Automate invoice capture, approval routing, vendor onboarding, PO matching, payments, and ERP sync in one system. Paylocity for Finance combines the employee record, deep rules and workflows, and AI to reduce manual work, strengthen control, and help finance close faster with cleaner books.
Automate the entire accounts payable lifecycle
Autonomous accounts payable
Let AP run itself from vendor onboarding to invoice capture, PO matching, coding, approvals, payments, and reconciliation. Paylocity helps finance teams reduce manual work across the full lifecycle of spend while maintaining the visibility, control, and auditability needed to scale.
Our automation uses a combination of deterministic rules, OCR, and generative AI to read invoice details, populate fields, recommend coding, and move work forward with greater accuracy. Finance teams spend less time keying in data and more time reviewing exceptions, protecting cash, and closing the books.
Automated invoice management
Automatically capture and manage invoices submitted through email, bulk upload, or the vendor portal, with complete context across subsidiaries. Related email correspondence is attached automatically, giving finance a centralized record of every invoice, vendor interaction, and purchase decision.
Approvals where you work
Route bills automatically to the right approvers and observers based on subsidiary, department, vendor, amount, GL category, and organization structure. Because workflows are connected to your employee record and org data, approval paths stay accurate as teams and managers change. Leaders can review and approve from desktop, Slack, mobile, or email without slowing down the process.
Automated PO matching
Match purchase orders, invoices, and receipts with automated 2-way and 3-way PO matching. Strengthen internal controls, reduce overpayments, and accelerate approvals by ensuring every invoice is tied to the right PO and receipt with minimal manual effort.
Self-serve vendor onboarding
Give vendors a self-service portal to submit contact, banking, and tax details, improving data accuracy while reducing administrative work for AP. Vendors can also submit invoices and track payment status in real time. AI-powered W-9 collection and validation help simplify tax documentation and make 1099 reporting more efficient.
Streamline global vendor payments
Pay vendors in 200+ countries and 145+ currencies using ACH, check, virtual card, international wire, or vendor credits. The platform helps finance teams execute payments with control at scale while surfacing opportunities to optimize working capital and capture cash back through virtual cards.
Built-in audit and compliance
From request to approval, payment to invoice, every action is captured automatically in a centralized audit trail. Intelligent automation helps categorize, code, amortize, and sync transactions to your ERP and general ledger, making audits, reconciliations, and month-end close faster, cleaner, and more reliable.
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FAQs
What is AP Automation?
AP automation is the use of technology to streamline and automate the accounts payable (AP) process.
It does this by digitizing and automating tasks such as invoice processing, data entry, payment approvals, and vendor management.
AP automation eliminates manual and time-consuming tasks, reduces errors, improves efficiency, and enhances visibility and control over financial processes.
Advanced AP automation platforms use artificial intelligence (AI) and machine learning (ML) to further streamline manual processes. AI-powered AP automation can automate tasks like categorizing expenses, detecting anomalies, and optimizing payment schedules for improved cash flow management.
How exactly does AP automation work?
AP automation streamlines and automates the AP process for improved efficiency and accuracy.
Processes performed by AP automation include:
- Invoice capture: Scanning invoices and extracting relevant data using the latest OCR technology. In some platforms, vendors can directly submit their invoices, bypassing the need for physical paper transactions.
- Invoice matching: Automating the process of matching an invoice with the corresponding purchase orders and verifying them against pre-defined business rules.
- Invoice approval: Routing invoices for approval based on pre-set, customizable workflows. Best-of-breed AP automation platforms can handle complex approval flows, including concurrent and sequential approvals.
- Invoice payment: Executing electronic payments after approval. Advanced AP automation platforms make it possible to pay by virtual card, vendor credits, ACH, check, or wire transfer.
- Transaction booking: Using pre-set rules, AI, and ML to automatically code, tag, and record transactions to the GL.
- Insight into transactions: Facilitating comprehensive spend analytics for better visibility and control over the AP process. Spotting bottlenecks in existing processes.
From invoice capture to payment execution and GL booking, automated platforms create a seamless, end-to-end AP experience. Thanks to advanced tools like AI, ML, and customizable workflows, businesses gain greater efficiency, visibility, and control over their AP operations — ultimately driving smarter financial decisions and better vendor relationships.
What are the main benefits of AP automation software?
AP automation software offers many benefits to finance teams:
- Cost savings: Reduces invoice processing costs, eliminates late payment fees, and surfaces opportunities for early payment discounts.
- Time efficiency: Automates manual tasks like data entry, invoice matching, and approvals, freeing up AP teams for strategic work.
- Improved accuracy: Minimizes errors with AI-driven tools for automatic data capture, coding, and reconciliation.
- Enhanced visibility: Provides real-time insights into spend, enabling better cash flow management and workflow optimization.
- Faster approval cycles: Streamlines approvals with customizable workflows, ensuring on-time payments and stronger vendor relationships.
- Scalability: Supports growing businesses with efficient, automated processes that can handle increased invoice volume.
- Better control: Offers greater oversight and transparency into the AP process, helping identify bottlenecks and improve decision-making.
The overarching benefit is that AP automation software transforms a traditionally manual, error-prone process into a streamlined, efficient operation.
Ultimately, investing in AP automation drives long-term financial control, strengthens vendor relationships, and positions businesses for scalable growth.
How much does AP automation save?
While the exact savings can vary, studies suggest that businesses can save between 40% to 80% on AP processing costs by adopting automation solutions.
By streamlining and automating manual processes, AP automation reduces the need for labor-intensive tasks, such as data entry and invoice processing.
Additionally, AP automation reduces the risk of errors and late payments, avoiding costly penalties and improving vendor relationships.
The improved visibility and control over AP processes also enable businesses to negotiate better terms and discounts with suppliers.