Invoice Processing Automation – Medical Device Distributor
The Challenge:
A medical device distributor processed 2,800+ monthly vendor invoices with 70% arriving via email or mail requiring manual data entry averaging 8 minutes per invoice. Data entry errors caused payment delays and vendor relationship issues, three-way matching (PO-Receipt-Invoice) was manual consuming 45 hours weekly, and early payment discounts worth $85K annually were frequently missed.
The Solution:
Deployed Azure AI Document Intelligence to extract data from invoice images/PDFs with automated posting to Dynamics 365 Finance. Power Automate performed three-way matching with exception handling workflows via Power Apps for discrepancies. Fabric maintained vendor performance data including on-time delivery and quality metrics. Copilot provided AP clerks with matching recommendations and exception resolution guidance. Power BI tracked processing times, exception rates, early payment discount capture, and vendor payment terms compliance.
Result:
Invoice processing time reduced from 8 minutes to 90 seconds (89% reduction), data entry errors decreased by 94% improving vendor relationships, and three-way matching time reduced from 45 hours to 8 hours weekly. Early payment discount capture improved from 60% to 94% saving $51K annually, and AP staff redeployed from data entry to strategic vendor relationship management.