Limitations and Concerns |
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In paper based systems, organizations that receive business documents from outside have little control over the timing and accuracy of incoming documents. And once they receive paper or FAX documents, there are various handling issues that must be addressed, most notably the need to re-key data into data processing systems.
Reconciliation, or matching incoming invoices against a previously issues PO, can be error prone. Some companies see that it costs up to $10 per piece to reconcile invoices and POs. Some companies automatically deduct the cost of processing when they receive paper POs or invoices, while other companies provide incentives for working with the company's EDI system.
Additionally, for tax and legal reasons companies routinely keep records
on hand for years. In a paper-based system the cost of storage can become
very high, and it is also possible to lose it in an accident or disaster.