Technology Concept – Orcha

Intelligent AP Processing for Regnology

AP Intelligence for quality, fraud & vendor management, and Intelligent Approval for decision support. Orcha acts as a gate before Medius, not replacing it.

Dynamics 365 ERP
Medius AP
Microsoft Teams collaboration

AP Intelligence

Orcha processes invoices before they reach Medius, acting as a quality and compliance gate. Only invoices that pass all configured checks are forwarded to Medius for coding.

Invoice Processing Flow

flowchart TD A["Invoice arrives via email\nDedicated billing inboxes\n(one per legal entity)"] B["AI Extraction\nOrcha extracts all structured data:\nheader fields, line items, amounts,\ntax, bank details, supplier info"] A --> B B --> PAR subgraph PAR ["Parallel Checks"] direction LR C["Formal Quality Checks\nRequired fields, math,\ndates, tax compliance"] D["Fraud Detection\nBank mismatches, detail changes,\nsplitting, urgency signals"] E["Supplier Verification\nVAT / VIES, company register,\naddress, adverse media"] end RULES["Rule Configuration\nPer-check thresholds,\ndocument classifications,\nalert preferences"] PAR --> ENGINE{"Workflow Engine\nEvaluates all check results\nagainst configured rules"} RULES -.->|"configures"| ENGINE ENGINE -- "rules to be defined" --> G["Insert into Medius\nCoding Stage"] ENGINE -- "rules to be defined" --> H["Email alert to AP team"] ENGINE -- "rules to be defined" --> I["Email back to supplier\n(human reviews and approves\nbefore sending)"] ENGINE -- "rules to be defined" --> J["Teams notification"] ENGINE -- "rules to be defined" --> K["Vendor creation queue\nExtract, verify,\ncreate in D365"] DASH["Orcha AP Dashboard\nFull overview of all invoices:\npassed, flagged, returned to vendor,\nfraud alerts, vendor creation"] G -.-> DASH H --> DASH I -.-> DASH J -.-> DASH K -.-> DASH style A fill:#eef2ff,stroke:#6366f1 style B fill:#0078d4,color:#fff,stroke:#005a9e style C fill:#0078d4,color:#fff,stroke:#005a9e style D fill:#0078d4,color:#fff,stroke:#005a9e style E fill:#0078d4,color:#fff,stroke:#005a9e style PAR fill:#f8fafc,stroke:#94a3b8,stroke-dasharray: 5 5 style RULES fill:#f5f3ff,stroke:#8b5cf6,stroke-width:2px style ENGINE fill:#fef3c7,stroke:#f59e0b,stroke-width:2px style G fill:#dcfce7,stroke:#16a34a style H fill:#e0edff,stroke:#0078d4 style I fill:#fee2e2,stroke:#dc2626 style J fill:#fee2e2,stroke:#dc2626 style K fill:#e0edff,stroke:#0078d4 style DASH fill:#eff6ff,stroke:#0078d4,stroke-width:2px

Configurable Alert & Routing Rules

Each rule can be configured individually per check and per document classification (e.g. standard invoice, credit note, contractor invoice). Rules span all three check categories – formal requirements, fraud detection, and supplier verification. When a rule triggers, the configured action is taken: insert into Medius, email alert to AP, email back to supplier, or immediate escalation.

Rule CategoryExamples
AmountThresholds for total amount, line item amounts, or deviation from expected values
Cost CentresThresholds based on costs, rules for specific cost centres
AccountsGL account validation, account/cost-centre combination checks
Formal RequirementsAny individual formal check not passing (required fields, math, dates, tax, country rules)
Fraud DetectionAny individual fraud signal not passing (bank mismatch, detail change, splitting, etc.)
Supplier VerificationAny individual supplier check not passing (unverified VAT, no company registration, adverse media hit)
Document ClassificationDifferent rule sets per document type (invoice, credit note, contractor, recurring)

Capabilities

Formal Requirements

CheckWhat It Verifies
Required FieldsAll legally and operationally required fields are present and non-empty per UStG §14 Abs. 4 (invoice number, date, amounts, VAT ID, supplier name and address, recipient name and address, bank details, service description, delivery/service period)
Financial MathLine item totals sum to subtotal, tax is calculated correctly, gross = net + tax, no rounding errors
DateInvoice date is plausible (not in the future, not excessively old), delivery/service dates are consistent
Issuer CountryIssuer’s country matches the VAT ID prefix and bank account country, cross-checked against supplier master data
Issuer VAT IDFormat and checksum validation of the issuer’s VAT ID, verified as active via VIES
Recipient-to-Legal-Entity MatchingExtracted recipient name is matched against the correct Regnology legal entity – ensures the invoice is actually addressed to the right company
Recipient VAT ID MatchingRecipient VAT ID on the invoice is matched against the VAT ID stored for the corresponding Regnology legal entity
Recipient Address MatchingRecipient address on the invoice is compared against the legal entity’s registered address
Recipient CountryRecipient country on the invoice matches the legal entity’s country, correct reverse-charge treatment applied
TaxCorrect VAT rate applied for the transaction type and country combination, reverse-charge rules applied where required
Duplicate DetectionChecks if an identical invoice (same document) has already been received and processed
E-Invoice Compliance (coming soon)Validates structured e-invoice formats (ZUGFeRD / Factur-X, XRechnung / EN 16931) – schema conformance, mandatory fields per Leitweg-ID routing, and consistency between structured data and PDF representation

Fraud Signals

CheckWhat It Detects
Bank Country MismatchIBAN country does not match the supplier’s registered country of business – common in payment redirection fraud
High-Risk Bank AccountBank account is domiciled in a high-risk jurisdiction or flagged on known-fraud databases
Bank Detail ChangeBank details on this invoice differ from the last known bank details for this supplier – potential account takeover
Tax ID ChangeVAT ID or tax number has changed since the last invoice from this supplier without prior notification
Invoice SplittingMultiple invoices from the same supplier within a short window that individually fall below approval thresholds
Sender DomainEmail sender domain does not match the supplier’s known domain – detects spoofing and impersonation attempts
Urgency LanguageInvoice or cover email contains pressure language (“pay immediately”, “overdue”, “legal action”) inconsistent with normal correspondence
Vague DescriptionLine item descriptions are unusually generic (“consulting services”, “miscellaneous”) making it difficult to verify the service was rendered

Supplier Verification

CheckWhat It Verifies
VAT (VIES)VAT ID is valid and active via the EU VIES database, name and address match the registration
Company ExistsAI-powered web research to verify the supplier exists – searches for official registrations, business directories, and press mentions. Returns a confidence level (confirmed / likely / unlikely / not found) with supporting evidence
WebsiteSupplier has a legitimate, active website that matches their claimed business domain and activity
AddressRegistered address is a real, verifiable business location – not a virtual office or PO box (where unexpected)
Adverse MediaScreening against news sources and databases for sanctions, legal proceedings, fraud allegations, or insolvency filings
Digital FootprintSupplier has a consistent online presence (LinkedIn, industry directories, reviews) corroborating their claimed size and activity

New Vendor Creation Flow

flowchart TD A{"Unknown vendor\ndetected"} --> B["Vendor Creation Queue\nin Orcha\nPre-filled with all fields\nrequired for D365 vendor creation\n(one-click if data is complete)"] B --> C["Email to AP team\nNotification that a new\nvendor is in the queue"] C --> D{"AP team\nreviews"} D -- "Approve" --> E["Vendor created\nin D365"] E --> F["Invoice is processed\nthrough normal flow"] D -- "Reject" --> G["Email to AP team\nVendor was rejected,\ninvoice is not\nfurther handled"] style A fill:#fef3c7,stroke:#f59e0b style B fill:#0078d4,color:#fff,stroke:#005a9e style C fill:#e0edff,stroke:#0078d4 style D fill:#fef3c7,stroke:#f59e0b style E fill:#dcfce7,stroke:#16a34a style F fill:#dcfce7,stroke:#16a34a style G fill:#fee2e2,stroke:#dc2626

Orcha AP Dashboard

A single dashboard providing full visibility across the entire invoice processing pipeline – from intake to Medius handoff.

Full Pipeline Overview
  • All invoices across every stage: passed, flagged, returned to vendor, fraud alerts
  • Real-time status of each invoice in the workflow
  • Filter by entity, vendor, check type, status
Flagged Invoices Queue
  • All invoices with quality, fraud, or supplier flags
  • Severity indicator, grouped by issue type
  • One-click: approve override, return to vendor, escalate
Email to Supplier Queue
  • Pre-drafted emails for invoices that failed checks
  • AP team reviews and edits before sending
  • Human-in-the-loop: no email sent without approval
Vendor Creation Queue
  • Pre-filled vendor forms with verification results inline
  • Approve → auto-creates in D365
  • Reject → notifies with reason

Medius Handoff

To be validated: Medius API capabilities

Orcha sends the invoice to the Medius coding stage with pre-filled data (extracted fields, check results, quality scores). The goal is that the AP team receives an invoice in Medius that is already enriched and ready for coding. Whether Medius supports writing all of these fields via API needs to be confirmed.

Intelligent Approval

Builds on AP Intelligence with decision support for approvers.

Why This Builds on AP Intelligence

AP Intelligence establishes the data foundation that Intelligent Approval needs: vendor profiles, historical invoice patterns, quality baselines, and validated D365/Medius integrations. The approval layer builds on top – it doesn’t start from scratch.

A. Contractor Invoice Validation

The highest-value use case: Professional Services and R&D teams receive monthly contractor invoices that each need manual checking.

flowchart LR A["Contractor\ninvoice"] --> B["Extract hours\n& rates"] B --> C["Pull contract\nfrom D365"] C --> D["Compare &\nscore"] D --> E{"Match?"} E -- "Match" --> F["Recommend approve\nRates and hours match contract"] E -- "Mismatch" --> G["Flag with details\nHighlight deviations\nfrom contract terms"] E -- "Batchable" --> H["Bundle similar\nGroup matching contractor\ninvoices for batch approval"] style B fill:#0078d4,color:#fff,stroke:#005a9e style C fill:#f5f3ff,stroke:#8b5cf6 style D fill:#0078d4,color:#fff,stroke:#005a9e style F fill:#dcfce7,stroke:#16a34a style G fill:#fef3c7,stroke:#f59e0b style H fill:#eef2ff,stroke:#6366f1

B. Smart Routing Engine

A unified routing engine that decides – for every invoice that isn’t auto-approved – who sees it, when, how urgently, and whether it can be bundled.

How Urgently?
  • Skonto/early-payment: fast-track with “Save €X by approving before [date]”
  • Dunning letters: immediate escalation with urgency flag
  • Strategic suppliers: critical vendors get priority
  • Penalty clauses: flag approaching contractual deadlines
  • Period-end cutoffs: accelerate if it affects current month’s P&L
Who Sees It?
  • Learned routing: analyse who actually approves what, rank by historical patterns
  • Parallel paths: run independent approvers in parallel, not sequentially
  • Auto-delegation: absent approver (M365 calendar/OOO) auto-delegates to backup
  • Revert on return: delegation automatically reverts when approver is back
  • Auto-escalation: unresponsive approver → escalate to next level
Can It Be Bundled?
  • Low-risk, recurring invoices from the same vendor → group into batches
  • “12 invoices from Office Supplies GmbH, total €3,400, all PO-matched – approve all?”
  • Reduces approval fatigue for operational spend
  • Individual override still possible

C. Proactive Context Assembly

Before routing to an approver, Orcha assembles a complete decision package so they can decide without switching systems.

Financial Context
  • Current budget utilisation
  • Predicted month-end impact
  • Historical spend with vendor
Document Context
  • Related PO, GRN, contract
  • Prior invoices from same vendor
  • Open disputes or credits
Risk Context
  • Quality & fraud check results
  • Vendor trust score
  • Contract compliance status

D. Teams Approval Card (Mockup)

Invoice Approval – Acme Consulting GmbH

Invoice #2026-0847 · Due: 15 Apr 2026 · €19,200.00
Recommended: Approve
Assigned To
Thomas Weber · Head of Strategy
Line Items
DescriptionQtyUnit PriceAmount
Strategy Consulting – March 2026120 hrs€120.00€14,400.00
Workshop Facilitation – Board Offsite2 days€1,800.00€3,600.00
Travel Expenses – Frankfurt / Munich1€1,200.00€1,200.00
Rate Check
✓ €120/hr matches contract
Hours
✓ 160 hrs (avg: 155 hrs)
Budget Impact
78% → 83% utilised
Financial Context
Budget Utilised
83% after approval
Month-End Impact
Within forecast
Vendor YTD Spend
€148,200
Document Context
Purchase Order
✓ PO-2026-0412 Open
Contract
✓ SLA-AC-2025 Open
Open Disputes
None
Risk Context
Quality Score
98 / 100
Fraud Signals
✓ None detected
Supplier Verification
✓ Verified
Last 6 invoices: €18,600 · €19,200 · €18,000 · €19,200 · €17,400 · €19,200 – consistent pattern.