Modern ERP’s are efficient when it comes to invoice transactions provided that the information is correct. There quite a few steps that need to be taken to post an invoice and in most cases those are error-prone and labor-intensive tasks. As a bonus automated invoice processing not only provides labor savings but also allows monitoring of the current payment status.
Opportunities to improve Invoice Processing
Cost – 8$ per invoice
Processing time – 5 days to process an invoice
Manual input error rate – Average error rate is 5%
Duplicates and fraud – 30% of companies have this problem
Control – Payments are made without invoicesAutomated invoice processing is built upon the current ERP system you’ve invested in. We can divide it into 5 stages:
Automated Invoice Reconciliation
The self-learning technology recognises structured and unstructured information from any digital sources including but not limited to PDF, Excel sheets, emails. The recognised information is then automatically matched and checked against the PO’s, master data or goods receipts in any ERP system. The validation stage will be described further in the article. Invoices that are completely matched are automatically posted without manual interactions. If there are issues found in Purchase Order based invoices they are automatically forwarded to the AP department for discrepancy handling. After the approval, they are automatically posted. Status of the processed invoice can be automatically sent to vendor portals or can be emailed or notified via messenger platforms.
Invoice Exceptions Management
Exceptions are the main reasons for high operating cost and late payments and as a result – unsatisfied customers. Checking and removing invoices from ERP’s is based on pre-defined set of rules. Those may range from insufficient funds, difference in prices and quantities, unmatched purchase orders or wrong vendor data. Intelligent Robotic Process Automation Software can be used to learn the exception patterns and transfer the exceptions to the employees with the right set of skills and access. Companies can then educated their suppliers about the mismatched for better streamlining of the invoice data.