Online audit information provides relevant financial control information to the auditors. Let’s say you, on average, can reduce this cost by 30% due to automation and skipping manual intervention. With a tolerance engine, you can set a tolerance so the system ignores this exception while matching. In the case of non-PO invoices, automated invoice creation is very helpful, especially with recurring invoices. “I like the ability to search through invoicing history,” says a Stampli reviewer on G2. It’s great being able to track information regarding any individual invoice.
Vendor portal
For example, the data from Cypress Creek’s vendor invoices is captured and validated automatically with a 98% accuracy rate and the invoices go to a queue, visible in the Rillion dashboard. After capture, the next step is to check that the data is correct and complete. This means ensuring that the vendor is approved, the PO number matches records, and the amounts and item descriptions are accurate. Each invoice-matching type supports specific operational needs, with three-way matching being the most commonly automated choice due to its balance of control and efficiency. Compared to three-way matching, it adds one extra step by verifying against an acceptance or inspection document. Upon approval, the system automatically initiates the payment process through the chosen payment method.
By business size
More straightforward matching logic for businesses using multiple ERP systems or shared services models reduces integration and training overhead across global AP teams. Managing your accounts payable process with a clean record is necessary, and without invoice matching, it is not possible. With automation, the system automatically flags any repeated invoices or duplicated data entries. Automating invoice approvals ensures that the right people sign off at the right time, without chasing them around. Every invoice your business receives goes under the lens of your accounts payable team.
What makes Agentic AI better than standard automated invoice matching systems?
The only difference is it adds one more layer of verification for optimized accuracy and controls over your accounts payable process. The first step in the invoice matching process is capturing all supplier invoices in one central location. After looking at several finance operations platforms, BTB chose Stampli to automate its invoice processing workflows. “It has a great track record of automating accounts payable, and it integrates with SAP without us needing to change our processes. But, the big factor for us was that it sees AI as a copilot for AP teams rather than a replacement.
What if an exception is found in invoice matching?
Regular vendor communication also reduces exceptions and improves matching accuracy. Finance began as a tedious business process but technology has pushed invoice matching for innovation in this space. Integrating invoice matching and touchless processing into an ERP system further leverages your investment. For once, accounting departments can become free thinkers, less burdened with manual tasks, and open to jobs that create more profit and value for an organization. Since you can clearly see which ones add the most value, this leads to better decisions in supplier selection. It facilitates cost analysis and positive pricing trends become more apparent.
AI-Powered Invoice Matching: Smarter, Faster, Better
It ensures the received items not only match the order in quantity and price but also meet the expected quality standards. The system immediately flags discrepancies, missing information, or potential errors, allowing your team to resolve issues before they affect payments or vendor relationships. 4-way matching is the most advanced form and adds a quality verification step. Alongside the PO, invoice, and GRN, it also considers an inspection report to confirm that delivered goods meet required quality standards. This approach helps prevent overcharges, fraudulent billing, and payments for undelivered items, which is particularly valuable for larger companies or those managing complex supply chains. 3-way matching introduces an additional layer of verification through the goods received note (GRN).
It’s used in industries where goods must pass a compliance or quality check before approval, such as manufacturing, pharma, or aerospace. Invoice matching software automates this by aligning inspection reports with the invoice data. Automated invoice matching ensures every line item, quantity, and price is checked against purchase orders and goods receipt data. This reduces discrepancies, minimises exceptions, and helps teams maintain higher invoice accuracy at scale.
- Invoice matching automation flags invoices with identical numbers, supplier IDs, dates, or amounts.
- A proper matching system creates a paper trail that proves you’ve done your due diligence.
- Typically, automated data entry boasts an accuracy rate of 99.959% to 99.99%.
- The first step in designing an automated invoice-matching workflow is to map and document your current matching processes.
- The first step in implementing automated invoice matching is converting physical and digital invoices into structured data using Optical Character Recognition (OCR).
- Whether dealing with a surge during quarter-end or onboarding new suppliers, Agentic AI handles large volumes of invoices without requiring extra staff or system tweaks.
Vigilance is necessary to catch errors, and using a 3-way matching approach can help achieve this goal. For these organizations, automated invoice processing is preferred – ideally, 3-way matching. The data capture process is often the most pressing need for fast-growing organizations as vendor invoice volume outgrows AP staffing.
- Invoice automation uses tools like OCR which scan Invoice details such as vendor names and amounts.
- The primary difference between the two are in 2-way matching, there are two documents matched whereas in the 3-way matching, there are three documents matched with each other.
- To discover how Basware AP Automation can optimize your invoice matching processes, reach out to our team.
- Invoice matching can take three main forms, each offering a different level of control and accuracy in ensuring invoices align with relevant purchase documents.
- Most companies set up a Three-way matching policy, by default this applies to all purchase invoices.
Invoice Matching Process – A Complete Guide To Optimization
Undoubtedly, an invoice matching software is a game-changer for your business. Not only does it offer you with accuracy and efficiency, but can even boost your company’s cost savings. Now, let’s https://www.bookstime.com/ discuss what helps you speed up the matching process between invoices and documents like purchase orders and receipts. Three way matching introduces an additional layer of validation by incorporating receiving documentation into the verification process.
Juni supports 2500+ integrations and fits into your existing tech stack perfectly. From accounting retained earnings balance sheet systems to different payment gateways and ad networks, it allows seamless data flow and matching across different platforms. However, if it turns out you can’t resolve the issue or that the vendor is not cooperating, you need to report the problem to upper management. Automatically validates invoice line items, quantities, unit prices, and PO details, dramatically reducing discrepancies and preventing costly mistakes.