Automated AP workflow seamlessly routes each invoice to the appropriate person for approval. DOKKA’s advanced data capture technology handles complex invoices with multiple line items, accurately extracting all relevant data and assigning the appropriate codes. This simplifies the process for businesses dealing with high invoice volumes normal balance and significantly reduces processing times. Embracing invoice coding automation isn’t just about keeping up with technology—it’s about transforming your AP department into a strategic asset. By streamlining processes, reducing errors, and freeing up your team’s time, you’re paving the way for better financial decision-making and improved cash flow management.
- A variety of software like optical character recognition and intelligent data capture is being used to capture key bits of data like the PO number, amount, date, etc.
- This approach is especially beneficial when dealing with new suppliers, less trusted vendors, or for high-value transactions where quality and accuracy are more important.
- A system that can recognize different invoice formats and fill in missing details reduces errors and speeds up processing.
- Configure your system to automatically match invoices with purchase orders and receiving documents.
- Mistakes, even as simple as incorrect debit or credit recording, can lead to compliance issues and skewed financial data.
Next steps
- The real problem with GL codes is that they’re called “codes” for a reason.
- Non-PO coding involves assigning a unique code or identifier to each expense, which is then used to allocate the expense to the appropriate general ledger account.
- Without a PO, AP teams must manually assign the right account codes before processing a non-PO invoice.
- After coding the invoice, Billy matches the invoice details against the PO details to verify the invoice.
At the same time, intelligent automation doesn’t require the AP team to change things around or learn new tricks. Automate this process as much as possible by implementing Optical Character Recognition (OCR) technology to extract invoice data. OCR can read, interpret, and enter data from scanned or digital invoices, saving time and minimizing human error. Many non-PO invoices arrive in different formats, with some missing key details. If an invoice lacks a vendor name, invoice number, or tax Accounting for Marketing Agencies amount, the system may not process it correctly.
How do you write an invoice code?
As part of coding invoices for accounts payable, tax account coding is also required. AI also allows routine and repetitive processes to be handled autonomously, or without human intervention. With autonomous invoice processing, time-consuming manual data entry can be eliminated, drastically reducing invoice coding time spent coding an invoice. Some AP teams using AI-first software have reduced their time per invoice to just a few seconds, which can be a significant time savings on large invoice volumes. Modern accounts payable workflows are capable of invoice data capture, coding invoices with the right account and cost center, matching invoices and POs, and approving invoices.
Step 1: Invoice data capture
- If an approver is unavailable, it delegates the request so that invoices don’t get stuck.
- Test out the power of Centime and see how you can maximize efficiency and speed in your invoice processing today.
- Two-way matching is the simplest form, primarily involving a comparison between the invoice and the purchase order.
- Inconsistencies in invoice data and discrepancies between invoice data and PO data or goods received note data can be effectively identified during the 3-way matching process.
- You’ve got to find the right software, convince finance to invest, train your team, and integrate the system.
- A comprehensive record-keeping strategy ensures compliance and legal adherence.
In this blog post, we’ll discuss the impacts of AP automation on Non-PO coding, including time savings, improved accuracy, and reduced risk. This functionality is fully compliant with your company’s legal entity settings, meaning that if you don’t allow submitters to code invoices on desktop, this will also apply to mobile. Consider metrics like on-time delivery, quality of products or services, and their accuracy in invoicing. Use these evaluations to make informed decisions about your vendor relationships. Regularly communicate about payment terms, expectations, and any process changes.
When purchases happen outside the PO system, finance teams lose control over spending. If departments keep making small, unapproved purchases, costs spiral out of control. For organizations paying their vendors via ACH, wire, or cheque expense management and tracking can be cumbersome. Using smart or virtual cards allows them to float payments so that money does not leave their account until the payment is done. Some of the details included in the GL coding are the amount, vendor name, invoice category, product line, freight details, country code, business unit, department, and warehouse.
