Invoice reconciliation is the three step automated process of importing invoices into Apicbase, matching and comparison that allows you to verify the goods listed on the invoice were actually received. Apicbase’s new Invoice Reconciliation Module helps streamline this process by using AI-powered matching to extract data from invoices and link them to the correct Purchase Orders (POs).

2. More About Invoice Reconciliation V1

How it All works:

Step 1: Import

The invoices are uploaded into Apicbase either with the AI powered import or manually entered by the user.

Step 2: Matching

The data extracted from the invoice by our custom trained AI tool then searches your outlet's Purchase Orders for specific data and criteria to find a "match". Upon a successful match criteria of 60% or more, the Invoice is linked to the Purchase Order. This can also be done manually by the user by moving from the status "incomplete" or "error", manually selecting the correct supplier name and then selecting from the PO drop down list the related purchase order.

Step 3: Comparison

Once the invoice is linked to a purchase order, our custom trained AI tool then checks the invoice(s) and purchase order(s) subtotal(s) before tax (excl. VAT) and compares them to display any differences that occur. This helps teams in the process of verifying that the goods listed on a supplier invoice were actually ordered and received. It typically includes checking quantities, product names, and pricing, and ensures payment is only made for what was delivered.

2.1 What you Need to Get Started

For the AI to correctly match an invoice to a Purchase Order (PO) the following must be true:

1. The Purchase Order (PO) must be closed and inactive in Apicbase

2, The Supplier VAT should be set up in Apicbase Supplier Details before you import invoices.

3. The Invoice must be in a PDF Format

4. The supplier name must be recognized by the tool

5. The invoice must contain line-level details (product, quantity, price)

6. The invoice must contain a final sub-total before tax (excl. VAT)

7. If the Purchase Order number is included in the invoice as well it provides a stronger match probability.

2.2 What is AI Powered? What Does Apicbase AI Tool Look For?

Our AI is custom trained by our Apicbase team to understand variations in naming, spelling, and formatting. It can find matches even if an invoice doesn’t exactly match a PO line by line — as long as it’s reasonably close.

When you upload an invoice or a group of invoices, our AI tool analyzes specific details inside to find a matching Purchase Order (PO) based on the following criteria:

Supplier Name
Supplier VAT
Purchase Order (PO) Number
Line-level items: article number, name and or description
Quantity of each item ordered
Subtotal before tax (excl. VAT)

2.3 Matching and Scoring Logic

A matching score is calculated based on how closely the invoice details match those of a Purchase Order (PO) to automatically link. If the score is below 60%, the Purchase Order (PO) will not be automatically linked, however, the Purchase Order (PO) will appear in a dropdown list. It can still be linked manually to the invoice by the user.

Example:

If your Purchase Order (PO) lists "Beans" and the invoice lists "Black Beans", the match might score around 80% as it is similar but not an exact match. That is a smart tool!

3. What is Supported by Invoice Reconciliation

Who is Invoice Reconciliation for? IF you order and receive your Purchase Orders (PO) in Apicbase then Invoice Reconciliation is the next logical step for you.

When researching and developing our AI Powered Invoice Reconciliation Module we took into consideration the feedback and use cases our clients have experienced. It can support the following scenarios:

1. Import PDF Invoices this is supported individually or in reasonable batch quantities

2. Manual Invoice Entry the ability to create an invoice in the system manually and then manually link to the related Purchase Order (PO) is supported.

3. Multiple Purchase Orders (PO) per Invoice the ability to link more than one Purchase Order (PO) to an invoice is supported. (V1 supports one automated Purchase Order (PO) match per invoice)

4. Credit Notes the ability to import the credit note and manually attach it to the Purchase Order via the invoice import function or add as an additional document view to the invoice is supported.

4. How the Module Works

1. Upload the Invoice (PDF): You can upload a PDF invoice from the Invoices Module or directly within the PO screen.

2. Invoice Record Creation: Once uploaded, a new invoice record appears in your Invoices Overview.

3. Automatic Processing: The system attempts to extract and process the data using AI. If successful, the invoice gets linked to a matching PO.

4. Processing Statuses: The system provides different statuses related to the import process

To be processed: Waiting to be reviewed.

Processed / Complete: Successfully Matched
Incomplete: Partial data extracted unable to complete a link
Error: AI was unable to read/process the file
Manual: Requires user intervention

5. Processed Invoice Details & Comparison:

View your invoice PDF on the left and your AI extracted invoice details and PO details on the right.
See what data was extracted from the invoice.
Compare the subtotal (excl. VAT) on the invoice with the Purchase Order (PO) subtotal (excl. VAT).
Follow your internal invoice approval and payment process from there.

6. Approval & Payment Statuses

Apicbase supports several manual statuses so you can integrate your internal approval flow:

Received
Verified / Pending approval
Flagged
Approved
Rejected
Paid

Note: Apicbase does not process payments.

5. Getting Started: How to Use Invoice Reconciliation

5.1. Importing the invoice(s)

1. Go to the Procurement Module Dropdown and Select "Invoices"

2. From the outlet selector page, click the outlet you will be reconciling invoices for

3. From the Invoices List screen, use the "+ Upload invoices" drop down to select "Bulk upload (AI Powered)"

4. Either drop and drag the file to the pop up file selector box, or utilize the "select here" to find the documents

5. Once the documents have been captured by the file selector, click "Process Invoice"

6. The Invoice List will show the line being added at the top of the list. The the Processing Status will indicate "to be processed" and the Approval Status will show "received" indicating the invoice has been received by the invoice module.

7. Once the invoice processing has been completed in Apicbase it will receive one of the following Processing Statuses:

To be processed: Waiting to be reviewed by the module (during importing phase above).
Processed / Complete: Successfully Matched
Incomplete: Partial data extracted unable to complete a link (this will require a PO to be manually selected and linked in the Invoice Details page)
Error: AI was unable to read/process the file (this will require the Purchase Order (PO) to be manually selected and linked in the Invoice Details Page)
Manual: Requires user intervention or it has been manually adjusted to this status by a user from the Invoice Details page.

5.2 Invoice Details: Overview

1. To view the details of the invoice, see the comparison, link a Purchase Order (PO) manually, or unlink a Purchase Order (PO) manually select the arrow for the invoice from the Invoices List page view.

2. The invoice PDF that was imported is available for view on the left side of the page. On the top right side of the page, the invoice data details that was able to be extracted by the Invoice Reconciliation Module from the PDF is visible.

Data extracted by the AI powered tool from the Invoice PDF includes:

1. Supplier Name (when successfully linked Apicbase AI tool was able to match directly to your supplier in Apicbase)

2. Invoice Number

3. Invoice Date

4. Due Date

5. Invoice Amount: This references the total amount of the invoice before tax excl. VAT)

3. When an invoice has been successfully matched and linked to a Purchase Order Automatically from the AI powered module:

1. The Purchase Order (PO) number will be filled in the top right corner of the Invoice Details section.

2. The "PO Amount" will show under the Invoice Details section: This references the total amount of the received goods before tax excl. VAT). The Purchase Order number as well as the Purchase Order (PO) information will be expandable by the arrow on the right.

2. The "PO Details" will show:

1. The Purchase Order (PO) Number

2. Ordered On Date

3. Delivery Date

4. Ordered By

5. Total Amount: This references the total amount of the received goods before tax excl. VAT) the Purchase Order number as well as the Purchase Order (PO) information will be expandable by the arrow on the right.

6. There will be a box indicating the ability to "unlink" on the right.

7. The Purchase Order (PO) information will be expandable by the arrow on the left

5.3 Invoice Details: Purchase Order (PO) & Invoice Comparison

1. When an invoice has been successfully linked to a Purchase Order (PO) either automatically via the AI Powered Tool or manually, the AI tool also then provides under the Invoice Details a comparison summary indicated as "Difference". This comparison provides visibility if there is a difference between the "Invoice Amount" (the total amount of the invoice before tax excl. VAT) and the "PO Amount" (the total amount of the received goods before tax excl. VAT)

Invoice Amount - PO Amount = Difference

2. In this example we can see a difference of: 3.95€

3. When reviewing the details of the invoice lines against the delivery line details we can see that the supplier indicated shipping a package of green beans. In my purchase order details we can see that we had not received the green beans.

4. The next step of the process would be to follow my internal process for addressing settlements or credit requests with my supplier.

5. The Apicbase Invoice Reconciliation Module is also equipped with options for the "Processing Status" that can be adjusted manually. In this example I will change the status to "Flagged".

6. Underneath the Purchase Order (PO) Details section, there is a History section. This has a log of all activity on the Invoice.

7. In the Comment box, I will add a comment for my colleagues so that anyone that chooses to view the details can see what I may be doing with the invoice.

8. I return to the List View to continue working on my invoices.

6. Advanced Scenarios Invoice Reconciliation V1

6.1 Linking an Invoice to a Purchase Order (PO) manually

1. When the AI tool does not have enough information to automatically link a Purchase Order (PO) to the invoice, there is a Processing Status of Error. Go to the invoice details page via the arrow for the invoice line.

2. In this example I see that the Supplier Name is "Spicy Seas".

3. In Procurement, "Delivered Orders" for the outlet "Jamie's Hotels" I find the Spicy Seas Purchase Order that contains this ingredient.

4. I go back to the Invoice Details page for the invoice and first change the status to manual.

5. In Invoice Details I then select from the Supplier from the drop down

6. From the Apicbase PO # field "Click here to link" I click + to find and link the Purchase Order (PO)

7. A pop up box appears with a drop down to allow me to scroll and select the Purchase Order (PO) that I want to manually link to the invoice

8. I select the Purchase Order (PO) for this example PO #: #20250416-10510-15 and then click "save"

9. In the Invoice Details Page I can see that the PO Amount has been filled in by the AI tool

10. When I select the PO Details dropdown, I can see the Purchase Order (PO) number that I selected to be linked, the details the AI tool extracted from the Purchase Order and the link button with the option to unlink. The manual link is a success.

6.2 Multiple Invoices with one Purchase Order

1. To link multiple invoices to a Purchase Orders (PO), you can follow the process of linking a purchase order manually to an invoice above for the initial invoice and Purchase Order (PO).

2. Continuing this example we can see from the Difference summary that review needs to be performed. When we expand the Delivery Summary details there is more delivered for this Purchase Order (PO) than is indicated in the first invoice.

2. When we receive the second invoice we follow the process of importing the invoice from the Invoices List page.

3. I then follow the steps for linking an invoice to a Purchase Order Manually. I change the Processing status to Manual, the Supplier I select from the drop down and then I select the Apicbase PO from the list.

4. I check the PO Details section and see that the Purchase Order (PO) details are updated and the Purchase Order (PO) is linked. The comparison now shows me for this invoice a difference that reflects the subtotal excluding tax (exc.VAT) from this invoice and the original subtotal excluding tax (exc.VAT) from the Purchase Order (PO).

5. How can I see if everything is correct with two individual invoices for this Purchase Order (PO)?

6. I can open up the Purchase Order details by selecting the icon underneath PO Details here:

7. A window opens up to the Delivery details I can see there are 2 Linked Invoices:

8. When I expand the 2 Linked Invoices I can see the the subtotal excluding tax (exc.VAT) from each invoice and the subtotal excluding tax (exc.VAT) from the Purchase Order (PO) per line item. They match.

9. I can return to an invoice details by selecting the See Details button, and change the approval status or add notes.

6.3 Multiple Purchase Orders with one Invoice

1. To link multiple Purchase Orders to an invoice, Apicbase AI tool may be able to match and link one of the Purchase Orders to the invoice automatically as you can see in this example:

Note: If an automatic link is not completed, you can follow the process of linking a purchase order manually to an invoice above for the initial Purchase Order.

3. Continuing the example we see the the details the AI powered tool was able to extract and match within our Apicbase Purchase Order (PO) and link. We can also see an additional Purchase Order (PO) referenced on the invoice.

3. We can see from the Difference summary that review needs to be performed. When we expand the Delivery Summary details all that was ordered for this Purchase Order (PO appears to also be in the invoice.

4. From the Invoice Details Page I will link the second Purchase Order (PO) in this example manually to the invoice. From the Apicbase PO field I click on the pencil icon

5. A window pops up

6. I click inside this field (do not click the x) and the first Purchase Order (PO) is turned into an individual item.

A drop down list appears and I see other Purchase Order (PO) that are related to this supplier.

We see immediately that there is a 100% probability match for the Purchase Order (PO) PO#20250418-10510-23. The AI powered tool had successfully recognized another Purchase Order (PO) that would match with this invoice. (If this did not occur please follow the steps to locate your Purchase Order in the note below)

7. I click on PO #20250418-10510-23, both of my Purchase Order (PO) numbers appear as separate items in the field. And I select Save.

8. In the Invoice Details page we see changes in our Comparison Difference already.

Remember how it was with only one Purchase Order linked?

We can now see that the subtotal of the invoice before tax (excl. VAT) now matches the summed calculated subtotal of the received goods before tax (excl. VAT). We also see both of our Purchase Order (PO) details are also linked.

9. It is still possible to draw down the details for each Purchase Order (PO) delivery summary as well.

Note: If there is not a strong probable match in the Apicbase PO list, you may follow these steps to find the Purchase Order. Then follow the steps above to manually link it.

1. In Procurement, "Delivered Orders" for the outlet "Jamie's Hotels" I find another Purchase Order from this supplier that contains the remaining ingredients.

2. I return to my initial invoice and from the Invoice Details Page I will link the second Purchase Order (PO) in this example PO #20250418-10510-23 manually to the invoice following the steps above.

6.4 Linking a Credit Note to a Purchase Order (PO) Manually

1. To link a credit note to a Purchase Order (PO) I import the credit note the same way I import an invoice. Follow the same instructions to import the invoice but do this with the credit note instead.

2. I locate the credit note and go to the details. From the top right corner I select the word invoice and choose the drop down "credit note".

4. To compare the Credit Note and Invoice that have been linked to the Purchase Order (PO) I select the Purchase Order icon in the PO Details

5. From the Delivery Details summary page I see both attachments for comparison with the Purchase Order (PO) delivery.

6.5 Creating an Invoice Manually

1. To create an invoice manually, go to the Invoice Module List Page

2. From the the Import Invoices drop down select the + Add Manually

3. Fill in all the fields provided in the pop-up window about the Invoice and select the related Purchase Order (PO) from the drop down list.

4. Attach the invoice file and select Add Invoice

5. The manual invoice will appear in the Invoice List and you can can then follow the process for comparison and follow your process for settlements and payments. You can also follow this same process for creating a Manual Credit Note.

7. Limitations of Invoice Reconciliation V1

Bulk Importing: The module does not support AI Powered invoice matching in large batch importing (hundreds). The module supports a process flow where invoices are be processed in a timely fashion, same month for example.
Importing for the Past: The module can support AI powered invoice matching as far as two months in the past. Invoices can still be manually linked.
Multiple Purchase Order (PO) per Invoice: Only one invoice can be matched automatically to a PO. Additional Purchase Order(s) (PO) must be linked manually.
Multiple Invoices per Purchase Order: Only one invoice can be matched automatically to a Purchase Order (PO). Additional invoices must be linked manually.
Credit Notes: Must be linked manually

Coming in Future Versions:

We’re actively working on improvements, including:

Email-to-invoice support
Better credit note functionality
Enhanced matching logic

Need Help? Contact our support team or raise a ticket via your Apicbase dashboard.

Let us know what feedback you have so we can keep improving this module for your needs!

Invoice Reconciliation

The AI powered Invoice Reconciliation module matches supplier invoices with your purchase orders. This helps your finance team ensure that invoices are accurate before approving them for payment-saving time, reducing errors, and enhancing visibility.

Table of Contents

1. What Is Invoice Reconciliation?