Exception Handling
The process of resolving invoices that fail automated validation or matching.
Definition
Exception handling refers to the workflow for managing invoices that cannot be automatically processed due to mismatches, missing information, or policy violations. Effective exception handling minimizes manual work while ensuring all exceptions are properly resolved.
Why It Matters
Exceptions are inevitable in AP. Efficient exception handling determines whether automation actually saves time. Poor exception workflows can negate automation benefits.
Examples
Price exception
Invoice at $12/unit vs PO at $10/unit. Exception routed to buyer for verification or rejection.
Missing PO
Invoice received without PO reference. Exception routed to department for PO creation or non-PO approval.
How Nexus AP Helps
Nexus AP uses AI to automatically resolve common exceptions and routes complex ones to appropriate handlers with full context. Exception resolution time drops by 70%.
Start Free TrialFrequently Asked Questions
What percentage of invoices should be exceptions?
Best-in-class AP sees 10-15% exception rates. Higher rates indicate process or data issues that should be addressed.
How can I reduce exceptions?
Improve PO accuracy, set appropriate tolerances, work with vendors on invoice quality, and use AI-powered matching.
Category
processesRelated Terms
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