Invoice Data Recognition is a system used to automate the acquisition and assignment of data from invoice images – invoice OCR.
The goal of implementing the system is eliminating the process of manual data rewriting from invoices to the accounting or workflow system. Irrespective of whether it takes place in the secretary’s office or in the accounting department, this process generates costs in the form of employee time. When the number of invoices reaches several hundred per month, the cost begins to be felt by the entire company.
Utilising OCR technology in combination with intelligent data assignment algorithms, these costs can be minimised.
HOW DOES INVOICE OCR WORK?
- The OCR (Optical Character Recognition) engine converts the image (generated PDF or scan) into text.
- This is only the first step. The data will have to be transferred to the accounting system or invoice circulation system into the appropriate fields.
- Algorithms encoded in the IDR system search identified content for key and context phrases, such as NIP (Tax ID), Invoice No., net and gross amounts, item numbers and dates.
- Next, they find the information they’re looking for. Content located around key phrases gets the highest indicator of the likelihood of correctness.
- Every recognised invoice builds a data finding likelihood map, which is assigned to the invoicer’s NIP (Tax ID).
- For illegible IDR key phrases, it uses historical maps trying to eliminate the need for manual data rewriting anyway.
- Thanks to the integration with any ERP system, the IDR system reaches into the database of contractors to fill any data gaps.
- Data downloaded from the database of contractors or orders can be used to verify payment data, detecting possible changes.
- All of these operations happen automatically. It’s only at this stage that the user receives the task of verification.
- The user receives a form designed by the administrator, in which the system completes the data according to the highest probability of consistency. The user’s task is to verify and confirm the data.
- Any deficiencies in the data recognised are indicated by the user via a simple and intuitive mechanism by selecting the field to be completed and specifying the details directly on the invoice…
By combining OCR invoices with a workflow system, you open new possibilities for managing information flow:
- Electronic document circulation – by converting paper to system data, approval processes can take place electronically within the workflow system. Paper doesn’t circulate around the organisation, and the approval of electronic documents or individual invoice items can be done in parallel, speeding up the recording of invoices.
- Cost approval process – automation of the assignment of a document approval path based on the data contained in the document and the order database
- Reporting – extended financial reports generated in real-time – a combination of data from the accounting system with data from the approval process gives an idea of liquidity, including costs not yet booked.