3 Way Matching

3 Way Matching

Use Case Summary

Client, facing challenges in the manual processing of invoices from around 50 suppliers in a PDF format, seeks to automate its 3 Way Matching process. The team processes approximately 1000 invoices monthly, leading to time-consuming and error-prone operations.

Current Challenges

Client currently faces several challenges in its manual invoice processing for the 3 Way Matching process: Manual Data Entry: The team manually extract relevant information from PDF invoices, leading to a time-consuming and error-prone process susceptible to inaccuracies. High Volume of Invoices: Processing around 1000 invoices per month manually is resource-intensive and poses scalability challenges. The current process may struggle to efficiently handle increasing volumes as business grows. Vendor Diversity: Dealing with invoices from approximately 50 suppliers introduces complexity due to variations in invoice formats. Manual processing becomes more challenging when each vendor has unique structures and data placements. Error Prone 3-Way Matching: The manual validation of invoices against purchase orders and goods receipt information for 3 Way Matching is prone to errors, leading to potential discrepancies in financial records. Lack of Real-Time Processing: The manual process may not provide real-time insights into invoice processing statuses, hindering timely decision-making and financial reporting.

Solution Implemented

The solution implemented using Automation Anywhere (AA) bots for 3 Way Matching process involves a systematic approach to streamline and automate the entire invoice processing workflow: An Automation Anywhere bot is developed to utilize Optical Character Recognition (OCR) technology. This bot automates the extraction of relevant information from PDF invoices, including details such as invoice number, date, amount, and line items. A validation bot is created to apply predefined business rules. This bot compares the extracted invoice data with purchase orders and goods receipt information, performing the 3 Way Matching validation. Discrepancies are flagged for further review. Automation Anywhere is customized to handle variations in invoice formats from different vendors. The bot is designed to adapt to specific data extraction requirements unique to each supplier, improving adaptability and accuracy. Another bot is developed to automatically update the validated invoice information into client on premise ERP systems. This ensures a seamless integration process, maintaining data accuracy and consistency between the ERP system and the extracted information. This bot creates an audit trail of all automated actions, providing transparency and traceability crucial for compliance and monitoring purposes. Reporting features are added for insights into the efficiency of the automated process.

Business Benefits

Dramatic Time Savings: The automation of invoice processing significantly reduces the time spent on manual data extraction, validation, and entry. The streamlined process accelerates the entire 3 Way Matching workflow, enabling quicker invoice approvals. Increased Operational Efficiency: The automated solution enhances overall operational efficiency by handling high volumes of invoices with speed and precision. These efficiency gains are particularly valuable as processes around 1000 invoices monthly. Resource Optimization: Automation frees up human resources from routine and manual tasks, allowing team members to focus on more strategic and value-added activities. This resource optimization contributes to improved productivity and job satisfaction. Enhanced Supplier Relationships: The automated solution improves the efficiency of processing invoices from approximately 50 suppliers. Faster and more accurate payments can positively impact supplier relationships, potentially leading to better terms and collaborations.

Outcome

60 %

Time Saved

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