Automate the processing of incoming invoices, reduce manual work, and gain greater control over the entire Accounts Payable process. Basware AP Automation helps organizations digitally process incoming invoices: from receipt and registration to coding, matching, approval, and transfer for payment.
The goal is to have as many invoices as possible flow automatically through the process and to involve employees only when an assessment or decision is actually required.
This shifts Accounts Payable from a process in which invoices are constantly checked and forwarded manually to one in which exceptions take center stage.
From Invoice Receipt to Processing
Invoices arrive at organizations through various channels and in different formats. These include structured e-invoices, XML files, PDF invoices, and, in some cases, scanned documents.
Basware consolidates these various streams and makes the invoice data available for further processing. For PDF invoices, Basware uses tools such as SmartPDF to extract data from invoices and make it available digitally.
By digitizing and structuring invoices at the start of the process, information does not have to be manually re-entered repeatedly. The available data then forms the basis for matching, coding, routing, and validation.
Automatic Invoice Matching
For invoices related to a purchase order, Basware can automatically compare the invoice with available purchase data.
This can involve checking, for example:
- the purchase order;
- goods or services received;
- amounts and quantities;
- contract information;
- data at the line or header level.
If the information matches sufficiently, the invoice can be processed automatically. Basware supports various matching rules and can combine multiple data sources.
This is particularly relevant for organizations with large volumes of PO invoices. The more invoices that can be validated without human intervention, the less time Accounts Payable needs to spend on standard checks.
Automation of non-PO invoices as well
Not every invoice is based on a purchase order. Examples include rent, utilities, subscriptions, phone bills, or other recurring expenses.
Basware therefore also supports the processing of non-PO invoices.
With SmartCoding, Basware uses machine learning to make suggestions for financial coding based on historical invoices and invoice data. For example, the system can recognize how invoices from a specific supplier have been posted in the past and, based on that, make a suggestion for a new invoice.
This means the user does not have to completely recreate every posting line from scratch. When human judgment is still required, the technology assists the user in making the decision.
Workflow and Approval
Invoices that cannot be processed fully automatically must be routed to the appropriate employee.
Basware can automatically route invoices to the relevant workflow based on available data. For example, an invoice can be submitted to a budget manager or other responsible employee for review, coding, or approval.
This eliminates the need for Accounts Payable to manually determine who should review an invoice.
At the same time, it creates a digital process that shows where an invoice is in the system, what actions have been taken, and which employee still needs to take action.
Deviations as Exceptions
Full automation does not mean that every invoice can always be processed without review.
A price may differ. A receipt record may be missing. A supplier may use a different order number. Or an invoice may contain information that does not match the available data.
The power of AP Automation therefore lies not only in automating standard invoices but also in the targeted handling of exceptions.
Basware uses matching rules, automation, and AI functionality for this purpose. For example, Matching Agent can analyze discrepancies during invoice matching and assist users with explanations during the manual matching process.
This allows employees to focus more on situations that actually require interpretation or action.
Greater Control Over Accounts Payable
A digital invoicing process also provides data on the performance of Accounts Payable.
Organizations can better analyze:
- how many invoices are processed automatically;
- where exceptions occur;
- how much time processing takes;
- where invoices get stuck;
- how suppliers submit invoices;
- what portion of spending goes through the process.
This makes AP Automation more than just a way to reduce administrative work. The collected process information can also be used to identify the root causes of exceptions and further improve processes.
Working with Different ERP Systems
For larger organizations, the ERP landscape is often complex. For example, different business units may use different ERP systems, or organizations may be in the midst of an ERP transformation.
Basware therefore positions AP Automation as a solution that can operate alongside various ERP and Source-to-Pay systems. Invoice Matching, for example, can be integrated with cloud-based ERP and S2P systems via APIs.
As a result, invoice automation does not necessarily have to be limited to the functionality of a single ERP platform.
This makes the solution particularly relevant for international organizations, shared service centers, and organizations with multiple ERP environments.
From Manual Processing to Touchless Processing
The ultimate goal is for employees to no longer have to handle each invoice manually.
An invoice is received, data is verified, the invoice is matched or coded, and then automatically processed further. Human intervention is only required when the system lacks sufficient certainty or detects an anomaly.
This creates a process in which automation handles the standard cases, allowing the finance department to focus on exceptions.
Basware AP Automation thus brings invoice receipt, matching, coding, workflow, and verification together into a single, integrated Accounts Payable process.