What is AP Automation & How Does it Work?

Accounts Payable Automation Software

Manually entering purchase invoices isn’t anyone’s idea of a good time. In fact, research from IDC shows that 51% of SMBs identify keying invoices and matching POs as their top pain points.

AP automation is like a superpower for streamlining Accounts Payable, using technology to your advantage while remaining in full control.

In this article, we’ll have a look at what AP automation is, how it works and more.

What is AP Automation?

Think of AP automation as your superhuman assistant that completes data entry with pinpoint precision. It uses AI (Artificial Intelligence) technology to complete Accounts Payable tasks automatically, replacing manual data entry with a ‘no touch’ process.

The tool autonomously creates a draft purchase invoice in the Accounts Payable module, auto-populating the details it pulls from the invoice uploaded and matching the invoice to the respective purchase order; while maintaining the purchasing approval workflow you already have setup.

How Does AP Automation Work?

Here’s how the magic happens:

1. Email or upload
Just email or upload up to 30 purchase invoices to get started. A variety of different file types are supported including PDF, PNG, JPEG, TIFF.

2. Processing
AI gets to work, using the details from the invoice and your supplier records to draft a purchase invoice with the source document attached. Any duplicates or missing information will be flagged for your attention.

3. Matching
The system matches the purchase invoice to the relevant purchase order and flags any discrepancies for you to review.

4. Review and post
Review the purchase invoice details and source document side-by-side, make any corrections and hit post once you’re happy with everything.

5. Feedback
Machine learning learns from the patterns in your corrections to improve future predictions. Meaning the more you use it, the better it gets.

Key Benefits

Here’s what you get when you automate your AP process:

• Faster invoice processing time
• Accurate duplicate & discrepancy detection
• Reduced late payment fees
• More early payment discounts
• Stronger supplier relationships
• Better visibility & tracking
• Happier finance team!

Sage Intacct AP Automation Software

Sage Intacct with AP Automation provides an end-to-end solution for all your AP needs, enabling you to handle invoices from all your entities in a seamless workflow.

With over 8 years’ experience in delivering AI solutions, Sage Ai has been developed responsibly, prioritising ethical practices and minimising risk.

Your data is protected by the Sage Network, with security measures such as 24/7 monitoring, continuous security improvements and more.

As the AP Automation module is native within Sage Intacct, you don’t have to worry about integrations, implementation fees, moving between separate systems or remembering more passwords.

Plus, keeping everything in one place gives you the option to feed data straight into your dashboards and click to drill down to the source, giving you more visibility.

Advice from Experts

We’ve helped businesses of all different shapes and sizes to overhaul their AP process. One of our clients, a rapidly growing company with over 20 entities, saw a huge improvement from implementing AP automation. Read about their story here.

If you’d like to discuss AP automation for your business, please complete the enquiry form.