Preparing for Vertical AI revolution in accounts payable straight-through processing (STP) and why data quality in SAP is key.

The future of Accounts Payable (AP) automation lies in?Vertical AI Agents—domain-specific AI solutions deeply embedded in enterprise systems. NXT AP is one such example: a Vertical AI Agent for AP automation in SAP. Unlike legacy tools that copy only portions of your SAP data into external systems for processing, NXT AP leverages?complete and current?SAP data in real-time. This fundamental difference provides CFOs the agility to drive finance transformation with new levels of speed, accuracy, and compliance.

Yet even the best AI solution can only be as good as the data it relies on. Without high-quality data in SAP, your AP automation efforts—no matter how advanced—will yield suboptimal results. Consequently,?data quality?is emerging as the single most decisive element in achieving?straight-through processing (STP).

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Four Cornerstones of data quality

1.?Business partner master data - Complete and up-to-date vendor information (e.g., contact details, tax IDs, bank accounts) ensures seamless supplier identification and regulatory compliance.

2.?Material master data - Unique and standardized material numbers, descriptions, and units of measurement enhance precise line-item matching and reduce errors across invoices, purchase orders, and goods receipts.

3.?Exception handling protocols - Clearly defined roles and responsibilities for resolving exceptions minimize manual interventions, shorten cycle times, and improve auditability.

4.?Approval scenarios - Well-structured approval workflows reduce bottlenecks, promote governance, and enable consistent enforcement of company policies.

By focusing on these four areas, CFOs can lay the groundwork for a truly transformative AP function—one in which AI agents like NXT AP can deliver on the promise of?near-complete automation.

Why PO-based processes are essential

A common thread among world-class AP organizations is their reliance on purchase-order-based processes. POs serve as a central reference for matching vendor invoices,?goods receipts (GRs), and delivery notes.

When combined with Vertical AI Agents operating?natively?in SAP, the benefits of a PO-based approach become even clearer:

1. Accurate invoice validation Invoices are automatically checked against standard fields such as expected quantities, negotiated prices, and PO references. Any deviation triggers AI-driven alerts, reducing the need for manual follow-up.
2. Vendor-specific checks Even if a vendor mistakenly uses the wrong PO number, a real-time AI agent can cross-verify multiple data points—including vendor and material details—to pinpoint discrepancies before posting.
3. Regulatory adherence Structured e-invoicing data can replace ambiguous or non-compliant invoice formats, making it easier to satisfy local and international compliance mandates.
4. Delivery note and GR correlation By integrating accurate delivery note details with GR postings in SAP, finance teams can encourage suppliers to reference both the PO and the corresponding delivery note, reducing matching ambiguities.

Real-life examples and their implications

Below are some practical scenarios demonstrating how Vertical AI Agents capitalize on complete SAP data to streamline AP:

Comprehensive matching

Properly maintained vendor, material, and tax data in SAP enables AI to accurately match every aspect of an invoice. This not only reduces errors but also supports internal and external auditing processes.

Vendor misquoting issues

If vendor A accidentally references vendor B’s PO number, a Vertical AI Agent can detect the mismatch in real-time by verifying the vendor’s address, banking details, or VAT IDs. Instead of copying data outside SAP, the agent works?within?SAP’s data set, pinpointing errors instantly.

Tax and bank details

In many regions, minimal compliance requirements are enough to process invoices, often bypassing rigorous checks on bank details or tax IDs. Vertical AI Agents enforce best-practice validations across the board, helping organizations maintain strong compliance standards globally.

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The Shift to Vertical AI: A Strategic Imperative

General AI solutions have often proven to be too broad, struggling to address the nuanced, complex needs of corporate finance. Vertical AI Agents, however, are specialized by industry or functional domain—offering deep expertise and seamless integration that generic tools cannot match.

Below is a quick comparison:

Real-Time Processing

By operating natively within SAP, Vertical AI Agents can capture, validate, and match invoices in?seconds, drastically reducing days or weeks from the AP cycle.

Proactive Compliance

Dynamic rule sets adapt to emerging regulations, whether it’s a new e-invoicing requirement in Europe or an updated tax code in APAC. This helps finance teams remain continuously compliant, without waiting for large-scale software updates.

Resource Optimization

With the grunt work of verification and matching handled automatically, AP professionals can focus on strategic initiatives such as cash flow optimization, supplier negotiations, and working capital management.

Preparing Your Organization for Vertical AI Adoption

Transitioning to a Vertical AI Agent like NXT AP isn’t just a technology project—it’s a?strategy?that touches every aspect of finance operations. To fully realize the benefits, CFOs and finance leaders should:

Prioritize Data Quality

• Conduct regular data clean-up and audits of business partner and material master data.
• Align naming conventions and standardize units of measure across the organization.

Adopt PO-Based Procurement

• Encourage all departments to use PO-based purchasing for better validation and matching.
• Ensure your approval workflows are configured to expedite PO creation and manage exceptions.

Upskill Finance Teams

• Train AP staff on leveraging AI-driven insights—focusing on data analytics, exceptions management, and regulatory updates.
• Encourage continuous learning around new compliance requirements and best practices in e-invoicing.

Plan for Change Management

• Communicate the benefits of Vertical AI Agents to stakeholders across procurement, operations, and finance.
• Establish governance committees or steering groups to oversee the adoption of new technologies.

Looking Ahead

#VerticalAIAgents represent the next wave of finance transformation:?purpose-built,?real-time, and?truly embedded?in the most critical enterprise systems.

For CFOs and AP managers, investing in data quality and process standardization today means reaping the rewards of tomorrow’s fully automated, AI-driven AP function—one where manual intervention is the exception, not the rule.

By taking these proactive steps, your organization can pivot from viewing #AccountsPayable as a cost?center?to leveraging it as a strategic asset—supported and amplified by the real-time intelligence of Vertical AI Agents like NXT AP.

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Moving away from transactional back office work

Enterprises are increasingly looking to shared services organizations (SSOs) to function as true business partners – boosting efficiency, agility, and performance by creating a customer-centric approach, optimizing operations, automating processes, and providing real-time strategic insights that drive ongoing success.

When asked whether they are shifting their focus from transactional back office work toward core business support, 49% of GBS leaders said they are already moving in this direction. As new service demand requires higher-level skillsets, the bottom-of-the-barrel pricing and overnight shifts needed to align with European or U.S. business hours in Asian-based offshore locations like India and the Philippines leaves many enterprises struggling to attract top-tier resources who can support judgment-intensive activities.

Source: The state of shared services and outsourcing industry report

New AI-driven finance roles are emerging

AI is transforming the finance industry, leading to the emergence of new job roles. These roles leverage AI and machine learning to enhance decision-making, risk assessment, and strategies. Examples include AI Financial Analysts who use AI to analyze data and predict trends, and Algorithmic Traders who develop AI-powered trading algorithms. AI Risk Analysts utilize AI-driven models to identify and mitigate risks by assessing market conditions. These emerging roles highlight the growing importance of AI skills in the finance sector.

Source: Will AI take my job in 2025?

Authorization for top-secret use

Authorization for top-secret use: OpenAI's GPT-4o model has received authorization for use in Microsoft's Azure for U.S. Government Top Secret cloud, allowing federal agencies with top-secret workloads to utilize this advanced AI technology.

Source: Authorization for top-secret use

[PAST EVENT] CFO Forum 2025 – An online event that successfully took place on January 7th, bringing together industry leaders to learn why NXT AP is a game-changer in finance and automation. Although the event has concluded, we're here to continue the conversation.

Explore NXT AP on the Azure Marketplace.

Contact us today for a personalized consultation and explore how the insights from the forum can benefit your organization.

Event highlights:

Maex's Session:

Background and Journey: Extensive AP automation experience, from SAP's payment program development to founding Ebydos (acquired by Readsoft), and now advising startups. Ebydos and AP Automation: Emphasized embedding solutions in SAP for better data validation and automation. NXT4SAP: Leveraging Azure AI for real-time processing and compliance within SAP.

Navisha's Session:

AI Agents and automation: AI agents streamline tasks like employee onboarding by reasoning and performing actions via APIs. Key Applications and Benefits: Improved efficiency, accuracy, and cost reduction by providing AI agents with the right context and tools. Customer Examples: Companies like Thermo Fisher and Toyota demonstrate successful AI agent implementation.

Torsten's Session:

Rethinking AP Automation: Highlighted inefficiencies in traditional systems, advocating for innovative approaches. Next for SAP's Approach: Vertical AI agent embedded in SAP for real-time invoice processing and compliance. Customer Success Stories: Examples included - DTI, Gamuda (Australia), and a European cement manufacturer.

Volkmar's Session:

Challenges in AP Automation: Addressed issues like data redundancy and validation gaps in existing solutions. Next for SAP's Features: Deep SAP integration, AI-driven validation, and real-time processing. Implementation and Compliance: Easy implementation, flexible pricing, and compliance with global mandates via partnerships.

Follow NXT4SAP to be notified about our future events.

30-min LinkedIn Live Webinars! Join and discover how cutting-edge solutions are transforming the accounts payable processes and keeping organisations ahead with the latest in AI technology.

[Linkedin Live Webinar] Seamless integration of legacy solutions

Date: Wednesday, 29th January 2025

Time: 3:30 PM - 4:00 PM

Follow NXT4SAP on Linkedin to get instant notifications when webinars go LIVE.

Future CFO Thailand

For all CFOs and finance leaders in Thailand, we highly recommend attending this event.

While Thailand's growth appears stable, there are always challenges that could derail progress. Coupled with Thailand's transition into a low-carbon society, how would these new developments impact finance leaders in Thailand? Join your peers at FutureCFO Thailand to discuss how to overcome the challenges ahead.

Date: 20th February 2025

Details: TBA. Follow FutureCFO to receive instant notifications about this event.

Contact: Nigel Standley

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Disclaimer: All content in this newsletter is provided for informational purposes only. The use of trademarks such as SAP and Microsoft?is?solely for reference purposes, and all respective rights remain with their owners. This newsletter is created by independent experts and is not affiliated with or endorsed by SAP SE, Microsoft Corporation, or any of their subsidiaries. Please consult your own advisors before making any decisions based on the content of this newsletter.