Use Case

AI Invoice Processing and AP Automation

Accounts payable teams spend most of their time on data entry and exception handling that AI handles better and faster. We build end-to-end invoice automation that cuts AP cost per invoice while improving accuracy and audit readiness.

The Challenge

Accounts payable teams receive invoices in dozens of formats from hundreds of vendors, all requiring the same workflow: extract the data, match it against a PO, validate amounts and terms, assign GL codes, route for approval, and push to the ERP. Done manually, each invoice takes 5-15 minutes and costs $10-25 to process. At scale, this is an enormous and largely preventable operating cost.

Our Approach

We build AI invoice processing pipelines that extract data from any invoice format, match against open POs, validate against business rules, suggest GL coding based on historical patterns, and route approvals to the right person based on vendor, amount, and cost center — with exceptions clearly surfaced rather than buried.

How We Do It

1

Invoice Capture and Data Extraction

AI ingests invoices from email, supplier portals, and EDI feeds, then extracts header and line-item data — vendor, invoice number, dates, amounts, PO references, tax, and payment terms. Extraction accuracy is validated against your specific vendor formats during onboarding.

2

PO Matching and Validation

Extracted data is matched against open purchase orders in your ERP using 2-way and 3-way match logic. Discrepancies — price variances, quantity mismatches, missing PO references — are flagged with specific details so AP staff can resolve exceptions rather than re-process clean invoices.

3

GL Coding and Cost Allocation

AI suggests GL codes based on vendor history, invoice description, and cost allocation rules. For repeat vendors with consistent coding, the system codes automatically. For new vendors or unusual line items, it surfaces suggestions with confidence scores for human review.

4

Approval Routing and ERP Integration

Validated invoices are routed to approvers based on your delegation-of-authority rules — amount thresholds, cost center ownership, vendor category. Approved invoices post directly to your ERP. The complete audit trail from receipt to posting is maintained in the system.

What You Get

Invoice processing cost drops from $15-25 per invoice to under $3 for straight-through processing
90% of invoices with valid PO matches process without human touch
Early payment discount capture increases 35% as processing cycle time shortens
Audit preparation time decreases 60% due to complete, searchable processing records

Technology Stack

Claude 3.5 SonnetAWS TextractSAP Integration SuiteOracle REST APIsApache AirflowPostgreSQL

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Industries We Serve

Frequently Asked Questions

What ERP systems do you integrate with for invoice processing?+
We integrate with SAP S/4HANA, SAP ECC, Oracle Fusion, Oracle EBS, Microsoft Dynamics 365, and NetSuite. Integration complexity depends on your specific configuration and the APIs your IT team has enabled. We scope this in detail during discovery — most integrations are workable within a 3-4 week timeline.
How does the system handle invoices from vendors who don't use a standard format?+
The AI is designed to handle format variability. For new vendors with no prior processing history, it attempts extraction and surfaces a review request with the extracted data for human verification. Once a vendor's format is validated, subsequent invoices from that vendor process automatically. There is no requirement for vendor-side format standardization.
What is the straight-through processing rate we should expect?+
For invoices with valid PO references and no discrepancies, straight-through rates of 80-90% are typical after 60 days of operation. The remaining 10-20% involve genuine exceptions — discrepancies, missing data, new vendors — that genuinely do require human review. We track this metric explicitly and work with you to identify systemic exception causes.
Can the system handle multi-currency and multi-entity processing?+
Yes. Multi-currency invoices are handled with exchange rate lookups at the time of processing. Multi-entity environments with different approval rules, GL structures, and vendor relationships are fully supported. We design the entity and currency configuration during the scoping phase.

Ready to build this for your team?

We take this from concept to production deployment. Usually in 3–6 weeks.

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