The AP Inbox process

The AP Inbox speeds up your accounts payable process by letting you automate the process of invoice entry as follows:

1. When invoice PDFs are emailed to the AP Inbox, they are scanned, creating a draft invoice with the original PDF attached.  Alternatively, invoices can be imported using our new Bulk Upload feature and will go through the same scanning process to produce a draft invoice.
2. The invoice appears in the AP Inbox listing grid ready to be updated as needed. If there is an originating Purchase Order, this will either be matched automatically or manually depending on the matching rules passed. 
3. When the invoice is processed, it will move to the invoice listing grid where it can then go through approval (once saved as OCR checked). 

Credit notes can be processed in the same manner except they have a negative total, and follow the credit note numbering system. 

Find the AP Inbox at Purchases > AP Inbox.

Prerequisites

Check the following settings:

• Codes Maintenance: Ensure all relevant currencies are set up.
• Supplier Account: Ensure supplier details are correct as they will be used in the invoice matching process. The OCR scanning will check the following:
  • Email address
  • Currency
  • Name
  • VAT registration number
  • Bank details (IBAN or Bank Account/Sort Code)
• Menu Profiles: Ensure you have the AP Inbox permission for assigned to your user profile in Maintain User Profile screen. This will give you access to  all the features described in this article.

See:

How to configure the AP Inbox (4.4) - AIQ Academy

Processing Invoices in the AP Inbox (4.5) - AIQ Academy

Managing Supplier Accounts

AP Inbox Troubleshooting 

AP Inbox Configuration

For invoices to be routed to the AP Inbox, it must be configured first.

1. Go to Setup > Configure AP Inbox. 
2. Enter a fallback email address and click Send Confirmation. If invoices fail to load, a fallback email will be sent to this address, including details of the failure and steps to take.

3. Enter the 6-digit verification code received in the fallback email and click on Save. The AP Inbox is now configured.
4. Copy the AP Inbox email address and either manually forward any supplier invoices to this address or set up a forwarding rule in your email client.
   

5. Enable or disable Multi-line Extraction. This setting will apply to all invoices but can be overridden for individual suppliers in the Account Settings tab of the Supplier Account.
   • Enable it for detailed line extraction.
   • Disable it for faster processing on invoices with many lines, such as utilities.

AP Inbox Supplier and AP Inbox Item Codes

When you configure the AP Inbox, this creates a default AP Inbox Supplier code and AP Inbox Item code. These are used to process invoices in the following manner:

• AP Inbox supplier: An AP Inbox supplier is created both in base currency and for every currency in which there are invoices. The system uses this default code if the supplier information on the PDF invoice cannot be matched to a supplier record in the system. If an invoice invoice is assigned the AP Inbox Supplier default, it must be updated before saving the invoice.
• AP Inbox item: All invoices sent to the AP Inbox are created as item invoices using the default AP Inbox service item code. You can update any draft invoices with your own items before processing if preferred or you can process the invoices using the AP Inbox Item.

Bulk Upload 

Our Bulk Upload feature lets you import invoices directly into the AP Inbox. It can be used in addition to, or instead of, routing emailed invoices depending on your preferences. For example, if you receive invoices by post, you can scan them, save as a PDF and upload as described below.

To use Bulk Upload, the AP Inbox must be configured (see previous section) and you must have the AP Inbox permission assigned to your user profile.

To import invoice pdfs directly, use the Bulk Upload option. Just click Upload Files, then drag and drop, or select up to 20 invoices at once. You will be notified when the process is complete and receive details if any files cannot be read.

The AP Inbox scanning process

The system scans all items sent to the AP Inbox email or uploaded using the Bulk Upload, and then creates draft invoices based on the information read from the invoice attachment.

Unsuccessful: If the system can't find a PDF attachment, or cannot read the PDF, an email notification will be sent to the fallback email address with steps to resolve the problem.

Successful: Scanned Invoices will appear in the AP Inbox ready for checking based on these rules:

• Multiple Attachments: If an email has multiple PDF invoices, they will each be created as separate AP Inbox invoices. 
• Suppliers: If the invoice supplier details match a supplier record, a draft invoice against the supplier will be created. If the AP Inbox cannot find the supplier, the invoice will be processed against an AP Inbox default supplier with the same currency as the invoice.

Processing  AP Inbox Invoices

1. Open the invoice and check the details. The original supplier invoice is attached for comparison. If the default AP Inbox supplier account has been assigned, you can update it with the relevant supplier. The Supplier field will be highlighted, and you won’t be able to save the invoice until you update it. Updating the supplier will not impact the existing date, VAT, line items, or unit prices.
2. If necessary, select or enter a matching PO. See the next section on the PO PI matching process.
3. Line items are created using the AP Inbox service item. Note the following regarding multi-line extraction: 
   • If you set multi-line extraction in the supplier record, the Line-Items toggle will reflect that. 
   • If you have not set multi-line extraction in the supplier record, it will show whatever was set during AP Inbox configuration. 
   • If you multi-line settings in the AP Invoice, the Invoice will be cancelled and resent to the AP Inbox automatically. Note, that you may need to wait a few minutes for it to appear. In addition, the supplier records will update accordingly.
   • If multi-line extraction fails, the document will appear in the AP Inbox with the summary data only and the message “Line details unavailable - summary data applied.”
4. Next, you may need to Adjust VAT if the AP Item Invoice was submitted via API as its VAT will be based on the external system's logic. It will require adjustment if it deviates from AIQ by +/-10 cents per VAT code. See the ‘VAT Adjustment’ section of Creating Purchase Item Invoices for more details.
5. When all details are correct, tick OCR Checked and click Save. The invoice will then appear as ‘Processed’ in the Purchase Invoice listing grid, for approval, if using, and posting.

Editing AP Inbox Invoices

Saved PIs can still be modified through the AP Inbox screen but they may need to go for reapproval (if using) if the tolerance set is not matched. 

Cancelling AP Inbox Invoices

Note the following:

• The AP Inbox won’t import multiple invoices from the same supplier if they share the same invoice number. Therefore, before cancelling, change the invoice number if you expect to receive another invoice of the same number. 
• If you are using workflow approval, only approved, rejected, or invoices that don't require approval can be cancelled. 
• Once invoices are cancelled, no further changes can be made.

The AP Inbox and Purchase Ordering modules are connected, meaning when a PI enters the AP Inbox it will be matched, completely or partially, with its originating PO.

The Matching Process

The matching process involves comparing details from the scanned PI and the associated supplier account in the following order:

1. Email: The supplier's email is matched against the email that sent the PI to the AP Inbox.
2. Currency: If the emails match, the PI and supplier currency must also match.
3. Name: If the email and currency matching fails, the supplier name on the PI is matched against the name on the supplier record. This is done by removing character spaces and ampersands from both sources. If there are multiple matches, the currency is used to narrow it down to one.
4. VAT Registration Number: If the preceding matching steps all fail, the Supplier VAT number is matched against the PI.
5. IBAN: If the preceding matching steps all fail, the Supplier IBAN is matched against the PI.
6. PO Ext Ref and PO Number: These will be checked for matches on the PI. 

Case One: Full PO PI Match

A full match occurs when OCR recognises the supplier, Purchase Order Reference, and amount.

In the case of a complete match:

• The PO will be removed from the Deliveries listing grid and matched to the PI. It will be marked as fully delivered and invoiced. 
• The PI will not enter the AP Inbox listing grid but instead go directly to the Invoice listing grid. The resulting PI will have all the line details of the originating PO, including any GL codes and Dimension Tags.

Case Two: Partial PO PI Match

A partial match occurs when details such as the supplier match but not the Purchase Order reference. The PO needs to be matched to a PI in the AP Inbox. 

1. Go to Purchases > AP Inbox and open the relevant AP Inbox invoice.
2. Select the relevant PO from the Match to Order dropdown. This will automatically complete the PI line details to match those from the PO, including the original PO GL codes and Dimension Tags. Note that only one Purchase Order can be selected.

3. The PI can still be edited if necessary. 
   • For example, if a PO covers services for the whole year, and you receive corresponding invoices monthly, the PO total will exceed each monthly invoice total. Therefore, adjust the quantities accordingly and ensure the PO line details match the invoice. This way the system will only invoice and deliver the amounts specified.  
4. When ready, click Save. Once the PI is saved:
   • The PI will be created and linked to the PO. Once saved, the PI be removed from the AP Inbox and appear in the Purchase Invoice listing grid. If the PO was linked in error, the PI needs to be cancelled to unlink them. 
   • The PO will be removed from the Deliveries listing grid and be marked as invoiced. 

Using Workflow Approval with PO PI Matching 

To enforce the use of POs, enable the Order Required flag in the supplier account. For more information, see Managing Supplier Accounts.

To use PO PI matching with workflow approval, the PO should have an Approval Status of ‘Approved’ or ‘Approval Not Required’ (if using PO approval) and a Status of ‘Delivered but not yet invoiced’. For full details on WFA, see Workflow Approval. 

Reapproval Rules for POs

Note, that if the invoiced net amount is outside the PO matching tolerance set within the Approval settings, the PO will need to be edited and sent for re-approval as follows:

• Resend manually if the Status is ‘Reserved’ and the Approval Status is ‘Approved’ or ‘Approval not required’.
• Resent automatically if the Approval Status is ‘Full Delivery’ or ‘Partial Delivery’.