Duplicate Invoices occur far more frequently than most organizations realize.
On average, approximately 0.05% to 0.1% of invoices paid are typically duplicate payments.
The problem begins when the incoming invoices have similar and repeated data like invoice amount and invoice number. Luckily, we’re here to help you efficiently manage your invoices.
What causes Duplicate Invoices?
Duplicate invoices can be the result of a variety of issues ranging from human errors to complex internal business processes. Some of the common causes of Duplicate invoices include:
- Data entry errors, such as a misread invoice number or a typo
- Errors in a master vendor file
- Pricing errors
- Adjusted quantity or price on invoice
- Vendor Invoice cancelled after organisation sent payment
- Vendor sent same invoice via multiple channels, such as email and snail mail
- Huge vendor invoice volume
- No proper data validation for vendor invoices
How can your AP Team solve Duplicate Invoices?
Sending multiple unneeded vendor invoices to organizations can lead to a variety of problems. The AP team can get overwhelmed because of the multiple invoices send-outs. It reflects poorly on the vendor business as a whole.
Any of the following two reasons may cause the vendor invoice problem.
1. Invoice Classification
Do you have an easy way to see which vendor invoices have been paid, which need to be checked out, and which ones are past due?
If you can’t clearly see the state of your invoices, you’re setting yourself up to problems with duplicate invoicing. Sometimes invoices get sent out multiple times because vendors can’t tell that they’ve already been sent.
Tips: The easiest way to solve this problem is to have-
- Accounts payable automation solution that easily classifies and organizes invoices
- Vendor invoices are checked automatically by setting up business rules to compare past transactions (invoice number) and Master data(vendor)
- Cross-check the invoice information with PO, GRNs, and contract data using 2-way/3-way validation
- Cross analysis on the Line item data including Items/ Material, Quantity and price with the vendor invoices
2. Vendor Information Verification
Ideally, when your accounts payable team works with different vendors, they create one vendor master file record for each vendor. But it isn’t out of the ordinary to accidentally make multiple vendor records for the same organization. It’s possible that sometimes two or three vendor invoices are sent to the same department. Same vendors can have different postal addresses and invoices get repeated without any check.
- Always check the fields’ check level with the business rule of vendor number, invoice number and invoice amount
- Confirm the vendor master with vendor PO box code + zip code + vendor name) and invoice amount
- Auto-verify based on past learning and identify vendor invoice data pattern and see discrepancies or repetitions with the introduction of AI.
- For discrepancies, AI will notify AP team regarding vendor invoice repetition without any human intervention by ending up red flagging the vendor.
- Automated approvals using advanced AI workflow conditions to settle the invoices.
Many enterprises have started their digital transformation journey using the ServiceNow platform, which offers out-of-the-box solutions to digitize many enterprise processes. For vendor invoice processing, your organization can leverage Invoiceflow which provides a unique ‘zero-touch invoice processing' solution covering intelligent invoice data extraction, AI-based 2-way/3-way invoice validation with flexible invoice processing workflows.
Aavenir’s Invoiceflow delivers faster invoice processing with fewer touchpoints, fewer errors, and more early payment discounts, thus improving the vendor invoice processing. Get your free trial of Invoiceflow accounts payable automation from the ServiceNow App Store.