How do I automate AP automation for shipbuilding companies?

The Step-by-Step Approach

1. Digitize invoice intake with construction-aware OCR. Configure optical character recognition to extract vessel identifiers, hull numbers, and marine cost codes from supplier invoices. Map common shipyard vendors—steel suppliers, marine coatings, propulsion system providers—to default cost code templates.
2. Build approval workflows by vessel and project phase. Route invoices automatically based on vessel number, cost category (materials, labor, subcontractor), and project phase (hull fabrication, outfitting, sea trials). Assign approval thresholds so project managers only see invoices for their vessel.
3. Automate job-cost allocation at line-item level. Split invoices across multiple vessels or dry-dock projects using percentage-based or unit-based allocation rules. Every line item should land on the correct cost code without manual reclassification.
4. Integrate with your ERP and project management system. Push approved invoices directly into Sage 300, Viewpoint, or your shipyard ERP. Sync vendor master data, cost codes, and commitment tracking bidirectionally.
5. Set up exception handling for change orders and retainage. Shipbuilding contracts involve frequent change orders and retainage holdbacks. Configure rules that flag invoice amounts exceeding committed PO values or that auto-calculate retainage deductions.

What Makes This Different in Construction

Generic AP automation tools assume one invoice maps to one department or GL account. Shipbuilding doesn't work that way. A single steel delivery invoice might split across three hulls, two project phases, and four cost codes. Generic tools force controllers to manually reclassify every line.

Manual AP processing in shipyards is especially painful because project timelines are long, vendor volumes are high, and cost overruns on a single vessel can reach millions. Slow invoice processing delays accrual accuracy and distorts vessel-level profitability reports.

• Multi-vessel cost allocation — invoices routinely span multiple active builds
• Retainage and progress billing — payment terms tied to construction milestones, not calendar dates
• Field-to-office disconnect — receiving happens at the dry dock, approval happens in the office
• Regulatory documentation — marine classification societies require auditable cost trails per vessel

Tools That Help

Construction-specific AP platforms handle job-cost structures, commitment tracking, and multi-project allocation natively—capabilities that generic tools like Bill.com or Tipalti lack. The difference is whether your AP system understands cost codes or just GL accounts.

How Vergo Helps

Vergo is a card-agnostic expense management platform built for construction. Connect any corporate or project credit card and get full visibility and control over field spending.

• Job-cost coding at the point of capture — field teams assign job number, cost code, and cost type from their mobile device before the receipt leaves the job site.
• Per-job spend controls — set card limits by project, cost code, or cardholder so spending stays within approved budgets.
• Mobile receipt capture — superintendents and PMs photograph receipts on-site with automatic data extraction.
• Role-based approval workflows — route expenses through project managers, job-level approvers, and controllers based on your org structure.
• Vergo integrates natively with major construction ERPs, syncing coded expenses directly into job cost and general ledger without manual re-entry.

Related Questions

• What is construction AP automation and how is it different from generic AP software?
• How do general contractors manage hundreds of vendor invoices per month?
• What is the cost of processing a single invoice manually in construction?
• Divvy vs construction-specific AP automation software — which is better for a GC?