Does your accounts payable (AP) team spend countless hours identifying the right purchase orders (POs) for three-way matching, especially when vendor bills arrive without PO numbers? This common challenge can escalate for global multi-entity companies processing thousands of invoices monthly. Enter Smart Matching—a game-changer in automating and streamlining the PO matching process.
The Challenge of Manual PO Matching
Suppliers often forget to include PO numbers on their bills. For multinational companies, this issue is compounded by the complexity of handling invoices in various currencies and languages. For example, a company processing 10,000 invoices a month might find its AP team spending over 1,600 hours on PO identification and matching alone. Here’s how:
- Time spent on matching 6 invoices = 1 hour
- PO matching time for 10,000 invoices = (1 × 10,000) / 6 = 1,667 hours
Such manual efforts create a significant bottleneck, hindering scalability and efficiency.
Why Conventional Solutions Fall Short
Tools like Optical Character Recognition (OCR) and Robotic Process Automation (RPA) offer some relief but come with limitations. These technologies struggle with non-standardized invoice formats and often fail to identify line items accurately. Research shows that up to 20% of invoices still require manual review despite these tools, as rigid rules block the process from being fully automated.
How Smart Matching Works
Smart Matching transforms the PO matching process with advanced technologies:
- Pattern Recognition: Analyzes line items, prices, and quantities to identify the correct PO—even when the PO number is missing from bills.
- Currency Conversion: Uses real-time exchange rates to convert currencies and compare amounts seamlessly.
- Natural Language Processing (NLP): Translates bill details into the language of the corresponding PO, making it easier for global teams to process invoices.
By automating these steps, Smart Matching eliminates the need for manual intervention, even in complex scenarios involving multi-currency and multilingual invoices.
Quantifiable Benefits of Smart Matching
Companies adopting Smart Matching report significant efficiency gains:
- Reduced Error Rates: Error rates drop by 30%, minimizing costly mistakes.
- Cost Savings: Automation slashes costs by 53%, making PO matching more economical.
- Man-Hours Saved: With a 95% reduction in manual efforts, companies save over 1,500 hours every month.
Here’s the breakdown of time savings:
- Hours spent on manual PO matching = 1,667 hours
- Hours saved with Smart Matching (95% of 1,667) = 1,584 hours
Transform Your AP Process with Smart Matching?
Smart Matching enables AP teams to handle high volumes of invoices with ease, freeing them to focus on strategic tasks. This automation not only boosts operational efficiency but also positions companies to scale without increasing headcount.
For finance leaders, the message is clear: Smart Matching is the future of PO identification and matching. By embracing this technology, your team can save time, reduce costs, and improve accuracy, all while enhancing scalability.
Is your team ready to take the leap and revolutionize PO matching? The time to act is now.
