AP Automation Glossary

3-way matching compares a purchase order, goods receipt, and vendor invoice to verify accuracy before payment. Learn how it prevents overpayments and duplicate invoices.

AP cycle time measures the days from invoice receipt to payment. Learn why this metric matters for vendor relationships, cash flow, and finance team performance.

AP exception resolution is the process of investigating and correcting invoices that fail automated validation checks. Learn why exceptions are the real bottleneck in AP workflows.

Duplicate invoice detection prevents paying the same vendor invoice twice. Learn how detection works, why simple invoice number matching isn't enough, and what modern systems check.

A goods receipt note confirms that ordered items were physically delivered. Learn why GRNs are essential for 3-way matching and how missing GRNs block invoice payments.

Invoice tolerance defines the acceptable variance between a purchase order and vendor invoice. Learn how tolerance rules reduce false exceptions without weakening controls.

PO aging tracks how long purchase orders remain open. Learn why aging POs create accrual problems, budget distortion, and audit risk.

Received not billed refers to goods or services that have been delivered but not yet invoiced by the vendor. Learn why RNB balances distort financial statements and complicate month-end close.

Spend visibility is the ability to see, categorize, and analyze all company expenditure in real time. Learn why visibility is the foundation for strategic finance and how to achieve it.

Touchless processing means an invoice flows from receipt to payment without human intervention. Learn what touchless rates mean, what blocks them, and how to improve yours.