Invoice Scanning and AP Automation

 

 

 

AP Automation and Invoice Processing

Invoice scanning software provides a way to scan in paper invoices, extract both the invoice header information as well as the line item data.  The extracted data can then be passed to an ERP or Accounting System for processing and AP Automation Workflow.  Advanced document capture software platforms can also process digital invoices in the form of PDF, TIFF ow Word documents.  This is referred to as multi-channel invoice capture.  There are key benefits to an invoice scanning solution:

  • Automated data entry
  • Automated data extraction
  • Reduced processing time
  • Reduced errors and validation
  • Line item matching from ERP
  • Reduced payment time
  • Reduction in late fees

An example of this type of software is Ephesoft Transact for Invoices and AP.  These technologies use OCR to extract information and improve efficiency.

Invoice Scanning and OCR Screen Shots

Below are some screen shots of Accounts Payable Invoice processing applications that extract OCR data:

Validation of Invoice OCR data
Invoice Data for Extraction and Validation Post-OCR

Types of Invoice Scanning and Capture Software

There are a broad set of invoice scanning and capture applications in the market today.   Many rely on Optical Character Recognition (OCR) for data extraction and identifying vendors.  Modern invoice processing apps utilize a combination of classification, analytics and machine learning to improve accuracy and learn from AP/Accounts Payable clerks.   You can read more on the 3 types of invoice scan and capture here:

3 Ways to Capture Scanned Invoice Information

So why such a focus on invoice and AP processing?  Here are some great statistics on the typical problems in accounts payable, and the true cost of invoice processing.

Invoice Processing and Scanning Statistics

Core Features of Invoice OCR, Scanning and Data Extraction

There are a wide variety of features that help with digitizing invoices, and they can be seen below:

  • Ability to scan invoices from copiers and invoice scanners – for paper invoices, scanning functions need to be flexible, and either use a copier or dedicated scanner like the list here:  Scanners for Invoices
  • Ability to Capture Invoices from Email Attachments – many invoices are received as email attachments.   Being able to capture and process those documents are key.  Here is a video demonstration: Email Invoice Processing
  • Machine Learning Invoice Processing – The advent of machine learning for invoices can make processing simple.  Here is a video example: Invoice Machine Learning 

 

 

 

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