Automating Invoice Processing for Energy Companies

Traditional invoice management methods are no longer sufficient to keep pace with industry demands. Manual processes are often error-prone and time-consuming. To combat these inefficiencies, many forward-thinking energy companies are turning to automation and advanced tools to simplify management processes.

Automated workflows, simplified system integration, and robust capabilities help energy teams improve accuracy and reduce processing times while addressing common challenges surrounding labor demands and peak demand management.

Benefits of Automating Invoice Processing for Energy Companies

Energy companies are looking for ways to improve operational and back-office functions. Automation has become a critical tool for meeting increasing energy needs and streamlining workflows. Automated invoice management for the energy sector delivers benefits, including:

• Faster processing times: Automated systems can process invoices in a fraction of the time it takes a human worker to do so. Eliminating repetitive, manual data entry tasks and approval bottlenecks helps energy companies achieve faster invoice turnarounds, improving cash flow management while freeing up staff for higher-value tasks. 
• Improved accuracy: A significant advantage of invoice automation is that it reduces errors and improves accuracy. Manual invoice processing is prone to human error, which can result in costly mistakes and reconciliation issues. Automated solutions use advanced data extraction and validation tools to process invoices with high degrees of accuracy. The result is fewer discrepancies, reduced risks of overpayments, and streamlined financial audits.
• Boosted operational efficiency: Implementing automation reduces the need for manual labor, physical storage, and paper handling. This reduced physical can translate to significant administrative cost savings and result in fewer errors that would otherwise require time and resources to navigate resolution. Companies can allocate resources strategically and efficiently while reducing overhead.
• Enhanced relationships: Timely and accurate payments foster trust and reliability among suppliers. Automating invoice processing allows teams to respond to invoices promptly, reducing disputes and delays. As teams consistently deliver on-time and accurate payments, energy companies can strengthen supplier relationships and improve negotiations.

How Energy Companies Automate Invoice Management

Software with optical character recognition (OCR) and artificial intelligence (AI) empowers energy teams to automate invoice management. While specific workflows will vary by solution and process, invoice processing systems generally adhere to the following steps:

1. Digital and Physical Information Capture

At the start of the management process, the energy team receives an invoice in various formats, such as a PDF, an email, and a paper copy. Automation begins by capturing the physical and digital invoice copies. Systems scan physical invoices with high-resolution devices, while ingesting digital invoices directly from vendor portals or emails. This unified capture records all invoices, regardless of original format.

2. Data Conversion

After capture, the management system converts the invoices into a standardized digital format. OCR technology extracts text from scanned paper invoices and parses digital invoices for structured data. This step normalizes all invoice information for downstream processing. 

3. AI-Powered Information Extraction

Advanced AI algorithms analyze the standardized invoices and extract key information, such as invoice numbers, line items, supplier details, dates, and amounts. Energy teams can continuously inform machine learning models to improve extraction accuracy and ensure complex and non-standard invoices undergo high-precision processing. 

4. Smart Categorization

After extracting all relevant information, the management system categorizes the extracted data based on business logic and predefined rules. For energy companies, this might include categorization by cost center, project, asset, or region. Smart indexing enables quick searchability and retrieval, allowing team members to track spending, allocate costs, and support compliance with ease. 

5. Information Validation and Matching

These systems also validate extracted data against information and documents like contracts, purchase orders, and delivery receipts. This process ensures invoice details align with what a team ordered and received. The system will flag any discrepancies to reduce the risk of unauthorized charges, duplicate payments, or financial fraud. 

6. Workflow Automation and Approval

At this point, invoices route through automated approval workflows, which are tailored to the team’s business rules. Approvers receive electronic notifications, and the system escalates exceptions as necessary. This step eliminates manual handoffs, accelerates processing, and offers real-time visibility into invoice status. 

7. Invoice Payment and Data Integration

After an invoice receives approval, integrated financial systems automatically schedule payment. Automated tools support timely payments, allowing teams to take advantage of early payment discounts and avoid late payment fees. Seamless integration also means accounting and treasury systems can maintain accurate records. 

8. Reporting and Analytics

At the end of the management process are the reporting and analytics stages. Robust invoice management platforms allow energy companies to gain real-time insights to identify and understand supplier performance, spend patterns, and process efficiency. Custom dashboards and automated reports support strategic decision-making and compliance monitoring.

OPEX®’s Invoice Automation Solutions for the Energy Sector

Trust OPEX for simplifying document handling and streamlining accounts payable for energy companies with automation. OPEX offers several solutions, such as: 

• Document imaging: Document imaging solutions digitize physical paper information. Energy teams can use OPEX document imaging solutions with high-speed scanners and intelligent software to digitize invoices and related documents with minimal manual preparation. OPEX Falcon+® blends speed, adaptability, and quality. 
• Remittance processing: Automated remittance processing solutions handle payments and associated documentation quickly and securely. For energy systems, these solutions can extract payment information from various documents and match the data to invoices with high precision. OPEX Eagle™ accelerates payment processing by handling every stage of the process. This solution can process up to four transactions per second and only requires one operator. 
• Mail and parcel management: Mail and parcel management systems can handle the intake, sorting, and distribution of incoming invoices and related correspondence. These solutions can open, scan, and route physical invoices into digital workflows, preventing delays or losses from manual handling. OPEX Falcon+® RED™ solution combines document opening, extracting, and scanning to enhance accuracy and efficiency.

Improving Efficiency With Invoice Automation in Energy Companies

OPEX has more than 50 years of experience creating innovative industry solutions. OPEX engineers unique automated solutions that help teams in critical industries to streamline processes, save on costs, and enhance accuracy.

OPEX’s experienced, in-house technical team can configure automated solutions to meet your specific operational requirements. Partner with OPEX to configure a targeted solution for energy company invoice automation.