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Managing compliance exceptions in accounts payable can overwhelm teams with false positives, unclear escalation paths, and delays in payment processing. Without targeted exception handling, organizations risk bottlenecks, unnecessary manual work, and regulatory exposure.The Compliance Exception Routing Agent ensures only genuine, unresolved compliance exceptions are surfaced to the right stakeholders. With context from audit logs, policy criteria, and validation results, it applies advanced filtering to distinguish actionable issues. The agent directs flagged cases to the appropriate reviewers for swift, informed resolution, supported by comprehensive documentation from both internal and external data sources.This intelligent routing reduces noise and unnecessary escalations, enhancing process productivity and freeing up employee capacity. Exception handling becomes more precise and auditable, reducing manual oversight and allowing the accounts payable team to focus only on critical, risk-relevant cases.
Accuracy
TBD
Speed
TBD
Input Data Set
Sample of data set required for Compliance Exception Routing Agent:
Automated Payment Validation Log – Input
Payment Details
- Payment ID: PAY-2024-Q3-7521
- Invoice Number: INV-881-9B
- Supplier: InnovateCorp R&D
- Supplier ID: 900142
- Payment Amount: USD 95,200.00
- Payment Date: 2023-10-27
- Justification: "Expedited payment for Phase 2 of Project Chimera, special materials sourcing. Approved by Dir. Evans."
Validation Check Results
-
Check ID: SAN-001
Details: Supplier 'InnovateCorp R&D' and associated entities cleared against the latest OFAC list. -
Check ID: DUP-INV-003
Details: No duplicate invoice found for INV-881-9B in the last 18 months. -
Check ID: VAT-EU-009
Details: Initial VAT rate was calculated at 19%. System automatically corrected it to the proper 21% rate based on service type and current EU tax tables. Discrepancy logged for supplier performance review. -
Check ID: AUTH-LIMIT-015
Details: Payment amount of $95,200 exceeds the standard Director-level approval limit of $75,000 as per Policy FIN-AP-11.2. The attached approval is from a Director, not a VP as required for this amount. -
Check ID: SUP-MASTER-004
Details: Bank account details on invoice match InnovateCorp R&D's master file record. -
Check ID: TAX-DATA-007
Details: Supplier tax ID was missing a country prefix. System auto-corrected using existing supplier master data. Logged for reference. -
Check ID: JUST-ATT-012
Details: Initial justification field exceeded character limit and was truncated. All required information remains intact and compliant. Logged for audit trail. -
Check ID: FX-RATE-021
Details: Exchange rate variance detected at 0.7%, below the 1% materiality threshold. System adjusted the conversion automatically.
Deliverable Example
Sample output delivered by the Compliance Exception Routing Agent:
Compliance Exception Review Required: Payment PAY-2024-Q3-7521
Summary
An automated compliance scan has identified one unresolved exception for payment PAY-2024-Q3-7521 requiring immediate manual review. The issue relates to an insufficient approval level for the transaction amount. All other compliance checks were either passed or automatically resolved.
Routing Information
- Routed To: AP Compliance Review Queue, Senior Finance Manager Group
- Priority: High
- Reason for Escalation: Payment amount exceeds authorized signatory limit.
Payment Details
| Field | Value |
|---|---|
| Invoice Number | INV-881-9B |
| Supplier | InnovateCorp R&D |
| Payment Amount | USD 95,200.00 |
| Justification | Expedited Payment for Project Chimera |
Actionable Exception Details
Exception Code: AUTH-LIMIT-015 Policy Reference: FIN-AP-11.2 (Approval Authority Limits) Description: The payment amount of $95,200.00 surpasses the Director-level approval threshold of $75,000. The provided approval is from a Director, which is insufficient for a transaction of this value.
Action Required:
- A Finance Manager or AP Compliance Officer must review the transaction.
- Obtain and attach a new approval from a VP-level signatory or higher before the payment can be released.
Non-Escalated Findings (For Audit Trail)
The following items were identified but did not require manual intervention:
- (Resolved)
VAT-EU-009: A minor VAT calculation error was automatically corrected by the system. - (Passed)
SAN-001,DUP-INV-003,SUP-MASTER-004: Sanctions screening, duplicate invoice check, and supplier bank details verification all passed without issue.
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