Invoice Validation app
Project Summary
The Logistics division of a prominent manufacturing firm had been grappling with the intricate task of processing invoices from freight forwarders and customs clearance entities. Given their global procurement model for raw materials via sea, air, and courier services, the department was inundated with a multitude of invoices on a daily basis. These invoices contained intricate computations stemming from variables like freight contract rates, distance covered, and the weight of the materials. The department had been manually handling these calculations via Excel spreadsheets, further allocating invoices to various operational units within the company, while also producing monthly freight-in and accrual reports.
Having assessed the situation, we developed a web-based application to streamline this process. The application, designed to be accessible to the Logistics department, freight forwarders, and customs clearance companies, created a more efficient and error-free process. Vendors were given access to log in and upload their invoices, utilizing a standardized Excel format for the calculations. The web application then validated the invoices against the contracts previously uploaded by the Logistics team. Only approved invoices would proceed through the system, while the rest would be returned to the respective vendors for recalibration.
Moreover, our solution facilitated a seamless connection between Goods Received Notes (GRNs) and approved invoices, further integrating this data with the Finance department’s payment processing report. This allowed the generation of an accrual report for the Logistics department, highlighting those invoices for which GRNs had been completed but payments to vendors were still pending. In addition, an accrual report was made available to the Finance department, indicating instances where GRNs had been completed, but vendor invoices were still awaiting payment.
In essence, our Invoice Validation App delivered the following key benefits:
- Significant time savings by eliminating manual invoice validation processes.
- An 80% reduction in the man-hours previously required by the Logistics department.
- Avoidance of human calculation errors through automated validation.
- Single-click generation of reports specific to different operational units.
- Greater management visibility due to accurate accrual reports, aiding financial planning.
