Process SOP

Normalize invoice inputs

Packages every directly provided field into one normalized map used by all later steps.

• Only packages what was provided — no invented values
• Currency falls back to the configured default currency
• Absent numeric fields stored as 0.0; line items kept as raw JSON

Assign ApIQ invoice ID

Generates a new ID, or reuses the existing one on the approval path.

• Format APIQ-YYYY-NNNNNN from the UTC timestamp
• Once assigned, the ID is immutable

Create master record (RECEIVED)

Inserts the invoice row and writes the receipt audit and activity events.

• Fields stored unmodified and tagged AI Extracted = FALSE
• Source always captured; MANUAL is the default
• Existing invoice IDs are reused, never duplicated

Decode QR payload

Best-effort parse of seller, VAT number, timestamp, total and VAT amount from the QR string.

• Unparseable or absent payloads return empty without failing the run
• QR fields tagged source = QR_CODE with high confidence

IDP extraction & scoring

Extracts all fields from the uploaded document with per-field confidence, or scores structured inputs.

• Structured inputs always win; IDP fills the gaps
• Manually supplied fields score 95
• Overall confidence = average of the six critical fields

Merge QR + AI and flag conflicts

Reconciles both sources into the authoritative field set for the rest of the run.

• Agreeing values keep the higher confidence
• Conflicts beyond rounding tolerance → QR_DATA_MISMATCH (HIGH)
• Critical field below 70% → LOW_OCR_CONFIDENCE (MEDIUM)
• Status advances to EXTRACTED

Vendor master matching

Matches by VAT number first, then fuzzy vendor name against the vendor master.

• EXACT_MATCH: VAT equal or name score ≥ 95 → vendor assigned
• LIKELY_MATCH: above threshold but < 95 → confirmation required (MEDIUM)
• NO_MATCH → VENDOR_NOT_FOUND (HIGH); MULTIPLE_MATCHES → no auto-selection (HIGH)

Bank detail anomaly check

Compares invoice bank details against the vendor's approved record.

• Runs only with a confirmed vendor and a provided bank account
• New account, changed beneficiary or unexpected country are flagged
• BANK_DETAILS_CHANGE is always HIGH; only masked references are logged

Duplicate detection

Searches the vendor's invoices for the same number, or same date and amount.

• DUPLICATE_CONFIRMED (CRITICAL) on same vendor + invoice number
• POSSIBLE_DUPLICATE (HIGH) on same date + total
• REJECTED invoices and the current invoice are excluded

PO three-way matching

Compares vendor, amount and line items against the purchase order within tolerance.

• No PO number → N_A; needs an approval classification to auto-process
• PARTIAL_MATCH records expected, invoice, variance and variance % per field
• PO number without a PO → PO_NOT_FOUND (HIGH)
• The more permissive of tolerance % and tolerance amount applies

Line-item math validation

Recomputes line totals, subtotal, VAT and total, and compares them with stated values.

• All comparisons allow the configured rounding tolerance
• Any mismatch → TOTAL_CALCULATION_MISMATCH (HIGH) with expected, stated and variance
• Never adjusts amounts — validation only

VAT validation

Checks VAT number presence and format, rate, recalculated VAT and total consistency.

• Missing vendor VAT number → VAT_INFORMATION_MISSING (HIGH)
• Rate off the configured default → VAT_REVIEW_REQUIRED unless justified
• Recalculated VAT mismatch → VAT_MISMATCH (HIGH)
• Internal consistency only — not a regulatory compliance assertion

Payment terms validation

Resolves governing terms (invoice → PO → vendor master) and computes the due date.

• Terms inconsistent with the vendor master → PAYMENT_TERMS_EXCEPTION (MEDIUM)
• Due date always computed — aging and payment runs depend on it
• Early payment discount flagged inside the configured window

AI confidence scoring

Aggregates every validation signal into a single explainable 0–100 score.

• Weights: extraction 25, vendor 20, duplicate 15, PO 15, VAT 10, math 10, terms 5
• HIGH > 90 · MEDIUM 70–90 · LOW < 70
• Informs routing but never overrides mandatory controls

Manual override detection

Logs any input that differs from the stored extraction, with original value, new value and reason.

• Only runs on the approval path (existing invoice ID)
• Numeric comparisons use the rounding tolerance
• The original extraction is never modified

Auto-process gate evaluation

Evaluates every mandatory gate; a single failure blocks automatic processing.

• Requires vendor match, no duplicates, PO pass or N_A, VAT valid, math pass
• Requires all critical fields, confidence above threshold, no open bank-change exception
• Every failing gate records a specific, user-facing reason

Approval routing

Auto-approves, or creates pending approvals for the tier implied by the invoice amount.

• Auto: SYSTEM approver, status → APPROVED
• Tier 1 department · Tier 2 department + finance · Tier 3 department + controller
• Unroutable blocking exceptions set status → EXCEPTION

Human reviewer decision

Records APPROVED, REJECTED or REQUEST_INVESTIGATION alongside the AI result.

• No decision provided → no-op, normal path continues
• APPROVED lets booking proceed in the same run; REJECTED skips booking
• REQUEST_INVESTIGATION escalates open exceptions to the security team

ERP booking

Assembles period, cost center, GL account and VAT split, then books via ERP or locally.

• Period derived from invoice date as YYYY-MM
• Net amount and input VAT recorded separately
• Status → BOOKED only on confirmed success; failure → ERP_BOOKING_FAILED

Payment request creation

Links the booked invoice into payment processing as READY or BLOCKED.

• Created only after successful booking
• Bank anomaly or critical exception → BLOCKED with a stated reason
• Raw account numbers are never stored

Aging bucket snapshot

Maps days to or past the due date into a bucket and upserts the aging snapshot.

• Buckets: Current · 1–30 · 31–60 · 61–90 · 90+
• Days outstanding is positive when overdue, negative when not yet due

VAT record for the period

Writes input, recoverable and non-recoverable VAT with period, rate and exception flags.

• Period derived from invoice date as YYYY-MM
• Recoverable defaults to the full VAT unless flagged otherwise
• No VAT return is filed — internal reporting only

Vendor intelligence update

Updates cumulative spend, exception and duplicate rates, and the vendor risk indicator.

• Runs only for a matched vendor
• HIGH: exception rate > 0.3 or > 2 bank changes · MEDIUM: > 0.1 or duplicates > 0.05
• Risk explanation names the contributing metrics

Payment anomaly detection

Looks for unusual amounts, oversized first invoices and bank accounts shared across vendors.

• MEDIUM unusual amount · HIGH cross-vendor account · CRITICAL large first invoice
• Signal only — never automatic vendor suspension

Dashboard aggregation

Builds the live dashboard payload from aging, exceptions, payment requests and vendors.

• Exceptions grouped by severity for queue prioritisation
• Payment readiness split READY vs BLOCKED, per vendor by risk
• Read-only — modifies nothing

Final state & completion audit

Writes the completion audit entry and returns the API-ready invoice object.

• Output matches the ApIQ API contract exactly
• Monetary values returned as-is, unrounded
• Exceptions list contains all OPEN exceptions for the invoice