Automate your workflow with Scry AI Solutions
Payment processing between businesses is never as simple as it seems. Small mistakes and undetected fraud in invoices or payments can cost millions. Traditional invoicing methods involve cumbersome systems that require manual follow-ups. It simply leads to inefficiencies, fat-finger errors and delayed payments. Late payments disrupt cash flow, liquidity, and daily operations and limit investment opportunities. It compels businesses to rely on loans just to keep the ball rolling. According to the European Commission[1], only 40% of businesses in the EU receive timely payments, with late payments contributing to one out of four SME bankruptcies. For a stable and resilient business environment, it’s critical to tackle invoice processing and late payments accurately. In 2022 alone, the Internet Crime Complaint Center[2] (IC3) received 21,832 complaints about business email compromise (BEC). The total losses from these scams were over $2.7 billion. Many of those BEC scams were fake invoices, where hackers impersonated authentic vendors and tricked companies. Manual or semi-automated systems fail to secure the invoice reconciliation process. They are incapable of dealing with multiple vendors, different invoice formats, and large volumes. And when the Internal Revenue Service (IRS) comes knocking for audits, they enter a downward spiral.
This blog will walk you through invoice discrepancies, their impact on your business, and how to resolve them with AI-powered AP automation.
An invoice discrepancy refers to any differences between an invoice and its related purchase order (PO), receipt, contract, or expected cost. It can arise at any point in the invoice cycle and cause a dent in a buyer-vendor relationship.
Let’s say you order 12 computers, and after receiving them, you find out the supplier has sent an invoice for 15. And that, too, with slightly higher pricing, this is a classic example of billing discrepancy. Businesses must address these issues quickly to ensure their assets, cash flow, and financial records are well-maintained.
Invoice discrepancies leave businesses vulnerable to monthly obligations that can jeopardize their operations, payroll, and finances. The significant risks of invoice disputes and errors are as follows:
And the list goes on and on. With so many opportunities for errors, enterprises are now turning to accounts payable automation software with machine learning and AI capabilities. These systems are sensitive to invoice irregularities and help to catch any mismatches or errors.
Errors and disputes while handling invoices can show up in countless forms. The more formats, systems, and vendors you work with, the more room there is for errors. Below is the list of 7 common invoice discrepancies and how modern AI-powered AP systems handle them.
1. Mismatched PO and Invoice Line Items
Problem: The invoice sent by the vendor doesn’t match the original purchase orders due to quantity changes or increased pricing. Missing line items, e.g., missing tax details or vendor addresses, can amount to invalid or incomplete invoices.
Solution: AI-powered invoice processing systems can automatically perform:
They cross-verify a large volume of data across multiple systems and flag real-time inconsistencies without any human intervention.
2. Duplicate Invoices
Problem: If a vendor sends a duplicate invoice, either accidentally or intentionally, it can easily slip through the manual check. You end up paying more and later find yourself short on cash, as your system could not notice this error.
Solution: Modern systems use advanced algorithms to analyze all types of documents. They perform text recognition, accurate line item extraction, segmentation, and table reconstruction to depict the correct data. The deep learning model identifies subtle variations in invoice numbers, invoice dates, and so on for detecting duplicate invoices. Then, they flag the invoice and pause the payment before it is released.
3. Incorrect or Missing Vendor Information
Problem: You received an invoice from your vendor with a missing tax ID or different bank details (compared to previous invoices). You may think your vendor has changed their bank account or address and end up clearing those billables. It turns out it was a fraudulent invoice sent by the scammers. Or worse, you didn’t consider tax compliance, which can result in heavy penalties during the audit season.
Solution: Tools validate the presented invoice details against your vendor master database. It instantly auto-populates missing fields such as tax details, tax rates, and vendor address inconsistencies. The system will be able to detect slightly altered or different bank details and will send an alert for manual review.
4. Tax Miscalculations and Compliance Errors
Problem: Incorrect and inflated tax amounts or non-compliance formats can slow down the invoice reconciliation process. It can cause delayed payments and increase invoice audit risks.
Solution: Smart systems use jurisdiction-specific tax regulators to auto-calculate correct values. It helps businesses ensure the appropriate format compliance for each invoice.
5. Currency Conversion Errors
Problem: You are invoiced for $5000 but paid €5000, which is much more than what you were supposed to pay. Vendors may notice and return the extra amount, but the bank would charge the exchange rate and fees. This is a standard error when dealing with international vendors; it requires exchange rate calculations and currency conversion.
Solution: Modern systems auto-convert the amount values and verify them using market rates. They provide consistency in reporting and reconciliation, ensuring you don’t lose money on currency errors.
6. Unstructured or Complex Invoice Data
Problem: When your finance team receives a long, lengthy, yet complex handwritten invoice, manually entering that information is tedious. Using legacy-based AP systems and invoice reconciliation tools that use OCR(Optical Character Recognition) can help. However, OCR alone can’t extract all information from PDF or scanned invoices, e.g., multi-line items or complex tables. It can work, but its accuracy requires human touch.
Solution: By leveraging enhanced OCR coupled with Machine learning, these tools accurately extract data from multiple types of documents. They can analyze and extract data from distorted and unstructured files, even low-quality ones. Thereafter, it maps those details into the correct fields in your existing AP, Finance, or ERP systems.
7. Different Data Formats Across Vendors
Problem: Each vendor has their own invoice format, terminology, and file type, which can make your manual reconciliation full of errors. The traditional system also works on a template basis and limits various formats.
Solution: The AI-based Invoice reconciliation systems are trained to learn and recognize data across different formats. It standardizes inputs in your system, so you won’t have to go back and forth verifying every value to determine what is what.
One of the most common concerns of the finance team is, ‘Will this work with what we already have? ‘ The answer is yes.
Both Scry AI’s AI-powered Invoice Reconciliation (IR) and end-to-end AP automation can be layered into your existing ERPs.
Whether you are using SAP, Oracle, NetSuite, Dynamics, or a custom platform, the integration process would be smooth with minimal disruption. Below are the steps businesses must follow to integrate and make their invoice reconciliation process seamless:
A large logistics firm was processing over 10,000+ invoices monthly, dealing with different regional and international vendors. They were dealing with inconsistent invoice formats, other currencies, delays in approvals, late payments, compliance irregularities, and matching problems. Despite using a well-established ERP system, their AP teams spent over 40 hours each month resolving duplicate payments and compliance flags. It increased the company’s operational costs and strained vendor relationships.
Solution: The firm implemented Collatio® Invoice Reconciliation as an embedded layer within their existing ERP system. The AI-powered solution automated the data extraction and reconciliation against POs and contracts. It automated real-time 2-way, 3-way, and 6-way matching with 99% accuracy. Our system processed 200 invoices per hour, enabling the organization to handle large volumes of financial documents in different formats. It also managed emergency scenarios and automatically flagged fraudulent, duplicate, or out-of-policy invoices. Standardized the unstructured data across various regional and non-regional vendors and took care of the currency exchange problems.
Result: The firm reduced its invoice processing and reconciliation time by up to 85%, with a 90% drop in duplicate or erroneous payments. The firm achieved 100% audit readiness with fewer manual touchpoints and straight-through processing within 3 months. After integrating Scry AI’s IR, the firm successfully eliminated invoice bottlenecks and accelerated the payment cycle while strengthening compliance.
The traditional method of handling invoices and reconciliation with legacy systems is fraught with inefficiencies. Companies who turn to conventional ERPs and AP systems to sort this end up verifying every payment discrepancy manually. It is time-consuming, prone to errors, and can lead to delayed payments, strain business relationships, & loss of assets. Meanwhile, our AI-powered invoice reconciliation and AP systems provide businesses with an ingenious innovation. This intelligent system deals with fake/duplicate invoices, compliance irregularities, late payments, matching issues, and other invoice discrepancies. It is designed to automate workflows and provide real-time visibility, simplifying invoice processing.
At Scry Analytics Inc ("us", "we", "our" or the "Company") we value your privacy and the importance of safeguarding your data. This Privacy Policy (the "Policy") describes our privacy practices for the activities set out below. As per your rights, we inform you how we collect, store, access, and otherwise process information relating to individuals. In this Policy, personal data (“Personal Data”) refers to any information that on its own, or in combination with other available information, can identify an individual.
We are committed to protecting your privacy in accordance with the highest level of privacy regulation. As such, we follow the obligations under the below regulations:
This policy applies to the Scry Analytics, Inc. websites, domains, applications, services, and products.
This Policy does not apply to third-party applications, websites, products, services or platforms that may be accessed through (non-) links that we may provide to you. These sites are owned and operated independently from us, and they have their own separate privacy and data collection practices. Any Personal Data that you provide to these websites will be governed by the third-party’s own privacy policy. We cannot accept liability for the actions or policies of these independent sites, and we are not responsible for the content or privacy practices of such sites.
This Policy applies when you interact with us by doing any of the following:
What Personal Data We Collect
When attempt to contact us or make a purchase, we collect the following types of Personal Data:
This includes:
Account Information such as your name, email address, and password
Automated technologies or interactions: As you interact with our website, we may automatically collect the following types of data (all as described above): Device Data about your equipment, Usage Data about your browsing actions and patterns, and Contact Data where tasks carried out via our website remain uncompleted, such as incomplete orders or abandoned baskets. We collect this data by using cookies, server logs and other similar technologies. Please see our Cookie section (below) for further details.
If you provide us, or our service providers, with any Personal Data relating to other individuals, you represent that you have the authority to do so and acknowledge that it will be used in accordance with this Policy. If you believe that your Personal Data has been provided to us improperly, or to otherwise exercise your rights relating to your Personal Data, please contact us by using the information set out in the “Contact us” section below.
When you visit a Scry Analytics, Inc. website, we automatically collect and store information about your visit using browser cookies (files which are sent by us to your computer), or similar technology. You can instruct your browser to refuse all cookies or to indicate when a cookie is being sent. The Help Feature on most browsers will provide information on how to accept cookies, disable cookies or to notify you when receiving a new cookie. If you do not accept cookies, you may not be able to use some features of our Service and we recommend that you leave them turned on.
We also process information when you use our services and products. This information may include:
We may receive your Personal Data from third parties such as companies subscribing to Scry Analytics, Inc. services, partners and other sources. This Personal Data is not collected by us but by a third party and is subject to the relevant third party’s own separate privacy and data collection policies. We do not have any control or input on how your Personal Data is handled by third parties. As always, you have the right to review and rectify this information. If you have any questions you should first contact the relevant third party for further information about your Personal Data.
Our websites and services may contain links to other websites, applications and services maintained by third parties. The information practices of such other services, or of social media networks that host our branded social media pages, are governed by third parties’ privacy statements, which you should review to better understand those third parties’ privacy practices.
We collect and use your Personal Data with your consent to provide, maintain, and develop our products and services and understand how to improve them.
These purposes include:
Where we process your Personal Data to provide a product or service, we do so because it is necessary to perform contractual obligations. All of the above processing is necessary in our legitimate interests to provide products and services and to maintain our relationship with you and to protect our business for example against fraud. Consent will be required to initiate services with you. New consent will be required if any changes are made to the type of data collected. Within our contract, if you fail to provide consent, some services may not be available to you.
Where possible, we store and process data on servers within the general geographical region where you reside (note: this may not be within the country in which you reside). Your Personal Data may also be transferred to, and maintained on, servers residing outside of your state, province, country or other governmental jurisdiction where the data laws may differ from those in your jurisdiction. We will take appropriate steps to ensure that your Personal Data is treated securely and in accordance with this Policy as well as applicable data protection law.Data may be kept in other countries that are considered adequate under your laws.
We will share your Personal Data with third parties only in the ways set out in this Policy or set out at the point when the Personal Data is collected.
We also use Google Analytics to help us understand how our customers use the site. You can read more about how Google uses your Personal Data here: Google Privacy Policy
You can also opt-out of Google Analytics here: https://tools.google.com/dlpage/gaoptout
We may use or disclose your Personal Data in order to comply with a legal obligation, in connection with a request from a public or government authority, or in connection with court or tribunal proceedings, to prevent loss of life or injury, or to protect our rights or property. Where possible and practical to do so, we will tell you in advance of such disclosure.
We may use a third party service provider, independent contractors, agencies, or consultants to deliver and help us improve our products and services. We may share your Personal Data with marketing agencies, database service providers, backup and disaster recovery service providers, email service providers and others but only to maintain and improve our products and services. For further information on the recipients of your Personal Data, please contact us by using the information in the “Contacting us” section below.
A cookie is a small file with information that your browser stores on your device. Information in this file is typically shared with the owner of the site in addition to potential partners and third parties to that business. The collection of this information may be used in the function of the site and/or to improve your experience.
To give you the best experience possible, we use the following types of cookies: Strictly Necessary. As a web application, we require certain necessary cookies to run our service.
We use preference cookies to help us remember the way you like to use our service. Some cookies are used to personalize content and present you with a tailored experience. For example, location could be used to give you services and offers in your area. Analytics. We collect analytics about the types of people who visit our site to improve our service and product.
So long as the cookie is not strictly necessary, you may opt in or out of cookie use at any time. To alter the way in which we collect information from you, visit our Cookie Manager.
A cookie is a small file with information that your browser stores on your device. Information in this file is typically shared with the owner of the site in addition to potential partners and third parties to that business. The collection of this information may be used in the function of the site and/or to improve your experience.
So long as the cookie is not strictly necessary, you may opt in or out of cookie use at any time. To alter the way in which we collect information from you, visit our Cookie Manager.
We will only retain your Personal Data for as long as necessary for the purpose for which that data was collected and to the extent required by applicable law. When we no longer need Personal Data, we will remove it from our systems and/or take steps to anonymize it.
If we are involved in a merger, acquisition or asset sale, your personal information may be transferred. We will provide notice before your personal information is transferred and becomes subject to a different Privacy Policy. Under certain circumstances, we may be required to disclose your personal information if required to do so by law or in response to valid requests by public authorities (e.g. a court or a government agency).
We have appropriate organizational safeguards and security measures in place to protect your Personal Data from being accidentally lost, used or accessed in an unauthorized way, altered or disclosed. The communication between your browser and our website uses a secure encrypted connection wherever your Personal Data is involved. We require any third party who is contracted to process your Personal Data on our behalf to have security measures in place to protect your data and to treat such data in accordance with the law. In the unfortunate event of a Personal Data breach, we will notify you and any applicable regulator when we are legally required to do so.
We do not knowingly collect Personal Data from children under the age of 18 Years.
Depending on your geographical location and citizenship, your rights are subject to local data privacy regulations. These rights may include:
Right to Access (PIPEDA, GDPR Article 15, CCPA/CPRA, CPA, VCDPA, CTDPA, UCPA, LGPD, POPIA)
You have the right to learn whether we are processing your Personal Data and to request a copy of the Personal Data we are processing about you.
Right to Rectification (PIPEDA, GDPR Article 16, CPRA, CPA, VCDPA, CTDPA, LGPD, POPIA)
You have the right to have incomplete or inaccurate Personal Data that we process about you rectified.
Right to be Forgotten (right to erasure) (GDPR Article 17, CCPA/CPRA, CPA, VCDPA, CTDPA, UCPA, LGPD, POPIA)
You have the right to request that we delete Personal Data that we process about you, unless we need to retain such data in order to comply with a legal obligation or to establish, exercise or defend legal claims.
Right to Restriction of Processing (GDPR Article 18, LGPD)
You have the right to restrict our processing of your Personal Data under certain circumstances. In this case, we will not process your Data for any purpose other than storing it.
Right to Portability (PIPEDA, GDPR Article 20, LGPD)
You have the right to obtain Personal Data we hold about you, in a structured, electronic format, and to transmit such Personal Data to another data controller, where this is (a) Personal Data which you have provided to us, and (b) if we are processing that data on the basis of your consent or to perform a contract with you or the third party that subscribes to services.
Right to Opt Out (CPRA, CPA, VCDPA, CTDPA, UCPA)
You have the right to opt out of the processing of your Personal Data for purposes of: (1) Targeted advertising; (2) The sale of Personal Data; and/or (3) Profiling in furtherance of decisions that produce legal or similarly significant effects concerning you. Under CPRA, you have the right to opt out of the sharing of your Personal Data to third parties and our use and disclosure of your Sensitive Personal Data to uses necessary to provide the products and services reasonably expected by you.
Right to Objection (GDPR Article 21, LGPD, POPIA)
Where the legal justification for our processing of your Personal Data is our legitimate interest, you have the right to object to such processing on grounds relating to your particular situation. We will abide by your request unless we have compelling legitimate grounds for processing which override your interests and rights, or if we need to continue to process the Personal Data for the establishment, exercise or defense of a legal claim.
Nondiscrimination and nonretaliation (CCPA/CPRA, CPA, VCDPA, CTDPA, UCPA)
You have the right not to be denied service or have an altered experience for exercising your rights.
File an Appeal (CPA, VCDPA, CTDPA)
You have the right to file an appeal based on our response to you exercising any of these rights. In the event you disagree with how we resolved the appeal, you have the right to contact the attorney general located here:
If you are based in Colorado, please visit this website to file a complaint. If you are based in Virginia, please visit this website to file a complaint. If you are based in Connecticut, please visit this website to file a complaint.
File a Complaint (GDPR Article 77, LGPD, POPIA)
You have the right to bring a claim before their competent data protection authority. If you are based in the EEA, please visit this website (http://ec.europa.eu/newsroom/article29/document.cfm?action=display&doc_id=50061) for a list of local data protection authorities.
If you have consented to our processing of your Personal Data, you have the right to withdraw your consent at any time, free of charge, such as where you wish to opt out from marketing messages that you receive from us. If you wish to withdraw your consent, please contact us using the information found at the bottom of this page.
You can make a request to exercise any of these rights in relation to your Personal Data by sending the request to our privacy team by using the form below.
For your own privacy and security, at our discretion, we may require you to prove your identity before providing the requested information.
We may modify this Policy at any time. If we make changes to this Policy then we will post an updated version of this Policy at this website. When using our services, you will be asked to review and accept our Privacy Policy. In this manner, we may record your acceptance and notify you of any future changes to this Policy.
To request a copy for your information, unsubscribe from our email list, request for your data to be deleted, or ask a question about your data privacy, we've made the process simple:
Our aim is to keep this Agreement as readable as possible, but in some cases for legal reasons, some of the language is required "legalese".
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No failure to exercise, and no delay in exercising, on the part of either party, any right or any power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or power hereunder preclude further exercise of that or any other right hereunder.
We may provide any notice to you under these Terms of Service by: (i) sending a message to the email address you provide to us and consent to us using; or (ii) by posting to the Website. Notices sent by email will be effective when we send the email and notices we provide by posting will be effective upon posting. It is your responsibility to keep your email address current.
To give us notice under these Terms of Service, you must contact us as follows: (i) by personal delivery, overnight courier or registered or certified mail to Scry Analytics Inc. 2635 North 1st Street, Suite 200 San Jose, CA 95134, USA. We may update the address for notices to us by posting a notice on this Website. Notices provided by personal delivery will be effective immediately once personally received by an authorized representative of Company. Notices provided by overnight courier or registered or certified mail will be effective once received and where confirmation has been provided to evidence the receipt of the notice.
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