Accounts Payable Automation for Distribution
Quick Payable matches every supplier invoice to the purchase order and the warehouse receipt, flags freight and pricing errors, and routes problems to the right buyer or warehouse. Clean invoices move fast, so your team can pay on time and earn more early-payment discounts. Everything runs inside Salesforce.
- 2-way and 3-way PO matching
- Routing by warehouse and location
- $100 per user per month
- 15-day free trial, no credit card
Key Takeaways
- Distribution AP is a volume game on thin margins. Small invoice errors and missed discounts add up fast.
- 3-way matching keeps you from paying for goods that haven't reached your warehouse, including backorders and split shipments.
- Skipping a 2/10 net 30 discount costs about 37% a year. Paying on time is real money.
- The average invoice takes 9.2 days to process, right up against a typical 10-day discount window. Best-in-class teams take 3.1 days.
- Quick Payable handles matching, routing, and payment scheduling inside Salesforce for $100 per user per month, with a 15-day free trial.
Why Accounts Payable Breaks Down in Distribution
Invoices move between warehouses, buyers, and central finance before anyone can pay them. Each one carries PO numbers, freight, and tiered pricing. When that runs on email and spreadsheets, invoices pile up, errors slip through, and discount windows close.
Too Many Invoices to Key In
Hundreds of suppliers send thousands of invoices a month. Typing them in by hand creates a backlog that slows everything down.
Split Shipments and Backorders
One PO can arrive in three shipments at two warehouses. Matching each invoice to what actually arrived is slow and easy to get wrong.
Tiered Pricing and Freight
Volume tiers, freight lines, fuel surcharges, and unit-of-measure differences hide small overcharges that add up over a year.
Missed Discounts
A 2% discount sounds small until you miss it on every invoice. Slow approvals turn into lost margin and late fees.
Many Warehouses, Many Rules
Each location has its own receivers and approvers. Without clear routing, invoices land in the wrong inbox and sit.
Vendor Statements That Don't Tie Out
At month end, supplier statements show balances that don't match your records. Finding the missing invoice or credit takes hours.
Why Early-Payment Discounts Matter So Much
For distributors, paying on time isn't just about supplier goodwill. It's one of the easiest ways to protect margin.
How the 37% works: With 2/10 net 30, you save 2% by paying on day 10 instead of day 30. That's 2% for 20 days of cash. Spread over a year, it's about 37% (2 ÷ 98 × 365 ÷ 20). Few other uses of cash earn that much.
Want to size this for your own business? Plug your invoice volume into our AP cost calculator.
Distribution AP Terms in Plain English
These terms show up on almost every distribution invoice. Knowing them makes it easier to see where automation helps.
| Term | What it means | Why AP cares |
|---|---|---|
| 2-way match | Invoice checked against the purchase order | Used when there's no warehouse receipt, like services or drop ships |
| 3-way match | Invoice checked against the PO and the warehouse receiving record | Stops you from paying for goods that haven't arrived |
| ASN | Advance ship notice: the supplier's note on what's coming and when | Helps receiving check deliveries fast |
| Freight terms (FOB) | Who pays shipping and when ownership passes, like FOB origin or FOB destination | Tells you if a freight line on the invoice is allowed |
| Unit of measure (UOM) | How an item is counted, like each, case, or pallet | A case-vs-each mix-up can turn into a big overcharge |
| 2/10 net 30 | 2% off if paid in 10 days; full amount due in 30 | Paying on time protects margin |
| Credit memo | A supplier credit for returns, shortages, or pricing fixes | Has to be applied before you pay the next invoice |
| Drop ship | The supplier ships straight to your customer | No warehouse receipt, so delivery has to be confirmed another way |
| Vendor statement | The supplier's list of what they think you owe | Must tie out to your records at month end |
Example: One Invoice, Three Problems
Here's how a single supplier invoice can hide several errors, and how a 3-way match catches them.
A distributor orders 2,000 units at the 1,000+ tier price of $3.00 each, with freight prepaid by the supplier. The warehouse receives 1,800 units; the other 200 are backordered. Then the invoice comes in.
| Line | Purchase order | Warehouse receipt | Invoice | Result |
|---|---|---|---|---|
| Quantity | 2,000 | 1,800 | 2,000 | Flagged: 200 not received yet |
| Unit price | $3.00 | n/a | $3.25 | Flagged: $0.25 above the PO tier |
| Freight | Prepaid by supplier | n/a | $450 | Flagged: not allowed under the freight terms |
| Total | $6,000 | $6,950 | Correct amount now: $5,400 |
Quick Payable flags each problem and sends it to the buyer, who asks the supplier for a corrected invoice or a credit memo. The 200 backordered units get paid when they arrive. Matching like this is one part of our broader accounts payable automation software.
How Quick Payable Moves a Distribution Invoice to Payment
Every invoice follows the same path. People only step in when something doesn't match.
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Capture High Invoice Volume
Invoices arrive by email, PDF, and paper from hundreds of suppliers. Automated invoice processing pulls out the key data and puts each one in a single AP queue.
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Match to the PO and Receipt
Each invoice is checked against the PO and the warehouse receipt with 2-way or 3-way matching. Duplicates and missing PO numbers are flagged at the same time.
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Check Price, Quantity, and Freight
Validation rules catch prices above the PO tier, quantities above what was received, and freight that isn't allowed by the PO.
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Route by Warehouse and Location
Problems go to the right buyer or warehouse manager, and clean invoices go to finance. You can route by location, cost center, role, or vendor.
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Pay on Time
Approved invoices move to a regular payment schedule, so your team can pay inside the discount window when terms allow.
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Tie Out Vendor Statements
Vendor statements are checked against the invoices and payments on file, so missing invoices and double charges show up early.
Common Distribution Invoice Problems and Who Fixes Them
Most AP time goes to the invoices that don't match. The goal is to get each problem to the person who can fix it, fast.
| Problem | What it looks like | Usually fixed by |
|---|---|---|
| Short shipment or backorder | Billed for 2,000 units, warehouse received 1,800 | Receiving lead or buyer |
| Wrong price tier | Billed at the 500-unit price on a 2,000-unit order | Buyer |
| Unit-of-measure mix-up | PO in eaches, invoice in cases | Buyer |
| Freight not on the PO | Freight charged on a prepaid or FOB destination order | Buyer or logistics |
| Missing credit memo | Return or shortage credit not yet applied | AP and the supplier |
| Drop-ship with no receipt | Goods shipped straight to the customer | Buyer or customer service |
| Duplicate invoice | Same invoice sent by email and through a portal | AP team |
In Quick Payable, you decide who gets each type of problem with routing rules by warehouse, location, cost center, role, or vendor. If freight bills from carriers are a big part of your spend, see our transportation and logistics AP page.
Use Cases by Type of Distributor
The workflow stays the same. What changes is your product mix, your suppliers, and the errors you see most.
Industrial and MRO
Thousands of parts invoices across many SKUs and warehouses are matched to POs and receipts, so buyers stop checking line items by hand.
Electrical
Frequent reorders and tiered pricing from manufacturers are checked against the PO, catching price creep early.
Food and Beverage
Short payment terms on perishable goods need fast approval. Clean matching keeps invoices moving and terms on track.
Medical Supply
Every invoice and approval is logged with names and time stamps, giving reviewers a clear trail when they ask.
Building Materials
Bulky shipments to multiple yards bring freight and surcharges. Each charge is checked against the PO before payment.
HVAC and Plumbing
Seasonal spikes and monthly vendor statements are handled in one queue, with mismatches flagged instead of hunted down.
Wholesale
Peak-season volume runs through the same rules, so approvals don't slow down when invoices double.
Consumer Goods
High SKU counts from many suppliers get consistent, rule-based routing and validation.
Electronics
Fast-changing component prices and many small invoices are checked before they reach payment.
Do you also make products, not just move them? See our manufacturing AP automation page.
Manual AP vs. Automated AP in Distribution
Automation doesn't take people out of AP. It takes out the repeat checks, so your team can focus on the invoices that need judgment.
| Area | Manual AP | Automated AP with Quick Payable |
|---|---|---|
| Invoice intake | Keyed in by hand, backlog builds | Captured into one queue |
| Matching | Clerks compare PO, receipt, and invoice | 2-way and 3-way checks run on arrival |
| Pricing and freight | Small overcharges slip through | Flagged against the PO |
| Routing | Lands in the wrong inbox | Routed by warehouse, location, or vendor |
| Discounts | Often missed | More time inside the discount window |
| Vendor statements | Checked line by line at month end | Checked against invoices and payments on file |
| Peak season | Means overtime or temp help | Same rules handle the extra volume |
If approvals are your biggest bottleneck, see how our invoice approval workflows handle multi-warehouse sign-off.
What to Look for in Distribution AP Software
Use these questions with any vendor you're considering, including us.
| Question to ask | Why it matters | Quick Payable |
|---|---|---|
| Does it do 2-way and 3-way matching? | Split shipments are where overpayments happen | Yes |
| Does it flag price and freight errors? | Small overcharges add up on thin margins | Yes, through validation rules |
| Can it route by warehouse and location? | Each location has its own reviewers | Yes, also by cost center, role, and vendor |
| Does it catch duplicate invoices? | Suppliers often send the same bill twice | Yes, before payment |
| Can it reconcile vendor statements? | Month-end tie-outs eat hours | Yes |
| Is there a full audit trail? | Needed for audits and internal controls | Yes, with names and time stamps |
| Does it connect to your ERP? | Avoids typing the same data twice | Confirm your ERP during the demo |
| Is pricing easy to predict? | Per-invoice fees grow with your volume | $100 per user per month |
Weighing a few tools? Our Quick Payable comparison pages show how we stack up against other AP platforms.
Why Distributors Choose Quick Payable
Three things set Quick Payable apart for distributors that already work in Salesforce.
Built Inside Salesforce
AP records sit next to your customer and supplier data in Salesforce, with the same users, permissions, and reports.
ISO 27001:2022 Certified Team
Quick Payable is built by Differenz System, a Salesforce consulting and software company in business since 2013 that holds ISO 27001:2022 certification.
Who Quick Payable Fits, and Who It May Not
An honest check before you book a demo.
Distributors Who Gain the Most
- Companies already running on Salesforce
- High invoice volume from many suppliers
- More than one warehouse or branch
- Frequent split shipments and backorders
- Suppliers that offer early-payment discounts
- Hours spent on vendor statements each month
When It May Not Be the Right Fit
- You don't use Salesforce and have no plans to
- You need inventory or warehouse management, not just AP
- You only pay a handful of supplier invoices a month
Quick Payable works alongside your ERP, not in place of it. Check our integrations and confirm your system during the demo.
See Quick Payable With Your Own Invoices
In a 30-minute demo, we'll run one of your real supplier invoices through PO and receipt matching, validation, and approval inside Salesforce.
Try it free for 15 days. No credit card required.
Distribution AP Automation FAQs
What is accounts payable automation for distribution?
It is software that captures, matches, approves, and pays supplier invoices for distributors and wholesalers. The distribution-specific part is matching high volumes of invoices to purchase orders and warehouse receipts, catching freight and pricing errors, and paying on time to earn early-payment discounts. For a broader overview, read our guide on how AP automation works.
Why is accounts payable harder in distribution?
Distributors handle a lot of invoices on thin margins. One PO can arrive in several shipments at different warehouses, prices change by volume tier, and freight shows up as extra lines. Every small error or missed discount comes straight out of margin.
How does 3-way matching work with partial shipments and backorders?
3-way matching compares the invoice to the purchase order and the warehouse receiving record. If a supplier bills for the full order but only part has arrived, the unreceived quantity is held until it is received, so you only pay for what is on your shelves.
Can Quick Payable catch freight and pricing errors?
Yes. Validation rules check each invoice line against the PO, so a unit price above the agreed tier, a quantity above what was received, or a freight charge that is not on the PO gets flagged for the buyer before payment.
What does 2/10 net 30 mean, and what is it worth?
2/10 net 30 means you can take a 2% discount if you pay within 10 days, or pay the full amount by day 30. Skipping that discount works out to about 37% a year in cost, which is why it is worth paying on time when you can.
Does AP automation help capture early-payment discounts?
Yes. Discount windows are often 10 days, and Ardent Partners puts the average invoice cycle time at 9.2 days. Faster matching and routing give your team more time inside the window, so more discounts can be taken.
Is Quick Payable a good fit for multi-warehouse distributors?
Yes. AP can stay central while invoices route by warehouse, location, cost center, role, or vendor. Finance sees invoice status across every location, and each warehouse keeps its own reviewers.
Can Quick Payable reconcile vendor statements?
Yes. Quick Payable checks vendor statements against the invoices and payments on file and flags missing invoices, duplicate charges, and balance differences, so month-end reconciliation does not become a manual project.
How are drop-ship invoices handled?
Drop-ship orders go straight from the supplier to your customer, so there is no warehouse receipt. These invoices can be matched to the PO with a 2-way match and routed to the buyer or customer service to confirm delivery before payment.
Does Quick Payable replace our ERP?
No. Quick Payable handles the accounts payable workflow: intake, matching, approvals, and payment scheduling. Your ERP stays your system of record for inventory and the general ledger. Confirm how your specific ERP connects during the demo.
Do I need Salesforce to use Quick Payable?
Yes. Quick Payable is built natively on Salesforce, so it runs inside your Salesforce org and uses its users, permissions, and reports. If your company does not use Salesforce, factor that into your evaluation.
How much does Quick Payable cost?
Quick Payable is priced at $100 per user per month. You can try it free for 15 days, and no credit card is required.