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Invoice Processing Automation

From receipt to payment in 24 hours with 95% automation

The Challenge​

Finance teams process hundreds to thousands of invoices monthly with:

  • Manual data entry (vendor, amount, line items, PO matching)
  • Multi-level approval workflows
  • ERP system updates
  • Payment processing
  • Vendor communication

Result: 2-5 days per invoice, 8-10% error rate, staff burnout

The Solution​

Automated Workflow​

Invoice Arrives → Extract Data → Validate → Match PO → Route for Approval → 
Update ERP → Process Payment → Notify Vendor + Buyer

All automated with human approval only for exceptions

What Gets Automated​

Step 1: Data Extraction​

  • Vendor name and details
  • Invoice number and date
  • Line items with quantities and prices
  • Tax and total amounts
  • PO number reference

Accuracy: 98%+ using ML models trained on your invoices

Step 2: Validation​

  • Check vendor is in approved list
  • Verify amounts match PO
  • Validate tax calculations
  • Flag duplicates
  • Check budget availability

Auto-flags: Issues for human review

Step 3: Approval Routing​

  • Under $1K: Auto-approve
  • $1K-$10K: Department manager
  • $10K-$50K: Director level
  • Over $50K: VP/CFO approval

Smart routing: Based on amount, vendor, department, urgency

Step 4: ERP Integration​

  • Post to accounting system
  • Update purchase order status
  • Record payment obligation
  • Generate audit trail

Real-time sync with your ERP system

Step 5: Payment Processing​

  • Schedule payment per vendor terms
  • Generate payment file
  • Update cash flow forecast
  • Record transaction

Step 6: Communication​

  • Email vendor with confirmation
  • Notify buyer invoice processed
  • Alert on exceptions
  • Weekly summary reports

Results​

Performance Metrics​

MetricBeforeAfterImprovement
Processing Time2-5 days4-6 hours95% faster
Automation Rate0%92-95%Full automation
Error Rate8-10%<1%90% reduction
Cost per Invoice$25-40$2-392% savings
Staff Required3 FTE0.5 FTE83% reduction

Financial Impact​

For 2,000 invoices/month:

  • Current cost: 2,000 × $30 = $60K/month
  • Automated cost: 2,000 × $2 = $4K/month
  • Savings: $56K/month = $672K/year

Investment: $85K
Payback: 1.5 months
3-Year ROI: 2,300%

Industry Adaptations​

Manufacturing​

  • Match to production orders
  • Link to quality reports
  • Track material costs

Retail/E-commerce​

  • High volume (10K+/month)
  • Multiple payment methods
  • Supplier diversity

Professional Services​

  • Time & materials tracking
  • Project code allocation
  • Client billing integration

Healthcare​

  • Insurance billing codes
  • Regulatory compliance
  • HIPAA audit trails

Configuration Requirements​

What You Provide:

  • 200-500 sample invoices
  • Approval workflow rules
  • ERP system credentials
  • Vendor master list

Timeline: 6-7 weeks to production

Investment: $60K-120K (based on volume and complexity)

Success Story​

Mid-size Manufacturer:

  • Volume: 2,000 invoices/month
  • Timeline: 7 weeks
  • Automation: 95%
  • Savings: $600K/year
  • Payback: 1.7 months

Ready to automate invoice processing?

Contact us → | Email: contact@recohut.com

Related: Process Automation Agent Overview →