How to Automate Invoice Creation with Intelligent AP Automation

TABLE OF CONTENTS

• How to Save 80% of Time on Invoice Processing with Automation
• How to Enable Automated Invoice Creation
  • Fully Automate PO-Based Invoice Confirmation
• How Precoro Matches Invoices with Purchase Orders
• Additional Matching Rules for Invoice and Purchase Order Processing
• Frequently Asked Questions

How to Save 80% of Time on Invoice Processing with Automation

Processing invoices manually is time-consuming and prone to errors. With Intelligent AP Automation, you can automate data entry, match invoices to POs automatically, and speed up payments — all while cutting AP workload by 80%.

Here’s what you can expect using the automated invoice creation in Precoro:

• Invoices are automatically captured, created, and matched to purchase orders, significantly reducing the time from receipt to approval.
• Eliminate the need for manual data entry, freeing your team to focus on higher-value tasks.
• Automated matching minimizes errors, ensuring invoices align with purchase orders and financial records.
• Maintain consistent and accurate records, making audits and compliance checks simpler and more reliable.
• Faster invoice processing provides clearer visibility into payables, helping you optimize cash flow and avoid late payment penalties.

How to Enable Automated Invoice Creation

To minimize manual effort, Precoro allows you to automate invoice creation based on documents sent by suppliers. Once set up, the system handles the heavy lifting—all you need to do is review the invoice for accuracy and proceed with your day. Here’s how to enable this feature:

1. Go to the AP Setup page (access is currently limited)
2. Check the Invoice from Order Auto Creation box.
3. Enter the email of the person to be assigned as the default initiator of auto-created invoices.
4. Choose if you want to assign the related order issuers as initiators with the Set the Order Creator as the Initiator setting. 
   • When the setting is enabled
     • If the creator of the related order has the Invoice Create role, they are added as the invoice initiator.
     • Otherwise, Precoro assigns the default initiator.
   • When the setting is disabled
     • The default initiator is assigned to automatically created invoices.
     • However, if a user creates an invoice with the Auto-Create button on the AP Inbox page, they are added as the initiator of this document.
5. Choose the type of invoice to auto-create:

• • Standalone Invoices: An invoice will be created if no matching PO is found.

  • PO-Based: An invoice will be created only if it matches an existing PO. You can also choose matching rules for the invoices. Learn more about them here.

  • Enable both options to create invoices based on either matching a PO or as a standalone if no PO exists.

Fully Automate PO-Based Invoice Confirmation

You can use the Automatically confirm autocreated invoices feature to skip manual confirmation for PO-backed invoices created from supplier attachments. Please contact your Customer Success Manager to enable it.

When this option is active:

• Auto-created PO-backed invoices will be confirmed automatically. Precoro will not require you to review and confirm the draft.

• If you have an Invoice Approval Workflow, it’ll start immediately after confirmation.
• If Precoro detects discrepancies between the invoice and the related PO, it’ll trigger the Matching process. 

Note! Invoices won’t be automatically confirmed if any required fields are missing.

How Precoro Matches Invoices with Purchase Orders

Precoro automatically scans each incoming invoice to link it with an existing order and help you pay only for what was originally ordered. Invoices are matched to the following order types:

• Standard Purchase Orders

• Blanket Purchase Orders (by Total or by Item)

• Service Orders

The system searches for a corresponding PO using the PO number specified in the invoice (PO IDN or custom number). 

If Precoro finds a match, the system automatically associates the invoice with that PO. However, if the data on the invoice doesn’t match any PO, Precoro will generate a standalone invoice. Items from invoices that have been matched will affect the budget and be displayed within the budgeting information. 

Additional Matching Rules for Invoice and Purchase Order Processing

To increase the number of documents created automatically, you can enable additional matching rules for invoices processed with Intelligent AP Automation. These rules improve accuracy when matching invoices to purchase orders.

Here are the matching rules you can choose for your invoices:

• SKU or Item Code: Verifies that the SKU or item code on the invoice aligns with the code on the PO.

• Name or Description: Ensures item names or descriptions match between the invoice and the PO.

• Rate: Confirms the rate per item on the invoice corresponds to the PO rate.

• Net and Gross Total Amounts: Compares the invoice amounts with the PO totals.

• Line Count: Checks that the number of line items on the invoice matches the PO.

You can also enable AI-Enhanced Invoice to Order Matching that works accurately despite missing numbers, differences in descriptions, and variation in formatting. Learn more about this feature here.

Additionally, these default rules are always applied and cannot be removed:

• PO number on the invoice must match the PO IDN or custom number

• Invoice will match to the PO if only one PO is available

Frequently Asked Questions