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Ramkadammmm

FinOps Agentic Reconciliation MCP Server

by Ramkadammmm

FinOps-Agentic-Reconciliation

Autonomous Procure-to-Pay (P2P) 3-Way Matching Data Pipeline, FastMCP Server, and Ops AI Resolution Engine

Python 3.9+ SQL Engine MCP Server License: MIT

An enterprise-grade Finance Operations platform built to automate 3-way invoice reconciliation (PO vs. GRN vs. Invoice), audit line-item price & quantity variances, calculate financial exposure risk, and orchestrate autonomous discrepancy resolution using Model Context Protocol (MCP) tools.


šŸ“ System Architecture

flowchart TD
    subgraph Data Layer [ERP Data Ingestion]
        PO[Purchase Orders CSV] --> DB[(SQLite / Postgres DB)]
        GRN[Goods Received Notes CSV] --> DB
        INV[Vendor Invoices CSV] --> DB
    end

    subgraph SQL Engine [Analytics & Reconciliation Pipeline]
        DB --> CTE[3-Way Matching SQL CTEs & Window Functions]
        CTE --> DISC[Discrepancy Matrix & Risk Scoring]
        DISC --> DB_TABLES[Populate Discrepancies & Audit Logs]
    end

    subgraph Agentic Layer [Model Context Protocol & Ops AI Agent]
        DB_TABLES <--> MCP[FastMCP Server]
        MCP <--> AGENT[Ops AI Agent Resolution Engine]
        AGENT --> POLICY[Corporate Financial Policy Rules]
        POLICY --> ACTIONS[Auto-Approve / Hold / Credit Note Request]
    end

    subgraph Executive Layer [UI & Observability]
        DB_TABLES --> DASHBOARD[Streamlit Executive & Ops Workbench]
        ACTIONS --> DASHBOARD
    end

Related MCP server: Copilot Money MCP

šŸ”„ Key Capabilities

  1. Automated Procure-to-Pay (P2P) 3-Way Matching:

    • Executes line-item reconciliation across Purchase Orders, Goods Received Notes, and Vendor Invoices.

    • Categorizes financial anomalies: UNIT_PRICE_VARIANCE, QTY_SHORTAGE, MISSING_GRN, DUPLICATE_INVOICE.

  2. Model Context Protocol (MCP) Server (src/mcp_server/):

    • Implements standard MCP JSON-RPC tool endpoints:

      • get_unmatched_invoices(status, min_severity)

      • run_3way_matching_audit(invoice_number)

      • trigger_vendor_hold(invoice_number, reason)

      • fetch_vendor_aging_summary(vendor_id)

  3. Autonomous Ops AI Agent (src/agent/):

    • Processes flagged discrepancies in batches.

    • Evaluates corporate financial policies (e.g. 1% price variance tolerance, auto-hold on missing GRN, credit note request for overbilling).

    • Updates database state atomically and logs immutable audit trails.

  4. Executive Ops Workbench & Analytics Dashboard (src/dashboard/app.py):

    • Dark-mode Streamlit dashboard with real-time KPI metrics (Auto-Match %, Financial Exposure Risk INR, Hours Saved).

    • Side-by-side PO vs. GRN vs. Invoice line-item comparison tool.

    • Live AI Agent execution terminal with simulation logs.

    • Accounts Payable aging buckets (Current, 1-30, 31-60, 60+ days) and vendor risk scatter matrix.


šŸ“Š Discrepancy Taxonomy & Policy Matrix

Anomaly Type

Condition

Severity

Financial Exposure

Autonomous Action

Immaterial Variance

Price variance $\le 1.0%$

LOW

Minor

AUTO_APPROVE

Unit Price Mismatch

Invoice rate > Agreed PO rate

HIGH / CRITICAL

(Billed Price - PO Price) * Qty

REQUEST_CREDIT_NOTE & ON_HOLD

Quantity Shortage

Billed Qty > GRN Received Qty

HIGH

Shortage Qty * Billed Price

APPROVE_PARTIAL & ON_HOLD

Missing GRN

Invoice received before warehouse receipt

HIGH

Total Billed Amount

HOLD_PAYMENT

Duplicate Invoice

Same PO/Invoice submitted multiple times

CRITICAL

Total Billed Amount

BLOCK_IMMEDIATELY


⚔ Quickstart Guide

1. Prerequisites & Environment Setup

git clone https://github.com/your-username/FinOps-Agentic-Reconciliation.git
cd FinOps-Agentic-Reconciliation

# Create virtual environment
python -m venv venv
source venv/bin/activate  # On Windows: venv\Scripts\activate

# Install dependencies
pip install -r requirements.txt

2. Generate ERP Data & Run Reconciliation Pipeline

# Generate 1,000+ realistic transaction records and run ETL pipeline
make etl

# Or run directly via Python:
python -m src.pipeline.etl_reconciliation

3. Run Automated Tests

make test

4. Launch Ops Workbench Dashboard

make dashboard

Open your browser at http://localhost:8501.


šŸ“ Repository Structure

FinOps-Agentic-Reconciliation/
ā”œā”€ā”€ README.md                      # Technical documentation & architecture
ā”œā”€ā”€ pyproject.toml                 # Package configuration
ā”œā”€ā”€ requirements.txt               # Pinned dependencies
ā”œā”€ā”€ Makefile                       # Developer CLI shortcuts
ā”œā”€ā”€ config/
│   └── settings.yaml              # Financial thresholds & tolerance settings
ā”œā”€ā”€ data/
│   ā”œā”€ā”€ raw_pos.csv                # Sample PO transactions
│   ā”œā”€ā”€ raw_grns.csv               # Sample GRN receipts
│   └── raw_invoices.csv           # Sample Vendor Invoices
ā”œā”€ā”€ sql/
│   ā”œā”€ā”€ 01_schema_init.sql         # Relational DDL & performance indexes
│   ā”œā”€ā”€ 02_three_way_matching.sql  # 3-Way matching CTEs & window functions
│   └── 03_vendor_aging_kpis.sql   # AP aging aggregation queries
ā”œā”€ā”€ src/
│   ā”œā”€ā”€ pipeline/
│   │   ā”œā”€ā”€ generate_synthetic_data.py # ERP synthetic transaction generator
│   │   └── etl_reconciliation.py  # Main ETL reconciliation engine
│   ā”œā”€ā”€ mcp_server/
│   │   └── ops_mcp_server.py      # FastMCP JSON-RPC server implementation
│   ā”œā”€ā”€ agent/
│   │   ā”œā”€ā”€ ops_agent.py           # FinOps AI Agent batch execution engine
│   │   └── discrepancy_rules.py   # Deterministic financial policies
│   └── dashboard/
│       └── app.py                 # Streamlit Executive Ops Workbench
└── tests/
    ā”œā”€ā”€ test_reconciliation.py     # Discrepancy rule unit tests
    └── test_mcp_server.py         # MCP tool integration tests

šŸ›”ļø License

Distributed under the MIT License. See LICENSE for more information.

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