Why ERP software benefits from OCR

Why ERP software benefits from OCR

Invoice processing in ERP systems 

ERP systems allow companies to have a streamlined process across the companies business departments. ERP systems, who offer a complete solution, have a finance module that processes incoming invoices and matches them with orders that the purchasing department makes to suppliers and partners. Once the order arrives with the matching invoice, an employee introduces the invoice to the ERP system, upon which the ERP system matches the incoming invoice to the order, for example through a specific order number or supplier number. Once this is done, the order in the ERP is completed and accounts payable is transferred to the bookkeeping system. 

Manual entry of invoices cost time and frustrations

The procedure of recording invoices depends on the degree of automation in ERP systems. What we experience nowadays is that ERP user receives the invoice, scan it and upload it. Then users enter the relevant information, such as invoice number and the ERP matches the invoice to the purchase order. Searching for the order number and typing it into the ERP sounds simple enough, right? But what if the volume order arrives incomplete and differs from the placed order? Then the employee needs to check the mismatch and make manual adjustments in the ERP system. In companies with frequent purchases, this process can be very time-consuming and frustrating for the employee, who has to check and do manual corrections. Besides user frustrations, the finance department does not get real-time insights into the companies financials, because the orders are incomplete and cannot be accounted for yet. Not beneficial for the finance department, whose task it is to control the efficiency and their financial resources, right?

Automaton of the data extraction for invoices

One solution to the problem is automated data extraction from invoices. With automated data extraction, using OCR, the user introduces the invoice to the system as usual. The only difference is that after the user uploads the invoice, the OCR-engine recognizes relevant data fields such as order numbers, supplier number, merchants, amount of line items, and purchase dates. As a result, the ERP can match the incoming invoice to the relevant order – no manual data entry required. Automated data extraction also goes a step further. The automated data extraction allows ERP-systems to recognize the variances between incoming invoices and orders instantly because it compares the information of the invoice with the placed order. So automatic data extraction allows relevant departments to detect errors faster and take appropriate actions! That leads to a more efficient purchase-to-pay process, which increases the accuracy and speed of financial information that is available in the bookkeeping department.

Klippa is here to help!

Klippa recognized the demand for automated data extraction from invoices early on. We genuinely believe that repetitive processes that involve manual labour should be automated. Our OCR-engine extracts relevant information from invoices within 3-5 seconds, and recognises the order number, supplier number, supplier names, amount of line items, totals and purchase data and any other information that ERP’s required! Click here to get insight on how the invoice parsing with OCR works. Furthermore, our OCR can be integrated into the ERP through our OCR API. Thus, there is no excuse to miss out on automated data extraction.

Start today with making your ERP more efficient for your users – Schedule a demo with Klippa to see how our OCR can automate invoice processing in your ERP!

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