Finance AI Skill

Accounts Payable

Automate accounts payable operations including invoice processing, 3-way matching, payment optimization, vendor management, and approval workflows. Use when processing vendor invoices, matching POs to receipts and invoices, optimizing payment timing to capt...

Accounts Payable Automation

Streamline the entire AP lifecycle from invoice receipt to payment execution.

Invoice Processing Workflow

Phase 1: Invoice Capture & Extraction

Trigger on invoice receipt via email, portal upload, or EDI:

  1. Capture & Triage:
  1. Validation & Quality Check:
  1. Auto-Coding & GL Mapping:

Phase 2: Matching & Approval

  1. 3-Way Match Engine:
   MATCH CHECKLIST:
   ────────────────
   Purchase Order (PO):
     [ ] PO number matches invoice
     [ ] PO quantity matches received quantity
     [ ] PO unit price within tolerance of invoiced price
     
   Receiving Report:
     [ ] Goods/services confirmed received
     [ ] Received quantity matches invoice quantity
     [ ] Receipt date within expected delivery window
     
   Invoice:
     [ ] Invoice total = sum of line items + tax
     [ ] Tax calculation correct per jurisdiction rules
     [ ] Invoice within PO open balance
  1. Approval Workflow:
   APPROVAL MATRIX:
   ────────────────
   Amount Range        | Approver Level
   $0 — $2,500         | Department Manager
   $2,501 — $10,000    | Department Manager + Finance Manager
   $10,001 — $50,000   | VP / Director
   $50,001 — $100,000  | CFO
   >$100,000           | CFO + CEO
   
   Emergency/Urgent:   | Skip one level (logged with justification)
   Non-PO invoice:     | Additional department approval required

Phase 3: Payment Execution

  1. Payment Scheduling & Optimization:
  1. Payment Execution:
   PAYMENT BATCH — Weekly Run (Tuesday/Thursday)
   ─────────────────────────────────────────────
   1. Generate payment batch file
   2. CFO approval for batch totals (if > threshold)
   3. Submit to bank/payment processor
   4. Generate vendor payment advices
   5. Update invoice status → "Paid"
   6. Post payment entries to GL
   7. Confirm transmission/receipt

Payment Optimization Framework

Discount Capture Analysis

EARLY PAYMENT DISCOUNT EVALUATION:
══════════════════════════════════
Invoice: INV-2025-4521
Vendor: Acme Supplies
Terms: 2/10 Net 30
Amount: $15,000
Discount: $300 (if paid within 10 days)
Annualized ROI: 36.7%

Decision: PAY EARLY ✓
Rationale: ROI (36.7%) > cost of capital (8%)
Cash impact: $14,700 due in 8 days

Cash Flow Impact Modeling

PAYMENT SCENARIOS:
══════════════════
Scenario A: Pay all at earliest date
  Cash out this week: $425,000
  Discounts captured: $12,400
  Net impact: -$412,600
  
Scenario B: Pay at term maturity
  Cash out this week: $0
  Discounts captured: $0
  Cash out next 30 days: $425,000
  Net impact: -$425,000
  
Scenario C: Hybrid (discount + cash preservation)
  Cash out this week: $180,000 (discount-eligible only)
  Discounts captured: $8,100
  Deferred: $245,000 (non-discount vendors)
  Net impact: -$171,900

Duplicate Invoice Detection

Detection Rules

DUPLICATE CHECKS:
════════════════
[ ] Same invoice number from same vendor
[ ] Same amount, same vendor, within 7 days
[ ] Same amount, same vendor, same PO number
[ ] Fuzzy match: similar invoice number, same vendor, amount within 1%
[ ] Re-scanned invoice: same OCR-extracted data within 24 hours

ACTION ON DETECTED DUPLICATE:
  1. Auto-hold payment
  2. Flag in AP queue with duplicate details
  3. Notify AP analyst for confirmation
  4. If confirmed duplicate: void hold, log in duplicate register
  5. If false positive: clear flag, resume processing

Exception Handling

Common Exceptions & Resolution Paths

| Exception Type | Action | Owner | SLA | |---|---|---|---| | PO price variance | Compare to contract; approve if within tolerance, else request PO revision | AP Analyst | 2 days | | Missing PO | Route to department for retroactive approval | Dept. Manager | 3 days | | Short payment dispute | Verify against contract; issue credit memo or process adjustment | AP + Vendor Mgmt | 5 days | | Vendor master mismatch | Verify vendor identity; update master data | AP Supervisor | 1 day | | Tax discrepancy | Validate against tax tables; escalate to tax team if material | Tax Team | 3 days | | Approval overdue | Escalate to approver's manager | AP Manager | Same day |

Vendor Master Data Management

Vendor Onboarding Checklist

NEW VENDOR SETUP:
════════════════
  [ ] W-9 or W-8BEN on file (tax form)
  [ ] Bank account details verified (ACH/wire)
  [ ] Vendor classification assigned (goods, services, professional)
  [ ] Payment terms agreed and entered
  [ ] Tax jurisdiction codes assigned
  [ ] 1099 reporting flag set (if applicable)
  [ ] Approved by finance (dual verification for new vendors)
  [ ] Duplicate vendor check completed
  [ ] Sanctions/PEP screening passed
  [ ] Initial credit check (for net terms > 30 days)

Output

AP Dashboard View

AP OPERATIONS DASHBOARD — Week of Jan 27, 2025
══════════════════════════════════════════════════

Key Metrics:
  Invoices processed (MTD): 1,247          Avg processing time: 2.3 days
  Auto-approved: 89%                       Exception rate: 4.1%
  Discount capture rate: 94%               Duplicate prevention: 12 caught
  
Current Queue:
  Pending approval: 34 invoices ($287,500)
  Exception queue: 8 items                Requires PO: 5 items
  Ready for payment: 42 invoices ($156,200)

Upcoming Payments:
  This week: $312,000 (18 invoices)
  Next week: $528,000 (31 invoices)
  Early payment eligible: 7 invoices ($194,000) — discounts worth $6,800

Aging Summary:
  < 30 days: 89%                          > 60 days: 3%
  31-45 days: 6%                          > 90 days: 1%
  46-60 days: 2%

Integration Points

Edge Cases