Incorrect vendor payments are the mistake every accounting department tries to avoid. These usually result from incorrect invoice entry. Common causes include confusion between Proforma and tax invoices, a transition between fiscal years, duplicate invoices, and other data entry mistakes.
To prevent these errors, many organizations use automated invoice processing systems. These systems manage the entire invoice lifecycle, eliminating errors associated with manual data entry.
How does the Procee system streamline invoice processing? Here are the key features:
Invoice Matching to Purchase Order:
This is likely the most important point: If an invoice fully matches and closes a purchase order, any subsequent duplicate invoices will remain pending, as there will be no matching order to process them.
Duplicate Reference Check:
Prevents uploading the same invoice number within the same fiscal year.
Invoice Approval Workflow:
An automatic workflow can be set based on the organization’s policy, considering various factors such as the amount, expense type, and other criteria.
The approval workflow serves multiple purposes, including basic checks like confirming that the PO was successfully fulfilled, as well as validating the invoice with management or other departments, such as Legal or IT, depending on the expense type..
Each approver acts as an additional human verification to ensure the invoice is valid for payment
Duplicate File Alert:
Each digital file has a unique digital signature. The system alerts users if a file has already been uploaded.
Similar Invoice Number Alert:
If invoice number 2345 is received and invoice 12345 already exists, the system alerts the similarity.
Automatic Data Extraction:
AI-powered data extraction minimizes manual entry errors.
Invoice Type Definition:
Selecting invoice type (Tax, Proforma, or Post-Proforma Tax) prevents duplication. Uploaded Proformas await matching Post-Proforma Tax entries for closure.
Vendor-Specific Invoice Types:
Defining acceptable invoice types for each vendor (Tax only or Proforma + Post-Proforma Tax). This prevents the possibility of the invoice being uploaded once as a Proforma and once as Tax invoice.
Vendor Portal:
Allows vendors to upload invoices, check status, and perform other relevant actions, promoting transparency and reducing duplicate submissions.
Dedicated Invoice Email Address:
A dedicated email address for invoices ensures that every document sent to it is parsed and becomes an invoice document in the system. This helps prevent “wandering invoices” within the organization and centralizes everything to one address.
Suspicious Data Alert:
The system alerts potentially incorrect data, such as an invoice number identical to the invoice amount.
Automated Interface:
Prevents manual typing of invoices into the accounting books. Invoices are received through a computerized interface after passing validation and an approval workflow according to the organization’s rules.