How You Can Match Incoming Invoices and Delivery Notes Automatically in Logistics

The Traditional Workflow at Goods Receipt and in Accounting

In many medium-sized companies, the verification of incoming goods and the corresponding invoices still takes place in separate silos. When a shipment arrives at the warehouse, the logistics team receives the goods and checks the physical delivery note. This note is manually checked off, signed, and filed in a folder or passed on to accounting via internal mail. The corresponding invoice arrives at a later time, often as a PDF by email or also on paper. In accounting, the search through documents begins. Employees must find the matching delivery note for the invoice, compare the line items individually, and clarify differences manually.

This process regularly leads to delays. If the delivery note is still at goods receipt or information is missing on the document, the approval process stalls. Invoices remain unprocessed, cash discount deadlines pass, and clarifying quantity or price discrepancies requires multiple inquiries between departments. Furthermore, with the number of manual transfers, the risk of data entry errors in financial accounting rises.

Matching Incoming Invoices Automatically: The Digital Process in Detail

A digital approval process removes the boundaries between the warehouse and financial accounting. The workflow starts directly upon delivery of the goods. The delivery note is scanned or digitally captured at goods receipt. An optical character recognition system reads the relevant header and item data, such as purchase order numbers, item numbers, and delivered quantities. This data is automatically matched with the original purchase order in the ERP system. The system posts the goods receipt digitally and links the delivery note directly to the transaction.

When the incoming invoice arrives at the company, the system reads the invoice data automatically as well. The main goal is to be able to match incoming invoices automatically by having the system perform a three-way match. Data from the purchase order, the captured delivery note, and the invoice at hand are compared with one another. If item numbers, delivered quantities, and agreed prices match exactly, the system pre-posts the invoice automatically and forwards it for final approval. Employees only need to intervene in the event of discrepancies.

The Central Steps of Automatic Matching

• Digitization of documents directly upon arrival at goods receipt using scanners or capture software.
• Automatic extraction of header data and line items from delivery notes and invoices.
• Execution of a three-way match between purchase order, delivery note, and invoice in the system.
• Automatic approval of documents upon complete matching of all line items.
• Targeted forwarding of discrepancies to the responsible clerks for clarification.

Handling Discrepancies and Exceptions in the System

Not every delivery takes place without differences. Partial deliveries, damages, or price discrepancies are part of daily business in logistics. An automated process does not block the entire throughput in such cases, but manages exceptions in a targeted manner. If the system determines that the delivered quantity according to the delivery note differs from the invoice quantity, it generates a task for the respective clerk. The employee sees the juxtaposed data from the purchase order, delivery note, and invoice at a single glance.

This transparency eliminates searching through paper folders or asking around in the warehouse. Clarification takes place directly within the system via defined approval paths. If, for instance, the supplier charged a higher quantity than was recorded at goods receipt, the transaction goes to purchasing or logistics for review. Following correction or confirmation, the document automatically proceeds in the approval workflow. For legal or tax requirements regarding archiving and traceability, appropriate experts should always be consulted.

Technical Prerequisites and Process Optimization with webfellows

To implement automatic matching, the involved software systems must communicate with each other. Usually, the existing ERP system forms the foundation where purchase orders and master data are managed. Added to this is a solution for document capture and data processing that converts unstructured data from PDF files or scans into structured data sets. Interfaces connect these systems seamlessly to ensure smooth data transfer.

Would you like to examine your current processes at goods receipt and in invoice processing and identify potential for automation? webfellows invites you to a non-binding process check to analyze your existing workflows together and discuss suitable digital approaches for your company.