Automated Exception Removal (Smoothing)

Manually managing exceptions is a costly, time-consuming process. Automated Exception Removal, also known as "smoothing," references Purchase Order History (POH) data in the Exchange and your ERP system to make data-driven decisions for "touchless" invoice processing. Through a series of smoothing rules, Automated Exception Removal cross-references available transaction data and replaces mismatched invoice data with matching PO values.

Example: If an invoice lists Part Number R12345 but the PO lists Part Number R12345A, smoothing resolves this exception by cross-referencing the part numbers and extended amounts from the PO History until it finds a match. It then updates the invoice data with the information from the PO to remove the exception.

Prerequisites

Automated Exception Removal requires an Exchange Enterprise subscription

Location

Automated Exception Removal Audit Report

Levels of Smoothing

Automated Exception Removal "smooths" mismatched invoice data at the header, footer, and line level.

Invoice Level

  • Vendor ID

  • Remit to

  • PO number

  • Purchaser ID

  • Tax exemption (if applicable)

Line Level

  • Line Number

  • Unit of Measure (UOM)

  • Supplier Part Number

  • Buyer Item Number

  • Extended Price

Smoothing Rule Definitions

When an exception is identified, these rules first check the Exchange for matching PO History (POH) data; if no data is found in the Exchange, then GHX will look for an associated Purchase Order that has gone across the Exchange.

Check Smoothing Rule Execution Order to see which sequence they're applied in, when enabled.

Default Rules

Default smoothing rules are enabled out of the box.

Net to Net Matching

This rule verifies whether the difference between the Invoice Net and PO Net amounts are within configured tolerance limits. If the difference is within tolerance, smoothing replaces the Invoice lines with PO History (POH) lines.

Default Net to Net tolerance limit: +/- $0.02

Line to Line Matching

This rule attempts to match each invoice line's part number and extended amount with PO History (POH) data. If there is a match within tolerance limits, the invoice is smoothed to bring the matching PO History line into the invoice. If extended price can't be matched, then this rule uses unit price as a fallback value to identify the correct part number. If there is a match, the exception is smoothed by bringing in the matched PO History value.

Default Line to Line Extended Price tolerance: +/- $0.00

Check for Duplicate

This rule compares incoming invoices to previously received invoices to identify if the document has already been received. The rule compares PO number and invoice number for a configurable time range. If a duplicate is identified, the duplicate is discarded.

Default duplicate check time: 90 days

Check Vendor Code ID

This rule checks for the presence of a Vendor Code on the invoice. If one doesn't exist, Automated Exception Removal checks the PO History (POH) for a Vendor Code. If one exists, the rule brings the Vendor Code into the Invoice.

Add Remit To

This rule retrieves the Remit To code that's associated with the Vendor Code and receiver EID value set during registration. If found, the Remit To value is added or updated on the invoice.

Add Purchaser ID

This rule uses your PO History to identify if a buyer exists for that particular PO number and Seller ID. If a buyer exists, it's captured and added to the invoice.

Remove Zero Amount Line

This rule identifies lines with a Line Net Amount (LNA) of zero. If removal of these lines results in no lines remaining, the invoice is stopped and won't continue processing.

Advanced Rules

Advanced smoothing rules must be enabled by GHX upon request.

Truncate PO Number

This rule handles prefixes and suffixes on PO numbers by truncating them to a configured length for matching purposes. For this smoothing rule to run, the configured PO length must contain only numbers.

Default PO length: 9.

Default prefix and suffix length: 3

Examples: 826194445-ABC (suffix) is truncated to 826194445. ABC-826194445 (prefix) is truncated to 826194445.

Pad PO Number

If a PO number is fewer digits than expected, this smoothing rule prefixes 0 until the configured length is reached. If an expected PO length isn't configured, this rule is skipped.

Maximum PO number length: 22

Example: If a PO length of 8 digits is expected, then PO# 1234 is padded to PO# "00001234."

Check Tax Exemption

If an invoice qualifies for exemption from taxes or special charges, this rule checks against PO attributes to automated their removal from the invoice.

Note: Usage of this rule requires a special implementation to operate.

Populate Missing Line Numbers

If an invoice line is missing a line number, this rule adds one.

Sort Line Numbers

This rule sorts line number values in ascending order.

Smoothing Rule Execution Order

Smoothing rules are run against invoices in the following order.

  1. Truncate PO Number

  2. Pad PO Number

  3. Check for Duplicate

  4. Check Tax Exemption

  5. Check Vendor Code ID

  6. Add Remit To

  7. Add Remit To

  8. Net to Net Matching

  9. Line to Line Matching

  10. Remove Zero Amount Line

  11. Populate Missing Line Numbers

  12. Sort Line Numbers