Matching purchase order (PO) line items to bill line items is a tedious and time-consuming task for AP teams, often leading to inefficiencies and errors. This article explores how AI-powered Smart PO Matching can save over 2,600 hours by automating and streamlining this complex process.
The Cost of Manual PO to Bill Line Item Matching
For many accounts payable (AP) teams, matching purchase order (PO) line items to bill line items is a time-consuming and error-prone process. The reasons are clear: differences in item names, mismatched units, and manual workflows that require scrutinizing every detail, from descriptions and prices to quantities and subtotals. These inefficiencies lead to delays, mismatches, and wasted time.
Now imagine handling bills and POs with over 100 line items. The complexity grows when similar POs or intricate descriptions come into play. The absence of standardization and intelligent systems further compounds the issue. On average, AP teams spend approximately 10 seconds matching a single line item. A bill with 100 line items translates to 17 minutes per invoice. Scale this to 10,000 invoices, and the total time spent is 2,833 hours.
Let’s break it down:
- Time spent per line item: 10 seconds
- Number of line items per invoice: 100 → Time per invoice: 100 × 10 = 17 minutes
- Number of invoices: 10,000 → Total time: 10,000 × 17 = 2,833 hours
These inefficiencies not only drain valuable time but also increase the likelihood of errors, resulting in payment delays, vendor dissatisfaction, and strained cash flow.
The Game-Changer: AI-Powered Smart PO Matching
Enter AI-powered Smart PO Matching—a transformative solution designed to tackle these challenges head-on. This technology leverages advanced algorithms to identify and match PO line items with bill line items, offering unparalleled accuracy and efficiency.
Here’s how it works:
- Confidence Scoring: The system analyzes line item quantities and prices to calculate a matching confidence score, ensuring the closest matches are identified. Users can view detailed match reports, including the likelihood of a bill line item matching a PO line item.
- Unit Conversion: The system automatically converts units when discrepancies arise between the PO and the bill.
These capabilities significantly reduce the time and effort required for line-item matching, allowing AP teams to focus on higher-value tasks.
Time Saved with Smart Matching
With Smart Matching, AP teams can reduce the time spent on line-item matching by 95%. Let’s revisit the earlier example:
- Total time spent manually: 2,833 hours
- Time saved with Smart Matching (95%): 2,833 × 0.95 = 2,692 hours
By automating this labor-intensive process, Smart Matching not only saves thousands of hours but also minimizes errors and improves overall efficiency.
A Future-Ready Solution for Finance Teams
The benefits of Smart Matching extend beyond time savings. By automating complex matching processes, finance teams can:
- Improve vendor relationships through timely and accurate payments.
- Enhance cash flow management by reducing processing delays.
- Reallocate resources to strategic initiatives that drive growth.
Smart Matching is a game-changer for AP teams, transforming a tedious, error-prone process into a streamlined, efficient workflow. By saving over 2,600 hours in matching line items for 10,000 bills, this technology empowers finance teams to focus on what truly matters: driving business growth.
So, finance leaders, are you ready to let technology handle the complexity of line-item matching and unlock your team’s full potential?