The Kofax AP Agility solution provides functionality for the handling of service invoices. Typically, for such invoices, line item detail is not extracted from the document because the line item breakdown provided by the vendor does not match the purchase order.

For example, a vendor providing consulting services provides a complete breakdown of all time and costs spent on an engagement, each item is an invoice line item. However, purchasing departments are inclined to raise a single line, blanket purchase order marked for Consulting Services, and the net invoice amount is then booked against this single purchase order line.

The line pairing for service invoices adopts this approach and only functions if the purchase order comprises of a single line item.

It is common practice among many companies to reverse the quantity and unit price for a service line item on the purchase order for the following reasons:

• It is not necessary to pro-rata the quantity based on the invoice net total as a proportion of the overall purchase order line total at the time of invoice entry.

• It prevents a purchase order line from being fully invoices with the difference posted to profit and loss.

Kofax AP Agility does not extract line items from third-party freight invoices. Instead, at the time of line pairing, the system books the net invoice amount according to the miscellaneous charge group settings assigned to third-party freight vendors in the Settings > Invoice Processing > Capture Profiles > Misc Charge Settings > Misc Charge Settings tab.