Straight Through Processing

Enterprises have continually attempted to automate the three way matching process in the never ending effort to reduce transaction processing costs in Accounts Payable Departments. Implementing new technology has gotten AP departments more automated in matching PO data to receipt data. However the elusive part has always been converting vendor invoices to an electronic format to further automate the invoice matching process.

Using an Invoice Virtualization Center can bridge the automation gap to fully automate the most time consuming part of the three way match process, which is converting the vendors invoices to electronic. ASPEN Accounts Payable bridges the Accounts Payable automation gap by automating the three way match through Straight Through Processing. Invoices are matched without AP processor intervention to achieve a truly automated three way line item match. Additionally ASPEN Accounts Payable goes a step further in the matching process to assist in streamlining the matching of the exception invoices that fail the Straight Through Matching process.

ASPEN Accounts Payable's automatic three way matching process matches invoice details to line item PO and Receipt data details. When exact matches, or matches within predefined tolerances, are met, ASPEN Accounts Payable auto matches the invoice, then completes the transaction using Straight Through Processing and passes the data directly to the ERP system. AP processors only need to work invoices that fail the matching criteria. This enhances the purchase-to-pay process, increases efficiencies, drives out costs and lets AP departments handle increasing volumes without adding people.

If an invoice fails to be matched initially, ASPEN Accounts Payable will continue to monitor and attempt to complete the Straight Through Processing when new receipt data is received. Some invoices will inevitably require exception processing. It assists by providing automated exception handling support to analyze all open receipts and narrow down receipt lines to be matched.

Sample of ASPEN Accounts Payable's Straight Through Processing Line Item Matching

Exception Matching

If ASPEN Accounts Payable cannot find a match, the exception process takes over. Logical algorithms are used to attempt to narrow down potential matches by evaluating the line item data. ASPEN Accounts Payable will analyze the fields captured from the invoice to programmatically narrow down the possible receipt records that could match the invoice. It follows the same processing logic an AP processor would use if they were manually trying to match an invoice. This exception matching process dramatically reduces the need for the AP processor to search for the matching receipts. Potential matches are identified and ranked based on the confidence level criteria selected.

Confidence Level Indicator

ASPEN Accounts Payable allows pre-determined confidence levels to be assigned to the exception matching process. This enables the AP processor reviewing the exceptions to view the pre-assigned confidence level based on the specific fields validated. Using the confidence levels allows ASPEN Accounts Payable to eliminate non matching records and provide the AP processor with a visual indicator to narrow down potential matches. For example, if quantity, unit price, and item code are the three fields required to be matched for Straight Through Processing, an exact match on quantity, unit price and item code would display a 100% confidence level. In contrast, an exact match on quantity and item code only with the unit price off by a few cents would result in a lower confidence level. This is configurable for each matching scenario.

Sample of ASPEN Accounts Payable's Confidence Level Indicator

Goal of Straight Through Processing

The goal of Straight Through Processing is to be able to process as many invoices as possible through ASPEN Accounts Payable without AP processor involvement. This frees up the AP processor to work on the more time consuming invoices where there are matching exceptions. Since it is impossible to Straight Through Process 100% of a company’s invoices due to the inevitable vendor and receiving errors, ASPEN Accounts Payable focuses on enhancing the exception process handling. This streamlines the AP processors role by providing the workflow tools and matching information necessary to resolve the exceptions in a timely manner.