Accounts payable · Production

What is AP Automation? — Basware generic explainer

The problem

Accounts payable processes handled manually require many human touches per invoice, are prone to errors such as duplicate or fraudulent payments, and carry high document storage and data-entry costs.

Workflow diagram · grounded in source
1
Invoice receipt
trigger
“Invoices can be received electronically or converted from paper to electronic. Electronic invoicing covers methods such as B2B/EDI connections, PDF invoicing or receipt via a supplier portal”
2
AI/OCR data extraction
ai_action
“Paper invoices are scanned and processed using artificial intelligence or OCR to extract and store the data in the cloud”
3
Matching or routing
routing
“invoices are either matched to purchase orders and goods receipts or they are automatically routed to the relevant team or individual for review and approval”
4
Human review and approval
human_review
“automatically routed to the relevant team or individual for review and approval”
5
ERP payment dispatch
integration
“Once approved, they are sent to the ERP or accounting system for payment”
6
Archive and audit trail
output
“All Invoices are securely archived, and audit trails of all actions taken on invoices are easily available for financial audit purposes”
Reported outcome

AP automation significantly reduces human touches per invoice, cuts processing costs, reduces payment errors, and embeds compliance rules directly into the process.

Reported metrics
Human touches per invoicesignificantly reduces the number of human touches per invoice
Invoice processing costsignificantly cut the cost of processing invoices
Payment errorsreduce payment errors, such as duplicate or fraudulent payments
Reported stack
OCRERP
Source
https://www.basware.com/en/solutions/ap-automation/what-is-ap-automation
Read source ↗

Frequently asked questions

What did this team achieve with this AI workflow?

AP automation significantly reduces human touches per invoice, cuts processing costs, reduces payment errors, and embeds compliance rules directly into the process.

What tools did this team use?

OCR, ERP.

What results were reported?

Human touches per invoice: significantly reduces the number of human touches per invoice; Invoice processing cost: significantly cut the cost of processing invoices; Payment errors: reduce payment errors, such as duplicate or fraudulent payments (source-reported, not independently verified).

How is this accounts payable AI workflow structured?

Invoice receipt → AI/OCR data extraction → Matching or routing → Human review and approval → ERP payment dispatch → Archive and audit trail.

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