AI Cost Code Reconciliation Agent

How Cassidy automates AP invoice and pay-app processing using AI

Step 1: Ingest invoices and pay applications

The Workflow triggers when vendor invoices or subcontractor pay applications (AIA G702/G703) arrive via email, portal upload, or AP inbox. Cassidy extracts line-level detail including job, cost code, cost type, quantities, and amounts.

Step 2: Validate and normalize cost codes

Cassidy cross-references each line against your ERP master data and cost code crosswalks stored in the Knowledge Base. The agent normalizes codes across systems (handling 2-tier vs 3-tier structures, delimiter differences, and sub job/extra mappings) and flags any codes that exist in one system but not the other.

Step 3: Execute 3-way match and pay-app reconciliation

For PO-backed invoices, Cassidy performs 3-way match against purchase orders and receipts, checking price and quantity tolerances. For subcontractor pay apps, the agent validates SOV lines against commitments and approved change orders, verifying % complete, stored materials, and prior-to-date balances.

Step 4: Check compliance and generate lien waivers

Cassidy verifies vendor compliance status—insurance certificates, W-9s, and contract documentation—then auto-generates the appropriate state-specific lien waiver forms (conditional or unconditional, partial or final) based on payment stage and pay-app values.

Step 5: Route for approval and post to ERP

Matched and validated items route through role-based approval workflows with dollar thresholds. Once approved, Cassidy creates AP vouchers in your ERP with accurate job cost coding, retainage postings, and links to source documents—maintaining a complete audit trail for every transaction.