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OCR technology for invoice scanning

OCR is a technology that can save you hours of time each week! Optical Character Recognition is the ability of a computer system to scan and read characters off a page – both scanned documents and PDFs - and as you might imagine this could be a game changer for the finance department.
Tuesday, February 27, 2024
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In the context of Accounts Payable OCR is extremely valuable as it saves hours of work that is usually spend on manually recognizing and typing  data.

OCR technology in Accounts Payable

Imagine not having to manually enter invoice details - with OCR you get a real benefit to help your daily tasks. With the ability to recognize specific invoice components, OCR lets you put the right data in the right place in your ERP system. Matching the invoice with a PO, with the right approver, the correct G/L account and the correct payment terms, your payment process will go from manual to truly automatic. This means that the accounts payable team can handle a large amount of invoices without even lifting a finger – focusing on optimizing new vendors and handling errors.  

 

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Streamline your AP process with intelligent OCR

How to process invoices with OCR  

1. You receive your invoice

Your electronic invoice (PDF) is recieved in an email or scanned from a paper invoice. The invoice is the sent to the ERP system for processing.

2. OCR captures the data

OCR automatically captures the data during import and turns it into machine-readable text.

3. The document is imported

You then import the invoice into the document journal, where you can access it and begin to work on it.

4. The document is registered

To convert all captured information into a business entity in Business Central, you register the document.

5. An invoice is created

The invoice is automatically generated in the system using the recognized information from the document and all details are transferred to the corresponding fields.

The main benefits of OCR 

Working with OCR gives you a range of benefits. Both in your day-to-day operations and in the overall way the Accounts Payable team works. The technology automates invoice processing - thereby reducing the risks we face, when we manually have to type in data - leading to late payments,  missed deadlines and the risk of fraud.

With automated data extraction OCR reduces the number of errors caused by tedious and repetitive manual data entry, saving time and increasing efficiency.

  1. reduced costs
    • get more done with the same hours
  2. reduced errors
    • added precision and no more manual typing errors
  3. higher productivity
    • focus on making business run smoothly
  4. paperless office
    • eliminate waste and keep everything digitally in one place
  5. easier document access
    • search and find the documents you need
  6. better security
    • store documents in a safe, digital archive

 

OCR and the future

AP automation solutions that apply OCR are about to get a whole lot smarter. With the rise of AI, the precision and dependability of automation solutions will be even better eliminating even more errors in the payment process.  Thus use of artificial intelligence will also make fraud detection easier, recognizing fraudulent patterns and payment information.

  • What is the best Business Central OCR service?

    Several companies deliver OCR services that are compatible with Microsoft Business Central for invoice scanning. Continia's Document Capture is the only system that is built inside Business Central and work in the familiar interface without the need to switch to another program.  

  • How can Accounts Payable use automated data capture?

    In Accounts Payable the best use for automated data capture is by using software that scans and handles incoming invoices. The best software does not only scan documents but recognizes line and vendor details and automatically adds data to the relevant fields, leaving manual tasks to a minimum. 

  • Is OCR and AI the same?

    OCR - short for optical character recognition - is a technology that has developed since the early 2000s and works as a stand-alone service integrated into other software systems - including ERP-systems. While not the same as AI, modern OCR-engines uses AI for better accuracy and even better matching, reducing errors to an absolute minimum. 

Get ready for an automated Accounts Payable

Find a webinar and learn how Continia uses OCR for AP automation

Sicherer und effizienter Austausch elektronischer Belege mit Continia eDocuments
December 04 2024 - 09:00
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December 18 2024 - 09:00
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