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Agents Policy Compliance Intelligence Agent
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Policy Compliance Intelligence Agent

Validates AP and P-Card transactions against policies, thresholds, and documentation rules, surfacing noncompliance and accelerating period-end close.

About the Agent

Manual policy checks and exception reviews often slow period-end accounts payable closure, as finance teams manually sift through transactions to catch breaches, overspend, or missing documentation. This increases the risk of oversight and delays while compliant items remain stuck in queues.

The Policy Compliance Validation Agent automatically reviews AP payments and P-Card transactions against defined spend thresholds, approval policies, tax codes, and documentation requirements. It flags noncompliant cases such as unapproved overspend, incomplete records, or policy misclassifications for escalation, while instantly clearing compliant items. Drawing on ledger entries, receipts, transaction feeds, and policy documents, the agent enables proactive anomaly detection and prioritizes exceptions by risk level for audit and remediation.

By streamlining validation and reducing manual workload, this agent strengthens financial controls, mitigates fraud and compliance risk, and ensures period-end records are accurate, audit-ready, and closed without delays.

Accuracy
TBD

Speed
TBD

Input Data Set

Sample of data set required for Policy Compliance Intelligence Agent:

Period-End Policy Compliance Data – Q3 FY2024


Date: September 30, 2024

Prepared by: Accounts Payable Compliance Team  


This dataset represents a sample of AP and P-Card transactions for the Q3 FY2024 close cycle. The Policy Compliance Validation Agent ingests this full dataset, applies defined policy rules, and classifies each record as compliant or non-compliant.




1. AP Payment Transactions






Transaction ID
Vendor
Amount
Approval Level
Tax Docs Attached
GL Code
Status






AP-98231
Alpha Components
$42,800
Manager
Yes
Operating Exp.
Pending




AP-98412
NovaTech Systems
$11,500
Director
No
Operating Exp.
Pending




AP-98567
Zenith Supplies
$7,950
Manager
Yes
Operating Exp.
Pending




AP-98601
Coreline Services
$25,300
VP
Yes
CapEx
Pending




AP-98622
Orion Hardware
$18,400
Director
Yes
Operating Exp.
Pending




AP-98643
Vertex Solutions
$9,200
Manager
Yes
Operating Exp.
Pending








2. P-Card Transactions






Transaction ID
Cardholder
Amount
Receipt Attached
Vendor Type
Status






PC-44210
J. Matthews
$3,250
Yes
Equipment Supplier
Pending




PC-44231
L. Chen
$1,200
No
Software Subscription
Pending




PC-44244
D. Patel
$850
Yes
Travel Expense
Pending




PC-44267
K. Ahmed
$2,750
Yes
IT Hardware
Pending




PC-44282
R. Singh
$1,100
Yes
Office Supplies
Pending








Policy Rules Applied:  


    

  • All AP payments > $40,000 require Director or VP approval.  
    • 

  • All AP transactions > $10,000 must include tax documentation.  
    • 

  • P-Card purchases > $2,500 require pre-approval.  
    • 

  • P-Card transactions must have supporting receipts.  
    • 

  • GL code classification must match expense type.  
    • 

  • Split transactions on P-Cards are prohibited.
    • 



This input dataset is processed by the Policy Compliance Validation Agent to classify transactions, identify exceptions, and generate an audit-ready compliance report.

Deliverable Example

Sample output delivered by the Policy Compliance Intelligence Agent:

Policy Compliance Validation Report – Q3 FY2024


Executive Summary


The Policy Compliance Validation Agent reviewed 11 AP payments and 5 P-Card transactions for Q3 FY2024. Out of these, 5 transactions (29%) were flagged for non-compliance with corporate policy, primarily due to missing documentation, approval threshold breaches, and potential misuse of P-Cards. The remaining 71% of transactions were validated and cleared automatically, significantly reducing manual review effort.




Compliance Summary






Category
Total Reviewed
Compliant
Non-Compliant
Auto-Cleared %






AP Payments
6
3
3
50%




P-Card Transactions
5
3
2
60%




Overall Total
11
8
5
71%








Exception Analysis


1. Approval Threshold Violations


    

  • AP-98231 – Alpha Components: $42,800 approved at Manager level instead of required Director-level.
    
Recommendation: Implement automated routing for transactions exceeding $40,000.
    • 



2. Documentation Deficiencies


    

  • AP-98412 – NovaTech Systems: Missing tax documentation for $11,500 invoice.  
    • 

  • PC-44231 – L. Chen: Missing receipt documentation for $1,200 P-Card purchase.
    
Recommendation: Enforce mandatory attachment validation prior to posting.
    • 



3. GL Code Misclassification


    

  • AP-98601 – Coreline Services: Incorrect GL classification – service expense posted as CapEx.
    
Recommendation: Enhance GL validation rules based on expense type.
    • 



4. P-Card Policy Breach


    

  • PC-44210 – J. Matthews: $3,250 single transaction exceeds $2,500 P-Card limit.  
    • 

  • PC-44267 – K. Ahmed: Potential split transaction – two sequential charges totaling $5,500.
    
Recommendation: Investigate potential policy circumvention and reinforce cardholder training.
    • 





Cleared Transactions


The following transactions met all compliance requirements and were automatically cleared:  


    

  • AP-98567 – Zenith Supplies  
    • 

  • AP-98622 – Orion Hardware  
    • 

  • AP-98643 – Vertex Solutions  
    • 

  • PC-44244 – D. Patel  
    • 

  • PC-44282 – R. Singh
    • 





Recommendations for Q4


    

  1. Workflow Automation: Enable dynamic approval routing based on spend thresholds.  
    2. 

  2. Attachment Enforcement: Integrate document validation at point of submission.  
    3. 

  3. GL Mapping Controls: Automate cross-check between service type and GL code.  
    4. 

  4. P-Card Oversight: Add automated alerts for split transactions and threshold breaches.
    5. 





Compliance Outlook – Q4 FY2024


With these actions implemented, overall compliance auto-clearance is projected to exceed 90%, reducing exception review workload by over 40% and strengthening audit readiness for year-end close.

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