What is AP Automation?

AP Automation is an abbreviation of Accounts Payable Automation and refers to the process where supplier invoice processing is automated by software. Typical tasks that are automated include invoice data capture, approval workflow, PO matching or matching against other dimensions (i.e. goods receipt or contract).

What is accounts payable process?

The accounts payable process refers to the reception of supplier invoices, control, approval and/or matching of the invoice against the corresponding purchase order or contract. The last step in the process is payment and accounting of the transaction.

AP invoice is an abbreviation for an invoice sent to the accounts payable function within an organization. The synonym is a supplier invoice.

What is invoice processing in accounts payable?

Invoice processing in accounts payable refers to the different tasks from the reception of a supplier invoice until it’s paid and accounted for in the General Ledger. It typically involves the reception of the invoice, the capture of invoice data, approval and/or matching against a purchase order or contract, payment and accounting.

What is automated invoicing?

Automated invoicing refers the process where an invoice is created by a system, automatically and without manual touch. Very often the same system that creates the invoice will send it to the buyer as well.

What is invoice automation?

Invoice automation refers to the automated processing of supplier invoices. By using software, many manual tasks such as invoice data capture, approval workflow and PO matching can be fully or partly accomplished by the software itself.

PO Workflow

– for Midsize to Large Business

Rillion Prime matches vendor invoices to internal or external purchase orders and goods receipts. Our Cascading PO Matching engine automatically matches hundreds of lines on a purchase order or invoice – saving you both time and money.

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PO Workflow is a feature in Rillion’s AP Automation solution

What is PO matching?

So what is PO matching exactly? PO matching (purchase order matching) refers to the process of comparing information on an invoice with documents such as the purchase order, goods receipts, and/or a contract.

The goal of PO matching is to make sure that vendor payments are accurate and there is a correct accounting of costs. PO matching enables compliance to purchase contracts and helps to prevent fraud
It’s a key activity for a company’s accounts payable team that is complex, time-consuming, and resource-intensive when performed manually
Shifting to a digitized process of automated PO matching means the invocie is matched to the PO and goods receipt by the software

“With our contracts being matched to vendor invoices for over 300 locations, Rillion has reduced our manual workload and really optimized our AP operations.”

Carrie Self, CPA | 4 TacalaRead Case Study

What is 3-way PO matching?

There are three different levels of PO matching: 2-way, 3-way and 4-way. These levels refer to how many supporting documents the invoice is matched against:

2-way matching verifies the invoice against its corresponding PO
3-way matching verifies the invoice against its corresponding PO and goods receipt
4-way matching verifies the invoice against its corresponding PO, goods receipt, and acceptance or inspection document

3-way PO matching is the most common and the ideal choice of internal control. The three parameters which are compared between the documents in accounts payable three-way match include:

Name of the items
Quantity of the order
Price quoted per unit

Why should you use automated PO workflow

Benefits of Rillion Prime’s automated PO matching software

Automated 3-way PO matching – happens within minutes of receipt
Matches internal or external purchase orders and goods receipts
Match at the header or line level
Match POs and invoices with hundreds of lines
Exceptions are sent to approvers with all the information they need to reconcile
Provides a complete time-stamped audit trail, including messages

Why should you use automated PO matching?

Rillion Prime’s PO matching software matches POs, invoices, and goods receipts efficiently. If an invoice matches a purchase order, it assumes the coding and approval from the order and can be sent directly to your ERP or accounting system for recording – without manual handling.

With business rules a procedure is implemented for invoices that do not match, and acceptable deviation levels are built in. Exceptions are routed to designated approvers in the approval workflow.

Matching of incoming invoices and purchase orders is done at the header level or line level
Matching can also be made to order numbers or delivery numbers and amounts
An invoice can contain items from several purchase orders, where a purchase order can be matched to several different invoices, whether they are fully or only partially delivered

Matching of vendor invoices to purchase orders is done at the header or line level

Rillion’s integrated AP three-way match automation is innovative and efficient

How does Rillion’s automated PO matching work?

Rillion’s integrated AP three-way match automation is an innovative and efficient solution that minimizes workload and maximizes employee’s productivity. It matches invoices and purchase orders according to the variance rules you set.

For Non-PO invoices or where there is missing information, the invoice is sent to an approver
For PO invoices that contain exceptions as a result of the matching process, the invoice and all corresponding documents are sent to the appropriate person based on the roles you assign
Once delivered, the recipient views the package of information which includes an invoice image, a copy of the PO, the goods receipt information, and a description of the error

Intelligent 3 Way PO Matching is an optional module in Rillion’s AP Automation and Purchase to Pay software suites.

What is a 3 way match?

3 way matching refers to the accounts payable process of matching an invoice to the corresponding purchase order and goods receipt.

What is PO invoice in accounts payable?

A PO invoice is an invoice that corresponds to a purchase order. PO invocies have to be matched to the corresponding purchase order and goods receipt.

What is non PO invoice in accounts payable?

A non PO invoice is a supplier invoice that has been received, but where there is no document (purchase order) confirming the goods/services that have been invoiced. It might be a phone order without written confirmation, a recurring subscription fee or any other ad hoc purchase. Non PO invoices are often referred to as “cost invoices”.

What is invoice matching?

Invoice matching is the process where an invoice or invoice lines are compared with an order document, such as a purchase order (PO), a contract or a delivery note/goods receipt.

Rillion Prime – AP automation for your peace of mind

Rillion provides accounts payable automation (AP Automation) to satisfied organizations in over 50 countries worldwide. With high ratings for ease of use and great support, 96% of Rillion customers feel that the platform fulfills expectations, and 95% consider Rillion to be a worthwhile investment.

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Rillion Prime

Made for Midsized and Larger companies

Vast automation possibilities from 3-way PO matching to AI assisted coding.

Invoice Capture (OCR)
Invoice Approval Workflows
Next level automation
- PO-Matching
- Recurring invoices & Contracts
- AI Coding
Payments as a Service
Analytics and Reporting
Seamless integration to ERP/accounting system