Streamline Accounts Payable with Invoice Matching

For procurement and purchasing professionals, invoice matching can feel like a never-ending chase. Stacks of invoices need to be compared against purchase orders and receiving reports, a process that's not only time-consuming but also prone to errors. And with large enterprises often generating thousands of POs and invoices per year, those errors can add up quickly. Streamlining this process is where a deep understanding of invoice matching and the power of modern procurement platforms come into play.

What Is Invoice Matching?

Invoice matching is how enterprises verify the accuracy of an invoice – by comparing it with supporting documents, typically a purchase order (PO) and a receiving report. This verification ensures:

• The goods or services described on the invoice match what was ordered in the PO.
• The quantities and prices on the invoice align with the PO.
• The goods or services have been received as documented in the receiving report.

What Different Types of Invoice Matching Are There?

There are three main types of invoice matching, each offering a different level of control:

2-Way Matching:

This is the simplest method, comparing only the invoice with the PO. While efficient, it doesn't guarantee the goods or services were actually received.

3-Way Matching:

This is the most common method, verifying the invoice against both the PO and the receiving report. This provides a strong level of control but can be time-consuming for high-volume processing.

4-Way Matching:

This adds an extra layer of security by also comparing the invoice with an inspection report, ensuring the goods meet quality standards. This is ideal for high-value or critical items.

Why Is Invoice Matching Important?

Effective invoice matching offers a range of benefits for procurement teams: 

Reduced Errors and Fraud:

Matching invoices helps prevent duplicate payments, overcharges and fraudulent activity. 

Improved Efficiency:

Streamlining the invoice matching process frees up valuable time for more strategic tasks like supplier relationship management and contract negotiation. 

Enhanced Visibility and Control

Matching invoices provides a clear view of spending and helps identify potential discrepancies early on. 

Stronger Supplier Relationships:

Timely and accurate payments foster trust and positive relationships with vendors.

How Do Modern Procurement Platforms Streamline Invoice Matching?

Modern AI-powered procurement platforms automate much of the invoice matching process, significantly reducing manual work and improving accuracy. Here's how: 

Automated Data Capture:

Platforms can extract data from invoices using Optical Character Recognition (OCR) technology, eliminating manual data entry and reducing errors. 

Workflow Management:

Predefined workflows guide invoices through the matching process, ensuring consistency and efficiency. 

Exception Handling:

The platform automatically flags discrepancies for review, allowing your team to focus on exceptions rather than routine tasks. 

Real-time Visibility:

Advanced dashboards provide real-time insights into the invoice matching process, enabling better decision-making.

By leveraging the power of invoice matching and modern procurement platforms, procurement and supply chain professionals can significantly improve efficiency, reduce errors and gain greater control over their spending. This frees up valuable time to focus on strategic initiatives that drive better business outcomes.

Ready to get started in the world of AI-powered invoice matching? Visit here to learn more about GEP SMART’s invoice matching capabilities and schedule a demo today.