Revolutionizing Vendor Invoice Reconciliation with Agentic AI

Manually processing vendor invoices is a challenge faced by countless organizations, especially in industries with high volumes of transactions like pharmaceuticals. The sheer effort required for sorting, matching, and reconciling these invoices creates bottlenecks, increases the risk of errors, and delays financial closures.  

Bradsol’s Agentic AI offers an efficient and scalable solution to this problem. By deploying a modular AI-driven system, one of our clients in the pharmaceutical sector experienced a transformation that redefined their invoice reconciliation process. Here’s a closer look at the implementation, the technology stack used, and its significant business impact. 

The Problem at Hand  

The client’s finance team faced a time-intensive, error-prone manual process to reconcile hundreds of vendors invoices each month. The workflow included manually matching invoices, purchase order (PO) data, and payment records, all without holistic visibility into vendor discrepancies.  

This process caused multiple challenges, including: 

• Prolonged invoice processing time (15-20 minutes per invoice).  

• Delays in month-end financial closures, taking 5-7 days.  

• Data inaccuracies due to human error (~82% accuracy).  

• Resource drain, requiring 4 full-time equivalent (FTE) employees for oversight.  

There was a pressing need for an automated, accurate, and scalable system that could streamline reconciliation, reduce manual effort, and enable faster financial reporting. 

The Solution: Agentic AI for Vendor Reconciliation  

To address these challenges, Bradsol implemented Agentic AI, a modular and fault-tolerant system specifically designed for automated invoice reconciliation. Here’s how the solution worked through a series of AI agents, each with a defined role in the process.  

Key Components of the Agentic AI System  

1. Ingestion Agent
   • Automatically retrieve invoices from email and SharePoint for processing.
2. OCR Agent
   • Used Azure Computer Vision OCR to extract text from scanned invoice documents.
3. Extraction Agent
   • Leveraged Azure OpenAI (GPT-4) to extract and map key invoice fields with high precision.
4. Validation Agent
   • Cross-checked extracted data against master PO and GRN records maintained in a SQL database, ensuring accuracy.
5. Transformation Agent
   • Standardized data formats and currency to enable consistent processing.
6. Reconciliation Agent
   • Automated the matching of invoice lines, flagging discrepancies and resolving them based on predefined rules.
7. Storage Agent
   • Stored all reconciled data securely in an Azure SQL database and generated detailed reports for audit purposes.
8. Exception Handler Agent
   • Routed unmatched or low-confidence entries to human reviewers, ensuring nothing fell through the cracks.

The Technology Behind It  

Agentic AI’s architecture leveraged a cutting-edge technology stack to ensure seamless integration, modular deployment, and fault-tolerant performance.  

• LLM (Large Language Model): Azure OpenAI (gpt-35-turbo)  

• OCR Technology: Azure Cognitive Services (Read API)  

• Orchestration Framework: LangGraph + Python FastAPI  

• Data Storage: Azure SQL Database  

• Integration Tools: Power Automate and Microsoft Graph  

• Logging and Monitoring: Application Insights + Custom Logs  

The system’s LangGraph-based architecture played a critical role by supporting conditional workflows and fallback logic. For instance, it integrated seamlessly with pre-existing organizational tools and allowed plug-and-play improvements for OCR or ERP integration. 

Business Impact  

This implementation had a profound impact on the client’s operational efficiency and financial workflows. Here’s a breakdown of the measurable benefits achieved with Bradsol’s Agentic AI solution: 

• Invoice Processing Time: Reduced from 15-20 minutes to ~30 seconds per invoice.  

• Accuracy: Improved from ~82% to over 97%, minimizing errors.  

• Month-End Reconciliation: Reduced from 5-7 days to just 1 day, accelerating financial closure.  

• FTE Demand: Reduced from 4 FTEs to 0.5 FTE, freeing up resources for strategic tasks. 

Why Choose Agentic AI?  

Bradsol’s Agentic AI goes beyond automation to deliver precision and scalability. The modular LangGraph-based architecture enables customizable workflows, fault tolerance, and integration flexibility to fit the specific needs of any business.  

By addressing common pain points such as manual processing, data inaccuracies, and delayed reporting, Agentic AI provides organizations with a toolset to build transparency, improve decision-making, and unlock their full potential. 

Looking Ahead  

Agentic AI’s implementation at this pharmaceutical company is just the beginning. To further streamline operations and enhance efficiency, Bradsol proposed the following next steps: 

• ERP System Integration: Integrate reconciled data to ERP systems such as SAP or Oracle for seamless financial reporting.  

• Vendor Portal Launch: Enable vendors to resolve disputes in real time through a dedicated portal.  

• Expanded Coverage: Extend reconciliation capabilities to include credit and debit notes. 

Is Agentic AI Right for Your Business?  

By automating invoice reconciliation and enabling faster financial reporting, Bradsol’s Agentic AI is empowering enterprises to focus on innovation rather than inefficient back-office processes.  

Do you want to revolutionize your business operations? Contact Bradsol today to see how Agentic AI can be customized for your specific needs.