Invoice Manager uses AI to automate the extraction of financial data from your uploaded documents.
This technology empowers SaaS Admins and SaaS Finance to ensure that invoice numbers, dates, and Value Added Tax (VAT) are accurately recorded and matched against your accounting settings.
Confirming these details allows your Finance team to accurately calculate claimable VAT, ensuring you never leave money on the table due to missing documentation or incorrect tax rates.
Below are the two primary workflows for confirming AI-extracted VAT:
Validate extracted data: routine checks of correctly extracted data
Resolve VAT flags: when the extracted data requires manual correction
Jump to the FAQ section below:
How is VAT calculated for Foreign Exchange transactions?
When should I use the "Ignore" or "Ignore All" function?
How does "Auto-confirmation" work?
Validate extracted data
This is your standard workflow for routine checks of correctly extracted data.
When an invoice is uploaded, the system begins processing it for data. Once the status moves from "Processing" to "Ready to Review," you can open the invoice drawer to verify the following:
- Invoice number
- Invoice date
- VAT rate
The system pulls the VAT rate currently assigned to the application and compares it with the rate extracted from the invoice to ensure they align.
If everything matches, you can add an optional comment for the invoice, and click Confirm to store the data for the transaction.
Once confirmed, this data is:
- Viewed in the application's Payments tab, under the specific transaction.
- Synced to your connected accounting software.
- Included in your CSV exports.
If you have multiple invoices with correctly extracted information, you can select them all from the main table and click Confirm all.
Resolve VAT flags
This is how you handle exceptions where the extracted data requires manual correction.
When the AI detects an inconsistency, it applies a label flagging for a detailed review of the invoice.
-
VAT mismatch flag: This flag appears if the rate on the invoice does not match your application's accounting setting. You can click Use invoice value to quickly update your settings to match the invoice:
- VAT needed flag: This indicates that no VAT rate is currently set for the application, but the AI has found a rate on the invoice. You must review the invoice and assign a rate before the transaction can be confirmed.
If you choose to use the invoice value, you can also select "Set as VAT rate" for your application. This applies the invoice VAT rate to the VAT accounting setting of the application:
FAQ
How is VAT calculated for Foreign Exchange transactions?
For Foreign Exchange transactions, the system displays the actual amount paid in your Cledara account currency. The VAT amount shown is a calculated figure based on that total and the VAT rate you have set, rather than the VAT figure printed on the original foreign invoice.
When should I use the "Ignore" or "Ignore All" function?
The Ignore function is used for invoices that should not be used in any financial reporting. Ignoring the invoice ensures that the VAT is not factored into your claimable VAT calculations.
How does "Auto-confirmation" work?
If you consistently trust the invoice data extracted from a specific vendor invoice, or if the VAT rate is the same across all payments that go under this application, you can check the "Automatically confirm the data extracted from Cledara invoices" box, at the bottom of the side drawer.
Future invoices for that application will bypass the review queue. For each invoice uploaded:
- Invoice number and date extracted from the invoice will be automatically stored for the transaction.
- The VAT rate set in the application's accounting will be automatically applied to the transaction.
- The VAT amount will be automatically included as confirmed claimable VAT in Reports - Historical Spend.
You can update any extracted data manually in the application's Payments tab:
To revert this configuration, you can toggle the setup in the application's Accounting tab:
Future invoices uploaded for this application will appear in Invoice manager again for your review.