Can you check your supplier invoices with software?

Internal control of supplier invoices is a critical task in corporate billing auditing. Today, software solutions like a OCR intelligent, make it possible to automate this billing control and to automatically detect errors or anomalies that could go unnoticed with manual processing. In this article, we will see why it is important to properly control your supplier invoices, what is invoice control software and how it works, what advantages it offers compared to manual control, as well as its limitations. We will also present concrete examples of automating invoice verification, and finally how to choose the right tool for your needs.

Why check your supplier invoices?

Controlling supplier invoices is essential to ensure the accuracy of payments and avoid disputes. Effective internal supplier invoice control makes it possible to detect common errors before they affect your finances or relationships with suppliers. Here are the main reasons:

Common mistakes on supplier invoices

Numerous billing errors can appear in supplier invoices:

• Unit price error : the invoiced price of an item may not correspond to the agreed price (contract or order). For example, a product billed €52 per unit instead of the expected €50.
• Incorrect VAT amount : an incorrect VAT rate or a false VAT calculation (e.g. VAT calculated on the wrong amount) distorts the total of the invoice.
• Wrong recipient entity : the invoice is sent to the wrong company or service, which complicates its processing (company name, address or department error).
• Omissions and inconsistencies : it may be a forgotten discount, a quantity invoiced that exceeds the quantity delivered, an incorrect product reference, etc.

These mistakes are common. Sometimes, they come from the supplier himself when the invoice is issued, making the invoice Non-compliant and in need of corrections. Without a verification process, these anomalies may go unnoticed.

The consequences of poor control

Not controlling your supplier invoices sufficiently can lead to several harmful consequences :

• Disputes and late payments : Undetected errors lead to disputes with the supplier. It is then necessary to exchange supporting documents and correct the invoice, which takes time and can delay payment. These delays degrade the supplier relationship and may result in late payment penalties.
• Assets and administrative overburdens : In case of error (overbilling, double billing), you must issue or claim holdings fixes. The management of these assets and the regularization of accounts mobilize administrative teams and increase the workload.
• Financial losses : If errors are not detected, the company may unduly pay overpayments (overcharges, duplicates). On an annual basis, these overpayments can represent significant amounts that weigh directly on cash flow.
• Non-compliance and audit risks : Invoices that are poorly controlled may contain fiscal anomalies (VAT, missing legal information) that cause compliance problems. In the event of an audit or tax audit, the company is exposed to adjustments if these errors have not been corrected.

In short, poor billing control leads to disputes, additional costs and increased risks. For example, an incorrect supplier invoice may result in a have to be issued, back and forth with the supplier and lost time for your teams.

Significant amounts of errors in the absence of a reliable process

Beyond administrative hassles, the lack of reliable control can be very expensive for the company. Even a low percentage of errors on all invoices represents, in total, significant amounts. A study of 100 large companies showed that 0.53% of all supplier invoices had incorrect records, which resulted in an average €0.59 loss per processed invoice . On a large scale, this represents millions of euros at large. In addition, each organization had to devote an average of 22.5 working days per year to correct these erroneous entries — non-productive time that could be avoided with a better process.

Another eloquent example: in 2023, the Swiss insurer Suva saved 105 million francs by setting up systematic checks of its supplier invoices. Close to 10% invoices had an error or inaccuracy and could be returned for correction. Among these anomalies, there were numerous duplicate invoices and poorly billed services. Without automated checks, these errors would likely have gone unnoticed, leading to massive undue payments. These figures illustrate the financial challenge of rigorously controlling invoices: it is both a question ofinternal audit And of cost control.

What is invoice control software?

One supplier invoice control software is a tool that automates the verification of invoices using digital technologies. Its objective is to ensure that each invoice is conforms to orders and agreements made with the supplier, and that it does not contain errors or anomalies, before validation of payment. Concretely, this type of software captures information from invoices (via the digitization or import of electronic invoices), compares them to reference data (order forms, receipts, price lists, contracts, VAT rules, etc.), and applies control rules to detect discrepancies. Increasingly, these solutions are based onAI to cross-reference business requirements intelligently and learn from invoice histories.

Definition and objectives

The primary objective of such software is toautomate verifications What would an accountant or an invoice controller do manually. He ensures that each invoice includes all the mandatory information and respects the conditions negotiated with the supplier. For example, the software will check that the invoice number is present, that the date and VAT amounts are indicated, and that the prices and quantities invoiced correspond to what was expected. If there is a discrepancy, he will report it.

In short, the software acts as a automated guardrail who screens each invoice through pre-established rules and company standards. Its objectives are multiple: reduce human errors, save time on the validation of invoices, ensure compliance of invoices (both with respect to supplier contracts and legal obligations), prevent fraud (e.g. false invoices or duplicates) and facilitate the audit by keeping track of the checks carried out. It is part of an approach ofimproving internal control and reliability of the process Procure to Pay (from order to payment).

Key features

Most software for Supplier invoice check offer a set of key functionalities to achieve these goals. In general, they allow to automate checks and to report anomalies detected. Among the key features, we find:

• Data capture and extraction : integration of an OCR module for the automatic reading of scanned paper invoices or PDFs, or import of electronic invoices (e-invoicing, EDI, Factur-X...). The software extracts the essential fields (supplier, date, amount, detail lines, VAT, etc.).
• Verification of mandatory information : check that the invoice includes all regulatory information (number, date of issue, legal information, VAT rate and amount, total VAT, address, etc.), ensuring tax compliance.
• Reconciliation with purchase orders (3-way match) : automatic comparison of the invoice with the voucher ordering issued and the voucher of reception corresponding (delivery). This process of 3-Way Matching checks that the quantities, prices and references correspond between the order, the goods received and the invoice. If there is an order form, the software associates each invoiced line with the line ordered and delivered.
• Crossing with price grids or contracts : if the invoice is not linked to an order form (e.g. open orders, purchases without orders), the software compares the rates invoiced to price guidelines of the company. These standards can be a negotiated price list, a framework contract, a supplier catalog or even a schedule stored in a file. The tool can ingest this data (even unstructured) and alert if there is a discrepancy between the invoiced price and the expected price for this product or service.
• Arithmetic and logical checks : check that the total excluding VAT + VAT = total including VAT, that the line calculations are correct, that the VAT rates applied correspond to the nature of the products, that the invoice date is logical (for example after the delivery date and within the authorized period). These rule-based controls ensure the accuracy of the data.
• Duplicate detection : the software checks if an invoice from the same supplier with the same number (or the same characteristics) has not already been processed, in order to avoid duplicate payments. It can compare to invoices already recorded in the accounting system.
• Approval Workflow Management : integration of an electronic validation circuit. For example, if an invoice exceeds a certain amount or has an anomaly, the system can automatically submit it to a manager for manual validation. On the contrary, compliant invoices can be approved automatically, speeding up the flow.
• Alerts and dashboards : if a problem is detected, the software generates alerts (user notification, email, dashboard) for an action to be taken (human verification, credit note request, etc.). Dashboards make it possible to monitor the status of invoices (under control, waiting for information, validated, blocked) and to provide a traceability complete.
• Accounting and archiving integration : once the invoices have been checked and validated, the software can export the entries into the accounting system (ERP or management software) for payment and accounting. It also maintains a digital archive of invoices and control results, useful for audits and follow-up of the billing control in the company.

In summary, these key functionalities of a software of company billing control cover the entire invoice processing cycle, from receipt to approval, by automating checkpoints where human error could occur.

How does automatic invoice control work?

After presenting the concept, let's look at The concrete functioning of an automated invoice check. What are the steps that a supplier invoice goes through when it is processed by software, from data extraction to anomaly management? Here are the main components of the process:

Data extraction (OCR and parsing)

The first step in automation is dematerialization of the paper bill (if applicable) and the extraction of the data it contains. For invoices received as scanned PDFs or images, the software uses the technology ofOCR — Optical Character Recognition, or optical character recognition — in order to convert the image into usable text. OCR makes it possible to transform a text image into numerical data usable for treatment. Thanks to this technology, the content of the invoice (number, date, date, amounts, line labels, etc.) is read automatically by the machine, without manual re-entry. (To learn more about how OCR works, see our article on defining OCR.)

Once the invoice is converted to plain text, the software proceeds to Parsing, that is to say to the structured analysis of information. It identifies each key field in the document: the issuing supplier, the date of issue, the date of issue, the invoice number, the various lines of products/services with their quantities, unit prices, line amounts, VAT rates, total amount excluding taxes, VAT and TTC, etc. This fine extraction can be done via predefined templates (if the invoice format is known) or via AI algorithms trained to recognize the labels and numbers in any invoice. The best systems combine computer vision and language understanding techniques to adapt to the variety of invoice layouts.

Once the data is captured, the software already makes some basic controls consistency: for example, check that the sum of the line amounts plus VAT corresponds to the total indicated, or that the supplier's VAT number has the correct format, etc. If the OCR has doubts (illegible text) on an essential field, the system can mark the invoice as requiring manual validation for this specific point.

Reconciliation with purchase orders or price lists

After extraction, the software goes to the stage of reconciling invoice data with purchase references of the company: it is the heart of control. There are two main cases: invoice with order form, or without order form.

• Invoices with order form (3-way match) : The software will automatically perform the famous 3-way match, that is to say the three-element reconciliation between the supplier invoice, the corresponding purchase order, and the receipt note (proof of delivery). For each line on the invoice, he searches for the corresponding line in the order form: same item or service reference, same quantity ordered, same agreed unit price. It also matches the quantities actually delivered (according to the receipt note or delivery note). This triple check ensures that you only pay for what was ordered. and delivered, at the agreed price. For example, if the invoice mentions 105 units invoiced when only 100 were delivered according to the receipt, or if a unit price differs, the system will detect it instantly. The 3-Way Matching automated eliminates the tedious manual comparison of these documents and makes the process of validating invoices more reliable.
• Invoices without purchase order (price control) : Not all expenses necessarily go through formalized orders. For invoices for recurring purchases or services without orders, the software relies on other reference data to check the amounts. It can be a price list negotiated with the supplier (for example, a price schedule per product or service), of a framework contract setting the rates and conditions, or even of historical data (prices usually charged). These repositories, which can be stored in Excel, PDF, or database files, are ingested by the software. The tool will then reconcile each line of the invoice with the expected rate: for example, check that the “Consultant Hourly Rate” invoiced corresponds to the contractual rate in force, or that the unit price of a component corresponds to the last known price list. If the company has a internal catalog purchase prices or uses standardized item references, the software can also use them to automatically match the invoice lines to a catalog reference and to the associated unit price.

In the absence of an ordering system, this price control is crucial to avoid paying wrong prices. THEAI can make a difference in this area: for example, some solutions use machine learning to recognize products based on their textual description (even if the item code is not indicated) and bring them closer to a company's standard product database. This makes it possible to check invoices intelligently, even if the layout is not exactly the same as your repositories.

Detection of anomalies and generation of alerts

Once the comparisons are made, the software identifies the anomalies potential, i.e. discrepancies or inconsistencies between the invoice and the reference data. Here are some examples of anomalies that are commonly detected automatically:

• Price or amount difference : for example, a difference of more than X% on the price of a line compared to the expected price, or a total including VAT different from the expected calculation.
• Quantity gap : The quantity invoiced exceeds the quantity ordered/delivered, or an undelivered item is invoiced.
• Miscalculation : the total of the invoice does not correspond to the sum of the lines + VAT, indicating a calculation or entry error.
• Inconsistent VAT rate : an inapplicable VAT rate has been used (ex: 5% instead of 20% on an ineligible product) or the calculated VAT amount does not correspond to the official rate.
• Duplicate bill : the bill seems to be a duplicate of another one (same number and amount as an invoice already paid).
• Missing information : for example no required purchase order number, or missing project code, etc., according to internal rules.

As soon as an anomaly is detected, the software goes Report. In general, it assigns a status to the invoice (e.g.:” Deviation detected ” or” Blocked ”) and generates a alert for the department concerned (supplier accountant, management control or other). Alerts can appear in the software dashboard, sent by email to managers, or integrated into the validation workflow.

Some very advanced solutions even take automatic initiatives due to an anomaly. For example, if a duplicate is identified, the second invoice can be automatically discarded or put on hold with the mention “suspected duplicate”. Likewise, if a price discrepancy is found beyond a threshold, the system can block the invoice for payment and trigger a request for manual approval or explanation from the supplier.

Let's take a scenario managed by a modern tool: an invoice processing software can perform a automatic control invoice data to detect any inconsistencies or duplicates of invoices. In case of nonconformity detected (for example an overcharged line or a duplicate bill), the invoice is instantly blocked and is not transmitted to the accounting department for payment. One non-compliance notification can even be sent directly to the supplier who issued the invoice, so they can correct the error before the invoice is accepted. This type of automation prevents erroneous invoices from spreading further in the process and from being paid by mistake.

Management of regularization requests or assets

After the anomalies are detected, the final part of the process concerns the management of accruals needed. When an invoice is blocked due to a proven error, several actions are possible:

• Automatic credit request : If the anomaly identified corresponds to an overpayment (for example, an overcharged item or an overvalued price), the system can automatically generate an Request to have to the supplier. This can take the form of an email or a document listing the discrepancies found and the expected amount. The accounting or purchasing department only has to send this formal request to the supplier. In some cases, the software even integrates with a supplier portal where the supplier can consult the reason for the blocking and file a correction invoice or credit note directly.
• Conditional validation : If the discrepancy is minor or explainable (for example a rounding of a few cents, or a quantity exceeded justified by an oral agreement), the human controller may decide to validate the invoice anyway despite the alert. The software then makes it possible to remove the blockage via a approval workflow specific (with possibly a comment explaining the exemption), so that the invoice can be paid. This process ensures that a human decision is made about each anomaly rather than paying blindly.
• Anomaly monitoring : The software remembers all the invoices waiting to be settled. It can automatically call back suppliers who did not return credits within a certain period of time, or notify managers that an anomaly is still unresolved. Thus, nothing is left to chance: each discrepancy detected must lead either to a correction (credit) or to a justification/validation, before closing the invoice file.
• Learning and continuous improvement : Feedback on anomalies can be used to improve control rules. For example, if a lot of alerts turn out to be “false alarms” (anomalies tolerated), we can adjust the thresholds or incorporate new rules to avoid these false positives in the future. Conversely, if errors that were not detected initially are discovered later, the settings can be refined so that the system identifies them next time. AI-based systems can also learn from each manual validation (feedback) to refine their models.

By automating the processing of billing exceptions, the tool provides a great trustworthiness to the overall process. The company can rest easy knowing that no invoice is paid without having been checked and, if necessary, regularized. Ce automated internal control strengthens financial discipline and ensures a billing audit permanent, while relieving teams of tedious follow-ups.

What are the advantages compared to manual treatment?

The adoption of software to control supplier invoices brings numerous pros compared to a 100% manual process. Here are the main ones, which increasingly justify investing in such solutions:

Save time and reduce repetitive tasks

The first benefit is a considerable time savings in the processing of invoices. Automating data extraction and checks avoids manual line-by-line entry and time-consuming document comparison. Employees can thus free themselves from these repetitive and time-consuming tasks to focus on activities with higher added value (gap analysis, supplier relationship management, optimization of expenses, etc.).

In concrete terms, the time spent filing, verifying and reconciling invoices is drastically decreasing. It is estimated that more than 7 hours per week are often spent by accounting departments looking for documents and manually processing paper invoices, whose unit processing cost is generally between €9 and €15 by invoice. With automation, that cost and time can be reduced by 50 to 70% : we go from around 5—10 € per invoice to only a few cents thanks to OCR and AI tools. Productivity improvement is therefore major.

In addition, the processing speed is therefore accelerated: a batch of 100 invoices that would have required an accountant for several days can be processed in a few minutes by the software, with the only human interventions being concentrated on exceptions. This makes it possible to avoid delays in the supply chain and to more easily meet supplier payment deadlines. By reducing repetitive tasks, automation also contributes to improving the quality of life at work for employees, who no longer spend their days on tedious data entry.

Better reliability and traceability of controls

The automation provides increased reliability in the control process. Unlike humans, the machine does not get tired and applies the rules consistently and systematically to each invoice. This eliminates a lot ofhuman errors : typos, careless errors, missed checks... For example, automation greatly reduces the risks of typing errors or reversal errors when entering credit notes, all classic errors that could delay the payment of invoices. As soon as it is received, each invoice is treated in a consistent manner, which makes the process more reliable.

In addition, such a system ensures full traceability of all the checks carried out. Each invoice that goes through the tool keeps an imprint of the verifications undergone and the results (observations, possible alerts, final validation). In the event of an audit or internal control, it is possible to trace all the stages of the verification of an invoice and to demonstrate that the rules of internal control Invoicing has been successfully applied. This traceability reinforces the conformity internal policies and standards (for example, SOX requirements for listed companies, etc.).

In short, the software guarantees a quality And a trustworthiness of control superior to manual, while offering a history and total visibility of the process. We know at all times the status of each invoice, who validated it, and if anomalies have been detected, corrected or accepted.

Accelerating the validation and payment cycle

By eliminating manual bottlenecks, the software allowsAccelerate the cycle processing invoices, from receipt to payment. On the one hand, invoices are available more quickly for validation (no more pile of documents waiting to be entered). On the other hand, the electronic workflow streamlines the flow of information: approvers are alerted instantly and can validate in one click, even remotely, instead of circulating scattered paper or e-mails.

Result: the average time for validating an invoice can go from several weeks (with manual reminders) to a few days, or even a few hours for an invoice without anomalies. This reactivity has several advantages: respecting the payment deadlines legal or negotiated, avoid late payment penalties, and even take advantage of early payment discounts if offered by some suppliers. A faster and controlled process also improves the supplier relationship, as suppliers appreciate receiving their payments without delays or unnecessary disputes.

As a study explains, dematerialization and automation speed up processes while reducing costs, and offering better visibility. For example, the automatic reconciliation of purchase orders, delivery notes and invoices ensures optimal conditions for verification and traceability until payment. Invoice processing therefore becomes more swift and transparent, which benefits both the company and its suppliers.

Better control reliability and fraud reduction

(This subtitle includes some of the elements already covered in “Better Reliability”, but it can be oriented more towards the fight against fraud and intentional anomalies.)

By automating the checks, the software ensures that each bill is controlled with the same level of rigor, which drastically reduces the risk of fraud or intentional error falling through the cracks. For example, the double payment fraud (the same document paid twice on different dates) is neutralized by the automatic detection of duplicates. Likewise, an attempt to overcharge (price higher than agreed) will be reported immediately.

La traceability offered also helps to discourage possible internal malpractices: it becomes very difficult to “hide” an abnormal bill in the pile without it being reported by the system. All of this contributes to a better internal control overall expenses.

(Note: This point could be combined with reliability, to avoid redundancy, unless it really needs to be separated. If you keep it separate, you can focus on fraud detection and compliance, but be careful not to repeat too much.)

Detection of significant savings thanks to data (spend analytics)

An often underestimated benefit of automation is valorization of data extracted from invoices. By digitizing and centralizing 100% of billing information, we obtain a full vision and exploitable supplier expenses, line by line. This opens the door to Spend analytics, that is to say to the detailed analysis of expenses to identify savings opportunities.

For example, by comparing invoices from the same supplier over the year, we can detect price differences on an identical product, perhaps revealing a problem (unjustified increase, or variation according to orders). By grouping data from all suppliers for the same purchasing category, we can identify rationalization opportunities: such suppliers are systematically 5% more expensive on such components than another alternative supplier, etc. These Insights would be difficult to access without extracting and structuring the data from each invoice.

Advanced software integrates dashboards of expenditure management. By connecting invoices to contracts and orders, they can produce unequalled accurate reporting on expenditure compliance and variances from negotiated terms. Some even announce up to 20% achievable savings by exploiting this data: AI makes it possible to transform ~ 90% of unstructured purchase data (content of invoice lines, agreements, etc.) into a usable database to identify optimizations. We thus discover price anomalies, recurring billing errors or cost items on which to renegotiate.

By systematically detecting all expenses that do not comply with contracts (too high prices, additional quantities invoiced, etc.), the software prevents hidden extra costs and ensures that the company only pays the right price. Each anomaly identified is a potential savings: either immediate (not paying an undue amount, or recovering it via a credit note), or future (renegotiating a contract using the data found). We are moving from a passive posture (paying and possibly detecting a problem later) to a proactive posture of expenditure control in real time.

Analysis of opportunities between suppliers

As an extension of spend analytics, access to all this data also makes it possible to refine the purchasing strategy by comparing suppliers to each other. By grouping information from invoices, you can for example:

• Identify price differences on substitutable products: if two suppliers provide an equivalent good, the analysis of invoices can show that one is systematically cheaper than the other for comparable quantities, which encourages volumes to be redirected to the most competitive supplier or to renegotiate with the other.
• Highlight consolidatable expenses : several entities of the company may be buying the same service from different suppliers at different rates. By consolidating the expense through a group consultation, the company could obtain a better unit rate. These cross-cutting opportunities are clear when billing data is centralized.
• Spot the behavioral abnormalities : for example, a supplier that applies higher than normal ancillary costs (administrative fees, transport costs), or less favorable payment terms than others. These comparisons encourage standardization of supplier requirements.
• Monitor supplier performance : thanks to the indicators extracted (error rate per supplier, average payment times due to disputes, etc.), we can assess which suppliers are the most reliable and which generate the most problems. This can guide sourcing choices in the future.

Oriented software solutions Business intelligence for purchases often provide a scorecard with comparative analyses and courses of action. For example, an advanced tool may offer action plans concrete ways to save money, and provide access to all strategic data necessary to fuel negotiations with suppliers. At a glance, the purchasing manager can see where the biggest savings drivers are and prepare for renegotiations based on facts (total volume purchased, price dispersion, etc.).

In summary, automating invoice control doesn't just avoid mistakes: it generates value by informing decision making. The company benefits from a fine vision of its supplier billing, which allows it to optimize its expenses and obtain better conditions on the market.

The limits and points of vigilance of automatic control

Despite its many advantages, automatic invoice control is not a magic solution without constraints. It is important to be aware of some limits and to observe points of vigilance during its implementation, in order to make the most of it. Here are the main ones:

The tool is not foolproof without reliable reference data

Software, however powerful it may be, remains dependent on data quality that we provide to him. To detect an anomaly, it must have a correct basis for comparison. This means that your referential (price lists, catalogs, contracts, orders) must be up to date and comprehensive. If a negotiated rate has not been entered into the system, the software will not be able to guess that the price is wrong. Likewise, if items are not identified consistently (different product codes in different documents, ambiguous descriptions), automated reconciliation may fail or generate false alarms.

In addition, OCR technology itself has its technical limitations. Although it is constantly improving, it can happen that a character is poorly recognized (an “8” taken for a “3”, for example) or that data is poorly extracted in the event of an invoice of poor visual quality. These reading errors can result in erroneous controls behind. As one expert points out, OCR systems include a incompressible risk of errors — addition or confusion of characters, misinterpretation of data — which can lead to control anomalies and potentially to overpayments if we don't realize it. Being aware of this makes it possible to set up additional checks on sensitive cases.

The lesson to remember is that you have to Take care of your reference data. Keep your price bases up to date, inform the system of changes (new supplier, price changes) and work to standardize references (unified item codes, etc.). So the software will have the right information to compare and will be much more efficient. In addition, it may be a good idea to keep periodic manual checkpoints on a sample of invoices, in order to detect possible OCR or configuration errors that would have allowed anomalies to pass. Automation drastically reduces the risk of error, but does not eliminate it 100%, especially if the input data is of poor quality.

The importance of properly configuring business rules

The power of an invoice control tool lies in its ability to apply your business rules specific. However, these rules must be correctly set up in the system. A crucial deployment step is therefore to configure the tool according to your needs: tolerance thresholds, alert scenarios, approval workflow, etc. In a way, it is a question of “coding” your control policy in the software.

If this work is poorly done or incomplete, the result can be disappointing: either too many useless alerts (false positives) that overwhelm users (example: each difference of 1 cent triggers an alert when one could ignore it), or on the contrary too lax controls that allow important errors to pass (false negatives). It is therefore necessary to define precisely the management rules : for example, fix that a price difference of up to 2% is automatically accepted (to cover exchange rate differences or roundings), but that beyond that you must alert. Or, decide that any invoice without a purchase order beyond this amount must be validated by the purchasing manager.

Good editors generally provide rule libraries predefined based on best practices, but each company must adapt them to its context. Involve business teams (accounting, purchasing, management control) in this phase of setup in order to properly take into account all legitimate exceptions and critical control points. The tool can also use Machine learning which will refine certain parameters automatically based on history (for example, adapt the difference thresholds according to the usual variability observed). Nevertheless, the human governance is essential to define in advance what is expected of the system.

Finally, it is necessary to test the configuration on a volume of invoices before final production. We can adjust the rules according to the results (too many or too few alerts, relevant alerts or not, etc.). Invoice control software is only effective if its business rules are well calibrated — this is the price to pay to then benefit from reliable control at cruising speed.

The human place in the loop

Automating doesn't mean completely eliminating human intervention — and that's a good thing. It is essential to keep a human control to oversee the process and handle exceptions. Moreover, even solution providers generally emphasize the importance of“human in the loop”.

In practice, this means that a human eye must validate the invoices flagged as abnormal by the system, and conduct an arbitration. The AI can be wrong or overly careful, and someone is needed to check if the anomaly is real or if it can be accepted. For example, for a very large bill or with complex lines, it is recommended that a human review and confirm the data even if OCR and automatic checks did not find anything unusual. Likewise, in the event of an error detected, it is often a human who will decide what to do next: ask the supplier for a correction, make an accounting provision while waiting for a credit note, etc.

Humans therefore keep a supervisor role and as the final decision-maker. In many companies, we set up a Alert center where accountants or auditors review the list of invoices blocked by the system every day. They check the supporting documents, contact the supplier or department concerned internally if necessary, and then choose to validate or reject the invoice. This targeted intervention on anomalies is much more effective than checking everything manually, but it is still essential to manage specific cases.

Moreover, humans are in the best position to improve continuously the system: it is by observing the types of recurring errors or the limits of the system that it will be able to propose adjustments (new rules, changes in supplier processes, training, etc.). We can say that AI and humans form one complementary duo : AI excels in rapid and systematic detection, humans excel in interpreting and solving ambiguous problems.

In summary, the built-in human validation to the process remains strongly recommended. Fully automatic is neither desirable nor realistic. Rather, the objective is to focus human intervention where it provides the most value (exception management, final decisions), while letting the machine do most of the repetitive work. It's this smart mix that maximizes the efficiency of bill control.

Concrete examples of automating invoice control

To better illustrate how a software of billing control works in practice, let's look at some concrete use cases. Each of these examples corresponds to frequent situations in companies, where the automation of control provides an effective solution.

Use case 1 — Automatic verification of a price list

Situation : Your company has negotiated a price list for the year with a supplier, for example the price of various raw materials or services. This grid (in Excel or PDF format) lists the item code, description and agreed unit price for each item. Each month, the supplier invoices you for the quantities consumed.

Problem without automation : The controller must manually check on each invoice that the prices invoiced correspond to the negotiated grid. A painstaking and error-prone task, especially if the grid contains hundreds of references.

Automated solution : The control software integrates the price list as repository. When extracting the invoice, it recognizes the references of the items (via the code or description) and their quantity, then Compare the unit price billed to the one on the grid. The process is instantaneous for each line: if the price matches, it is validated; if the price differs (even by a few cents beyond the tolerance), a alert “non-compliant price” is generated. For example, if the grid states €100 per unit for a component and the invoice shows €105, the system will report this immediately. You can then request a correction from the supplier before payment.

Benefits : No line is forgotten, even in a large bill — the software checks everything, where a human could miss it. Pricing errors are detected systematically, ensuring the compliance with agreements contractual and avoiding additional costs. This use case is common in industries with price references (construction, manufacturing, raw material purchases, etc.), where the tool ensures that each invoice complies with the agreed price grids.

Use case 2 — Blocking duplicates or inconsistent amounts

Situation : Your accounting department sometimes receives invoices In duplicate from a supplier — for example, a duplicate sent by mistake twice by the supplier, or an already paid invoice that the supplier sends back as a reminder. In addition, it may happen that an invoice has a abnormal total amount (too high compared to previous ones from the same supplier, or inconsistent with its content).

Problem without automation : Duplicate invoices can lead to double payments if we do not notice it in time, then causing recovery procedures with the supplier. As for inconsistent amounts, they could pass if the controller does not have the time or the means to compare each invoice with the history.

Automated solution : The software keeps track of all invoices already registered and paid. It compares each new incoming invoice to the previous ones (by supplier, by number, by amount) and Block duplicates immediately potentials. For example, if an invoice No. 123 of €500 from supplier X was already processed last month, the new submission with the same reference will automatically be discarded and marked as a “duplicate”. This blocking prevents double payments from the start. According to the experience of some companies, a large part of invoice rejections come precisely from duplicate invoices sent or recorded by mistake, which is why this check is useful.

For the inconsistent amounts, the system can use rules fromstatistical analysis or AI to identify outliers. For example, a rule may say: “if the total amount of an invoice exceeds the average of the last 6 months for this supplier by 50%, alert”. Likewise, simple ratios (amount per unit sold, etc.) can be verified. If an invoice deviates significantly from the usual trends, it will be flagged for review. This is particularly useful for detecting an input error (for example, an excessive zero turning €1,000 into €10,000).

Benefits : Automated duplicate detection ensures that no bill is paid twice. It is a safety net essential, knowing that the risk of duplication exists (supplier who returns the invoice, change of format, etc.). As for abnormal amounts, their early identification avoids potentially very heavy cash outflows and makes it possible to investigate quickly (supplier error? exceptional service that requires validation?). In the end, this use contributes directly tointernal audit by preventing payment irregularities.

Use case 3 — Detection of VAT or date discrepancies

Situation : You receive invoices from foreign suppliers with different VAT, or expense invoices with VAT. Sometimes, VAT errors occur (wrong rate applied, HT/TTC reversal). In addition, invoices may have dates particular: some arrive very late, others dated from the future by mistake, etc.

Problem without automation : Manually checking each VAT calculation is tedious and prone to error, especially if several rates coexist. As for dates, a human controller may not notice that an invoice dated 01/01 is actually a duplicate sent at the end of the previous year, for example.

Automated solution : The software systematically recalculates the VAT based on the details of the bill. He knows the legal rates (20%, 10%, 5.5%, etc. in France, etc. in France, or equivalent abroad) and can also rely on the product category (if specified) to expect this or that rate. If the VAT amount on the invoice does not match the stated or expected rate, the discrepancy is reported. For example, for a base excluding VAT of €100 with 20% VAT, the software expects €20 VAT; if the invoice mentions €15 or €0, it's an anomaly. This may indicate either a supplier error or an incorrect calculation (e.g. VAT not being applied when it should have been). The tool can then block the invoice for verification, in order to avoid any tax non-compliance or financial loss. This point is critical, as VAT errors can hurt the business (overcharged VAT that is not recoverable, or under-invoiced VAT that can lead to a recovery). Moreover, the fight against fraud and VAT errors is a major challenge that pushes the State to generalize electronic invoicing in order to better automate these controls.

Côté dates, several controls are possible. The software verifies that the Issue date of the bill is consistent with today (no very future or very old date abnormal). It can also identify if the invoice relates to a period already closed (for example, an invoice dated last year that has arrived now, which could be a duplicate or an oversight by the supplier). You can put in place rules such as: “do not accept any invoice dated more than 6 months” or “alert if the invoice date is earlier than the date of the order form”. This type of control makes it possible to manage late invoices (which cause accounting problems relating to the fiscal year) and to avoid abuse (for example, a supplier who backdates or postdates an invoice).

Benefits : By automating VAT verification, we ensure tax compliance perfect and we avoid paying VAT wrongly (in some cases of franchise, reverse charge applied incorrectly, etc.). We also secure the recovery of VAT internally by having the right amounts. Regarding dates, we reduce the risks of double billing upon change of year or treatment after the deadline. The tool therefore provides additional rigor on points that are often sensitive during inspections (VAT and dates) and avoids errors with potential financial or legal consequences.

Use case 4 — Identifying invoices with abnormally high amounts

Situation : Your company processes a large volume of invoices, most of which are for “usual” amounts (for example between €500 and €5,000). However, occasionally, some invoices show very high amounts (for example €50,000) that are out of step with respect to the average.

Problem without automation : These very high bills may go unnoticed in the crowd, or be paid without particular attention, when they would probably deserve double checking or approval by a higher level of hierarchy, given the significant financial commitment. There is a risk of paying a huge amount in the event of an error (one zero too many, an unjustified bill) if no one notices that it is out of the ordinary.

Automated solution : Control systems can incorporate some form of Threshold anomaly detection or statistical. Concretely, we can define a Amount threshold beyond which an invoice must be treated differently. For example, setting up that any invoice over €10,000 triggers an alert and requires additional manual validation, regardless of the rest. The software will therefore scan the total amount of each invoice and, if the threshold is exceeded, mark it as “to be checked manually — exceptional amount”.

A more advanced approach is the use ofAI to detect the Outliers (outliers). The system can learn the usual distribution of invoice amounts by supplier or by purchase category, and statistically identify an unusual point. For example, if a supplier generally charges around €5,000 per month and suddenly sends an invoice for €50,000, the anomaly detection algorithm will report it, even if no fixed threshold had been set up.

Benefits : All invoices that involve significant amounts are brought to the attention, eliminating the risk of a big mistake going under the radar. This makes it possible to establish proportionate control: the higher the amount, the more human verification is required, in accordance with good internal control practices. For example, an invoice of €100,000 will necessarily be reviewed by a manager or financial director, even if everything seemed to be in order, for final approval. Automation helps by identifying these cases automatically instead of relying on staff to manually review hundreds of invoices. This use case therefore provides a security additional and reassures financial managers that no unusual payments will go unattended.

(We can see that there is a slight overlap with use case 2 on inconsistent amounts, but here we really approach it from the angle “high amount = reinforced control”, which is a basic principle of internal control.)

How do you choose the right tool for your supplier invoices?

Faced with the obvious advantages of automation, many solutions exist on the market to control your supplier invoices. The choice of the right tool must be based on your specific needs, your existing environment and qualitative criteria. Here are some tips and criteria for selection to choose the right software for controlling and automating invoices:

Selection criteria

• OCR and AI capabilities : Make sure that the solution offers a reliable recognition invoices that you process (languages, layout, scanned documents of varying quality). If you have a lot of lines per invoice, check that the tool excels at extracting line by line and that it is able to adapt to different document formats. The best tools use AI to improve capture accuracy and adapt to unstructured invoices.
• Customizing business rules : The software should allow you to easily configure your own control rules, tolerance thresholds, and approval workflows. A good tool offers flexibility to stick to your internal processes, without you having to adapt them to the tool. Check the richness of the rules engine and whether you can configure it without requiring a developer.
• Integrate with your system : It is a crucial point. The new tool should ideally be able to work with your other company software (ERP, accounting, purchasing). For example, can it interface inbound with your EDM or emails to retrieve invoices, and outputted with your ERP (SAP, Sage, Cegid...) for accounting registration? Simplified integration prevents re-entries and flow breaks. Many solutions on the market have connectors ready for the main accounting software. Make sure that this will be the case for your configuration, or that an API is available to develop the interface.
• Supported formats and volume : List the types of invoices you receive (PDF, images, Factur-X, EDI, etc.) and check that the solution can process them. Some solutions even know how to automatically retrieve invoices on portals or via dedicated mailboxes, which can be a plus. Also question the Volumetry supported: if you process 10,000 invoices per month, the tool must be able to scale without slowdown and without prohibitive costs.
• Ergonomics and user experience : A clear and intuitive interface will promote adoption by your teams. Request a demo to see what the invoice validation screen looks like, the alert dashboard, etc. Non-computer users (accountants, controllers) should be able to use the tool easily. A failed deployment often comes from a tool that is too complex or not user-friendly. So choose software ergonomic, ideally accessible in web mode (browser) for greater simplicity.
• Architecture and deployment : Do you want a solution Cloud (SaaS) or On-premise installed in your premises? SaaS offerings have the advantage of rapid deployment and automatic updates, but raise questions about data location and security. If you opt for the cloud, make sure that the host is reliable and that the data will be stored in a geographic area that meets your requirements (for example, on European soil to comply with the GDPR). Also check the service availability commitments (SLAs).

In summary, define your needs (essential functionalities, necessary integrations, security constraints) and evaluate each tool according to these criteria. Do not hesitate to do a tender or to test several solutions in pilot over a few weeks, with Real cases, to see which one is the best fit for your business.

Questions to ask the editor

When evaluating a solution with a vendor/integrator, here are some relevant questions to ask them to inform your decision:

• Data hosting : “Where will the extracted invoices and data be stored? In France, in Europe, elsewhere? ” This affects data confidentiality (invoices may contain sensitive information about your purchases, suppliers, etc.). It is important to know if the publisher uses a public or private cloud, and what security guarantees are in place (data encryption, ISO 27001 certifications, etc.).
• How does AI work : “Is your AI using our data to train? Is there a risk that our data will be shared or mixed with that of other customers? ” Understand how the tool's artificial intelligence is learning and improving. In some cases, the models are generic and your data remains siloed; in others, federated learning can benefit from shared data (which can improve efficiency but raises privacy issues). Also, clarify if the publisher uses third-party NLP technologies (e.g. Google Vision, AWS Textract...) and how the data passes through.
• Configuration and scalability : “How do you initially set up the rules? Is it billed as a service? And if we have new rules or changes later, can we easily do it ourselves? ” You need to identify the degree ofautonomy that you will have to make the tool evolve. A too rigid solution that requires going back to the editor at the slightest adjustment can generate hidden costs and slowness.
• Non-standard cases : “How does the system handle special cases? (e.g. multi-currency invoices, installment invoices, negative credit notes)”. See if the tool is flexible to deal with the various scenarios you encounter. Some specialized tools manage “classic” invoices very well but can have trouble with complex cases (for example, a credit note with a negative amount, or an invoice with several orders).
• SI integration : “Have you already integrated your solution with [my ERP/my software]? ” If yes, that reassures about compatibility. Ask what type of connector exists, and possibly if there are references from customers with an environment similar to yours.
• Support and support : “What support do you offer during deployment and on a routine basis? ” Will we have a dedicated contact, is there reactive support in case of technical problems or need help? The availability and quality of publisher support are crucial, especially in the start-up phase.
• Pricing : “What is the pricing model? By number of invoices, by unlimited subscription, by modules? ”. Make sure you understand what's included (unlimited or pay-per-page OCR, number of users, cost of updates, etc.). A tool may seem affordable at first but can be expensive if, for example, each additional bill over a threshold is billed.

These questions will help you assess the seriousness and the adequacy of the solution to your expectations. A good publisher should be transparent about these points. Do not hesitate to ask for a trial period or a POC (Proof of Concept) on a few documents to concretely validate the effectiveness (for example, provide him with 10 complex invoices and see the rate of recognition and detection of errors).

Examples of solutions available on the market

Today, there is a wide range of solutions, ranging from innovative specialized software to modules integrated into larger suites. Notable examples include:

• Koncile : Solution specialized in intelligent control of supplier invoices via OCR and AI. Koncile focuses on capturing detailed data and reconciling it with your standards to ensure invoice compliance. It is a recent tool that focuses on precision of OCR and the ability to cross-check each transaction with negotiated contracts and prices, offering optimal visibility on compliance, price competitiveness and possible savings.
• General AP (Accounts Payable) automation solutions : Software like Yooz, Esker, Itesoft or Basware offer complete platforms for dematerializing supplier invoices. They generally incorporate OCR, a validation workflow, and standard controls (3-way match, duplicate detection, etc.). Their advantage is to offer a solution turnkey covering the entire Procure-to-Pay process, often flexible according to the size of the company (SME, ETI, large account).
• Sectoral tools : Some sectors have specific needs that are met by dedicated solutions. For example, in the BTP, there are software programs capable of managing work situations and subcontracting invoices and reconciling them with construction budgets. In the sector of health Or of The insurance, there are specialized systems for controlling medical bills or claims invoices (with very specific rules, such as those used in Suva mentioned above). These sectoral tools integrate business rules specific to the field (e.g.: checks for excess fees, compliance with nomenclature, etc. for health).
• ERP or complementary modules : If you already use an ERP (SAP, Oracle, Microsoft Dynamics, etc.), know that there are often additional modules or connectors of partner publishers to automate the processing of supplier invoices in this environment. For example, SAP offers a module for Invoice verification coupled with its workflow. Likewise, solutions like Kofax or ABBYY can be added to your IS for the OCR and validation part, while integrating into your ERP screens. The advantage is to stay in a familiar ecosystem, but you have to check that the functionalities correspond to your expectations in terms of control.

In the end, the choice can be made either on a specialized tool like Koncile (focused on invoice control with AI) if your priority is the precision of control and the detailed analysis of expenses, or on a solution generalist if you are looking for a global automation of the supplier process, or even on an approach Occupation if your invoices have strong particularities. Also take into account thescalability : your invoice volumes may increase, regulations (e.g. mandatory electronic invoicing) may change, so it is important that the solution is sustainable and regularly updated.

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