Invoice Coding Proposals

Kaunt provides coding proposals for each invoice line through the InvoiceCodingProposals endpoint. The proposals consist of a list of codings for each dimension as well as a coding for the combination of dimensions. Kaunt delivers multiple proposals for each invoice line, prioritized by confidence. The proposalPriority is a number starting from 1 where 1 is the most confident proposal for the invoice line.

The proposal output consists of the invoiceLineCodingDimensionProposals, invoiceLineCodingDimensionCombinationProposals and invoiceCodingProposalGroups properties which are described in the next sections.

Invoice Line Dimension Proposals

The invoiceLineCodingDimensionProposals property in InvoiceCodingProposal contains a list of coding proposals for a particular dimension. Kaunt typically delivers multiple proposals in a prioritized order (from most confident HIGH to LOW) along with a confidence of either HIGH, MEDIUM or LOW. Common examples of dimensions could be Area Code, VAT code, and Cost center.

Example 1 : invoiceLineCodingDimensionProposals (simplified visualization of the InvoiceCodingProposals JSON response)

Invoice Line No	Dimension Name	Dimension Value	Confidence	ProposalPriority
1	GL Account	2221	HIGH	1
1	GL Account	2233	LOW	2
1	Cost Center	R&D	HIGH	1
1	Cost Center	Finance	MEDIUM	2
1	Tax Code	2235	MEDIUM	1
1	Tax Code	4444	LOW	2

Invoice Line Dimension Combination Proposals

The invoiceLineCodingDimensionCombinationProposals property in InvoiceCodingProposal contains a set of dimension combinations which can be used as an accounting proposal. Kaunt typically delivers multiple proposals in a prioritized order (from most confident HIGH to LOW) along with a confidence of either HIGH, MEDIUM or LOW.

Example 2 : invoiceLineCodingDimensionCombinationProposals (simplified visualization of the InvoiceCodingProposals JSON response)

Invoice Line No	GL Account Value	Cost Center	Tax Code	Confidence	ProposalPriority
1	2221	R&D	2235	HIGH	1
1	2233	HR	2222	LOW	2

Invoice Coding Group Proposals

The InvoiceCodingProposalGroups property in the InvoiceCodingProposals endpoint contains a list of coding proposals for a group of invoice lines. The groups are inferred from the output of InvoiceLineCodingDimensionCombinationProposals where invoice lines with the same combination of dimension values are grouped. Invoice lines with no InvoiceLineCodingDimensionCombinationProposals are bundled in a single group.

The Confidence property in InvoiceCodingProposalGroups represents the confidence of the proposal for the group of invoice lines. The confidence is represented as either HIGH, MEDIUM or LOW. The Confidence property is inferred from the confidence of the least confident InvoiceLineCodingDimensionCombinationProposal within the group.

Posting Texts

The postingTextProposals property in InvoiceCodingProposalGroups contains the proposed posting text for the group of invoice lines. The posting text is a human-readable description of the accounting proposal. By default, the posting text is generated based on the Description and Name properties of the invoice line with the highest absolute amount in the group. We also offer the possibility to generate more sophisticated posting texts based on generative AI models. Please contact us if you are interested in this feature.

Should I Use invoiceLineCodingDimensionProposals, invoiceLineCodingDimensionCombinationProposals or InvoiceCodingProposalGroups?

The difference between invoiceLineCodingDimensionProposals and invoiceLineCodingDimensionCombinationProposals is that invoiceLineCodingDimensionProposals provides proposals on the dimension level independent from other dimensions, whereas invoiceLineCodingDimensionCombinationProposals provides proposals as a combination of dimensions. Furthermore, the invoiceLineCodingDimensionCombinationProposals guarantees that the combination of the dimensions has been used historically.

Rapidly changing values such as free text typically does not go well with invoiceLineCodingDimensionCombinationProposals since the concept of a free text value typically violates the guarantee that the combination of dimensions has been used before. In those cases we recommend to use the invoiceLineCodingDimensionProposals for proposals.

Both the invoiceLineCodingDimensionProposals and invoiceLineCodingDimensionCombinationProposals contain multiple proposals. This could prove useful if you for instance would like to display the list of most likely correct coding values in the frontend of your application.

The InvoiceCodingProposalGroups is the most suitable option if the desired result is a list of distinct posting groups rather than invoice line level proposals. This is especially useful when you have multiple invoice lines with the same combination of dimensions. The InvoiceCodingProposalGroups also provides a posting text which is a human-readable description of the accounting proposal.

Understanding the Confidence Property

The Confidence property represents the confidence of the proposal. The confidence is represented as either HIGH, MEDIUM or LOW and is calculated based on the historical data provided. Typically, the underlying AI-models will be calibrated towards the following statistics:

• HIGH: The proposal matches the invoice line posting at least 90% of the time.
• MEDIUM: The proposal matches the invoice line posting at least 70% of the time.
• LOW: The proposal matches the invoice line posting at least 30% of the time.

Please be assured that Kaunt continually monitors the models' performances and retrain them as more data becomes available.

Invoice Split

An invoice is sometimes split into several different codings. Kaunt is capable of handling invoice splits on the invoice line level (one coding per invoice line). Kaunt is not capable of splitting a single invoice line into multiple proposals.

Adjusting Invoice Line Amounts

Sometimes, the invoice total amount does not match the sum of the invoice line totals. There can be several reasons for this. For instance, the invoice total might include VAT, while the invoice lines do not, or the invoice total could contain additional charges or duties not represented at the line level. The latter is particularly important to adjust at the line level in warehouse bookkeeping, as it ensures the correct price per item and, ultimately, the accurate profit margin for each individual item.

When retrieving an invoice previously uploaded to Kaunt, we have the option to adjust the line amounts proportionally to match the invoice total as shown in example 3 and 4 below.

Example 3 : Invoice with VAT in total amount but not in invoice lines

"result": {
    "amountExVat": 300,
    "vatAmount": 75,
    "amountInclVat": 375,
    "invoiceLines": [
      {
        "lineNumber": "1",
        "lineAmountExVat": 250,
        "lineVatAmount": 0,
        "lineAmountInclVat": 250
      },
    {
        "lineNumber": "2",
        "lineAmountExVat": 50,
        "lineVatAmount": 0,
        "lineAmountInclVat": 50
      }
    ]
}

As shown in Example 3, the total amount on the invoice (375) does not match the line total (300) because the VAT is only represented at the invoice header level.

By providing the adjustLineAmounts query parameter when retrieving an invoice from Kaunt, Kaunt will adjust the line amounts to match the invoice total, as illustrated in Example 4 below.

Example 4 : Adjusted invoice line amounts (based on the original invoice in Example 3)

"result": {
    "amountExVat": 300,
    "vatAmount": 75,
    "amountInclVat": 375,
    "invoiceLines": [
      {
        "lineNumber": "1",
        "lineAmountExVat": 250,
        "lineVatAmount": 62.5,
        "lineAmountInclVat": 312.5
      },
    {
        "lineNumber": "2",
        "lineAmountExVat": 50,
        "lineVatAmount": 12.5,
        "lineAmountInclVat": 62.5
      }
    ]
}