AP automation readiness checklist

49 checks to run before you automate invoice processing and approvals. Each one says what good looks like, so you can see the gaps before you pay for a build.

Download the CSV See process automation

The checklist as a spreadsheet

49 rows, one per item, with blank Status, Owner and Notes columns to fill in. Opens in Excel, Google Sheets or Numbers. Free, and no email needed.

Download the CSV

How to use it

Answer each check, then fix the gaps in order.

Go through it with the person who runs AP and the controller. Mark each check Yes, No or Partly, and give every No an owner and a date.

Automation copies your process as it is. If supplier records are messy or the approval matrix is out of date, the software applies those mistakes to every invoice. Fix supplier data, approvals and controls first.

For how each step of the AP workflow is automated, and where a person stays in the loop, read invoice processing automation, step by step.

The 49 checks

Nine areas, from the inbox to the ledger.

The same checks as the CSV, in the same order.

Invoice intake

Automation starts where invoices arrive. If they come in five ways, the first job is making it one.

01
Do all supplier invoices arrive at one place?One AP mailbox or alias, or one upload point, that every supplier has been told to use.
02
Do you know how invoices arrive today, by channel?A rough split of email PDF, supplier portal, paper and e-invoice, counted over a recent month.
03
Is every invoice stored before anyone works on it?The original file is saved with an ID the moment it arrives, so nothing lives only in someone's inbox.
04
Are invoices separated from other email in the AP inbox?Statements, reminders and supplier questions are sorted out, or go to a different address.
05
Is paper post handled the same way as email?Paper invoices are scanned on arrival and enter the same queue as everything else.

Supplier master data

Every check later in the process compares the invoice with your supplier records. Bad records mean false alarms or missed ones.

06
Is there one supplier list, kept in the accounting system or ERP?No second list in a spreadsheet that disagrees with it.
07
Are duplicate suppliers merged?Each supplier appears once, with one ID, even if they trade under more than one name.
08
Does each supplier record have a tax ID, currency and payment terms?The fields an automated check needs are filled in for active suppliers.
09
Is there a named owner for supplier records?One person or team approves new suppliers and changes to existing ones.
10
Are bank detail changes confirmed outside the email that asked for them?A call back to a number already on file, by someone other than the person who received the request.
11
Are inactive suppliers blocked?A supplier you no longer use cannot have a new bill posted without review.

Purchase orders and receipts

Matching an invoice to a purchase order is where most of the automatic approvals come from. It only works if the orders and receipts exist.

12
Do you know which spend has a purchase order and which does not?A list of the suppliers and categories that are PO-backed, and the ones that never will be (utilities, subscriptions, fees).
13
Are POs raised before the goods or services are ordered?Not created after the invoice arrives to make it pass.
14
Are goods receipts recorded in the system?Someone marks what arrived, so an invoice can be checked against what was actually delivered.
15
Does the invoice usually carry the PO number?Suppliers are asked to quote it, and most do.
16
Are price and quantity tolerances written down?Your controller has set how far an invoice may differ from the PO before a person looks, as a percentage and an amount.
17
Do you know how partial deliveries, back-orders and freight lines are handled?A written rule for each, because these cause most matching failures.

Coding non-PO invoices

Invoices without a PO still need a GL account, cost centre and tax code. History usually answers this; a model can suggest the rest.

18
Is the chart of accounts current?Unused GL accounts are closed, and the ones in use have clear names.
19
Do most suppliers code to the same account every time?You can pull past coding by supplier from the ledger to use as the default.
20
Are cost centres and projects required where they matter?The rules for which invoices need which dimension are written down.
21
Are tax codes set per supplier or per line?A clear rule, so the automation does not guess tax treatment.
22
Is there a person who reviews coding for new suppliers?The first few invoices from a new supplier are coded by hand, then become the default.

Approval policy

Routing is only as good as the policy behind it. If approvals run on who happens to be cc'd, write the policy first.

23
Is the approval matrix written down?Who approves what, by amount, department and category, in one document.
24
Is it current, with people who still work here?Leavers and role changes are reflected, with a named deputy for each approver.
25
Is there a second approver above a set amount?Larger invoices need two people, and the limit is a number, not a judgement call.
26
Do you know which invoices could be approved without a person?For example, a matched PO invoice within tolerance and under a set amount. Your controller decides the rule.
27
Can approvers act without logging into the ERP?From email or chat, with the invoice and the reason for the request in front of them.
28
Is there a rule for approvals that sit too long?A reminder, then an escalation to the deputy after a set number of days.

Accounting system access

The automation has to read your records and post bills. Check what your system allows before you design around it.

29
Does your accounting system or ERP have an API for bills, suppliers and POs?Confirmed in the vendor's own documentation for your plan and edition.
30
Can you create a service user for the automation?Its own login with only the permissions it needs, not a person's account.
31
Can the original PDF be attached to the bill?So an approver or auditor can open the source document from the record.
32
Do you have a test company or sandbox?Somewhere to post test bills that never reach the live ledger.
33
Do you know which matching features are already switched on?Some systems flag a mismatch but do not block payment. Know what yours enforces.

Controls and fraud

Automation moves the risk from typing errors to errors that repeat on every invoice. These checks catch them.

34
Is there a duplicate check?On supplier, invoice number, amount and date, including near matches such as a changed character.
35
Are invoices with new or changed bank details held?They go to a person every time, whatever else they pass.
36
Is the person who approves an invoice different from the one who pays it?Separation of duties survives the new process.
37
Is every change to an invoice logged?Who changed which field, when, and what it was before.
38
Are payments still released by a person?The automation prepares the payment run; finance releases it.
39
Has your auditor or controller seen the planned process?Before the build, not after go-live.

Exceptions and people

Most of the work that remains after automation is exceptions. Decide who owns them now.

40
Do you know your most common exception reasons?Missing PO, price variance, unknown supplier, duplicate: a rough ranking from the last few months.
41
Is there one queue for exceptions, with the reason attached?Not a shared inbox where each person remembers their own cases.
42
Is there a named owner for each exception type?Purchasing for PO problems, AP for supplier problems, the budget owner for coding.
43
Will the AP team review low-confidence fields?Someone checks totals, invoice numbers and bank details when the reading is uncertain.
44
Has the AP team been part of the plan?They know what changes in their week and have tested the review screen.

Baseline and measurement

Without a starting point you cannot tell whether the automation worked. Measure before you build.

45
Do you know how many invoices you process a month?A count from the ledger, by month, for the last year.
46
Do you know the time from receipt to approval today?Measured on a sample, even a rough one.
47
Do you know how many hours AP spends per week on keying and chasing?An estimate from the team, written down.
48
Do you track late payment fees and missed early-payment discounts?Even a total for last year is enough to start.
49
Have you set aside past invoices with known answers for testing?A few hundred, with the correct fields, to measure reading accuracy before go-live.

Checklist FAQ

Questions about the checklist

What does an AP automation readiness checklist check?

Whether your accounts payable process is ready to be run by software. This one has 49 checks in 9 areas: invoice intake, supplier master data, purchase orders and receipts, coding, approval policy, accounting system access, controls, exceptions and a baseline to measure against.

How do I use it?

Download the CSV, mark each check Yes, No or Partly, and give every No an owner. Fix the areas with the most No answers first. Supplier data, approval policy and controls matter most, because the automation copies whatever they say.

Do I need every check to be Yes before automating?

No. You need intake, supplier data, approvals and controls in good order. Coding, exceptions and measurement can improve while the first workflow is built, as long as someone owns each gap.

When the checks pass

We automate one AP workflow end to end, with a person approving the risky steps.

One workflow across up to three tools is $8,000 fixed and live in 3 weeks, with error handling and 30 days of light support.

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