What is invoice processing AI platform?
An invoice processing AI platform is a software solution that uses Document AI, also known as Intelligent Document Processing (IDP) and other technologies to capture relevant data from invoices and automate the accounts payable process.
The platform typically integrates with other systems, such as accounting software or ERP systems, to facilitate seamless data transfer and synchronization. Here are some key features and functionalities commonly found in invoice processing platforms:
Invoice Capture: The platform captures invoice data from various sources, including paper documents, scanned images, and electronic formats like PDF or email attachments. There are a few platforms that can also be integrated with external systems such as email, folders etc. to source upcoming invoices automatically to the platform.
Data Extraction: Using OCR technology, the platform automatically extracts relevant information from invoices, such as vendor details, invoice number, date, line items, and amounts.
Validation and Verification: The platform validates the extracted data by comparing it against predefined rules and performs verification checks to ensure accuracy and consistency.
Workflow Automation: It automates the routing of invoices through predefined approval workflows, notifying the relevant stakeholders at each stage. This reduces manual intervention and speeds up the approval process.
Exception Handling: The platform identifies and manages exceptions or discrepancies in invoices, such as missing information, incorrect amounts, or duplicate invoices. It can flag these issues for manual review and resolution.
Integration with Accounting Systems: The platform seamlessly integrates with accounting or ERP systems to transfer validated invoice data for payment processing, updating financial records, and generating reports.
How can invoice processing platforms be integrated with accounting systems ?
Integration between an invoice processing platform and accounting systems is crucial to ensure seamless data transfer and synchronization between the two systems. Most of the invoice processing platforms come up with API and webhook capabilities. APIs provide a standardized way for different software systems to communicate and exchange data. Through API integration, the invoice processing platform can push validated invoice data directly into the accounting system, ensuring accurate and real-time updates.
Integration through Robotic Process Automation (RPA)
There are many legacy systems such QuickBooks desktop (QBD) and infor visual that does not support API and webhook integration. In such cases, we can use RPA to push the invoice data to those legacy systems.
The primary benefits of an invoice processing platform include increased efficiency, reduced manual errors, faster processing times, improved visibility and control over invoice-related data, and cost savings through automation. It helps organizations streamline their accounts payable processes and enhance overall financial operations.
