OCR-based capture handles non-standard subcontractor invoices by extracting key fields — vendor, amount, job cost codes — regardless of layout or format. Vergo applies this across email, PDF, and photo submissions, mapping extracted data directly to cost codes without manual re-keying.
The Current Problem
Subcontractor invoices often come in a wide variety of formats, making it difficult for construction AP teams to efficiently capture and process the data. Handwriting, custom templates, and lack of standardization lead to frequent errors, missing information, and slow invoice approvals.
- Subcontractor invoices have inconsistent layouts, fields, and codes
- AP staff waste time manually entering and validating invoice data
- Errors in data entry lead to inaccurate cost tracking and payments
- Delays in getting invoices approved and paid impact subcontractor cash flow
The Recommended Workflow
- Set up digital invoice capture in your AP automation software
- Train subcontractors to submit invoices electronically or via mobile app
- Use intelligent OCR to extract invoice data automatically
- Validate and code the invoice data using construction-specific business rules
- Route the invoice for approval based on job, cost code, and dollar amount
- Integrate the approved invoice data with your ERP or accounting system
- Schedule payments and notify subcontractors of upcoming due dates
- Monitor the AP process and address any exceptions or delays
Tips for Construction Teams
- Provide training and support to help subcontractors adopt digital invoice submission
- Leverage mobile apps to allow field teams to capture and approve invoices on the go
- Enforce consistent invoice formatting and coding requirements across the company
- Integrate your AP automation software with your ERP to streamline the entire process
- Look for a construction-specific solution like Vergo that automates these workflows
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
Frequently Asked Questions
How do I handle subcontractor invoices that don't fit the standard format?
Your AP automation software should use intelligent OCR to extract data from any invoice format, even handwritten or custom templates. It can then validate the data against your business rules and flag any exceptions for manual review.
What if a subcontractor refuses to submit invoices electronically?
You can require electronic invoice submission as a standard policy. Provide training and support to help subcontractors transition. If needed, you can also accept PDF or image uploads as an interim solution before requiring a mobile app or portal.
How do I ensure all invoice data is coded correctly for my ERP?
Your AP automation software should have construction-specific business rules to automatically categorize invoices by job, cost code, vendor, and other key attributes. This ensures data consistency and accuracy in your ERP and financial reports.
Can AP automation really reduce invoice processing time?
Absolutely. By eliminating manual data entry, accelerating approvals, and integrating with your ERP, leading construction companies see a 50-75% reduction in invoice processing time using AP automation.