Invoice exception resolution

Invoice exception resolution

Invoice exceptions are the single largest queue in AP shared services. The work is document-heavy, cross-system, and rules-driven. An agent that reads the contract, queries the ERP, compares the invoice, and prepares a resolution packet changes the economics of the queue.

The workflow

1. The agent receives an exception from the ERP queue. The exception includes the invoice, the purchase order, the goods receipt, and the vendor.
2. The agent reads the contract from document management, identifying the pricing terms, the payment terms, and any specific clauses relevant to the exception.
3. The agent queries the ERP for the purchase order and goods receipt, comparing line items to the invoice.
4. The agent detects exceptions against the policy: price variance, quantity variance, missing receipt, terms mismatch.
5. The agent prepares a resolution packet: the exception, the contract clauses, the comparison, the proposed resolution.
6. The agent routes the packet to the appropriate approver based on the exception type and amount. Credits and payment terms changes require explicit human approval.
7. The approver reviews and approves. The agent posts to the ERP and closes the ticket.

What this looks like in production

The agent operates inside the existing AP workflow. The policy that determines what is an exception and who approves it is maintained by the AP team. The agent reads the policy, applies it, and routes accordingly.

The audit trail captures every input (contract, PO, GR, invoice), every comparison, every exception detected, and every action taken. The packet is available to internal audit and to the vendor on request.

High-impact exceptions (credits above a threshold, payment terms changes, new vendor setup) require explicit human approval. The agent does not post these actions without the approver’s decision.

What good looks like

• Invoice exception cycle time compressed from days to hours.
• Exception handling rate per AP analyst increased by 2-3x.
• Audit trail available for every exception, with the source of every comparison.
• Vendor disputes reduced because the resolution packet is consistent and traceable.