Accelerate AP Processing With Our Intelligent Invoice Matching Software

Invoice matching typically involves a multi-step process that leverages key data points from various documents. These data points include invoice numbers, vendor information, dates, line items (including descriptions, quantities, and unit prices), and total amounts. The system meticulously checks for inconsistencies, such as:

Quantity discrepancies: Comparing the quantity ordered on the PO to the quantity received and invoiced. For instance, if 100 units were ordered but only 95 units were received, the system flags this discrepancy.
Price discrepancies: Verifying that the unit price on the invoice aligns precisely with the agreed-upon price on the PO. Any deviations, such as unexpected surcharges or discounts, are immediately identified.
Terms and conditions discrepancies: Ensuring compliance with agreed-upon payment terms (e.g., net 30 days), discounts for early payment, and any other contractual obligations outlined in the purchase order.

Two-way matching and three-way matching represent different levels of verification within the invoice matching process.
Two-way matching: This method compares invoices directly to purchase orders. It essentially verifies that the goods or services ordered were indeed invoiced. While effective for certain scenarios, two-way matching may not always catch discrepancies that arise between the order and the actual goods or services received.
Three-way matching: This more comprehensive approach compares invoices to both purchase orders and receiving reports. By incorporating the receiving report into the verification process, three-way matching ensures that the goods or services received match both the order and the invoice. This provides a higher level of accuracy and control, minimizing the risk of paying for goods or services that were never received or were received in a different quantity or condition.

Invoice matching software automates the tedious and time-consuming process of invoice matching by leveraging advanced technologies such as Optical Character Recognition (OCR), Artificial Intelligence (AI), and Machine Learning 1 (ML).

Instead of relying on manual data entry and cumbersome manual comparisons, the software efficiently extracts data from various sources, including invoices received via email, EDI, or even scanned documents. The invoice matching software then intelligently compares this data with the information in the corresponding purchase orders and receiving reports (if applicable). By automating these tasks, invoice matching software significantly reduces the risk of human error, improves processing speed, and frees up valuable time for AP staff to focus on more strategic initiatives.

When selecting invoice matching software, consider these key features:

• AI-powered data extraction: Accurately extracts data from various document formats, including PDFs, images, and emails, with minimal human intervention.
• Two-way and three-way matching capabilities: Supports both levels of matching to ensure comprehensive and accurate invoice verification based on your specific business needs.
• Intelligent exception handling: Automatically flags and routes exceptions (discrepancies) to the appropriate approvers for swift resolution, minimizing delays and ensuring timely processing.
• Workflow automation: Automates the routing of invoices for approval based on pre-defined rules and hierarchies, streamlining the approval process and ensuring timely payments.
• Seamless ERP integration: Integrates seamlessly with your existing Enterprise Resource Planning (ERP) system for smooth data flow and reduced manual data entry, ensuring a streamlined and efficient workflow.
• Robust reporting and analytics: Provides comprehensive reports and dashboards with key performance indicators (KPIs) to track invoice processing efficiency, identify bottlenecks, and gain valuable insights into AP performance.

Automated invoice matching software revolutionizes the accounts payable process by significantly improving efficiency, accuracy, and speed. By automating data entry and comparison, it reduces labor costs and frees up valuable time for AP staff to focus on more strategic initiatives, such as vendor relationship management, financial analysis, and process optimization.

• Accelerated invoice processing: Streamlined workflows and automated matching enable faster processing times, leading to quicker payments to vendors. This improves cash flow, maximizes early payment discounts, and strengthens vendor relationships.
• Enhanced accuracy and reduced risk: By minimizing human error and identifying discrepancies early on, automated invoice matching reduces the risk of overpayments, duplicate payments, and fraudulent activities, safeguarding your company’s financial health.
• Improved compliance: Automated audit trails and built-in controls help ensure compliance with internal policies and external regulations, reducing the risk of penalties and fines.
• Data-driven decision making: Real-time data and insights provided by the software empower finance leaders to make informed decisions regarding AP processes, identify areas for improvement, and optimize overall financial performance.

By implementing robust invoice matching software, businesses can significantly enhance their AP function, improve operational efficiency, reduce costs, and gain a significant competitive advantage.