Automate Invoice Processing Through Robotic Process Automation

Across industries, usually, a business receives hundreds of invoices from multiple vendors every month. There are significant differences between the formats of those scanned or digital invoices from one vendor to another vendor. Employees have to manually transcribe data from these invoices into the system-a time-consuming repetitive process. Sometimes, this entire process is further delayed due to multiple hierarchical approvals. The high possibility of manual errors in the process leads to a significant loss of business relationships with vendors. The emerging solution to this manual and time-intensive invoice process is Robotic Process Automation (RPA).

RPA is versatile and flexible enough to be used in businesses of all scales, from start-ups to large organizations. RPA smart bots can help businesses to execute repetitive, data-driven tasks faster, more accurately and at a lower cost through existing IT systems. Many industries such as banking and financial services, manufacturing, and retail rely on RPA to automate a wide range of back-office operations like invoice processing, and journal entry processing to name a few. This form of automation also frees human employees from necessary but mundane work and allows them to focus on higher-value tasks.

Enterprises that have automated end-to-end invoice processing with RPA realized the following significant benefits:

• Reduced turnaround time for invoice processing by 90%
• Every month, over 1,000 employee hours are saved
• Optimize and simplify matching of invoices, purchase orders, and receipts
• Fast and easy access to invoices results in improved payment control and Accounts Payable responsiveness
• Elimination of all manual errors in invoice processing

These benefits are not uncommon. As per the Accenture survey, 82% of Chief Financial Officers (CFOs) report measurable ROI in digital automation tools such as RPA.

But how do RPA or software bots process invoices? Let’s understand the bot in more detail: it is not a physical robot, but a software program that can operate existing systems using their user interfaces, almost like a human employee. It makes RPA faster and more cost-effective to implement than hard-coded software integrations.

There is no one-size-fits-all solution; RPA adapts to fit every business’ unique processes. Here’s a general method an RPA bot typically takes to process an invoice:

1.Locate invoices

Invoices arrive through many paths. The first step to invoice processing with RPA is to train the bot to identify and retrieve these invoices through various sources including email accounts, Electronic Data Interchange (EDI), a dedicated vendor portal.

2.Extract relevant data

Then, the RPA bot scans the identified invoices and organizes data to copy it accurately into other systems and applications like accounting software or ERP. Advanced cognitive capabilities like computer vision or Natural Language Processing (NLP) are required to recognize data. This allows bots to identify and sort key data regardless of the invoice format. Afterward, it matches invoices to purchase orders and other documents.

Bots compare line items between invoices and related accounts payable documents such as purchase orders or receipts of goods. They validate the information on both sides, and can even send alerts or notifications to vendors if they encounter any dissimilarity.

3.Request approval

After validating invoices, bots send invoices to the concerned manager for approval and notify him of payment deadlines. Following approval, they can even process payments although this step can be chosen to leave in human hands. For routine payments, they can handle the end-to-end process without asking for approvals.

4.Payments posted to ERP systems

When the invoice is approved and paid, RPA bots post the payments to the company's ERP, ensuring accurate data and creating a detailed audit trail.

RPA is an essential component in end-to-end business process automation but bots also require Artificial Intelligence (AI) components like ML and NLP to fully automate invoice processing. It could revolutionize the Accounts Payable department, with wide-ranging advantages from reduced costs to better regulatory compliance.

The UiPath RPA platform provided by Eastern Software Solutions combines all these capabilities into a complete end-to-end intelligent automation solution.