Automatic invoice matching is vital in an automated AP (accounts payable) system. It is an integral part of the invoice automation process. However, there are some best practices that businesses must follow to ensure they get the most out of the automatic invoice-matching features offered by their AP platform. These best practices include pulling purchase orders from multiple sources, automating all invoices, matching invoices and orders that are not identical, setting up automated alerts, and three-way matching.

Continue reading to learn about the best practices businesses should follow when setting up their invoice automation system.

Invoice matching best practices

Pull purchase orders from multiple systems

Pulling purchase orders from multiple systems is one of the best practices for invoice matching. A company’s automated accounting system may not have generated its purchase orders. Some departments may use different techniques or create purchase orders manually.

A good automated AP platform should allow invoice matching between invoices created within the system and purchase orders created in another system. Companies that create purchase orders in multiple systems should ensure that the invoice automation program they are considering offers this function.

Set up the invoice automation program for all types of invoices

Most of the time, a purchase order is associated with a single invoice. However, this is not always the case. In some cases, purchase orders accompany invoices. Further, multiple purchase orders can get linked to a single invoice.

Companies should test their invoice matching system to ensure it can match invoices and orders in all the above situations. All the leading AP automation platforms on the market should be able to do this. However, companies may need to change some settings before implementing a new invoice automation system to ensure this happens smoothly.

Ensure that invoice matching works if the invoice and purchase order aren’t identical

It is common for invoices and purchase orders to include the same information. Now that most invoices and purchase orders are produced automatically, the information is transferred for vendors to transfer info from a purchase order directly to their invoice. However, this is only sometimes the case.

Some vendors still create their invoices manually. In this instance, the invoice may not match the purchase order exactly. Thankfully, modern AP automation systems can match different invoices and purchase orders. However, AP professionals may need to set up this functionality to ensure that it works as it should.

Set up automated alerts

Even a properly implemented automated AP platform requires manual oversight. It is common for automated AP platforms to stop the process if there is an issue. The AP staff must be made aware of this issue as soon as possible. This way, they can fix the problem and resume processing the invoice.

Nearly all AP automation platforms will send alerts when the automated process stops due to an issue. It is only possible to send alerts through the platform as messages. Set up the alerts, so they are sent to the relevant employee’s email address. If the relevant employee has a company phone, consider sending a text message alert sent to their business number.

Match receiving documents to invoices and purchase orders

One of the most crucial aspects of invoice matching is three-way matching. It is important to match invoices not only with purchase documents but also with receipts. Automating this process is also possible.

Invoice automation also allows companies to match more than these three documents if necessary. For example, a company may want to attach a quality inspection report to an item. It is possible to do this before sending the documents to the approver.

Finding the best invoice automation platform

Invoice automation is one of the services of an AP automation platform. When looking for the platform that offers the best automated invoice features, be sure to keep in mind the other features that the AP department could find helpful. For example, ensure that any AP platform you are considering offers in-depth performance tracking functionality so the department can see how well each team member is doing.

When considering an AP platform, it’s best to test its invoice automation features. Simply learning about a specific platform’s features will not let companies see where their team members may struggle when using the software. Most AP software providers offer free trial periods. Companies should try out any AP software they are seriously considering to ensure that the invoice automation features and the platform’s other features will work for the firm’s needs.