Manual invoice processing is one of the biggest time sinks in any finance or operations function. Invoices arrive by email. Someone downloads the PDF, opens a spreadsheet, manually types the data, routes it to a manager for approval, follows up when they don't respond, updates the spreadsheet again when it's approved, and files the document somewhere. Every step is manual. Every step is an opportunity for error or delay.
The entire workflow can be automated with Power Automate, AI Builder, and SharePoint, tools most Microsoft 365 users already have access to. Here's how to build it, start to finish.
Before building anything, it helps to be clear about what you're replacing. A fully automated invoice workflow handles:
A human still approves the invoice. But every other step, the data entry, the logging, the routing, the chasing, happens automatically.
Set up a SharePoint list with columns for: Vendor Name, Invoice Number, Invoice Date, Amount, Currency, Status (Pending / Approved / Rejected), Approver, and a link to the original document. This becomes your single source of truth for all invoices.
Create a new Power Automate flow triggered by "When a new email arrives in a shared mailbox." Filter for emails with attachments only, optionally narrowing further by subject keywords ("invoice", "INV-") if needed. This fires the flow the moment an invoice email lands.
Add the AI Builder "Process and save information from invoices" action. Pass in the email attachment. AI Builder reads the PDF and returns structured fields: vendor name, invoice total, invoice date, line items, and more. No manual data entry. The model handles most standard invoice formats without any training.
Use the "Create item" action to write the extracted fields to your SharePoint register. Set Status to "Pending Approval." Store the original PDF in a SharePoint document library and link it to the list item.
Use the "Start and wait for an approval" action. Configure routing logic: invoices under a threshold go to a line manager; invoices above go to a finance director. Approvers receive an email with the invoice details and a link to the original document. They approve or reject with one click, from email or the Power Automate approvals hub.
When the approval completes, update the SharePoint item status to Approved or Rejected. Send a confirmation email to whoever submitted the invoice. For approved invoices, optionally trigger a further action: creating a payment record in your accounting system if an integration exists.
Use a scheduled flow that runs daily and checks the SharePoint list for items in "Pending Approval" status older than 2 days. Send a reminder email to the approver. This replaces the manual follow-up that falls through the cracks in every manual process.
For a business processing 50 invoices per month, manual handling typically takes 8–15 minutes per invoice: data entry, filing, chasing approvals. That's 6–12 hours of finance staff time per month, just on admin. Automated, the human time drops to review and exception handling only, typically under 30 minutes total for the same volume.
Beyond time saved, the real value is reliability. Invoices don't get lost in email. Approval status is always visible. The audit trail is automatic. Month-end reconciliation becomes much faster because the data is already clean and structured.
This is one of the highest-ROI automations available to most businesses, and one of the fastest to build. If you'd like us to build it for you, get in touch. Most invoice automation flows are live within a week.