Discover how AP automation helps in matching invoices to purchase orders to prevent fraud and ensure accuracy.
Picture this: It's 4:30 PM during the month-end, and you have a lot of invoices that don't match their purchase orders. Is this a pricing error? A quantity discrepancy? A rounding difference?
This scenario probably plays out multiple times every single day in your work life. Believe us when we say it happens to many others.
Research shows that the average AP professional spends 60-70% of their time on manual invoice matching, turning what should be a straightforward process into a time-consuming task.
But there is a better way? Your competitors are upgrading their process of matching invoices to purchase orders using an automation platform.
Let us show you how.
Why Is Matching Invoices to Purchase Orders Time Consuming?
Matching purchase orders to invoices is a critical AP process that ensures you only pay for goods and services that were actually ordered and received.
Sounds simple, but in reality, it's one of the most complex and time-consuming tasks among AP activities.
When done manually, it’s pretty much a 7-step regimen:
Hunt for the corresponding PO in your system (if you can find it)
Compare line by line: quantities, unit prices, descriptions, taxes
Flag discrepancies and start the investigation process
Contact suppliers for clarification on mismatches
Chase down approvers for exception resolution
Create manual journal entries for adjustments
Document everything for audit trails
The more complex your matching requirements, the more time you spend away from value-added activities like building supplier relationships and process improvement.
What Are The Hidden Costs of Manual Matching?
Strategic Time Theft
Manual invoice matching doesn't just waste time, it systematically steals your most valuable professional hours. Research shows that 55% of AP professionals' days are consumed by data entry and matching activities. When discrepancies arise, which happens frequently, each problematic invoice demands an average of 23 minutes to investigate and resolve.
Stunted Career Development
Consider the math: with 15-20 exceptions occurring daily in typical operations, you're dedicating nearly 8 hours exclusively to handling mismatches. This leaves virtually no bandwidth for the strategic work that actually advances your career and delivers business value. While you're buried in document comparison and data verification, strategic analysis, process improvement, and stakeholder engagement opportunities slip away. The expertise you've developed, which includes understanding business operations, vendor relationships, and financial controls, remains underutilised.
Relationship Building Casualties
Perhaps most damaging is the missed opportunity to build meaningful relationships with key stakeholders. When your day is consumed by matching invoices, you can't engage with department heads about spending patterns, collaborate with procurement on vendor optimisation, or work with finance leadership on strategic initiatives. These relationships are often the foundation of visibility into business priorities, create opportunities for cross-functional projects, and establish your reputation as a strategic contributor rather than just a transaction processor.
The hidden cost isn't just efficiency; it's your professional potential. Manual matching slows down invoice processing and your career.
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Servicing businesses is what we do best. We have over a decade of experience working with businesses just like yours. We've helped finance teams reduce their invoice processing by up to 97% and get invoices approved 5 times faster
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How does AP Automation Help in Matching Invoices?
When AP automation is applied for matching POs to invoices, the 7-step manual process is brought down to a 2-step automated process.
Step 1 - The system automatically extracts key data from incoming invoices using intelligent data capture technology.
Step 2 - The automation software then performs the 3-way match (purchase order, receipt, invoice) in seconds.
Benefits
Automated 2 and 3-Way Matching: The system instantly identifies key information from invoices, regardless of format. Advanced algorithms find the corresponding purchase order even when invoice references are incomplete or incorrect. The system immediately flags discrepancies with intelligent categorisation.
Real-Time Error Detection: Instead of discovering problems at month-end, you get instant visibility into issues as they occur. The system learns from patterns to prevent future problems, reducing the time you spend on checking errors.
Faster, Rule-Based Approval Workflows: Remember spending half your day tracking down approvers? Those days are over. Matching POs and invoices directly supports faster, smarter approvals by ensuring that only the correct, verified invoices enter the approval queue. An effective automation platform helps you with intelligent approval routing, including value-based, custom and on-the-go mobile approval. Mobile approvals mean managers can sign off from anywhere, speeding up the process without delays.
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