Invoice Processing & Payment Tracking Automation

Overview

A regional supplier that distributes goods to multiple retail outlets needed a way to streamline its invoice management process. Invoices from different vendors arrived daily through email in varying formats, and the finance team was spending excessive time extracting and validating data manually. They wanted a system that could handle this work automatically, keep financial records accurate, and stay within a practical budget.

Problem Statement

The supplier’s finance team managed a growing volume of invoices each month, often received as email attachments in PDF or image format. Each document had to be opened, reviewed, verified, and entered into accounting spreadsheets. This process was repetitive, error-prone, and slow to scale. As operations expanded across cities, the delays in validation and payment tracking became a recurring operational bottleneck. The supplier needed a lightweight automation layer that could read, validate, and process invoices automatically while integrating with their existing accounting tools.

Our Solution

We implemented an AI-powered invoice automation workflow using n8n combined with custom agentic AI components. The system continuously monitors incoming invoices in Gmail, extracts structured data using both text-based parsing and OCR for scanned copies, and runs validation checks before syncing results into the accounting system. Each invoice is automatically verified for totals, due dates, and duplicates, with classification logic to flag potential issues or urgent items. The automation integrates directly with the supplier’s reporting system, keeping payment and tracking dashboards up to date without manual input.

• ➤ Gmail monitoring for new invoices
• ➤ AI-based text and image extraction
• ➤ Automated validation of totals, due dates, and duplicates
• ➤ Accounting and reporting tool integration

Outcome / Impact

The supplier significantly reduced manual effort in invoice handling and improved the speed and consistency of payment tracking. Data accuracy increased across all processed invoices, and the finance team now spends a fraction of the time previously required for verification and reporting. The automation runs continuously, providing better visibility and freeing staff for higher-value financial tasks.

Tech Stack

• ➤ n8n
• ➤ Agentic AI models for text and image parsing
• ➤ Gmail API
• ➤ Accounting system integration via Webhooks
• ➤ Custom validation and classification logic