Welcome > Configure Kofax AP Agility > Manage Invoice Processing > Project and field configurations > Intercompany vendors

Intercompany vendors

Intercompany invoices exist when different subsidiaries of the same group of companies are invoicing one another. This is prevalent in large multinational corporations where a substantial proportion of the daily invoice volume can represent this type of transaction.

Intercompany invoices are handled separately from regular third-party invoices. The reason is that the presence of bill-to or ship-to address information on a third-party invoice, coupled with the presence of Intercompany vendor addresses in the vendor extract, can skew the recognition rates of third-party vendors. Therefore, the system proposes an Intercompany vendor as the best vendor for a third-party invoice because the Intercompany vendor details represent a good fit to the bill-to address details provided on the invoice.

To avoid this issue, there are two configuration elements in Kofax AP Agility.

  • The vendor master database has an Intercompany column that indicates whether a vendor is or is not an Intercompany vendor. When set to True, a vendor is considered an Intercompany vendor.

    If you are using Intercompany invoices, ensure that the relevant database entries are set to True. All others should be False.

  • There is an Intercompany class in the Transformation Designer project that is trained against your Intercompany vendors.

Once these are both configured, a document is processed as follows.

  1. The document is classified as either an Intercompany invoice or a standard invoice.

  2. If the document is an Intercompany invoice, the Vendor Master is filtered so that only vendors that have the Intercompany flag is set to True are available for vendor extraction.

    For non-Intercompany invoices, the Vendor Master if filtered so that only vendors that have the Intercompany flag set to False are available for vendor extraction.

  3. At this time, an Intercompany document is reclassified back to an invoice and extraction is performed.

    The temporary classification as Intercompany is simply to filter the Vendor data.

  4. All fields are extracted and the document is sent to the Validation Activity if any of the extraction results are not confident.

If an Intercompany invoice is incorrectly classified as a regular invoice, the vendor search is likely to fail. The Validation Activity user must perform the vendor search manually and select the relevant vendor.

Note If you are using MarkView, there is no functionality within MarkView to differentiate the vendor type. If you have invoices that include Intercompany vendors, create your own method of identifying which vendors are Intercompany vendors.