Accounts Payable Automation
Centralized Monitoring. Manage invoice processing queues, supplier correspondence, credit memo adjustment, multi-entity access control, and invoice auditability.
Integrates with single or multiple email inboxes. Supports both Gmail and Outlook.
AP Email Assistant. Organize and classify emails into various categories and create action items.
Intent-based Responses. Leverages GenAI to draft emails after analyzing supplier emails and history.
Intent-Based Tasks. Leverages GenAI to create tasks for AP team based on email category and follow ups for timely action.
Supplier Relationship Scoring. Understand supplier sentiment using historical conversation, open payable data and supplier intent from emails.
Invoice matching is the process of comparing an invoice with purchase orders and receiving reports to verify accuracy before payment. The use of invoice processing automation and automated 3-way invoice matching significantly reduces the chances of errors, such as duplicate payments or discrepancies.
To automate invoice processing, you can implement software that automatically captures, categorizes, and routes invoices. This eliminates the need for manual data entry, reduces errors, and speeds up the approval process, ensuring that payments are made on time and accounts payable operations run smoothly.
Invoice validation is the process of ensuring that a supplier’s invoice is accurate and aligns with the agreed-upon terms. This step is vital for preventing fraudulent payments and refunds, maintaining financial accuracy, and spotting any potential fraud before it becomes an issue.
Automating invoice validation involves using software that automatically checks invoices against purchase orders and receipts to ensure everything matches up correctly. This reduces the chances of manual errors and ensures that only accurate invoices move forward for payment.
The three-way invoice matching process is a method that involves comparing an invoice with the purchase order (PO) and the goods receipt number (GRN). This approach helps prevent overbilling or duplicate payments by ensuring that the invoice details are consistent.
The 2-way invoice matching process involves comparing the invoice with the purchase order to ensure the billed amount matches what was ordered. This is more like a straightforward process that is often used for services or recurring payments without a receipt.
The three main steps involved in invoice processing are invoice receipt, invoice approval, and payment. First, invoices are received and captured using tools like invoice data capture software. Then, they are routed for approval through automated workflows. Finally, approved invoices are processed for payment.
An invoice is considered invalid if it contains incorrect or incomplete information, such as inaccurate pricing, missing purchase order numbers, or discrepancies between the invoice and the goods or services delivered. Invoice validation software is crucial for identifying and flagging such issues.
To identify a duplicate invoice, the first thing to do is verify its authenticity. Start by comparing it with your existing records, like the relevant purchase order or previously paid invoices from that vendor. If it turns out to be a duplicate, contacting the vendor is essential to prevent double payments.
If a second payment has already been made, your AP team must arrange a refund or issue a credit note to the vendor. For identification of duplicates, invoice validation software and automated invoice matching software are the essential tools that need to be deployed or integrated with AP automation software.
The system can validate and match invoices against Purchase Orders (POs) and Goods Receipt Notes (GRNs). It checks supplier details, billing details, and PO information against master data and performs mathematical validations. The matching process identifies variances in price, quantity, and payment terms at both the header and line levels, ensuring accuracy and compliance with business rules.
The system captures invoice data almost immediately after receiving it, integrating through channels like email, EDI, or supplier portals. The extracted data is quickly added to the AP processing queue, providing near real-time processing.
The data capture rate is highly accurate, supported by the system’s ability to parse various formats and validate extracted data against master records like PO details and goods receipts. The system’s classification and extraction processes ensure precise capture of both header and line-level information. Structure invoices are captured with 100% accuracy. ML models and GenAI capture information with more than 90% accuracy at header and line level for matching
HighRadius has an ML-based recommendation model that can predict GL accounts and other accounting dimensions such as cost center, department, project, plant, business unit, and more. It leverages historical non-PO invoices, looks for patterns around multiple invoice data points (business unit, vendor, GL account, amount, location, etc.), and finds similarities.
HighRadius supports two workflows: Coding Workflow and Approval Workflow. Threshold-based conditional approvals can be configured, with or without exceptions. You can maintain one or more designated approver(s) for organization-specific master data such as department, cost center, plant, project, business unit, company, location, etc., and initiate invoice coding and approval workflows.
