Invoice Verification using OCR (Optical Character Recognition)

Logistic Invoice Verification process contains many validations and controls and is considered critical and significant in any purchasing organization, especially due to the increasing usage of electronic invoices and the transition to automated processes.

However, many organizations still verify and post logistic invoices manually, print invoices due to tax regulations, scan hardcopy invoices to save as attachments and waste a lot of time and resources from the time the invoice arrives until it is posted.

The market offers comprehensive solutions to run procurement and supply chain process entirely, for example SAP Ariba and similar systems. Additional option is to use B2B platforms, such as Nipendo that provides organizations with a single point of control and compliance for all enterprise procure-to-pay processes and allows the vendors to process errors online and get clear transparency of invoices status.

For companies that don't have the resources for these solutions and still would like to increase automation and productivity there is an alternative solution - a combination of OCR technology with ABAP development in SAP of intelligent data analysis and insightful invoice monitor. This solution enables automatic postings, updates, validations, easy communication with relevant users and audit trail of every status change.

One of our clients is running the following OCR invoice verification process:

• Vendors send digitally signed PDF Invoices.

• The OCR engine extracts the invoice data from the PDF.

• SAP program analyzes the invoice data, runs validations and finds the matching purchase documents.

• The program notifies the requisitoner that an invoice has arrived.

• Once there is quantity to be invoiced the program automatically tries to park or post the invoice.

• The PDF file is automatically attached to the FI document .

• Additional steps which are required for electronic invoice archiving are done.

Benefits:

• Significantly speed up the invoice verification process.

• Reduce manual work and errors.

• Decrease paper usage.

• Improve controls, audit trail and visibility.

• Provides innovative tool for AP department to maintain and control the invoice verification process.

For more information you are welcome to contact us info@allegropro.co.il