Why automating non-PO invoice processing doesn’t have to be a tall order

Introduction 

Businesses are always looking for ways to optimize costs, especially in processes that can be readily automated. For Accounts Payables (AP) departments where invoice processing is reliant on manual processes, the benefits of automation are overwhelming – all the more so if your automation solution can handle both PO and non-PO invoices. 

Typically, when engaging in purchases, businesses establish a transparent process through the creation of purchase orders (POs). Certain purchases are not suited to this approach, making non-PO invoices an inevitability. 

Despite the widespread automation of the Procure to Pay (P2P) process within many finance teams, the automation of the non-PO coding process remains relatively limited. But non-PO invoices constitute a substantial portion of the workload within most AP departments, so your automation solution should be able to accommodate them. 

Do you recognize some of these common non-PO invoices?

Non-PO invoices encompass a variety of financial transactions. Here are some of the most common ones:

• Utility bills. Invoices related to services such as electricity, water, gas, and other utilities. 
• Maintenance and repairs. Invoices for maintenance services or repairs performed on equipment, machinery, or facilities. 
• Travel expenses. Invoices for employee travel expenses, including accommodation, meals, and transportation. 
• Miscellaneous expenses. Invoices for expenses that do not fall into specific categories but are essential for business operations. 

The use of these or other non-PO invoices clearly depends on company policy and its way of working the situation can differ from case to case.

Since non-PO invoices don’t have an associated Purchasing Order, they require more effort to process which creates a great many issues along the way, such as deciding how to code or process the invoice, and to whom to route the invoices, especially when they don’t include the information required for payment processing.

How does non-PO invoice processing automation work with Cevinio?

Cevinio has an advanced solution for autonomous PO and non-PO invoice processing. Focusing on the non-PO invoices, you can automatically import, extract information, code, route, approve, and post them into the relevant ERP system for all your entities from a single platform.

Automated non-PO invoice coding

Our AP Automation solution is capable of coding invoices based on header level and accounting lines. It is powered by Artificial Intelligence (AI) and Machine Learning (ML). The AI technologies used can automatically code invoices to GL accounts, cost centers, tax codes, project codes, or any pre-defined accounting dimension. 

Introducing the Cevinio Robot 

The Cevinio Robot enables the automation of non-PO invoice processing. Our robot analyzes historical data to derive rules for processing non-PO invoices. This means it can learn from past transactions and develop a set of guidelines or criteria to handle similar cases in the future. Such action works in conjunction with specific rules configured to exceptional scenarios.

This capability will improve efficiency and accuracy over time, also for exceptional cases. 

Responsibilities of the Cevinio Robot: 

The robot is charged with a number of tasks related to processing non-PO invoices: 

• Check compliance and processing instructions: The system assesses whether the invoices comply with relevant regulations, policies, and processing instructions. This ensures that all transactions adhere to the required standards. 
• Populate fields: The robot fills in necessary fields in the invoice processing flow. This could involve extracting and entering information such as vendor details, invoice amounts, dates, etc. into the appropriate fields of a database or system. 
• Create accounting proposal: The system is capable of generating an accounting proposal. This involves suggesting or preparing financial entries or transactions based on the information extracted from the invoices. This step is crucial for maintaining accurate financial records. 

As a result, you can speed up your non-PO invoice processing cycle even further while making it less likely for an invoice to be inaccurately classified. 

Cevinio approval workflow non-PO

For your non-PO invoices, our automated system ensures seamless routing to the designated reviewer and approver, aligned with criteria specified by you. This expedites the approval process by promptly delivering invoices to individuals with the requisite authorization upon receipt.  

• Additionally, our system allows for the assignment of different approvers per line within the same invoice, contingent on predefined criteria such as General Ledger (GL) account or cost center (CC). 
• We provide a distinctive feature for non-PO lines within a PO invoice. If the PO invoice falls within a defined threshold, only the non-PO line undergoes workflow processing—an innovative and efficiency-enhancing approach. 

Moreover, our platform accommodates various actions such as seeking advice, forwarding, escalations, reminders, and establishing backup processes. While these functionalities are valuable for non-PO invoices, it’s worth highlighting their applicability to PO invoices as well, underlining the versatility and comprehensive support our system provides for your invoice processing flow.

Conclusion

The automation of your AP invoice processing is incomplete if it excludes a significant portion of your invoices. This is particularly counterproductive for compliance because a system that only makes you partially compliant is deficient. Nothing can fall through the cracks. 

The Cevinio AP Automation solution takes care of PO and non-PO invoices with the same ease, optimizing your compliance position – and your ROI.

If you have any questions about the Cevinio Automation solution please get in touch.