Automated Invoice Assessment & Eligibility App

Overview of functional requirements for invoice processing application
General objective:
Develop an application that automatically screens invoices for eligibility for purchase, based on received invoices and communication between client and debtor regarding correctness and content. The application must independently assess the content and structure of invoices, verify whether the correct approval steps have been followed, and determine whether an invoice qualifies for purchase. The tool must be self-learning, scalable, audit-proof, and operate within a Microsoft 365 environment.

1. Email receipt and initial verification
• Invoices are received via an Outlook mailbox.
• Application detects whether the debtor is correctly included in the email.
• Validates the debtor’s email address against a whitelist.
• Flags irregularities in domain names or suspicious patterns (fraud detection).

2. Invoice analysis (PDF)
• Invoices are received as PDFs.
• Layouts differ per client; the tool must handle this flexibly.
• Invoices are automatically read.
• Self-learning mechanism for recognizing new layouts.
• The following data must be checked and validated:
o Client name
o Client address
o Client postal code
o Client city
o Chamber of Commerce number
o VAT number
o Invoice date
o Payment term or due date
o IBAN
o Assignment of claims text
o Variables such as hours, hourly rate, and additional work must correspond with the total amount of the invoice.
o Debtor verification (name and address of contact person sometimes present, sometimes not)

3. Approval request to debtor
• After approval of invoice content, the application semi-automatically sends an approval request by email to the debtor. A dashboard displays the status of received invoices, which is manually reviewed by an employee to determine the next action—sometimes an email is sent, sometimes not, depending on the invoice.

3.1 If an email is sent:
• The email includes two options:
o Approve, The attached invoice with invoice number 'invoice number' and an invoice amount of € 'invoice amount' is submitted for your review. In light of the insurability of the invoices, we kindly ask for your approval for factoring. A simple reply with the word ‘approved’ will suffice.
o Dispute (including text field for reason)
• If no response within 1 business day: automatic friendly reminder with the same content.
• When Approve is sent:
o This is recorded in the system.
o The status of the case is updated to “approval received.”
• When Dispute is chosen:
o The case is paused.
o The system generates an alert for an employee.

4. Insurance limit & purchase proposal
• Before an invoice is purchased:
o Manual input from employee whether credit limit is still sufficient.
o If exceeded, the system displays a warning.
o The system automatically shows the percentage of uninsured portion:
 Relative to client portfolio
 Relative to total purchase portfolio
o If exceeded: case cannot proceed without internal consultation.

5. Case construction and archiving
• Complete transaction history per case:
o Incoming email
o Invoice (PDF)
o Validated data
o Sent approval email
o Debtor’s response (approval or dispute)
• Archiving of approval email as evidence document.
• Linking of case to both client and debtor.

6. Dashboard and interface
• Visual dashboard displaying per case:
o Client name
o Status (new / in progress / approved / disputed / purchased)
o Date of last action
• Filter and search function by:
o Client
o Debtor
o Invoice number
o Invoice amount
o Status
• Note-taking capability for employees for each case.
• Real-time alerts and error messages if manual action is required.

7. Technical and functional framework
• Microsoft 365 integration (Outlook for email traffic).
• Future-proof design with expansion options towards automatic purchase processing.
• Application must be stable, secure, and easy to manage by non-technical staff.

8. Important preconditions
• Full GDPR compliance.
• Secure storage and access control per user.
• Application must be audit-proof (all actions logged).
• Notifications via email or dashboard in case of errors, missing steps, or reminders.

Scalability:
• Up to 300 invoices per month, with potential growth in the future.