Procurement Glossary
Technical auditing: definition, methods and importance in Procurement
November 19, 2025
Technical invoice verification is a central control process in procurement that ensures the correctness of the content of supplier invoices. It systematically checks whether the services invoiced have actually been provided and comply with the agreed conditions. Find out below what technical invoice verification involves, which methods are used and how it contributes to cost control in Procurement .
Key Facts
- Checks the accuracy of supplier invoices before payment
- Includes quantity, price and performance verification based on purchase orders and goods receipts
- Reduces payment errors and prevents unjustified expenses
- Usually carried out by specialist departments with the relevant expertise
- Together with the formal audit, forms the basis for invoice approval
Contents
Definition: Technical audit
Technical invoice verification refers to checking the content of incoming invoices for accuracy and completeness.
Core elements of the technical audit
The technical audit comprises several key audit steps:
- Quantity comparison between invoice and actual goods receipt
- Price verification based on price and condition maintenance
- Proof of performance for services rendered
- Review of rebates and discounts
Differentiation from formal auditing
While the formal audit checks legal aspects such as the completeness of mandatory information and VAT, the technical audit focuses on the correctness of the content. It is carried out by employees with appropriate expertise in the goods or services ordered.
Importance in the purchase-to-pay process
As an integral part of the purchase-to-pay process, technical invoice verification ensures payment accuracy and supports cost control in Procurement.
Methods and procedures
Professional auditing is carried out using structured procedures that ensure systematic and efficient control.
Three-way match procedure
The three-way match procedure is the standard for technical invoice verification:
- Comparison of purchase order, goods receipt and invoice
- Automated tolerance checks for quantity and price deviations
- Escalation if defined limit values are exceeded
Digital test workflows
Modern ERP systems support technical invoice verification with automated workflow rules. These enable efficient processing and tracking of verification processes with defined release processes.
Exception handling and escalation
In the event of deviations, structured escalation procedures are in place to ensure prompt clarification with suppliers and internal departments. Tolerance limits and approval powers are taken into account.
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Key figures for the management of specialist audits
Meaningful key figures enable the continuous monitoring and optimization of technical auditing.
Process efficiency key figures
The average processing time per invoice and the automation rate measure the efficiency of the inspection process:
- Lead time from invoice receipt to release
- Proportion of automatically processed invoices
- Number of manual interventions per 100 invoices
Quality indicators
Error rates and rework rates show the quality of the technical audit. A low rate of incorrectly approved invoices indicates high audit quality and effective control mechanisms.
Cost ratios
The inspection costs per invoice and amounts saved by preventing incorrect payments evaluate the economic efficiency. These key figures support investment decisions for automation projects and process optimization.
Risks, dependencies and countermeasures
Professional auditing entails various risks that must be minimized by means of suitable control mechanisms.
Process risks and delays
Incomplete or incorrect checks can lead to payment delays and supplier dissatisfaction. Clear workflow rules and defined processing times reduce these risks:
- Automated reminders when deadlines are exceeded
- Substitution rules for vacation periods
- Escalation mechanisms in the event of critical delays
Compliance and control risks
Inadequate professional audits can lead to compliance violations and financial losses. The dual control principle and regular spot checks ensure audit quality.
System dependencies
The dependence on IT systems requires robust backup procedures and contingency plans. Regular system updates and data backups ensure the continuity of auditing even in the event of technical failures.
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Practical example
A mechanical engineering company implements digital technical invoice verification for maintenance services. The invoice from a service partner for 15,000 euros is automatically compared with the original order and the digital service record. The system detects a discrepancy of 500 euros in the spare parts costs and forwards the invoice to the responsible technician for manual checking. After consulting with the supplier, the technician confirms the additional costs for an unplanned replacement component.
- Automatic data synchronization reduces testing time by 70%
- Systematic deviation detection prevents incorrect payments
- Digital workflow speeds up clarification processes
Trends & developments in specialist auditing
Professional auditing is constantly evolving due to technological innovations and changing business requirements.
AI-supported invoice verification
Artificial intelligence is revolutionizing professional invoice verification through automated anomaly detection and pattern recognition. Machine learning algorithms identify suspicious invoice items and significantly reduce the manual checking effort.
Automation through Invoice Automation
Invoice Automation enables a largely automated technical check through intelligent data extraction and comparison. This speeds up the checking process and minimizes human error.
Integration into e-procurement systems
The seamless integration of technical invoice verification into e-procurement systems creates end-to-end digital processes. Real-time data synchronization and mobile approval functions increase process speed and transparency.
Conclusion
Professional invoice verification is an indispensable building block for efficient cost control in Procurement. By systematically verifying quantities, prices and services, it prevents incorrect payments and strengthens financial discipline. Modern automation technologies and AI-supported processes increase the efficiency and quality of auditing processes. Companies that invest in digital invoice verification benefit from reduced process costs and improved compliance.
FAQ
What is the difference between technical and formal auditing?
The technical invoice verification checks the correctness of the content of the invoice, while the formal verification checks legal aspects such as mandatory information and VAT. Both checks are necessary for proper invoice processing.
Who is responsible for the technical audit?
The technical review is carried out by employees with the relevant expertise, usually from the requesting department or Procurement. They have the necessary expertise to evaluate the invoiced services.
How long does a technical audit take?
The duration varies depending on the complexity and degree of automation. Simple invoices are often checked automatically within a few minutes, while complex service invoices may require several days of manual processing.
What are the benefits of automating technical invoice verification?
Automation reduces processing times, minimizes errors and increases process transparency. At the same time, personnel resources are freed up for value-adding activities and supplier satisfaction is improved thanks to faster payments.
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