Streamlining 3-Way Matching: How Regimen Simplifies Accounts Payable

In the fast-paced world of modern business, efficient financial processes are crucial for maintaining operational integrity and managing cash flow. One such critical process is 3-way matching, a cornerstone of accounts payable that ensures accuracy in purchasing, receiving, and payment. However, as companies scale, this process often becomes a bottleneck, leading to delays and errors. Let's explore how Regimen is transforming this essential function.

The Problem: The Time-Consuming Nature of 3-Way Matching

3-way matching is a vital yet time-consuming process that verifies the accuracy of purchases by comparing three key documents:

1. Purchase Orders (POs)

2. Receiving Reports (RRs)

3. Supplier Invoices

This process is critical for:

• Ensuring goods are delivered as ordered

• Verifying that payments match the agreed terms

• Preventing overpayments or fraudulent charges

However, as transaction volumes increase, many companies struggle to maintain efficiency and accuracy in their 3-way matching process.

Current Solutions and Their Limitations

Today's approaches to 3-way matching often fall short:

1. Vendor-Supported Templates: While helpful, these are limited to specific suppliers and lack flexibility.

2. In-House Processing: Keeps control internal but is resource-intensive and slow as volume increases.

3. Offshored Accounts Payable (AP) Specialists: This option can reduce costs but often leads to communication barriers and slower issue resolution.

With the most common solution for dealing with scale being offshoring.

The Offshore Dilemma

As companies grow, many turn to offshore AP teams to handle increasing volume. However, this approach comes with significant drawbacks:

• Loss of "Local Magic": Onshore AP specialists can quickly liaise with receiving and payments teams to resolve issues. Offshore teams lack this immediate connection.

• Fatigue and Accuracy Issues: High-volume, repetitive tasks can lead to decreased attention to detail.

• Communication Barriers: Language and time zone differences can slow down problem-solving.

The Regimen Solution: Automated Intelligence Meets Human Expertise

Regimen offers a groundbreaking approach to 3-way matching that combines the power of AI with the flexibility of human-guided rules:

1. Instant, Automated Reconciliation: Our AI-powered system quickly compares POs, RRs, and invoices, even adapting to changes in supplier invoice structures.

2. Seamless ERP Integration: Regimen connects effortlessly with your existing Enterprise Resource Planning (ERP) system, requiring no complex setup or changes to your current workflows.

3. Configurable Routing: Easily direct exceptions or questions to the appropriate teams (receiving, purchasing, etc.) for swift resolution.

4. Intelligent Document Analysis: Our system goes beyond simple data extraction, understanding the context and relationships between different document types.

5. Continuous Learning: As your team interacts with the system, it becomes more adept at handling your specific business rules and document formats.

Key Benefits of the Regimen Approach

• Increased Accuracy: Reduce errors associated with manual processing or offshore teams.

• Faster Processing: Automate routine matches and quickly identify exceptions.

• Improved Cash Flow Management: Timely processing allows for better financial planning and potential early payment discounts.

• Enhanced Visibility: Gain insights into your purchasing and payment processes through comprehensive analytics.

• Scalability: Easily handle increased transaction volumes without a proportional increase in resources.

Conclusion

As businesses grow, efficient 3-way matching becomes increasingly crucial yet challenging. Automation tools like Regimen offer a path to streamline this process, potentially reducing errors and freeing up AP teams for more strategic work. While technology can bring significant improvements, companies should carefully consider their specific needs when evolving their financial operations.

For more information on modernizing your 3-way matching process, contact us at eric@withregimen.com or jordan@withregimen.com.