ruby. Webhooks notify your system the moment a new invoice arrives.
How many invoices do I need to process for this to be worth it?
Even at 20 invoices per month, you save significant time on data entry. At 100+ invoices per month, the ROI is massive. With e-invoice.be, there is no setup fee or subscription, so there is no minimum volume to get started.
What about invoices that need approval before payment?
E-invoicing handles the receipt and data capture. Your internal approval workflow stays the same. The difference is that invoices arrive instantly as structured data, so approvers can act immediately instead of waiting for someone to enter the data first.
Ready to automate your invoice processing?
Stop spending €10+ per invoice on manual processing. Receive vendor invoices as structured data via Peppol. Free registration, no subscription, pay only per invoice sent. Receiving is always free.