Matching invoices with purchase orders and receipts is a crucial part of an accounts payable (AP) process. However, doing it manually is time-consuming and leaves room for costly errors.
Invoice matching software offers a solution by seamlessly automating the entire process. In this Rillion article, we’ll explain what invoice matching software is, how it works, why it matters, and how you can choose one for your AP team.
Invoice Matching Software Explained
Invoice matching is a vital process in accounts payable (AP) that verifies invoices against purchase orders and receipts. This process ensures companies only pay for goods or services they’ve received, avoiding costly errors like overpayments or duplicates.
Invoice matching software simplifies this process by automating each step, from capturing data to verifying information and flagging any issues–all without manual intervention.
Instead of doing the comparison and checks manually, this technology does it automatically, speeding up the payment cycle and minimizing human errors.
How Does It Work?
Invoice matching software uses advanced technology to automate each step of the matching process, making it faster and more accurate.
Here’s how it works:
- Capture Invoice Data: The software can scan paper invoices or upload electronic ones, quickly reading key details such as vendor information, invoice number, and amount due.
- Match Invoice Data: Once the invoice data is captured, the software automatically compares it to the relevant purchase orders and receiving documents.
- Check for Discrepancies: The software carefully checks for any discrepancies in pricing, quantity, and other details.
- Flag Discrepancies: If there’s a mismatch—like an incorrect price or quantity variation—the system identifies it right away, flagging it for further review.
- Resolve Discrepancies: The invoice is cleared for payment after an AP team member addresses and resolves any flagged discrepancies.
Benefits of Invoice Matching Software in the AP Process
Increases Efficiency and Saves Time
Automating the matching process reduces the time spent on repetitive manual tasks. With features like automated data capture and matching, AP teams can process invoices faster, freeing up valuable time to focus on higher-priority activities and strategic initiatives.
Enhances Accuracy and Reduces Errors
Manual invoice matching is prone to errors that can lead to overpayments, missed payments, or duplicate entries. Invoice matching software improves accuracy by eliminating manual data entry and automatically identifying discrepancies. This ensures that invoices are matched correctly and reduces costly mistakes.
Strengthens Financial Control and Compliance
Invoice matching software enhances control over the AP process by enforcing validation checks at every stage. With a clear record of each transaction, companies can maintain compliance with internal policies and regulatory standards. This control reduces the risk of unauthorized or fraudulent transactions.
Improves Cash Flow Management
With automated matching, AP teams can maintain a clear overview of pending and approved invoices, giving better visibility into cash flow needs. By ensuring that invoices are processed and paid on time, businesses can avoid late fees and strengthen vendor relationships, which can lead to better terms and discounts.
Provides Real-Time Insights and Reporting
Invoice matching software typically includes reporting and analytics features that offer insights into AP performance. By monitoring metrics like processing time and discrepancy rates, companies can identify bottlenecks, optimize workflows, and make data-driven decisions to improve the AP process.
How to Pick the Right Invoice Matching Software
When choosing invoice matching software, it’s important to find a solution that fits your business’s unique needs. Here are some key factors to consider:
1. Business Needs
Assess the specific needs of your accounts payable (AP) team, such as:
- The volume of invoices processed daily
- The complexity of your purchasing workflows, any
- Any compliance or integration requirements.
Knowing these details helps you pick software that can handle your workload efficiently and comply with industry standards.
2. Evaluate Features:
Look for essential features like:
- Three-way matching: Ensure alignment between invoices, purchase orders, and receipts.
- OCR capabilities: Automated data capture from various invoice formats.
- Customizable workflows: Ability to create approval processes tailored to your organization.
3. Integration Capabilities
Look for invoice matching software that integrates smoothly with your existing systems, including invoicing, payroll, billing, and accounting platforms. Seamless integration ensures that data flows accurately across departments, minimizing errors and simplifying financial management.
4. Discrepancy Management Features
A key advantage of invoice matching software is its ability to detect and flag discrepancies. Look for software with robust discrepancy management features, including customizable discrepancy ranges, automated alerts, and quick resolution.
5. Consider Vendor Support and Training
Selecting a software vendor that offers reliable support and training resources is crucial. Look for a vendor with accessible customer support, onboarding assistance, and training materials to help your team make the most of the software.
Automated Invoice Matching with Rillion
At Rillion, we provide a top-tier solution for automating invoice matching and improving accounts payable (AP) efficiency. It streamlines workflows, cuts down on manual tasks, and integrates with popular ERP systems for effective data management.
Other key features include:
- Invoice Capture with OCR: Processes email and paper invoices via OCR in the cloud, supporting formats like PDF, XML, and JPG, with 95% accuracy for paper and 100% for electronic formats.
- AI Coding: Uses artificial intelligence to automatically generate coding and routing predictions based on historic invoice data, which can increase accuracy and speed up the process.
- Approval Workflows: Automates and digitizes invoice approval workflows, which can be customized to meet specific needs. Invoices can be approved online with a single click.
- Integration: Connects with popular accounting systems and ERPs, including D365 F&O,
D365 BC, and Oracle Netsuite, for end-to-end automation. - Audit Trail: Provides an audit trail and searchable archive for both current and paid invoices.
- Business Rules: Implements a procedure for invoices that don’t match and includes built-in customizable acceptable deviation levels.
Rillion’s value is evident in our customers’ success stories. Lindström Group, a textile service leader, reduced manual workload significantly by automating AP tasks like invoice processing and matching for over 120,000 invoices.
Similarly, Cypress Creek Renewables, managing nearly 300 solar sites, uses Rillion’s automated matching and workflows to simplify complex AP tasks, minimizing errors and ensuring tax compliance.
Streamline Your AP Operations with Rillion’s Invoice Matching Software
Automating invoice matching is essential for faster, more accurate accounts payable (AP) operations. Rillion leads the way as the best choice in invoice matching software, offering powerful features like intelligent three-way matching and flexible workflows that reduce manual work and improve accuracy.
Ready to transform your AP workflow? Book a free demo with Rillion and see how we can simplify your invoice matching today!
