Robotic Process Automation (RPA) and Machine Learning (ML) are obviously distinct technologies put in different uses. Whilst RPA helps in automating processes with increased speed/accuracy, it is devoid of rational thinking in its process.

However, Machine Learning (ML) has an instinctive ability like humans to learn from the various forms of datas, discourses with other technologies, flexible to integrate with other softwares and delivers futuristic & pragmatic analysis.

If there is a fusion between these two technologies improvising in both ways, bots can inherit dynamic capabilities and identify abnormal patterns like (duplicate accounting entries etc). This fusion can be beneficial for the Accounts Payable process.

Also read : Why is machine learning significant to the business world?

How the combination of RPA and ML can be used wisely in the Accounts Payable Process:

The accounts payable (AP) process is the cornerstone of the accounting department. It takes care of all the payments of the firm except the payroll function. For any small size firm, the bookkeeper takes care of payments, whereas for medium and large size firms there is an exclusive AP department attending and doing the needful tasks.

It takes care of both internal and external control. As an external control : accounts payable (AP) takes care of :

• Measuring and optimizing - the liquidity position of the firm
• Sustainability of vendor - long time relationship
• Prevention and detection - fraudulent activities in the payment cycle

As an internal control : accounts payable (AP) takes care of :

• Accuracy - of the invoice selected for payment in terms of item order and items received in exact cost, quantity, & payment terms
• Curtail payment - of an inaccurate invoice
• Avoid duplication - of invoice payment
• Certify - all the invoices are accounted for and cleared for payment.

With the availability of technologies such as RPA, the finance/accounting industry is concentrating on improving their accounts payable process cycle. RPA, if implemented correctly can bring accuracy, cut operating costs and reduce time invested for recurring tasks.

Also read : Emerging Technological Trends in Finance and Accounting

Let us dig a little deeper to understand how both RPA and ML can be used

1. Invoices data entry without human intervention:
   Bots are capable of handling infinite structured data, but lack capabilities in handling unstructured or semi-structured data. With the ML learning model the bots acquire the needed skill-sets to
   • Interpret the format of the invoice
   • Extract the correct information and
   • Post them at the appropriate places in accounting software.
   
   To add more,
   • An error free invoices are available in your ERP or accounting software
   • Reduces time and cost in expediting the invoice process
   
   it eliminates any form of human intervention at the initial stage but initiates a more crucial step of the accounts payable pathway.
2. Invoices routing without human intervention:
   Every invoice submitted for payment needs to be checked with the attachments (Purchase Order & packing slip etc). This verification and authentication of the invoice along with the line items in the PO and counter checking with the delivery or packing slip is not a tenuous task. The accountant needs to exercise vigilance in checking each and every item in order to ensure the accuracy of the invoice.
   With the bot, they easily extract and fill in the details efficiently, with the infusion of ML it helps easily to match the transactions along with the documents and classify them. In case of discrepancies, red flags the items thereby, it absolves any form of human oversight of the invoice figures.
3. Dynamic report generation of financial statements without human intervention:
   Management or CFO can instantaneously run reports stating the current financial position of the firm. The mix of RPA and ML propels the business to indicate the financial inflow, forecast the liquidity status quo and timeline of the supplier payment cycle. This accuracy of forecast is possible through automated accounts payable.
4. Discrepancies detection without human intervention:
   If ML is infused in the robotic bots, invoice processing can become simpler and faster to initiate the process. The reason being, the routed invoices halts the process immediately when it sees abnormalities in the form of
   • Duplicate invoice raised by the supplier with identical information
   • Invoices routed with few valid information missing (like invoice reference number, PO number etc, invoiced amount, wrong currency etc.)
   • Invoices routed with haphazardly details (like invoice amount in invoice reference field etc.)
   
   Since the robotic bots are programmed to pursue the set protocol, it does not deviate from the norm. Therefore, it outrightly rejects the invoice without human need. Only after rejection, there is an accountant requirement to analyse the reason. After rectification it can restart the process.
5. Fraudulent activity detection without human intervention:
   When accountants verify invoices, there are chances of duplicate payment due to improper filing, tampered cheques, claims for delay in payment, etc. Even a slight carelessness can disrepute the firm and it takes time to rectify the fault lines.
   With AP automation, the self learning capabilities of ML and bots get into a perpetual analysis mode and any form of irregularities in the invoice is immediately flagged for further consultation. This relieves the accountant to a greater extent in bringing credibility to the routed invoice.
6. Approval process without human intervention:
   The approval process becomes easier and reduces the time lag occurring from the supplier delivering items to payment completion. Invoices can now be automatically directed as per the hierarchical chain and the right person can ratify or approve the invoices. If the invoice is unapproved, it can automatically trigger the follow-up process by sending them reminders. This is feasible due to the mix of RPA bots with ML.

With years of experience in automating the accounting processes with technologies like RPA and ML, integra is in the forefront of accounting process automation. Contact us for a free demo and consultation.