Key takeaways
- Vergo integrates with Deltek Costpoint, coding invoices to project, WBS element, org and account by inference from your own accounting structure — no rule library to build, no keyword lists to maintain.
- DCAA audit compliance requires timestamped approval trails for every invoice action, including receipt, coding, approval, rejection, and revision.
- Effective AP automation for Costpoint environments must handle both standard vendor invoices and supplier milestone billings tied to deliverables on the hull.
- Three-way matching between invoices, purchase orders, and receiving records is essential for shipyard AP, where receiving happens at the yard but approvals occur at corporate.
Where should you go next?
- Learn more about Vergo AP Invoice Automation
- Learn more about Vergo Expense Management
- Learn more about Vergo Employee Reimbursements
Why Shipbuilding Companies Need AP Automation That Integrates with Costpoint
Deltek Costpoint is a leading ERP in defense and government contracting, and shipbuilding is one of its most demanding use cases. Shipbuilders process large volumes of material, outfitting and outsourced-work invoices per hull, each requiring precise coding to contract line item numbers (CLINs), work breakdown structure (WBS) elements, and indirect cost pools. Shipyard finance teams regularly deal with invoices that must be split across multiple WBS elements on a single hull or program, supplier billings that need supporting cost data before Costpoint posting, DCAA audit readiness requirements that demand a complete approval trail, multi-site operations where receiving happens at the yard but approvals happen at corporate, and PO matching against complex purchase orders with deliverable-based milestones. When AP runs through email, spreadsheets, or disconnected systems, invoice data must be re-keyed into Costpoint, creating entry errors, approval delays, and audit exposure.
What to Look For in a Costpoint-Integrated AP Automation Tool
Evaluating AP automation for a Deltek Costpoint environment requires government-contracting-specific criteria. The tool must write invoice data, charge numbers, and approval records directly to Costpoint through a native integration, not through file exports or middleware workarounds. Invoice coding must support Costpoint's project, org and account structure, including multi-level WBS, contract line items, and indirect cost pools at the line level, not just the header. Three-way PO matching must automate the comparison between invoices, purchase orders, and receiving records before approval, flagging exceptions for review. Approval routing must support dollar-threshold rules, program manager sign-off, and department head escalation, all traceable to Costpoint's project structure. Every invoice action must be timestamped and user-attributed to meet DCAA audit requirements. The system should keep direct and indirect charges separate, flag unallowable costs for review, and handle both standard invoices and supplier billings tied to milestones.
A Practical Example: Multi-Site Shipyard AP Processing
Consider a shipyard building a Navy vessel under a cost-plus contract. A steel fabrication supplier bills for completion of a hull module, which must be coded to three WBS elements covering structural work in different compartments. The receiving inspector at the yard confirms the delivery. The project engineer reviews and approves the allocation across the WBS elements. The contracts administrator checks the billing against the purchase order terms and supporting cost data. The controller performs final review and posts to Costpoint, so the charges flow to the correct CLINs and indirect cost pools. In a manual system, this process involves emails, spreadsheet tracking, physical document routing, and re-keying into Costpoint. Automation that integrates with Costpoint routes the invoice electronically, captures each approval with timestamps, applies three-way matching rules, and writes the coded transaction directly to the ERP with a complete audit trail.
How Vergo Handles This
Vergo integrates with Deltek Costpoint. The platform handles AP invoices alongside card spend and employee reimbursements through one coding model, providing the same coding approach, the same review process, and one reconciliation while payment stays on the rails you already use. Vergo proposes coding by inference from your own Costpoint accounting structure and transaction history — no rule library to build, no keyword lists to maintain, and new vendors are coded on first sight. Every coding shows why it was chosen, so a reviewer confirms in seconds instead of re-coding by hand. Approval workflows are optional and fit how you already control spend: route by GL account, by amount, or by project, or skip approval flows entirely and let policy flags catch only what breaks a rule. Transactions are ready to code the moment they happen, and once they clear, they sync into Costpoint without manual re-entry.
Related Questions
Frequently Asked Questions
Does Deltek Costpoint support direct AP automation integration?
Deltek Costpoint supports third-party integrations for accounts payable automation. A qualified integration writes invoice data, charge numbers, and approval records directly to Costpoint's project accounting records. Native integrations are preferred over file-based or middleware-dependent connections to avoid data latency and entry errors.
What DCAA requirements affect AP automation for shipbuilding companies?
DCAA requires that costs charged to government contracts be supported by a complete, auditable trail. For AP, this means timestamped invoice receipt, documented approvals with user attribution, and coding to the correct contract charge number. AP automation systems must produce this documentation on demand to support an incurred cost audit.
How should shipbuilding companies handle supplier milestone billings in an AP automation system?
Milestone billings from major suppliers involve more than a standard invoice — they typically reference a purchase order milestone schedule, inspection or acceptance records, and supporting cost data. An AP automation tool for shipbuilding must keep that document package with the invoice and hold approval until the required records are attached and verified before posting to Costpoint.
Can Vergo handle WBS-level coding for Deltek Costpoint projects in shipbuilding?
Yes. Vergo's Costpoint integration supports line-level WBS coding, CLIN mapping, and indirect cost pool allocation. Invoice lines can be split across multiple WBS elements on a single hull or program, matching how shipbuilding costs are structured in Costpoint. Coding is checked against the Costpoint project structure before the invoice routes for approval.
What is three-way PO matching in the context of shipbuilding AP?
Three-way matching verifies that an invoice amount, the corresponding purchase order, and the material or service receiving record all align before payment is approved. In shipbuilding, where materials arrive in staged deliveries tied to hull milestones, automated three-way matching prevents overpayment and catches quantity or pricing discrepancies before they reach the Costpoint general ledger.
Does Vergo integrate with ERPs beyond Deltek Costpoint?
Yes. Vergo integrates with the ERPs defense, government contracting and manufacturing organizations run, including Deltek Costpoint, IFS, Epicor, SAP and Dynamics 365. This makes it suitable for organizations running multiple ERPs across divisions or subsidiaries.
