In the process of accounts payable or AP, one of the first steps is to capture the data on the invoice, based on which the entire process begins. When your AP solution has inbuilt data capture capability, that is referred to as native data capture.
Here are the necessary steps that the invoice capture process follows:
- Optical character recognition (OCR) and extraction: OCR is the conversion of typed, handwritten, or printed information into text machine-encode text. When the data is retrieved for further process or storage, it is called extraction.
- Classification of the document (or invoice): Earlier on templates were used, but today you have technology that self learns or has automated training methods to set up and classify the data to be validated.
- Data validation and quality control: The data that is extracted and classified is validated against business rules defined and line item validation, field specification, expressions, checksums, etc.
- Reporting and analysis: Regular reports have data is operation level to include the status of the batch, information accuracy, operator statistics, etc. You can also drill down to generate reports that can help gain insights into procurement policy compliance, cash flow, working capital, etc.
Having native data capture enables end-to-end accounts payable automation within the same solution. With the solution being able to keep learning and improving on the way data is captured, your processes become more efficient and provide better insights to the users.
Some of the main benefits of native data capture in your AP automation include:
- Ability to establish KPIs and achieve them with ease
- Generation of better spend reports and thereby, more control on unplanned expenses
- Insights into where the bottlenecks so that they can be mitigated to ease the problem
- Faster processing times, lesser manual efforts, quicker approvals and payments
- Establish a good market reputation and build better rapport with suppliers for better rates
Want to learn more about native data capture and the way it can help improve your accounts payable process?
Sign up to the webinar on November 20 to learn more about ‘Accounts Payable Automation with Native Data Capture Capabilities!’