Invoice matching is matching invoices against purchase orders to reconcile and adjust charges. It ensures that the customer receives the correct quantity and minimizes the time and resources required to process transactions.
Invoice matching can be time-consuming. It is integral to customer relationship management. By matching invoices against purchase orders, businesses can ensure that customers receive the correct amount of product and that transactions are processed quickly and efficiently.
It is difficult and time-consuming to manually match invoices to purchase orders (PO) and goods delivery receipts (GDR). Especially when line-level invoice-to-purchase-order matching is necessary, in more complicated situations, one invoice may combine many purchase orders from various purchasers inside the firm, including items or services for all transactions made over a month. The next step is for accounts payable to determine which invoice item corresponds to which purchase order.
A digital accounts payable automation solution does automatic invoice matching; Hermes uses AI and machine learning technology for complex AP solutions and helps save valuable time for the accounts payable team.
A deviation (or exception) happens when the data on the invoice does not correlate to the underlying data from the PO, GDR, or contract. The employee within the company who is in charge of the disputed purchase must examine and manage this variance. It can frequently be a challenging and time-consuming task. By automatically recognizing deviations and providing only the relevant invoice lines to the appropriate person for review and decision-making, accounts payable software may expedite and simplify the process.
Automated invoice matching stages refer to how many supporting documents the invoice matching process compares an invoice against contextual documents.
Two-way invoice matching ensures that the invoice and related purchase order match.
The products and invoice receipt gets compared in three ways to ensure accuracy.
If this step involves a purchasing process step, 4-way invoice matching adds criterion to ensure that the invoice details match the acceptance or inspection document.
Most businesses employ three-way invoice matching. You must make sure that master.
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