Most suppliers send a statement within the first two weeks of every month showing all recent or unresolved transactions, as well as the resulting balance. It is standard practise to reconcile this statement with items to be paid to the supplier, prior to every payment run. Doing so ensures that inaccuracies, omission, duplications and fraud are caught before payment is made, as well as ensuring that accounts are kept up to date and purchasors are not placed on credit hold.
However, doing a manual reconciliation to statement every month for thousands of suppliers is onerous and can easily consume the bulk of any AP team's time. In many of our customers we have seen a single recon taking several days. That's why we've automated it.
Although similar to an invoice in structure and content, a statement contains a different set of metadata required to perform a statement reconciliation. This includes:
- Supplier information (supplier name, supplier VAT number etc.)
- Company information (company name, VAT number etc.)
- Ageing information (totals, balances for current, 30 days, 60 days, 90 days etc. and balance brought forward)
- Transaction line items (line type i.e. debit / credit / adjustment / payment, reference, date, amount etc.)
To enable the automatic reconciliation of statements, Intervate has developed a custom statement extraction module to handle the varied formats of supplier statements. Despite the complexities and extreme variations of statements, the custom solution is able to extract header and table information from untrained multi-page statements of vastly different layouts.
In adition, the Intervate add-on performs the same function as and integrates seamlessly with the Kofax out-of-the-box invoice solution, providing customers with a single solution for all accounts payable processes.
Where previously a supplier statement reconciliation could take
hours or even days to complete, this automated solution allows recons to be
performed in minutes or even instaneously. With many AP departments devoting
half the month to recons alone, this provides instant ROI.
The end result is an end-to-end AP solution that integrates with most ERPs and allows users to reconcile supplier statements with the click of a button.