# What is the difference between invoice automation and AP automation?
Invoice automation and AP automation refer to different sides of business invoicing, though the terms are sometimes confused. Invoice Automation (Accounts Receivable / AR) focuses on creating and sending invoices to customers for goods/services you provide. This includes: generating professional invoices from templates, sending invoices automatically to customers, tracking which invoices are paid versus outstanding, sending payment reminders for overdue invoices, accepting online payments from customers, recording customer payments in accounting software. Invoice automation helps you GET PAID faster. AP Automation (Accounts Payable) focuses on processing and paying supplier invoices you receive for goods/services purchased. This includes: receiving supplier invoices via email or upload, extracting invoice data automatically using OCR/AI, validating invoice amounts and details, routing invoices for approval, paying suppliers on time, recording supplier payments in accounting software. AP automation helps you PAY EFFICIENTLY. Example to clarify: Restaurant scenario - Invoice Automation: The restaurant sends invoices to catering clients for private events (accounts receivable). AP Automation: The restaurant processes invoices from food suppliers, beverage distributors, and maintenance contractors (accounts payable). Most businesses need both: Small businesses often start with invoice automation to improve cash flow from customers, then add AP automation to reduce admin burden of processing supplier invoices. Elektroluma provides both solutions: (1) Invoice Generator - create professional invoices for your clients (invoice automation), (2) Invoice Parser - automatically process supplier invoices (AP automation). This page focuses on AP automation for processing incoming invoices from suppliers. If you need to create and send invoices to customers, see our Invoice Generator and Invoice Templates.
## Key Takeaways
- Invoice automation and AP automation refer to different sides of business invoicing, though the terms are sometimes confused.
- Invoice Automation (Accounts Receivable / AR) focuses on creating and sending invoices to customers for goods/services you provide.
- This includes: generating professional invoices from templates, sending invoices automatically to customers, tracking which invoices are paid versus outstanding, sending payment reminders for overdue invoices, accepting online payments from customers, recording customer payments in accounting software.
## Related Topics
- invoice automation vs ap automation
- difference between invoice and ap automation
- accounts payable vs accounts receivable