Invoice processing involves the handling of incoming invoices from arrival to post. Invoices have many variations and types. In general, invoices are grouped into two types: 1. Invoices associated with a request or purchase order 2. Invoices that do not have an associated request( no purchase order).

A typical process involving paying a supplier invoice begins at the arrival of invoice at the door of the organization regardless of the methods of arrival such as via email, postal mail, facsimile, etc. Once the invoice arrives, the accounts payable clerk must ensure that the document is indeed an invoice. Then the clerk classifies and sorts the invoice into various categories. The definition of various categories is not always the same across different organizations but is normally defined by each organization.

Technology has long enabled the automation of invoice processing from arrival to post. This means that at arrival of the invoice, the same accounts payable clerk will only need to scan the invoice into an automation software. The automation software then converts the invoice's scanned image into a text researchable document. The different fields on an invoice can also be defined into the software so that it remembers which fields it should capture and register into the ERP systems, for instance, the amount purchase, the quantity, the supplier name, the supplier code and so on.

Pay Stream Advisors, an industry analyst, has defined accounts payable automation as the solutions and services which automate the people and paper-based processing invoices for approval and posting into the accounting system. The scope of Accounts Payable automation, with the increased inter-connectedness in the internet era, to included systems that handle inbound e-invoicing and the outbound settling of the invoice with the vendor.

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