Invoice Processing

See how a bot can accomplish P2P tasks involved in Invoice Processing such as Read PR, Pricing, Vendor Quotation, Approval, Download, and Scan invoice, and proceed for payment.

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Objectives

  • A renowned manufacturer and distributor of automotive oil and lubricants receive invoices in different vendors' portals and emails.
  • PO gets raised, then the invoice is received from the vendor on a vendor portal, goes for clearance to process team, the GRN gets generated, the invoice gets verified, and then goes to accounts payable team based on the due date.
  • Mostly the process is happening via email/occasionally via physical document movements.
  • Currently, the client is also using Ariba for FAR, RFQ, Bidding, Auction, Negotiations, etc.
  • They wanted the 3-way matching of PO, PR, GRN to be automated.
  • The client believes that the automation will help eliminate email threads and reduce human error by routing purchase requests to all the stakeholders and approvers, preventing paperwork, and enhancing departmental coordination.

Challenges

  • Each client has different types and formats of invoices that make invoice processing a challenge.
  • Organizations having multiple clients generally see a difficult time integrating invoice processing into a single format.
  • Each invoice is unique when clients are in different locations with different accounting and legal formalities.
  • Processing these invoices manually and updating records in QuickBooks is a challenge.
  • Sometimes, consolidated invoices are to be created in excel before uploading into QuickBooks.

Solutions

  • We automated the invoice processing through Cognitive Bots.
  • A cognitive bot parses the invoices automatically and updates them in QuickBooks.
  • The cognitive bot performs the 3-way invoice matching.
  • The 3-way invoice matching has below steps:
    • Read PR: The bot reads and understands the purchase requisition.
    • Pricing: Check with Purchase History and wholesale pricing index verification and calculate the perspective price.
    • Vendor Quotation: The bot receives a quotation through an email and then chooses the right vendor.
    • Approval: When the bot receives the purchaser's clearance, it generates a PO and sends it to the vendor via email.
    • Invoice: Download, scan, and verify the invoice with the PO and GRN.
    • Payment: Proceed with the payment only if PO and GRN match the invoice.
  • Next, all the information will be updated in the SAP/ERP system, as we were updating the details in QuickBooks before.
User-Benefits
  • The process is six times faster in processing data than manual methods.
  • Accuracy is much higher compared to traditional systems.
  • Backed with the support of AI, it is free from human-prone errors.
  • An error-free and streamlined system improves the relationship with clients and suppliers.

Outcomes

  • Procurement streamlining: Through procurement software, requisitions are requested and approved promptly, suppliers are selected based on data, and orders are produced and sent to suppliers electronically so those can be tracked.
  • 80% reduction in invoice processing costs: By eliminating paper-based processes, companies can utilize employees for more strategic initiatives rather than repetitive, time-consuming tasks.
  • Gain 100% visibility: Buyers and suppliers can view invoice status in real-time throughout the supply chain.
  • Exceptions can be better managed: Exceptions are handled quickly and thoroughly when most invoices are processed straight through.
  • Develop a better relationship with suppliers: By utilizing the supplier portal, suppliers can know when they will receive payment, and that gives them the information necessary for better decision making. Quicker resolution on invoice exceptions and disputes also engenders goodwill and allows buyers to gain greater visibility.
  • Negotiation power: To grow businesses, suppliers may be willing to offer more reasonable terms to buyers if they have confidence in their payment status.
  • Improve decision-making by capturing data: Reporting capabilities are robust in P2P solutions. Using the historical and real-time data provided, companies can improve control over cash flow and working capital.

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