# How does invoice processing work?
Invoice processing typically follows these steps: (1) Invoice Receipt - receiving invoices via email, mail, or supplier portals; (2) Data Capture - extracting key data fields manually or using OCR/AI; (3) Validation - matching invoices against purchase orders and delivery receipts (3-way matching); (4) Approval Routing - sending invoices to appropriate managers for approval based on amount and department; (5) Accounting Entry - recording invoice data in accounting or ERP systems; (6) Payment Scheduling - scheduling payment according to terms and cash flow; (7) Archival - storing invoices for compliance and audit purposes. Automated systems handle steps 2-6 with minimal human intervention.
## Key Takeaways
- Invoice processing typically follows these steps: (1) Invoice Receipt - receiving invoices via email, mail, or supplier portals; (2) Data Capture - extracting key data fields manually or using OCR/AI; (3) Validation - matching invoices against purchase orders and delivery receipts (3-way matching); (4) Approval Routing - sending invoices to appropriate managers for approval based on amount and department; (5) Accounting Entry - recording invoice data in accounting or ERP systems; (6) Payment Scheduling - scheduling payment according to terms and cash flow; (7) Archival - storing invoices for compliance and audit purposes.
- Automated systems handle steps 2-6 with minimal human intervention.
## Related Topics
- invoice processing workflow
- how invoice processing works
- invoice handling process