Invoice Processing

Usage

Provide invoice data as text, structured data, or describe the invoices you need processed. Specify any PO data for validation and your GL code mapping preferences.

Example prompt:

Process this vendor invoice: Invoice #INV-2024-0847 from Acme Cloud Services, dated 2024-11-15, PO #PO-4521. Line items: 10x API Gateway licenses at $150/ea, 1x Premium Support at $2,400/yr. Tax 8.5%. Validate against PO and assign GL codes.

Examples

Example 1: Single Invoice Processing

Input:

Invoice #INV-2024-0847
Vendor: Acme Cloud Services (Vendor ID: V-1042)
Date: 2024-11-15 | Due: 2024-12-15 | Terms: Net 30
PO Reference: PO-4521

Line Items:
  1. API Gateway License (qty: 10, unit: $150.00) — $1,500.00
  2. Premium Support Annual (qty: 1, unit: $2,400.00) — $2,400.00

Subtotal: $3,900.00
Tax (8.5%): $331.50
Total: $4,231.50

Output:

{
  "invoice_number": "INV-2024-0847",
  "vendor": { "name": "Acme Cloud Services", "id": "V-1042" },
  "date": "2024-11-15",
  "due_date": "2024-12-15",
  "po_reference": "PO-4521",
  "line_items": [
    {
      "description": "API Gateway License",
      "quantity": 10,
      "unit_price": 150.00,
      "amount": 1500.00,
      "gl_code": "6500",
      "gl_name": "Software Subscriptions",
      "cost_center": "IT-200"
    },
    {
      "description": "Premium Support Annual",
      "quantity": 1,
      "unit_price": 2400.00,
      "amount": 2400.00,
      "gl_code": "6510",
      "gl_name": "Software Maintenance & Support",
      "cost_center": "IT-200"
    }
  ],
  "subtotal": 3900.00,
  "tax": 331.50,
  "total": 4231.50,
  "validation": {
    "arithmetic_check": "PASS",
    "po_match": "PASS",
    "price_variance": "0.0%",
    "three_way_match": "PASS"
  },
  "flags": []
}

Example 2: Batch Processing with Validation Errors

Input: 4 invoices from different vendors processed in batch.

Output — Error Report:

Batch Summary:

• Total Processed: 4
• Passed: 1 (25%) — $4,231.50
• Warnings: 1 (25%) — $892.40
• Blocked: 2 (50%) — $20,095.00
• Total Value: $25,168.90
• Action Required: 2 invoices require manual review before payment authorization.

Best Practices

• Always verify arithmetic independently — never trust the stated totals without recalculating from line items.
• Maintain a vendor-to-GL mapping table and update it as new vendors or expense types appear.
• Set price variance thresholds appropriate to your industry: 2% for commodities, up to 10% for services with variable scope.
• Require PO matching for all invoices above a configurable dollar threshold to prevent unauthorized spending.
• Retain the raw invoice data alongside extracted fields for audit trail purposes.
• Process invoices in batch during off-peak hours and route exceptions to AP staff immediately.

Edge Cases

• Invoices with no PO reference: Flag as requiring manual approval. Check if the vendor has a blanket PO or standing agreement that covers the charges.
• Credit memos and negative amounts: Process as negative invoice entries. Validate that the credit references an existing invoice and that the credit amount doesn't exceed the original.
• Multi-currency invoices: Extract the stated currency, apply the exchange rate as of invoice date, and record both the original and converted amounts.
• Duplicate invoice detection: Check invoice number + vendor + amount + date against the last 90 days of records. Flag exact matches as likely duplicates and near-matches (same vendor + amount, different invoice number) as potential duplicates.
• Partial shipments: When goods receipt quantity is less than PO quantity, validate the invoice against received quantity, not PO quantity. Hold remaining balance as open.