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Learning Path - Picking the Right Invoices When Setting Up Invoice Automation

Stefanie
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The Mission

The foundation of everything you will do in the Invoice Automation product starts with invoices.  As we discussed in previous sections, we use a 3 way matching between the invoice, PO, and receipt in order to ensure that you are not over-paying or under-paying your suppliers based on what was ordered and what was received.  We will be spending a little more time on this section because getting this right at the start will set you up for success.  

Getting to Value Quickly

What information should you provide to ensure we can properly map the invoice?

Common Pitfalls to Avoid

 

Understanding Templating

When you onboard with SourceDay we will ask you to provide us with previous invoices from your suppliers in order to create a "map" that can be used for all future invoices. During this process, our dedicated accounts payable team will review each of the invoices to ensure the mapping is correct.  We may need to reach out during this stage for questions in order to make sure that values are being mapped correctly.  Once we feel a template is ready we will update the supplier as complete in the system, this view will also show you any invoices that still need work.

 

Once these maps are in place, then we can start processing your invoices either by "drag and drop" if you are adding the invoices, or even better by providing you with an email that can be used by your suppliers to send in invoices to SourceDay.  (don't worry, suppliers can still copy you in on the email, or you can also see the PO straight from the Invoice Automation app and download the POs that you need)

 

Getting to Value Quickly

SourceDay has a whole team dedicated to making sure that templates are being created and working as expected.  We have found that by working with you at the beginning stages to find the "right invoice" we can help speed up the templating process by focusing on your top priority (highest volume) suppliers initially to ensure the onboarding is running smoothly through the system.  

 

When you are choosing who to supply for your first invoices we suggest:

  1. Choosing a supplier that has a large volume of invoices
  2. Choosing suppliers that usually run through pretty smoothly for you - the invoices are usually accurate -- These folks are prime candidates for "touchless" (more on this later)
  3. Choosing suppliers that you have a good, honest relationship with, there can be bumps in this process, so it's always easier to go into it with trusted partners

 

Important Values for Success

First, let's take a look at what we're trying to accomplish and then we can dig into the details:

invoice_templates_workflow.png

 

Because we are doing the 3 way matching, we need to make sure that the following items are on the invoice.  These are the values that are used to match to the receipt and the PO:

  • Item Part Numbers and/or Vendor Part Numbers
  • Correct Quantity
  • Correct Pricing (unit cost and line amount)

What information should you provide to ensure we can properly map the invoice?

  • You are able to provide at least 20 Invoice examples for each supplier
  • Invoices should use the similar overall template
  • The invoice is provided as a PDF and not a scanned image.  Our maps are based on values appearing in a certain place on the page
    • When Invoices are scanned, they can be offset in a way that changes the location of values on the page.
  • The Purchase Order number is on the Invoice and it matches the Purchase Order number in your ERP.
    • If you have a supplier that puts the PO number on the line items versus at the top level of the invoice file, please ensure the supplier is listing the PO number on each line item on the invoice.  This helps with automation and SourceDay system will need to have the ability to match each line item to PO number based on what is on the invoice file.
  • We are trying to create a template for all scenarios, so the more we have to work with, the better our chances for ensuring data extraction accuracy
    • Example:  If the supplier sometimes puts additional charges such as tax, freight amount, misc charges, surcharges, etc. on their invoices, provide these as examples for our team to build the template from

 

Common Pitfalls to Avoid

  • The Invoice provided is a scanned image instead of a searchable PDF text file 
    • Currently we only accept PDF file type invoices
  • The mandatory fields under important values are not present
  • The quantities and costs are not consistent across POs, Invoices and Receipts
    • For example the PO shows the cost as $12 and the Invoice shows the cost as $12.0000
    • If items are sold in boxes and the PO calls out a quantity of 1 box of 25 with the cost per box and the Invoice shows quantity of 25 with the cost per item
  • The file provided was a statement, credit memo, and/or letter instead of a true invoice
  • Supplier puts additional charges such as tax, freight amount, misc charges, surcharges, etc. on their invoices; however there is no subtotal amount listed on the invoice.

Let's Move on to the Interface - Getting Started with Invoice Automation - So Many Tabs, So Little Time

 

Missed Something - Want to Go Back or Forward?

 

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