Are you familiar with AP automation workflows in Epicor ECM DocStar? Epicor’s accounts payable process automation is a significant value-add to any organization looking to streamline AP processes.

Suppose your accounting or AP department is looking for ways to minimize human errors, increase cost savings and save time in the approval process. In that case, Epicor DocStar ECM is the accounts payable software they need.

Explore how companies using Epicor ERP leverage DocStar AP automation to improve their AP process.

How Does the AP Automation System Work Within Epicor ECM?

These workflows automatically match incoming vendor invoices, purchase orders, and receipts. In implementing these workflows, we often encounter a common question or misconception of the best approach to match AP invoices— specifically, the lines—to your purchase orders and receipts. This is always referred to as a 3-way match in the AP world.

When you purchase the accounts payable solution for Epicor ECM DocStar, the software introduces two methods of accomplishing the above. These methods are called Line-Level Matching and Pull-N-Present (PNP).

Our Epicor AP automation experts thoroughly examined both methods to provide you with the knowledge you need to decide which method is best suited to your organization.

How to Automate Payables: Line-Level Matching

The line-level matching method is most effective when used with the Intelligent Data Capture (IDC) software to provide an automated approach to capturing invoice data. This can produce a perceived hurdle with line-level matching as it relates to the additional costs surrounding IDC licensing and implementation. However, these aren’t reasons you should stray away from selecting it.

IDC will effectively capture all invoice header and footer (summary) details, which include:

Then, it will attempt to capture all the line-level data, splitting the invoice lines into their respective rows and capturing data such as part number, part description, quantity, unit of measure (UOM), unit cost, and so on.

Once IDC completes its part, the invoice and its respective metadata are sent into Epicor ECM to begin invoice processing. This also includes the steps involved in matching invoice data with Epicor ERP data.

The Key Differences Between the Line-Level Matching and Pull-N-Present (PNP) Method

Both matching methods go through the same initial validation and exception-checking steps. Does the vendor exist in your Epicor ERP system? Is there a valid PO? Once these validations are done, the primary difference between line-level and PNP occurs.

For line-level to appropriately match, the part numbers on the invoice that were captured must match the part number stored in your ERP system, character-for-character. The unit of measure must also be the exact measurement stored in your Epicor ERP software. Lastly, the unit cost that was agreed upon should be the same between the invoice and what was stated on the related purchase order.

As you can see, this provides a plethora of variables that must be perfect for the AP workflow to be streamlined and touchless.

How to Maximize AP Workflow Automation Performance with Line-Level Matching

For optimal performance, an organization will need to maintain and keep up-to-date supplier parts in the Epicor ERP system. This will ensure the system is as automated as possible.

For some organizations, this may be tedious work that doesn’t provide much value, while for others, this may be great for many reasons: your suppliers remain the same and rarely are new ones introduced, and/or your parts remain consistent, and the same parts are ordered regularly.

For those organizations where the database upkeep may appear overwhelming, the second method—Pull-N-Present—is one of the most effective automated AP solutions.

Payables Automation: Pull-N-Present (PNP)

Epicor developed the PNP matching method to be a more efficient invoice management process. The Pull-N-Present approach makes matching invoices to their respective POs and receipts easier. This method relieves the requirement to have precisely matching data and removes variables that generally account for most invoice automation failures.

The IDC software is still a utilized automation tool with this matching method. However, unlike the requirements for line-level matching, we no longer need to worry about the line-item details on invoices. Instead, we focus our efforts on capturing the header/footer details precisely…and that’s all!

As soon as the IDC finishes its job, just like line-level, the invoice and associated metadata are sent into Epicor ECM for processing. The invoice then moves through the various validation and exception checks before moving into matching.

Benefits of AP Automation—How Epicor ECM Innovates

This is where the new and improved method comes into play. Instead of requiring that the part number and other data match character-for-character between the invoice and the ERP, Epicor ECM takes the critical data—vendor name and PO number—and sends it to the Epicor system.

Your ERP system then looks through its database to pull any available lines on the purchase order(s). Epicor ECM will only be presented with lines from a purchase order where the lines are marked received (fully or partially) and are not already invoiced elsewhere. If the lines pass these two checks, they will be presented to Epicor ECM to tie them to that invoice and match the total line extended cost to the invoice subtotal.

At this point, it’s simple math. If the lines received are the same quantity as what’s invoiced, and the vendor charged the price on the purchase order, the extended cost of the lines should match the invoiced amount, and the invoice will automatically move on through the automation workflow!

Of course, other items or costs could always be associated, but these will be handled the same way regardless of matching method. These costs could include things like freight, taxes, or miscellaneous charges. These types of charges generally don’t affect the matching process.

How TeccWeb Helps You Choose the Best AP Automation Solutions for Your Organization

Presently, most Epicor clients Teccweb has helped to implement AP Automation workflows have decided to use the PNP method. All completed projects have been successful in their use of the matching process.

We see this particular matching method to be generally more cost-effective, and it doesn’t necessarily require the use of IDC since the AP processor can easily key/index the necessary header/footer data.

If you are interested in learning more about Epicor ECM and the AP Automation workflows, reach out to us today. We can be your partner in ensuring a successful ECM AP automation journey!

Author: Ryan Pedigo