How Invoice Scanning Improves Exception Handling in 2026

Key Takeaways

• Around 20% of manually processed invoices require exception handling, which increases administration time and raises the risk of errors for UK hospitality businesses.
• Delayed or inaccurate invoice processing creates cash flow issues for more than two thirds of UK hotels and restaurants, which places margins and supplier relationships under pressure.
• Automated invoice scanning and three way matching significantly reduce manual processing costs per invoice, cut the number of pricing and quantity discrepancies, and lower exposure to fraud.
• Hospitality teams that automate exception handling free many hours each week for menu development, cash flow planning, and service improvements instead of repetitive data entry.
• Jelly provides invoice scanning, price alerts, three way matching, and Xero integration in a single tool so UK hospitality businesses can control invoice exceptions and protect profit. Book a chat to see how it works.

Why Manual Invoice Exceptions Damage Hospitality Margins

Manual invoice processing creates constant complexity for restaurants, pubs, and hotels that work with many suppliers and formats. Common exceptions involve ambiguous amounts, inconsistent rates, unclear descriptions, incorrect quantities, and quality discrepancies. Every extra clarification, credit note, or query adds time and cost.

The financial impact grows quickly. Around 67% of UK hotels and restaurants report cash flow issues caused by delayed invoice processing. Manual processing can cost between $6.10 and $15.97 per invoice, which represents a large annual overhead for smaller operators. Manual invoice handling can also expose UK businesses to losses of more than £295,000 through fraud and error. At the same time, almost half of businesses say manual invoices slow operations, which limits the capacity of finance and kitchen leaders to focus on growth.

How Jelly Improves Invoice Exception Handling

Jelly turns fragmented invoice workflows into a structured, automated process designed for UK hospitality. The system scans invoices, checks key details, and flags problems before they affect your GP or supplier relationships.

Key capabilities include:

• Automated invoice scanning that captures every line item from almost any invoice format, which removes manual data entry and prevents missing or mis-keyed information. Accurate data capture reduces the risk of exceptions caused by incomplete or inconsistent invoice data.
• An intelligent price alert feature that compares current prices with historic data and highlights unexpected changes so teams can challenge supplier errors and manage ingredient inflation.
• Three way matching that checks invoices against purchase orders and goods receipts to expose quantity and item mismatches. This level of validation reduces fraud risk and shortens approval time.
• Real time visibility of dish costs and GP margins so chefs and finance teams can see how changes on invoices affect profitability and menu pricing.
• Direct integration with Xero that sends clean, checked invoice data into your accounts, which shortens reconciliation cycles and improves reporting accuracy.

Book a chat to explore how automated exception handling can reduce invoice workload in your kitchen and back office.

Key Benefits for UK Hospitality Teams

Lower Hidden Costs and Protect Margins

Automated exception handling identifies price changes, quantity mismatches, and delivery errors as soon as invoices arrive. Many Jelly customers reduce food and drink costs by around 3% in the first few months, largely because the system consistently catches issues that manual checks often miss. Replacing manual processing that can cost up to $15.97 per invoice with automation also reduces the administrative cost of every document.

Reduce Errors and Improve Data Quality

Manual invoice workflows commonly introduce mistakes in data entry, matching, and calculations, which can create duplicate payments and disputes. Jelly validates each invoice line against purchase orders and previous invoices so anomalies stand out quickly. Reliable data supports accurate GP reporting, fewer supplier disagreements, and better forecasting.

Pay Suppliers On Time and Strengthen Trust

Differences in supplier formats and inconsistent manual checks often delay approvals, which leads to late or incorrect payments. Automated exception handling streamlines approvals because most invoices pass straight through once scanned and validated. Suppliers gain confidence that they will be paid on time and in full, and Jelly’s price history gives your team clear evidence to support negotiations.

Refocus Finance and Kitchen Teams on Strategy

Automation shifts invoice handling from manual checking to exception management. Finance managers and chefs spend less time keying data and more time on activities such as menu engineering, cash flow planning, and supplier strategy. This change improves morale and helps the business respond faster to cost changes and demand shifts.

Manual vs Automated Exception Handling at a Glance

Common Questions about Invoice Exception Management

Q1: What are the main invoice exceptions in hospitality, and how does automation address them?

A: Frequent invoice exceptions include price differences from agreed rates, quantity mismatches, missing or extra items, and amounts that do not match purchase orders. Jelly scans every line item and compares invoice data with purchase orders and historical pricing. The system flags differences such as a higher price on a core ingredient or a charged item that was not delivered so your team can request credits or adjust future orders before payment.

Q2: How does Jelly’s price alert feature help manage rising ingredient costs?

A: Jelly tracks historic prices for every product and highlights any change on new invoices, together with the percentage and cash impact. Chefs and finance teams can see which suppliers have increased prices, identify price creep across categories, and use this information to renegotiate or switch products. One multi site customer reported monthly savings of several thousand pounds after acting on these alerts.

Q3: Why is three way matching so important for strong exception handling?

A: Three way matching compares the purchase order, goods received note, and supplier invoice. Jelly uses this approach to show where you were charged for more than you ordered, received less than you paid for, or received a different product than specified. This process reduces fraud risk, prevents overpayments, and ensures managers only review the exceptions that genuinely need attention.

Take Control of Invoice Exceptions in 2026

Invoice exceptions will remain a significant risk to hospitality margins in 2026, especially for businesses that still rely on manual processing. Price creep, incorrect quantities, and delayed approvals all reduce profit and divert skilled staff into low value administration.

Jelly offers a focused way to regain control. The platform scans invoices, checks them against orders and receipts, alerts you to price and quantity problems, and pushes accurate data into Xero. Your team spends less time finding issues and more time improving menus, service, and financial performance. Book a chat to see how Jelly can help your hospitality business handle invoice exceptions more efficiently in 2026.