Manual invoice processing is labor-intensive and can cost up to $15 end-to-end. Throw invoice coding issues in, and a domino effect can start across the AP process and with vendors. In fact, almost 75% of SMBs experience negative impacts from late payments, including strained vendor relationships and even delayed orders.
But there’s a much easier way.
Quadient’s 99% touchless invoice processing, driven by OCR, AI, and machine learning, does it all: extracts data, validates information, and routes invoices for approval. Invoice processing runs predictably and efficiently, and AP can focus on higher-level tasks, eliminating manual tasks and errors.
Even in the smoothest invoice processes, though, the AP workflow can come to a screeching halt when coding and other glitches occur. We’ve identified some of the most common and problematic invoice coding issues across SMBs and how Quadient AP handles these automatically.
Master multiple line items
For detailed tracking of charges for services and products, multiple line items on an invoice are needed for quantities, rates, and other units. But manually entering this information is tedious, time-consuming, and often rife with data entry errors.
With Quadient’s Smart Capture, you can automatically and accurately integrate all line items from your incoming invoice into the system, including description, unit cost, quantity, and line item totals.
Conversely, you can condense all invoice line items into one line with the Summarize Captured Line Item feature.
Summarize Capture Line takes the work out of condensing line items.
Get 20/20 on unclear invoice descriptions
Another invoice coding “gotcha” is ambiguous invoice descriptions. It could be vague language about services or goods, open to multiple meanings, or a brief description. This can lead to vendor misunderstandings and too much invoice research time by your staff, which ultimately translates to late payments.
Quadient AP learns from past invoice data to correctly fill in the gaps, powered by AI algorithms, machine learning, pattern recognition, and prediction. The system compares data from the PO, invoice, and receiving report to correct missing or incorrect information with
three-way matching.
Divide invoices with ease
Invoice splits can be an AP nightmare when manually processed. Smart automation in Quadient AP handles them, whether it’s multiple invoices for different services, partial payments, installments, or any other reason.
After batch scanning invoices, you can split or merge invoices with the drag-and-drop interface in just a few seconds (no tedious individual invoice scanning required). You can also set up flexible invoice payments based on timeframes, teams, or any other combination of variables, and even replicate for future invoices.
You can also take the opposite action: merge selected invoices into one. All at the touch of a button.
Split Payment speeds the process of dividing up invoices.
Resolve miscategorized expenses before they happen
Expense category mistakes can happen for various reasons—from manual errors to incorrect bank feed imports, new expense categories, or an ERP system glitch. But they can spin out fast, leading to out-of-whack financial reporting and reconciliation.
AI-driven intelligence identifies key fields, such as expense categories, based on prior invoices with Quadient's proprietary GL smart coding feature. It selects the correct GL code based on pre-defined coding fields, accounts, departments, or cost centers, and makes a match automatically.
GL smart coding automatically matches pre-defined invoice elements
Eliminate inconsistent categorization practices
Depending on the size and type of business, dozens or hundreds of categories can be linked to invoice line items. But when AP manually enters the data, inconsistencies and anomalies can occur. With AI-driven technology, you can be sure you have the correct category based on prior invoices and 3-way matching.
With the Category Management feature, you can also gain complete control over categories in real time. Instantly send a comment to the invoice and take category actions—such as adding, editing existing, or activating or deactivating—giving you the most flexibility (with control) possible.
Category Management enables real-time category adds, edits, and deletions.
Correct typos in a flash
A small typo can have big consequences if a data entry error occurs when creating an invoice. Invoice processing can slow to a crawl with misspelled product names, services, or any other invoice element, resulting in late payments and potential vendor relationship strain.
The system validates that data and corrects typos, checking prior invoices and 3-way matching as verification with invoice automation. Your users can leave a comment on the invoice to confirm or change the incorrect information if further investigation is needed.
Automatically cross-check custom terms and discounts
There are many reasons a vendor might invoice using non-standard terms from its prior billing or include discounts without notations. Maybe they were paying early or even had an undocumented pricing discussion with sales, but there’s no moving forward without lock-tight accounting authorizations.
You can check unexpected terms and discounts are automatically through 3-way matching and ERP syncing. It can be flagged in the approval workflow to validate the terms or discount before payment.
Stop duplicate invoices in their tracks
It happens. A vendor sends in the same invoice, already in process or paid, through manual error, paper shuffle gone bad, or, in rare cases, a fraudulent charge. If not corrected ASAP, this can cause payment delays, confusion, and even duplicate payments.
With Quadient AP duplicate detection tools for verification and resolution, the system automatically flags potentially redundant invoices, after matching invoice numbers and vendors. And, your users can also view duplicates or specific invoices when deciding to delete or correct.
Duplicate detection detects and flags identical invoices.
Time to put manual invoice coding issues behind you
When invoice coding problems happen, they disrupt the AP workflow and often delay payments. Streamlining the invoice process with touchless automation will reclaim your time to focus on higher-level tasks while you keep payments—and vendor relationships—on track.
Get in touch to learn more about AI-driven invoice automation with a demo
Jill brings over 15 years of industry experience in financial services marketing. She is a passionate and motivated digital marketing professional with extensive experience in multi-channel marketing with a proven record of driving results for growing and established financial services brands like American Express, Billtrust, Heartland Payments Systems, and CAN Capital. Jill is experienced in planning and executing integrated marketing campaigns across channels: web, content, paid media, email, influencer marketing, social, SEO, and events.