Sage AP automation: A full guide on what it is and how it works

Manual accounts payable processes often lead to delays, errors, and frustration for finance teams. Sage’s accounts payable software reduces these roadblocks by streamlining workflows, reducing manual effort, and improving visibility into cash flow.

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From addressing common challenges like late payments, fraud risks, and duplicate invoices, automation gives businesses a more efficient way to manage their AP operations.

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In this guide, we’ll explore how Sage AP software works, its core features, and how using third-party solutions, such as Ramp, is also an option for advanced AP automation.

What is Sage accounts payable software?

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Designed to enhance efficiency, reduce errors, and provide real-time financial visibility, Sage AP automation solutions help businesses maintain better control over cash flow while improving vendor relationships.

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The platform operates through two specialized software solutions, each catering to different business needs: Sage Intacct and Sage 50.

Sage Intacct

Built for medium to large businesses, Sage Intacct’s advanced cloud architecture integrates AI-powered tools that optimize invoice processing and anomaly detection. It supports complex financial structures, including multi-entity consolidation, while offering real-time dashboards that deliver multidimensional insights for enhanced decision-making.

Sage 50

Designed for small businesses, Sage 50 combines desktop functionality with cloud connectivity, offering straightforward tools for bank reconciliation, cash flow tracking, and detailed reporting. It simplifies everyday tasks while providing advanced capabilities like inventory tracking and customizable workflows, ensuring flexibility without unnecessary complexity.

What about integrating third-party AP automation tools with Sage ERPs?

If you’re a Sage user looking for a non-Sage-based integration for advanced AP automation, various third-party AP automation tools are available. For example, Ramp AP software can complement most Sage ERP systems, offering features like OCR that auto-fills bills down to each line item, AI-driven auto-coding, AP aging reports, and more.

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So whether an organization stays within Sage’s ecosystem for additional AP functionality or uses third-party software, leveraging these solutions helps businesses centralize AP operations and gain actionable financial insights across their organization.

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Before we dive into more details about third-party integrations, here’s a quick rundown of the features Sage AP software offers.

Key features of Sage AP software

Sage AP automation software simplifies how businesses handle accounts payable by offering a suite of features tailored for clarity. The two main solutions—Sage Intacct and Sage 50—serve distinct business needs, ensuring companies of all sizes can benefit from automation.

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Here’s what each solution brings to the table in more detail:

Shared features

• Automated invoice capture: Both solutions allow businesses to process invoices automatically, reducing manual input and errors.
• Workflow automation: Both platforms streamline approvals with routing, tracking, and notifications, though Sage Intacct offers more advanced approval hierarchies.
• Real-time reporting: Each provides customizable reporting, with Sage Intacct offering multi-dimensional, real-time dashboards for deeper insights.
• Expense management: Both solutions provide tools to monitor spending, though Sage 50 focuses on simpler workflows, while Sage Intacct supports multi-entity expenses.
• Vendor management: Both enable businesses to manage vendor profiles and payment terms effectively, though Sage Intacct supports more complex vendor relationships.
• Integration capabilities: Both integrate with third-party tools, but Sage Intacct offers connections with larger systems like Salesforce, while Sage 50 supports essentials like Microsoft 365.

Specific to Sage Intacct

• AI-powered accounting: Sage Intacct uses AI to detect anomalies and automate time-consuming processes for larger organizations.
• Multi-entity and global consolidation: Ideal for businesses managing multiple entities, Sage Intacct consolidates financials across locations.

Specific to Sage 50

• Inventory management: Sage 50 provides advanced tools for tracking stock levels, purchase orders, and inventory movement, ideal for smaller businesses.
• Cloud-connected flexibility: Combines desktop functionality with remote access, making it accessible for smaller teams working from different locations.

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To reiterate, Sage Intacct is best suited for medium to large businesses requiring advanced cloud-based tools, AI capabilities, and multi-entity financial management. In contrast, Sage 50 is designed for small businesses that prioritize desktop functionality with cloud connectivity, offering a more straightforward approach to AP management.

Setting up Sage AP automation software

Getting started with Sage AP software is straightforward, but preparation is key. Ensure your Sage software is up to date, your financial records are organized, and your team has access to the necessary tools and training.

How to configure Sage AP software

Though steps may vary, the typical process for getting set up with Sage AP software is:

1. Connect your Sage system to your financial data: Log in to your Sage account and confirm that vendor details, payment histories, and charts of accounts are properly entered and up to date.
2. Configure automated invoice capture: Enable the invoice capture feature by uploading sample invoices. Set up field mapping to extract critical data like amounts, due dates, and vendor names.
3. Establish approval workflows: Define approval hierarchies and thresholds to ensure invoices are routed to the correct stakeholders. Use Sage’s notification settings to keep everyone on track.
4. Schedule payments: Use Sage’s scheduling tools to automate recurring payments, aligning with vendor terms and avoiding late fees.
5. Test your setup: Run a test cycle to confirm invoices are being captured, routed, and processed accurately. Adjust settings as needed for smooth operation.

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If you’re looking to connect Sage ERP software to third-party AP automation tools, choose external software compatible with your Sage ERP, such as Ramp. Then, navigate to your Sage ERP’s integrations menu and follow the provided instructions to connect the third-party tool

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After you’re all set up, configure rules to route invoices based on criteria like project type, invoice amount, or department. Then, define exceptions to handle outliers without disrupting the flow.

What to do when you’re all set up

Once the Sage AP software is fully configured, you’ll gain access to its capabilities that make managing accounts payable easier, faster, and more effective. Here’s some best practices for using AP automation software:

• Invoice processing: Periodically review and update invoice capture settings to align with vendor changes or new invoice formats. This ensures ongoing accuracy and efficiency.
• Approval workflows: Set clear approval thresholds and provide training for stakeholders to ensure timely and accurate reviews. Use notifications strategically to reduce delays.
• Vendor management: Regularly update vendor records to reflect current terms and ensure payments are aligned with any agreed-upon discounts or deadlines.
• Real-time financial insights: Customize dashboards to highlight KPIs like outstanding invoices, cash flow trends, and payment schedules. Regularly review these insights to adapt your strategy as needed.

Using Ramp AP software alongside Sage ERPs

Using Ramp with Sage ERPs adds an extra layer of efficiency to your accounts payable processes. If you’re a Sage user not specifically using a Sage AP solution, Ramp AP software, through our standard UCSV or custom API build, can complement Sage ERPs to provide advanced features that are not natively available within the ERP system. 

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Here’s what Ramp AP software brings to the table:

• Automate invoice processing with OCR: Ramp’s AI-powered OCR accurately captures and codes even the most complex invoices and line items, significantly reducing the need for manual input and minimizing errors.
• Streamline repetitive workflows: Automate recurring bills, batch payments, and vendor onboarding, with bulk editing ensuring quick updates and minimal manual input.
• Optimize approval workflows: Create intelligent, multi-layered approval flows with customizable routing rules and automated alerts for significant changes, ensuring a streamlined review process.
• Unify payment management: Manage all domestic and international vendor payments, whether by check, card, ACH, or wire, on one platform with comprehensive visibility and control.

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Together, these systems help streamline workflows, reduce errors, and improve your overall AP management.

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How Ramp easily integrates with Sage ERPs to optimize AP management

Ramp has been successfully integrated into multiple businesses to streamline their accounts payable processes through its connection with Sage ERPs. Here’s a success story showcasing how Ramp and REVA Air Ambulance achieved remarkable results.

How Ramp reduced REVA’s AP processing time by over 80%

REVA Air Ambulance faced significant challenges with manual, time-consuming accounts payable and expense management workflows. Their legacy system created inefficiencies that delayed reimbursements, extended month-end close times, and left finance teams scrambling for visibility into spending. By integrating Ramp with Sage Intacct, REVA streamlined its processes and achieved transformative results.

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The table below highlights the impact of Ramp’s AP software integration on REVA’s operations:

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Seth Miller, REVA’s Controller, praised the integration, saying, “We were able to mold Ramp to our company to set it up as needed within departments. But the biggest selling feature to us was the automatic, real-time integration with Sage.”

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By automating AP and expense workflows, REVA’s finance team no longer chases receipts or relies on outdated manual processes. Ramp’s tools allowed employees to upload receipts on the go, reduce AP effort, and expedite vendor payments with drag-and-drop invoicing and automatic coding.

Maximize the capabilities of Sage ERPs with Ramp Bill Pay

Sage provides AP automation software that helps transform accounts payable by reducing manual tasks, streamlining approvals, and improving financial visibility.

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But for businesses seeking a third-party solution to complement their Sage ERP, Ramp offers tools that take AP automation even further. With advanced features and enhanced reporting, Ramp helps optimize your AP processes for greater efficiency and control.

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Elevate your accounts payable workflow—experience the impact of Ramp Bill Pay.