Accounts Payable

Controls company expenses, ensures adherence to SLAs, monitors requests, and measures progress. Manages payments to suppliers for products or services procured, including invoice verification and approval acquisition.

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Workflow Steps

Step 1 - Invoice Reception & Digitization

Receive invoices from suppliers via email or a dedicated portal. Use OCR technology to automatically extract key data like invoice number, date, amount, and line items.

Step 2 - Automated 3-Way Matching

The system automatically cross-references the invoice with the corresponding Purchase Order (PO) and Goods Receipt Note (GRN) to verify that the goods/services were ordered and received as billed.

Step 3 - Approval Routing Workflow

For invoices without a PO or with discrepancies, route them to the appropriate department head or manager for approval based on predefined rules and signing authority levels.

Step 4 - Payment Processing & Scheduling

Once approved, the invoice is scheduled for payment in the accounting system according to the agreed payment terms to optimize cash flow and capture early payment discounts.

Step 5 - Reconciliation & Archiving

After payment, reconcile the transaction in the accounting system and securely archive the digital invoice and all related documents for audit and record-keeping purposes.

The Purpose of Accounts Payable

The Accounts Payable (AP) process is a cornerstone of financial management, ensuring that all outgoing payments are legitimate, accurate, and timely. A well-structured AP process prevents fraudulent payments, helps maintain good relationships with suppliers through prompt payments, and provides clear visibility into company expenditures. Automating this workflow reduces manual data entry, minimizes errors, creates an easily auditable trail for compliance and financial reporting, and frees up the finance team to focus on more strategic analysis rather than administrative tasks.

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