E-PAYABLES (STUDY OBJECTIVE 9)

Accounting managers within organizations are usually interested in new systems and software that reduce costs or increase the efficiency of payables processing. The newest technologies related to invoicing and payables are generally referred to as e-payables. However, a more specific name for these electronic invoicing and payment systems is electronic invoice presentment and payment, or EIPP. Most EIPP systems take advantage of the connectivity of the Internet to electronically send invoices or payments. This means that an accounts payable process in an organization could receive invoices electronically via the Internet and make payment via the Internet. Such systems usually utilize Web browsers as the interface for accounts payable employees to receive and view invoices and make payments.

Although these systems are newer in technology and software, they have the same advantages and risks as those already described. That is, they improve the efficiency of invoice and payment processing, but they pose security, confidentiality, processing integrity, and availability risks. The Real-World Example in the opening of this chapter describes some advantages that General Electric experienced by using EIPP.