OCR and AP Automation: Manufacturers Need More Than Header and Footer Information

Optical character recognition (OCR) is a technology that converts scanned documents into digital text. OCR tools are often used in accounts payable (AP) automation to process invoices and other financial documents.

While OCR tools can be very effective at capturing header and footer information on invoices, this information alone is not enough to automate the entire AP process.

Here are some reasons why capturing only header and footer information isn't enough for OCR tools designed for AP automation for manufacturing companies:

• • Manufacturing companies often have complex invoices. Manufacturing invoices may include multiple line items, discounts, and other special terms. OCR tools that can only capture header and footer information will not be able to accurately process these complex invoices.
  • Manufacturing companies often have unique invoice formats. Different suppliers may use different invoice formats. OCR tools that can only capture header and footer information will not be able to process invoices from different suppliers without extensive training.
  • Manufacturing companies often need to extract specific data from invoices. In addition to header and footer information, manufacturing companies often need to extract specific data from invoices, such as the invoice number, purchase order number, and item description. OCR tools that can only capture header and footer information will not be able to extract this specific data.

To automate the entire AP process, manufacturing companies need an OCR tool that can capture and process all of the information on an invoice, including the header, footer, line items, and other special terms.

Here are some features that manufacturing companies should look for in an OCR tool for AP automation:

• • The ability to capture all of the information on an invoice: including the header, footer, line items, and other special terms
  • Process invoices from different suppliers without extensive training
  • Extract specific data from invoices, such as the invoice number, purchase order number, and item description
  • Seamlessly integrate with your ERP system

Benefits of using an OCR tool for AP automation for manufacturing companies:

• • Increased efficiency: OCR tools can help manufacturing companies to automate the AP process, which can free up employees to focus on other tasks.
  • Reduced costs: OCR tools can help manufacturing companies to reduce the costs associated with manual AP processing, such as labor costs and printing costs.
  • Improved accuracy: OCR tools can help to improve the accuracy of the AP process by eliminating human error.
  • Increased visibility: OCR tools can help manufacturing companies to gain greater visibility into their AP process, which can help them to identify areas for improvement.

If you are a manufacturing company looking to automate your AP process, an OCR tool is an essential investment. By choosing an OCR tool that is designed specifically for manufacturing companies, you can ensure that you are getting the most out of your investment. Interested in exploring AP automation for your company? Request a 1-1 product demo with our team.