Invoice OCR: How Optical Character Recognition Can Simplify Accounts Payable
Invoice OCR lets you capture information from your supplier invoices. From there, you can use AP automation software to send that data to your Accounts Payable system, where you can have each invoice validated, vouchered, and scheduled for payment.
What is OCR?
OCR, or optical character recognition, is a technology that electronically “reads” your documents. It identifies key information, then converts it into electronic data. You can use that data for any corresponding business process, anywhere in your organization.
OCR can help you process any type of business document, including vendor invoices. It can locate product numbers, prices, and payment instructions, processing each line item the same way a person would.
Do You Need OCR to Automate Your Accounts Payable Process?
It all depends on the degree of automation you’d like to achieve.
On its own, optical character recognition doesn’t allow for end-to-end invoice processing. It can speed things up considerably, but it only solves one part of the equation.
For true AP invoice automation, you’ll need to combine OCR with a solution that can independently complete certain tasks. It’s possible to process many of your invoices straight through – capturing, verifying, and paying them with minimal input from your team.
Integrated Solutions for Invoice Capture & Automated Processing
IntelliChief’s invoice capture software uses advanced OCR to collect your data, then sends it directly to your ERP. It communicates with your accounting software in real time, cross-referencing the data you have stored in your ERP. It handles the most repetitive administration behind the scenes, letting you focus on exception handling and other important business.
To enter hard-copy invoices into IntelliChief, all you have to do is scan them in. You can have electronic invoices imported automatically, or you can save PDFs and other digital invoices with a single click. You don’t have to carefully prepare your documents; our software can correct most imperfections on its own. And Capture Enterprise is ideal for high-volume invoice processing; the more invoices you receive, the more IntelliChief can help you save.
IntelliChief’s Flexible Approach to OCR Invoice Scanning
When you receive invoices from many different suppliers, you encounter a variety of layouts and formats. Capture Enterprise lets you find exactly what you need, no matter how the data is structured. Keyword-based pattern matching lets IntelliChief collect unstructured data with a high degree of confidence. Meanwhile, multi-language OCR capabilities let you automate data collection for international transactions.
When IntelliChief captures an invoice, it automatically indexes the content. In the future, if you need to retrieve the invoice, you can search by vendor name, order number, or amount.
Increasing Your Accuracy Rate with Machine Learning
When our software encounters information it doesn’t recognize – such as the name of a new vendor – it immediately tells your team to review the transaction. (It highlights the data that needs a manual review, letting your team locate the issue and return to their workflow.)
As you process each exception, machine learning helps IntelliChief remember your unique business rules. The next time our software encounters a similar issue, it can process it without human intervention. This helps you achieve a higher rate of AP invoice automation.
Straight-Through Invoice Processing & End-to-End AP Automation
Our technologies combine invoice OCR with comprehensive AP automation tools. IntelliChief lets you:
- Send your data directly to your accounting software – whether that’s Oracle E-Business Suite Financials, SAP FI, Infor Accounts Payable, or another ERP’s financial module
- Automatically complete your two-, three-, or four-way match
- Resolve basic unit of measure and currency exceptions without involving a person
- Review, approve, and code your non-PO invoices, without having to access your General Ledger
- Create payment vouchers and schedule each invoice for payment
- Close out each transaction as it’s completed, eliminating duplicate invoice payments
With automated invoice processing, you can capture a higher percentage of early payment discounts and put an end to late fees. Most of our customers achieve a complete return on their investment in one year or less.