Accounts payable is one of the most labor-intensive functions within accounting and provides a challenging environment. This role typically involves managing information from three key sources: purchase orders (PO) issued by the purchasing department, invoices received from vendors, and goods delivery receipts (GDRs) provided by the receiving department.

With no single platform focusing on a touch-less processing of invoices, most of the steps from ingestion to processing of payments is carried out by accountants.The accountant first checks if the invoice is based on a Purchase Order (PO) or not. A PO- based invoice typically are for goods that were ordered before being received, while a Non-PO based invoices are for services that were used and then billed afterward. If the invoice is PO-based, the accountant verifies if the PO number on the invoice matches the records in the PO system. The accountant also checks if the invoice is addressed to the correct company and if the billing address is accurate. Additional checks might include the invoice amount, dates, and other necessary details.

Once these basic checks are done, the accountant identifies the vendor by matching the vendor name, address, and banking details on the invoice with the vendor records. The accountant manually enters all the relevant details into the system. For PO invoices, the accountant then compares the invoice line items with the PO line items, checking descriptions, quantities, prices, and other relevant details.

This process is not only time consuming but also has the following problems :

Fortunately, there is a solution that addresses these inefficiencies and challenges: Autonomous Invoice Processing. By leveraging automation and AI-driven technologies, businesses can streamline the AP process, reduce manual tasks, eliminate errors, and gain better control and visibility.

What is Autonomous Invoice Processing?

For every function in a business environment, efficiency is key, and one area where automation is making a huge impact is accounts payable (AP) - a game-changing solution that uses artificial intelligence (AI) and automation to simplify and streamline the AP process.

At its core, Autonomous Invoice Processing leverages cutting-edge technologies like machine learning (ML), optical character recognition (OCR), and natural language processing (NLP) to handle tasks traditionally done manually. From capturing and extracting data from invoices, purchase orders (POs), and goods delivery receipts (GDRs) to validating this information with accuracy, this automated system reduces the need for human intervention.

How does it work?

1) Invoice Collection
Invoices are received through various channels, such as email or direct upload via drag- and-drop. The system automatically processes these invoices to ensure they are clear and of high quality by correcting issues like skew, fading, and noise.

2) Capture Process
Documents are classified and split, particularly multi-page invoices, into individual transactions for further processing.

3) Classification
The system automatically identifies and classifies invoices, distinguishing them from other documents. It ensures proper categorization by tagging invoices at the page level, even within documents containing multiple pages.

4) Data Extraction
The extraction process uses AI-powered tools to pull relevant data from invoices. Even complex layouts are accurately processed and key fields like line items are correctly captured.

5) Verification
During the verification stage, business rules are applied to ensure the data is correct. The system performs various checks to identify issues such as mismatched totals, tax discrepancies, or incorrect dates—ensuring all information meets predefined standards before moving forward.

6) Audit & Exception Management
The system flags any discrepancies, allowing users to easily address or correct errors as needed, ensuring accountability and smooth processing.

7) Integration & Compliance
The system integrates invoice data with the financial structure, ensuring that expenses are properly categorized. It also applies error detection to maintain compliance with tax regulations and accounting standards, preventing any mistakes before they happen.

8) Approval & Final Submission
Once all issues are resolved and validations complete, invoices are ready for payment approval. The automated process ensures the accounts payable workflow is accurate, efficient, and fully compliant with regulatory requirements.

Why should you choose iAPX to transform your Accounts Payable Processing?

iAPX provides a rule engine for quick setup for each customer, iAPX has an integrated vendor portal that enhances iAPX capabilities multifold by providing AI assisted vendor assessment and last but not the least, iAPX is AWS foundational technology review certified and is available on AWS marketplace for procurement.