Invoicing is a taxing ordeal with procedures that drive costs higher, requiring more manpower, and taking time to get the job done right. Over the past few decades, the process of digitization of invoices has reduced the impact of that ordeal substantially.
Integrating an invoice processing solution into your supply chain can prove to be effective when it is driven by artificial intelligence. An AI-managed process can minimize errors, prevent data tampering, and streamline the distribution of processed data.
The power of neural networks and cloud technology, offer numerous solutions that simplify invoice processing. From extraction of data through buyer and supplier portals to character recognition, to effectively syncing the processed invoices, AI can be an adept integration. For example, according to a study by McKinsey, augmenting AI & ML into supply chains help gain vital insights that help companies reduce forecast errors by 50 percent.
Here’s what you need to know about AI-powered invoice capture.
Extraction of Data and Normalization
The initial step in Invoice processing is about provisioning a feature that allows capturing physical documents. This can be achieved through invoice scanning or taking a photo of the same using a phone camera.
In the U.S. 89% of supplier invoices are in either paper or email format. 76% of companies surveyed input invoice data manually. In traditional systems, human reviewers strenuously read and validate the document before manually entering it into databases or ERPs for future use.
Meanwhile, AI-backed data capture uses Optical Character Recognition (OCR), to facilitate data extraction. The consumption of resources is still way above the number of documents processed. Still there is the challenge to make vendor-formatted invoices appear in a standardized format across platforms. Harnessing the power of AI in managing data extraction is key to simplifying every task along the way. Additionally, syncing the processed data across systems is a plus.
Difference between invoice OCR and Invoice capture
Often in data extraction, collecting data from a massive stream of documents is done using a traditional Optical Character Recognition (OCR) system, however, there is plenty of room for improvement. OCR relies on rule-based engines that use post-processed OCR results to match patterns or define specific templates that the OCR results are forced to fit in.
This approach has seen some success over the years, but it requires a layer of software built on top of the OCR engines – a resource-consuming task. To make things harder, the rule-based OCR approach requires a newly fabricated layer of software every time a new invoice template is added.
For precision, the OCR technology can imperatively rely on AI, enabling the system to look at the surrounding context and “read” the data more accurately. AI helps in training the OCR engine by parsing every bit of information to recognize patterns effectively. The recognized patterns are then used to enhance missing bits of data or imaging anomalies that are common in user-scanned documents.
Invoice Capture
AI-powered invoice capture excels in finding patterns and discrepancies by scanning through all data that is sent through the engine. The astonishing level of heuristics involved can effectively find and reconcile errors while saving a lot of human work put into lengthy communication threads. Automating the templating process alongside OCR can create a positive impact in digitizing invoices & data normalization.
At SkyscendPay, we have endeavored to train the intelligence engine to detect common patterns and inconsistencies. The AI detects scanned documents, photocopies, and camera-shot images and reads surrounding data for context. The data is then imported and synced with the existing data pool.
SkyscendPay’s Invoice capture solution can
Save time
Eliminate manual reconciliation and data entry
Reduce AP expenses
With a low lift setup and a versatile platform for buyers and suppliers, it stands as a reliable solution in invoice processing. The platform offers easy ingestion of data, a no non-sense dashboard that allows transparency, and robust security features.
AI not only cuts operating costs but also ensures accuracy in no time. The entire process is managed on a dedicated instance for added security and to avoid data corruption. Implementing SkyscendPay’s Invoice processing solution is a smart way to leverage the power of AI.
Take your business to new heights. Book demo today!
Comments