Vendor Invoice Auto Approval

Discovery offers the option to Auto-Approve Vendor Invoices if certain criteria are met. Vendor Invoice Auto-Approval is not active by default and each tenant must request the feature be activated.

If enabled, Vendor Invoices will be auto-Approved under the following criteria:

  • The invoice total is within the Force Approval % Tolerance of the previous invoice on the same vendor account (see Comparing to the Previous Invoice below)
  • There are no Line Item revisions for the Vendor Invoice.
  • All Line Items are associated with either a Vendor Contract Fee, Vendor Service Fee or Vendor Service Charge.

Auto Approval Invoice Validation Guidelines

Overview

This document outlines the validation rules that determine whether an invoice qualifies for Auto Approval based on the administrator’s settings.   By adhering to these guidelines, we aim to streamline the invoice approval process, enhance automation, and ultimately save time and money.

Validation Rules

Invoices that are within the Force Approval % Tolerance of the previous invoice, are under the Force Approval Threshold, and have no line item revisions then go through vendor contract validation before they can be auto approved.

Line Item Validation Against Vendor Contract

  • Requirement: All line item amounts must exactly match the rates/fees set in the vendor contract.
  • Conditions:
    • If there is no matching rate/fee in the vendor contract, the invoice will not auto approve.
    • If the service level is designated as having No Vendor Contract, the invoice will auto approve.
    • If the service is designated as MISSING a vendor contract, it will not auto approve.

Upon successful Auto-Approval, the Vendor Invoice status node will display as completed. The description on that node will read "Invoice has been auto approved."

When a Vendor Invoice fails to Auto-Approve, an error message will be provided to indicate what needs attention.


Comparing to the Previous Invoice

When a Force Approval % Tolerance is set (on the vendor account, or as your tenant default in Vendor Invoice Settings), Discovery compares the invoice's total current charges with the previous invoice. This is the most recent invoice on the same vendor account with an earlier invoice date.

Which earlier invoices count: an earlier invoice counts once it has been signed off, which means it is Approved, Revenue Check Failure, Posted, Manually Posted or Paid. Earlier invoices still being worked on (Matched, Allocated, Invalid Allocation or Audited) are skipped. Discovery looks further back for the latest signed-off invoice.

What you'll see

  • "The difference between total current charges and previous invoice #… is greater than X%." This invoice's total is more than X% above or below the previous invoice, which is linked in the message. The invoice needs force approval.
  • "No prior approved invoice to compare against." The account has no earlier signed-off invoice (for example, its first invoice). The invoice won't be auto approved and needs to be approved manually.

Benefits of Auto Approval

  • Increased Automation: Initial testing showed that 30% of invoices passed auto approval, with potential for increased efficiency over time as contracted rates and fee structures improve.
  • Time and Cost Savings: Auto approval eliminates the need for manual clicks and processing for compliant invoices, allowing teams to focus on invoices that require attention, such as those needing credits from vendors.

If you have additional questions or need more in depth information, please feel free to send us a message using the help beacon in the lower right-hand corner.

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