Automate data extraction from documents with Invoice OCR

What Is an Invoice OCR?

Optical character recognition or OCR for invoices is known as Invoice OCR. The main work of Invoice OCR is to convert the data present in Invoice PDF or Image into machine readable format. These technologies are mainly used to automate invoice processing and eliminates the need for manual data entry.

In simple terms,Invoice OCR full form is Invoice Optical Character Recognition.it scans invoices which are in PDF or Image form identify their character and extract them by converting it into readable text.

Optical Character Recognition (OCR)

Optical Character Recognition or OCR as clear from name has ability to see or identify the character and reading text present in the Image or PDF then converts them into a machine readable format.

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Invoice OCR vs Simple OCR

What Is an Invoice Processing

Invoice Processing refers to the whole process of receiving invoices from the supplier and process them of payment. In automation the processing of the invoice includes an Invoice OCR software or API to extract data from the unstructured invoice, and can be validated by a human for details & Approval depends upon the requirement.

Businesses Using Invoice OCR

Automated invoice parsing is becoming important in many industries, particularly in financial services and for the Accounts, finance or AP department of any business.

Why Invoice OCR?

Business receives Invoices from supplier have following problems -

1. Data structure of Invoice is very unstructured and Noisy - Such as no fixed place of fields, invoices, Stamps, pen signs, ink used, deleted character and Rotation of Image etc.
2. Quality of the image.
3. Country of origin.
4. Language used on the invoice.
5. Invoice file Type - Image (JPEG, PNG) and PDF.
6. Text - It could be handwritten or Digital, depend upon the supplier.
7. Templates - There is no common defined template.
8. Large number of Supplier dealing.

How Invoice OCR works for invoice automation?

Below three steps will explain you the invoice OCR working to automate invoice processing

• Step 1: Upload invoices

  Upload a Image or PDF file of invoice into Software could be via mobile or PC, OCR automatically do the improvement in the image to give you better output.

• Step 2: Conversion or Extraction - Image to text

  Once the PDF or image is uploaded OCR automatically converted to a TXT file. All text from the invoice is extracted, but not yet processed and structured.

• Step 3: Result - Parse to Table/JSON/Plain Text/Excel

  Now the Extracter take the Generated TXT file to structure it and transform into machine readable or searchable form, you can view its output in various form like table, JSON, Plain text or in Excel.

If you are looking for invoice OCR to automate invoice processing for your accounting, AP or finance team Masters India is here to help you!

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Invoice Fields Can Be Extracted through OCR Software?

OCR API and Software extract the below listed fields data, but Additional fields data can be extracted upon request from best OCR api. Below fields data our Invoice OCR extracts from Invoices:

Buyer and Supplier Information

Five data are extracted for both the Buyer and the Supplier:

• Name
• Address ( Address, City, State and Pin code
• Company Taxpayer ID (TIN, GSTIN, PAN and VAT NUMBER etc)
• Contact details (Email and Mobile Number)
• Merchants’ website

Invoice Details

Five data are extracted for both the Buyer and the Supplier:

• Invoice number
• Purchase Order (PO) number
• E way bill Number
• IRN Number
• Payment Term
• Invoice Type
• Currency in ISO format (USD, EUR...)

Date

Each date is returned in format DD-MM-YYYY

• Invoice date
• Due date (System compute due date either from invoice if mentioned other wise using the payment terms and Invoice date.)
• Delivery date

Amount & Rate

Each amount is returned in the currency of the invoice.

• Taxable Value
• Total Tax AMount
• Tax breakdown as per country like India (CGST,SGST, IGST) each tax includes the tax amount and the tax rate when applicable Invoice identifiers
• Total Invoice Amount
• Discount
• Other charges

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Bank Details

Supplier payment details are extracted as a list of objects that are necessary information for payments:

• Account number
• Bank Name
• IFSC
• Branch
• IBAN

Line item

• Line item categories
• Item Code or SKU
• Item Name & Description
• Quantity
• Prices
• GST Rate & Amount
• Total amount
• Discount

Custom fields

Invoice scanning OCR will extract the data from custom fields as well based on requirements, It Find duplicates invoices ,either come over mail or already present in the system. Identify fraudulent documents with cross checks

Why Choose Masters India Invoice OCR Software?

Masters india OCR save time and money of company’s AP department . Our AI-ML powered best invoice OCR software will automate many invoice-related business processes. It intelligently scans and extracts data from documents. Our invoice OCR software is accurate and scalable.

• Invoice scanning will Made Invoice management easy.
• Made data capture from key value pair & line item easy form handwritten & Digital invoice.
• Invoice to text, CSV, XLSX or JSON with OCR.
• Invoice OCR automate Invoice Processing, save time, reduce cost and errors, prevent frauds, optimize the workflow & Process make it faster and on time.
• User friendly, easy to Integrate OCR Api into system.
• Data or fields extraction could be on demand and customize as per requirement.
• It helps business to transform unstructured data of Invoice pdfs or images, into structured form.
• Improve speed of invoice processing using OCR from hours to seconds, by classifying the invoices and cross validating the data which will be perfect for AP automation, and accounting.

Free OCR API has limitation in data extraction, it allows only to extract the limited fields data to extract, you can purchase our OCR api service, you can request callback for OCR api online, and try our OCR receipt api, our OCR api Open source is not available publicly, but for more info you can visit our best free OCR api documentation.

Schedule a free online demonstration: Get a clear view of how masters India Invoice OCR can help you to make Invoice processing more efficient.