How to automate invoice processing

Invoice processing can be automated with the help of an accounts payable automation tool that supports e-invoices or with the help of an e-procurement solution. While most suppliers and buyers have switched to e-invoices, the optical character recognition (OCR) feature in invoice automation platforms comes in handy for extracting data from both paper-based and digital supplier invoices.

Once the invoices are scanned, they are matched against purchase orders and goods receipt notes using either a two-way or three-way matching process to flag discrepancies. When these documents match, then the predefined invoice approval workflows move the invoices to payment gateways for payment scheduling.

Invoice automation reduces manual intervention in the process by replacing manual data entry and eliminating associated risks and errors. E-invoicing accelerates the procure-to-pay process considerably and helps establish a digital trail of purchasing for smoother reviews.