In today’s dynamic financial landscape, precision, efficiency, and compliance are essential to the success of accounts payable (AP) functions. Outdated manual processes and disconnected systems often result in bottlenecks, delays, and unnecessary risks. Purple Fabric Accounts Payable is a smart AP automation solution designed to tackle these challenges head-on with a comprehensive suite of AI-driven capabilities. Here’s how Purple Fabric Accounts Payable is redefining accounts payable through intelligent data handling, seamless integration, and advanced automation.

1. Automated TDS Category Identification

TDS (Tax Deducted at Source) compliance can be complex, with frequent regulatory updates and varying vendor categories. Purple Fabric Accounts Payable leverages artificial intelligence to streamline this process by automatically determining TDS applicability through the analysis of vendor data and invoice details, including service descriptions.

This automation ensures correct categorisation based on current tax rules. If the system has low confidence in a classification, it flags it for human review. By embedding TDS codes within the extraction schema, Purple Fabric Accounts Payable allows the rules engine to calculate deductions accurately, reducing the burden on finance teams and minimising the risk of compliance breaches or penalties.

2. Predictive Expense Account Categorisation

Assigning expense accounts manually can be inconsistent, particularly in large or decentralised organisations. This not only slows down invoice processing but also increases the risk of misclassification and errors in reporting.

Purple Fabric Accounts Payable leverages machine learning to suggest the correct general ledger (GL) codes based on historical transaction data and invoice patterns. This significantly enhances processing speed, ensures consistency, and improves financial reporting accuracy. The AI-powered categorisation aids compliance and delivers actionable insights into spending trends, supporting more informed and strategic decision-making.

3. Master Data Management (MDM) via a User-Friendly Interface

Traditionally, managing core financial data such as vendor records, departmental details, and tax codes has relied heavily on cumbersome spreadsheets. These are not only time-consuming but also prone to duplication and errors. Purple Fabric Accounts Payable introduces an intuitive user interface that enables administrators to manage master data directly within the platform.

With features like advanced search, filtering, and built-in error handling, the interface simplifies data governance and ensures accuracy across the system. Whether managing hundreds of vendors or tracking numerous expense accounts, users benefit from full visibility and control, without the risk and inefficiencies associated with manual entry.

4. HSN Code Verification

Verifying HSN (Harmonised System of Nomenclature) codes against official registers can be labour-intensive, particularly with frequent changes in tax regulations. Incorrect codes can lead to tax calculation errors and compliance issues.

Purple Fabric Accounts Payable automatically checks HSN codes in invoices against a master list. If a code is missing, incorrect, or the tax doesn't match, the system flags the issue, puts the invoice on hold, and alerts the user. This helps ensure accurate tax reporting, prevents delays, and makes it easier to claim input tax credits.

5. Automated Calculation of Amounts

Manually calculating tax and gross amount from invoice line items can cause error and inconsistency. This is especially challenging when different tax structures (CGST, SGST, IGST) are involved, or when only partial data is available.

Purple Fabric Accounts Payable automatically calculates the tax and gross amount based on the net figures provided, applying relevant tax rates where appropriate. This ensures accurate, real-time calculations at both header and line-item levels, reducing manual intervention and maintaining consistency across departments.

6. Reverse Charge Mechanism (RCM) Detection

Proper identification of invoices subject to the Reverse Charge Mechanism (RCM) is essential for tax compliance. Errors in classification can result in incorrect filings, penalties, and processing delays.

Purple Fabric Accounts Payable automates this process by scanning invoice content for RCM-related clauses. If RCM is applicable, the system marks the transaction accordingly; otherwise, it records “No” under the RCM field. This automation enhances accuracy, improves efficiency, and ensures timely and compliant tax reporting.

7. ERP Integrations

Disjointed systems between accounts payable and ERP platforms often lead to errors, inefficiencies, and data mismatches. Purple Fabric Accounts Payable addresses this through secure API-based integration with ERPs like Oracle Fusion and Zoho Creator. As an AWS-qualified, cloud-hosted solution, it enables smooth and secure data flow across systems.

The integration includes syncing vendor master data, validating purchase orders (POs) and goods receipt notes (GRNs), and performing two- and three-way matching. Invoice details are checked against ERP records to ensure accuracy. Once processed, confirmed transactions are sent back to the ERP. If submission fails, Purple Fabric Accounts Payable automatically retries and shows any ERP errors in its interface.

With over 124 data fields mapped, this integration ensures a high level of automation, transparency, and real-time financial insight, empowering finance teams to make faster, more informed decisions.

Conclusion

Purple Fabric Accounts Payable redefines the future of finance operations by uniting intelligent automation, predictive analytics, and seamless ERP integration into one powerful solution. It tackles every layer of the accounts payable process from master data management and tax compliance to invoice accuracy and workflow efficiency, eliminating manual errors and driving consistent, reliable outcomes.

For organisations ready to elevate their finance function, Purple Fabric delivers more than just speed and precision. It brings real-time visibility, built-in compliance, and a strategic edge that positions finance as a driver of growth. It's more than just automation, it's the future of accounts payable.