invoice-processing

Invoice Processing

Extract structured data from invoices, validate fields against purchase orders and vendor records, categorize line items by general ledger (GL) codes, and flag discrepancies for review. This skill handles both single invoice processing and batch operations, producing clean, auditable output ready for import into accounting systems.

Workflow

1. Receive and Parse Invoice Accept invoice data in any format — raw text, OCR output, structured JSON, or CSV. Identify the document type (standard invoice, credit memo, debit note, proforma) and extract the header block: invoice number, date, due date, vendor name, vendor address, and payment terms.

2. Extract Line Items and Totals Parse each line item for description, quantity, unit price, extended amount, and tax. Validate that line item totals sum to the stated subtotal. Extract tax amounts, shipping charges, discounts, and the grand total. Flag any arithmetic inconsistencies between line items and totals.

3. Validate Against Purchase Order Match the invoice to its corresponding PO by PO number, vendor, or line item descriptions. Compare quantities and unit prices. Compute a three-way match score across PO, goods receipt, and invoice. Flag invoices where price variance exceeds a configurable threshold (default: 2%) or quantities don't match.

4. Categorize by GL Code Assign each line item to the appropriate general ledger account based on item description, vendor category, and historical patterns. Common mappings include office supplies → 6200, software subscriptions → 6500, professional services → 6300, raw materials → 5100. Apply department cost center codes where applicable.

5. Flag Discrepancies and Generate Output Produce a structured record for each invoice with all extracted fields, validation status, GL assignments, and any flags. Group flags by severity: blocking errors (missing PO, total mismatch > 5%), warnings (minor price variance, missing fields), and informational (new vendor, first invoice from vendor).