Why is Invoice Validation So Important?
Why is Invoice Validation So Important?
Have you ever triple-checked your work just to make sure you didn’t miss a small detail?
Working in the financial world, it’s all about the details, the numbers must all match.
Here at Dash, when we started creating the AP Robot, we knew how critical the invoice data validation was. All the pieces of information on the invoice match up to the receipts and Purchase Orders (POs). When done correctly, this allows businesses to pay the suppliers the correct amount and avoid fraud. The AP Robot can be an extra set of eyes on very detailed information.
Especially if it’s been a long day. And you’ve looked at 10+ invoices already that day.
Maybe a robot to assist in invalidating all the information would make a difference???
The mundaneness and repetitiveness of the data validation activity could result in oversight problems. Not detecting and correcting errors in invoices can result in double payments, underpayments, delayed payments, or missed payments, all of which can cost the company considerable money and time. Manually checking every line of the invoice and comparing them with the appropriate fields in other related documents is, understandably, time-consuming. Any time and effort spent on such cumbersome tasks are time and effort not spent on other activities that are of value to the company.
Freed from time-consuming activities such as PO matching and invoicing, the Payables team can now focus on human-centric tasks such as financial planning, analyzing, and deriving insights for improvements, and improving interpersonal and institutional relationships, all of which could improve the bottom line.
Enter… the Dash AP Robot!
Companies have various compliance processes to minimize fraud and other compliance issues. Here are a few examples of the data validation the AP Robot can do to assist the AP team at your organization:
- The lists the quantity of 100 on the PO, but on the Invoice, it says 1000. The AP Robot will put that in a special exception folder with the “quantity” flagged so you can review it quickly and move forward
- On the Receipt paperwork (aka: goods received notice) it lists 50 received, but on the Invoice, it says 500. Sometimes looking at it quickly it could be missed (just a simple extra 0, right?!) this will be flagged and put in the exception folder for quick review
- Tax rate errors?
- Not using the right currency.
A recent survey entitled The e-invoicing Journey – 2019-2025, reports that on average 70 bills/invoices are currently exchanged per person, per day, all over the world. The invoice is, unsurprisingly, often referred to among accountants as the “queen of all documents” and is the most important document for accounting, taxation, and VAT activities. The importance of the invoice necessitates the correctness of data because any error in invoice data can have long-term consequences for the business in terms of its productivity, reliability, and relationships. This makes payables invoice validation a critical activity in the Accounts Payable (AP) function of any business.
Validation is crucial because problems are far easier to fix early.
Reduce Errors by Validating Invoices with AI
Errors in invoices are not uncommon. They can arise from miscalculations, legislations, and, most commonly, human factors. A survey report titled “Lost in transaction 2020 – The hidden cost of invoice errors” that studied 1000 companies showed that 0.53% of all invoices have errors in them. Assuming the generality of this number, and combining it with the earlier statistic of 70 invoices/person/day, it can be estimated that each person in the world, on average, is responsible for 139 faulty invoices every year.
Dash AP Robot utilizes Artificial Intelligence (AI), computer science’s “Holy Grail” in the words of Bill Gates, mimics human judgment and behavior to match POs, invoices, and receipts.
BONUS: Dash AP Robot integrates seamlessly with your ERP, resulting in unprecedented efficiencies, cost savings, and ease of use.
By automating the invoice validation with a 3-way match, you can transform AP performance, free employees to focus on driving the business forward, and increase organizational value. Integrating with your ERP, working with your existing business processes, and eliminating paper and manual work are all key requirements for you, and the right solution will have all those pieces.
Good automation software for invoice processing can eliminate many of the problems associated with manual invoice validation. Invoice validation not only involves the automatic capture of data from invoices and populating the appropriate fields of a database, but also matching the data with corresponding data from other documents involved in the purchase process. In addition, the AP Robot performs a 3-way match, the data in the invoice is matched with those from the PO and receipt documents.
Dash AP Robot ROI Calculator
See how much you could save with Dash AP Robot.
Calculate a new way forward, one that makes your accounts payable function more efficient, more secure, and better able to focus on your company’s strategic priorities. With our calculator, you’ll gain a better understanding of how much you can save and what kind of potential you can expect by automating manual invoice and validation processes.
An accounts payable department processing 15k invoices per year stand to save $25k annually through accounts payable automation.
Look no further than Dash AP Robot.
Don’t let inefficient manual processes stand in the way of becoming best-in-class.
Automation of the invoice validation process can remove many of the hindrances associated with manual invoice processing and empower the accounts payable department to rapidly handle exceptions and errors, thereby avoiding costly delays and mistakes in the procurement process. This can, in turn, lead to improved overall efficiency and profitability of the business.
About the Author:
Stephanie is the marketing guru at Dash. For over 20 years, Dash has been authoring, delivering, and supporting Dash DDX™, its ERP-integrated Document Automation software to small and mid-sized manufacturing and distribution companies throughout the USA and beyond.
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