Straight Through Processing
Overcome barriers to automated matching and send most invoices straight through with no processor involvement.
In an effort to reduce transaction processing costs in Accounts Payable departments, many enterprises have attempted to automate the three-way matching process. Few have succeeded. While new technology has helped AP departments become more automated
in PO matching to matching receipt of goods, the invoice matching process has proved much more challenging to automate. The solution is to convert supplier invoices to electronic data. This allows for automation of the most time-consuming part of
the three way invoice matching process – the supplier’s invoice matched to the PO and receipt of goods.
How Straight Through Processing Works
COR360 automates the three-way match using Straight Through Processing. Invoices are converted to electronic data for line item matching against electronic PO and receipt of goods data. When electronic
invoice data matches PO and receipt of goods data, the invoice can be fully-matched without AP processor involvement using COR360’s proprietary matching algorithms. It can then be sent straight through COR360 as a completed match, with a notification to the
AP system or ERP to close out the match. When an invoice fails the Straight Through Processing matching rules, Smart Routing rules can route it automatically to the individuals responsible for matching resolution. This further streamlines the exception
handling process needed in the Accounts Payable department.
Speed and Efficiency Benefits of Straight Through Processing
COR360's automatic three-way matching process matches invoice details to line item PO and receipt of goods data details. When exact matches, or matches within predefined tolerances, are met, COR360 auto-matches the invoice, then completes the
transaction using Straight Through Processing and passes the data directly to the AP system or ERP. AP processors only need to work invoices that fail the matching criteria. This enhances the purchase-to-pay process, increases efficiencies, drives
out costs, and lets AP departments handle increasing volumes without adding people.
If an invoice fails to be matched initially, COR360 will continue to monitor and attempt to auto-complete the invoice using Straight Through Processing as POs are
adjusted or goods are received. Some invoices will inevitably require exception matching. In this case, COR360 enhances the process by analyzing all open receipts and narrowing down potential matches to PO lines and receipt of goods to assist
with resolving exception matches.
Optimal Matching and Exception Handling
The goal of Straight Through Processing is to be able to accurately match as many invoices as possible through COR360 without AP processor involvement. This frees up the AP processor to work on the more time consuming invoices where there are matching
exceptions.
Since it is impossible to complete 100% of your invoices using Straight Through Processing due to the inevitable vendor and receiving errors, COR360 focuses on enhancing exception process handling. This streamlines the AP processor’s
role by providing the workflow tools and matching information necessary to resolve exceptions in a timely manner.