Invoice matching for a distributor

The situation

A distribution business processes a steady stream of supplier invoices. Each should match a purchase order and a goods-receipt note. In practice quantities differ. The real mismatches get lost among the small differences.

What we deployed

A matching agent runs the three-way match on each invoice. It checks line items against the purchase order and quantities against the receipt.

Matches the agent is sure of post to the ERP as drafts under a spend limit. Some invoices go to the AP lead by name before anything is final. These are amounts over the limit, lines outside tolerance and changed supplier bank details. Restarting a held run counts as an approval and is logged as one.

The five gates at work

1. SCOPE

   Read the AP inbox, purchase orders and goods receipts · write ERP drafts and match results

2. ROLE

   Match and draft · never post a final payment

3. LIMITS

   A spend limit on each run, checked before the action

4. REVIEW

   Over the limit, outside tolerance or a changed bank detail → the AP lead, by name

5. SEAL

   Each match, draft and hold in the audit trail, with its sources

What changed

Invoices that match post to the ERP as drafts. The AP lead sees each exception with its sources and decides it by name.

Each run lists its spend limit. The record shows each exception with its sources and the AP lead's decision.

If your team runs a process like this one, start with a teardown of it. We measure its volume and exception rate, and you keep the document.

Book a teardown