Typically, there’s a process organizations go through when they receive an invoice. Step after step in the paper-based process, the invoice goes through the mail department, all the way through to accounting, and then finally kept on file for research.
Like many other companies, Legendary Entertainment was following a similar procedure with their accounts payable. it was becoming more and more difficult to manage as their departments and projects increased. They were struggling through a multi-step process that would expose them to inadequate accruals in financial statements.
Before adopting AP automation, they would receive an invoice, create a related purchase order, route the mail, code it, and get it approved. Then the budget was checked, an account system entry made, a post to the GL, and then finally a check was printed. The invoice would be filed and then available for research at a later date.
As Dino Gioia, SVP of Finance of Legendary Entertainment, recently shared, the process was not only inefficient, but it sometimes resulted in bills being paid late. Invoices would go to departments before accounts payable even saw them. There was no visibility into liability beyond what was in the accounts payable inboxes, and it exposed them to inadequate accruals in their financial statements. In addition, invoices might go un-filed for months which made research and, subsequently, their annual audit more difficult.
Like many organizations, Legendary Entertainment was ready to transition to a new system that relied on automation. Accounts payable (AP) automation reduces the paper in the AP process. This removes the manual processes that put companies at risk for fraud, late payments, missing invoices, and painful audits. It offers integrated, automated, and easy-to-use platforms.
Rather than receiving paper invoices, AP automation is driven by electronic invoices. This alone makes it possible for suppliers to receive payment faster, which improves the vendor-buyer relationship. Payments can be submitted electronically and there is no additional cost to the vendor to receive payment faster.
This gives the AP department more time to focus on higher-level goals. AP managers can spend their time on growth-oriented tasks like overseeing and developing the AP staff. They can also research solutions that can save their company money, like supply chain financing, or dynamic discounting.
Legendary Entertainment worked with Arxis to discover the AP automation solution that worked best for them, AvidXchange. With AvidXchange they were able to eliminate processes, streamline the pathway for incoming invoices, and get vendors paid on time while increasing accountability and visibility.
Work with a trusted entertainment-industry expert like Arxis to discover the power of AP automation.