Tax compliance solutions provider Sovos announced on July 9 that it has partnered with workflow automation solutions provider Tungsten Automation on an integrated compliant accounts payable solution, which the companies say addresses the critical business need for seamless integration between accounts payable automation and indirect tax compliance.
The partnership combines the Tungsten Automation Platform with Sovos’ Tax Compliance Cloud to create a comprehensive solution for intelligent invoice automation and global tax compliance. The combined solution supports both paper and PDF invoice capture using optical character recognition and artificial intelligence-powered technology for advanced document processing. It connects seamlessly with supplier portals while integrating with enterprise resource planning and procurement systems. The combined solution also provides global tax determination and ensures real-time compliance with e-invoicing regulations.
- Related article: Sovos and Shopify Team Up to Automate Sales Tax Filing and Remittance for Merchants
The companies say this seamless approach “reduces manual effort, accelerates processing times, and ensures multinational organizations remain compliant with evolving global mandates—unlocking operational efficiency, audit readiness, and peace of mind at scale.”
“The convergence of AP automation and tax compliance isn’t just an operational advantage, it’s become a business imperative,” Peter Hantman, CEO of Tungsten Automation, formerly known as Kofax, said in a statement.
“Our partnership with Sovos addresses a critical C-Suite need in how enterprises approach their financial workflows,” he added. “By integrating our proven automation capabilities with Sovos’ comprehensive compliance expertise, we’re delivering a solution that transforms AP from a cost center into a strategic advantage.”
The compliant AP solution works through five integrated stages:
- Invoice capture and data extraction: Tungsten’s AI-powered OCR technology extracts data from any invoice format with intelligent validation.
- Automated invoice matching and workflow routing: Automated matching against purchase orders and goods receipts within SAP systems.
- Integrated tax determination and compliance validation: Sovos provides real-time tax determination at both the network and SAP stages.
- Seamless ERP posting: Validated invoices are automatically posted to SAP with complete audit-ready documentation.
- Real-time reporting and analytics: Comprehensive visibility into invoice status, AP cycle times, and tax liabilities.
“This partnership represents the evolution of tax compliance from a reactive business requirement to a proactive growth enabler,” said Sovos CEO Kevin Akeroyd. “By combining our deep tax expertise with Tungsten’s automation leadership, we’re not just solving today’s compliance challenges, we’re futureproofing our customers’ operations against an evolving global regulatory landscape. This is exactly the kind of integrated innovation that transforms how businesses operate.”
The combined solution offers flexibility as a source system-agnostic platform that connects as a “last mile compliance partner” to existing infrastructure without requiring system replacement. Organizations can implement the joint solution without operational disruption while achieving up to 90% touchless processing, reducing 70% costs in audit or compliance-related penalties, and cutting per-invoice costs from approximately $10 to less than $2, the companies say.
Key benefits of the integrated compliant AP solution include:
- Elimination of manual AP workflows with 90%-plus touchless processing.
- Guaranteed tax accuracy through integrated validation.
- Dramatic reduction in AP processing costs.
- Improved cash flow through faster, more accurate processing.
- VAT in the Digital Age (ViDA) compliance readiness for evolving European Union mandates.
- Reduced implementation risk with proven solutions from established market leaders.
- Deployment flexibility that adapts to existing systems without disruption.
This strategic alliance builds upon a long-standing relationship between the companies, with Sovos previously serving as the embedded tax compliance engine within Tungsten’s platform.
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