Role of Invoice OCR in Accounts Payable Automation

Currently business deals with large amount of vendors to procure the raw materials, and those supplier rasie the bill against each delivery they made to the purchaser, this could be in multiple ways like either on email or as a hard copy along with the material. Due to which certain problem arisse which forces businesses to utilize theri time by doing Accounts Payable Automation.

This problem arises not due to the material delivery but ue to the nature of invoices supplier shared and due to absence of a solution that can connect the supplier & Buyer at one place so this exchange could be possible.

The Problem is due to number no the number of supplier thay have but it si due to the invoices they receive in large amount the the data entry also his process is not limited to one time, every time the supplier made the delivery he will raise the bill.

The next problem arises due to these invoices is the data entry, which again create a problem of on time payment & errors, and increase the costing.

The above case is for buyer & vendor  – Invoice OCR is not only helpful to manufacturing companies to for accounts payable automation but alos helpful for the tech companies or other industries companies who receive large amount of Invoices on daily basis and they have to use huge workforce for just invoice data entry purpose.

So, where ever the manual intervention creates the problem automation is the best way  that reduce the error,efffort, money  & time.

What is Accounts Payable Automation

An automation in the process of account payable means you are handing your accounts payable from procurement to payment via solution, where you just have to review and all your manua data entry is totally removed form the process, in simple terms all your entry has been converted into review or few clicks. 

What is Invoice OCR

Invoice OCR is tool that, extract data from scanned documents such as  invoices, receipts, and convert it into a machine readabl editable and searchable. Format. Which automate the data entry easy & possible from  PDF, JPG & PNG form documents.

How we can achieve the automation in Accounts payable by using Invoice OCR

Accounts Payabme automation software culd made the process easy for the people involved in AP process – it directly communicate the supplier all actions related to invoices – this will reduce the folllow-ups, and reduce the invoicing process time from entry to payment, because it will auto inform the respective person to approve invoice on time & updadte the next one and sync data in to erp after final approval & reverse back after payment.

The Problem in AP automation came into frame once vendor shares invoice at different places. 

The automation in AP can be implement by including the Invoice ocr solution at the different invoice entry places such as gate where hard copy of invoice buyer receive, other place could be OCR software can connect like with email box and extract the data from invoice once email receive and made the entry of invoice data automatically – this is possible over masters India Invoice ocr solution. Also if OCR can connect with the google drive & other third party solution- to scan the invoice directly from the folder where invoices are placed after successful connection automatically on time and alert the duplicacy.

OCR API can embed with the existing ERP or solution  to sync bac the data or can be directly use toi integrate in existing erp or system.

Summary – 

Accounts payable automation software & Invoice OCR is the way to automate whole Invoice processing in accounts  payable , OCR technology has made text extraction from PDF or image easy and AP automation software has made the whole process flow,  approval and  also the data management at each step in the whole process easy.