Invoice processing is an accounts payable function that handles the invoice life cycle consisting of invoice receipt, invoice approval or rejection, invoice payment, and the invoice archive processes.

Invoice processing cloud in comparison to manual paper process is digital technology hosted online and is used by accounts payable to electronically handle vendor invoices from receipt to archive.

Capture. Vendor invoices are received by fax, mail, email, or captured by an accounts payable system.
Register. Invoices are prepared for approval by coding and updating the invoice data.
Dispatch. Authorized approvers are sent invoices for a payment decision.
Approval/Rejection. Approvers will either approve or reject the dispatched invoice for payment.
Payment. The approved invoices are then processed for payment.
Archive. Paid invoices are stored either in a file cabinet or online system with invoice processing history for later reference or audits.

Automated invoice processing or invoice processing automation uses software to automatically perform steps in the invoice lifecycle such as data capture, and dispatch for approval. Note that invoice processing software can either be automated or manually performed by accounts payable on a computer.

Defined as a category of software robots, which are trained to perform specific tasks or processes in partnership with their human colleagues.