How To Establish The Workflow Of Automated Invoice Processing

Automated Invoice Processing

Automated invoice processing is a procedure of extracting the information seamlessly from the invoices that enter your system & simply pushing it into the ERP so that the payment processing can be efficiently done immediately. This blog is undoubtedly a comprehensive and exceptional review of the modern technologies that can allow you to do that.

Paying bills is a hectic procedure for finance departments, with invoices arriving in all kinds of formats: paper invoices, PDFs, scanned PDFs, emails, and so on. In addition to seasonal fluctuations, there are peak periods when the amount of work becomes particularly stressful for financial staff. For example, tally discrepancies and missing papers occur often when invoices are entered manually into systems at certain times.

Want to know more about automated invoice processing? Well, in this article, you will understand all about it. So, without any further ado, let’s get started;

Invoice Automation – Software

The pay cycle process generally includes the following steps:

  • Physical invoice scanning
  • Filing of information into ERP
  • Interpreting the data in accordance to the business rules

Now there are two kinds of invoice processing software in the market:

  • Rule-based OCR software like Kofax, Tipalti, Abby
  • Intelligent OCR software like Nanonets, Rossum

After extracting and validating data, it should be sent into the ERP for payment processing based on business rules, such as mapping to a Purchase order number. It’s inefficient to write new rules every time a new vendor is added or churned, and the rule-based solutions don’t scale.

All of the major enterprise resource planning (ERP) solutions are compatible with these programs.

Automated Invoice Processing – Workflow

  • A three-way match of the purchase order, the invoices received against the purchase order, and the receipts created against the invoice is a requirement for any automated program for processing bills. It’s important to keep track of each document’s unique identifier and compare it to the others.
  • Take this automated invoice processing sequence, for example:
  • As an attachment, the invoice is sent to a predetermined email folder (JPEG, PDF, EDI, PNG, etc)
  • Under the “Review” tab, the document is accessed.
  • Data from an attachment is extracted by invoice automation software.
  • Data from vendor invoices should be validated using the Master Vendor file’s business rules
  • If the extracted values are validated and found to be accurate, they will be moved to the “Verified” status.
  • Documents stay in the “Review” part until manually examined and transferred to the “Verified” area if extracted values fail validation criteria.
  • All invoice data is included in the final report.


Take advantage of early payment reductions and reduce actual keystrokes written by approximately 90%.

Productivity: Removing tedious data entry activities frees up your financial staff to focus on more vital projects. 75 percent more efficient than before.

In-Depth Analysis: Machines can now extract much more data much quicker, allowing for in-depth analyses of inefficiencies and bottlenecks in business processes.

On-premises: We’re aware that this is private information for your company. It is possible to operate Nanonets AP Automation software on-premises.

Good Luck, folks!