Manual invoice matching is a slow, time-consuming, and labor-intensive process. It can be difficult to accumulate all the information needed to process an invoice, which often results in delayed payments and upset vendors. One way that AP departments can reduce invoice processing times by up to 70% is by automating the invoice matching process, ensuring an accurate three-way match.
What is three-way matching?
A “three-way match” refers to the three components (purchase order, receipt of goods, and supplier invoice) that must match within agreed-upon tolerance levels in order to ensure a proper and timely payment. This might seem to be a process that is easy to achieve, but that is not necessarily the case.
Most AP departments can view the PO and receipt of goods data electronically in their AP systems once the goods have been received, allowing them to match the received order against the PO. But when the invoice is finally received (as a piece of paper or, at best, a .pdf of the invoice, rather than as an e-invoice), AP processors have to key in information, such as PO number, vendor information, or item code to bring back PO and receipt data to complete the match. Corcentric’s three-way matching capability eliminates these extra steps.
The matching algorithm
Corcentric’s configurable matching algorithm gives customers full control over how invoices match and what line item matching fields are required. This flexibility allows clients to modify their matching rules as needed, without incurring extra costs to change how the match works. This provides customers with the highest possible match rate to allow for the majority of invoices to process straight through Corcentric to your AP system or ERP without processor intervention.
Corcentric’s three-way matching capability will increase efficiency and streamline your processes by:
- Developing automation and workflows that follow your internal control policies for cost center allocation, approval authority, and high dollar authorization
- Automatically flagging and escalating duplicate invoices
- Sending mobile-friendly email notifications and alerts to remind approvers
- Most importantly, providing visibility into the status of every invoice at every step of the process
How It Works
When a purchase order is sent via Cor360 Purchase Order, the supplier fulfills the order and then flips the purchase order into an e-invoice. When the e-invoice is received, Cor360 Approval Workflow automatically matches the document against the original purchase order and the receipt of goods notification. If these documents match within tolerance levels set by the customer, the invoice is processed straight-through to the organization’s ERP systems for payment…with no human intervention.
The benefits of automated three-way matching
Whether your POs have been instantly converted to e-invoices by the supplier or scanned and converted with Double Blind Keying which has an accuracy rate of 99.95% vs single-keyed data, our solutions provide three-way match capabilities that significantly reduce your costs and time to process.
Corcentric automated three-way matching will have an immediate and significant positive impact on your business by:
- Matching invoices automatically, without human intervention
- Speeding up the invoice processing cycle by flagging exceptions
- Dramatically reducing administrative and processing costs
- Tightening up controls with a full audit trail
- Ensuring data accuracy
Cut the time and costs of invoice processing.Get the Guide