Accounting
What is Payment Processing?
Payment processing is the execution of financial payments — to vendors, employees, or other parties — including payment run preparation, authorization, and reconciliation of payments to open liabilities.
Explanation
Payment processing is the final step in the AP cycle. Before payments can run, invoices must be approved, correctly coded, and matched to open POs or contracts. Errors upstream (incorrect invoice data, missing approvals, duplicate invoices) create payment errors downstream — overpayments, duplicate payments, or payments to incorrect accounts. Automation reduces payment errors by improving data quality at the invoice processing stage. Clean, validated invoice data means payment runs are prepared from accurate records, reducing the manual review required before payment authorization.
How Rima relates
By improving invoice data quality upstream, Rima reduces errors in payment processing and enables faster, more confident payment run preparation.
Explore invoice automationRelated Terms
Accounts Payable (AP)
Money a business owes to suppliers for goods or services received but not yet paid.
Invoice Processing
The end-to-end workflow of receiving, validating, approving, and recording supplier invoices.
Three-Way Match
The process of matching a supplier invoice against its purchase order and goods receipt before approving payment.
See it in action
Rima automates the manual document workflows accounting teams spend hours on every week.