Invoice and OCR

May 25, 2024 | seedling, permanent

tags: Machine Learning

Invoice and OCR #

Problems #

defined by flow by nano

Business problems #

Manual Data Entry is slow and error-prone #

Solution
AI utilizes OCR to instantly capture and digitize data, while ML refines data extraction.

Benefit
Reduces processing time and human error, increasing overall productivity.

Inconsistent data entry leads to payment errors #

Solution
AI cross-verifies data against existing records, instantly correcting inconsistencies.

Benefit
Enhances payment accuracy and vendor trust, reducing costly reconciliations.

Problem: Approval bottlenecks delay supplier payments #

Solution
AI automates approval workflows, alerting approvers with smart notifications.

Benefit
Streamlines payment timelines, ensuring a smoother supply chain operation.

Tracking paper invoices invites fraud and loss #

Solution
AI creates a digital trail for every transaction, securely archiving invoices.

Benefit #

Bolsters security and compliance, enabling easy retrieval for audits.

Complex invoices require extensive manual review #

Solution
AI learns to interpret various invoice formats, accommodating unique details.

Benefit
Adapts to multinational formats, simplifying global transaction management.

Problem #

Growing businesses struggle to keep up with invoice volume

Solution
AI scales dynamically with business needs, processing more data without added staff.

Benefit
Supports business expansion without the drawbacks of increased manual labor.

Uncertain cash flow complicates financial planning #

Solution
AI provides predictive analysis for upcoming payments and receivables.

Benefit
Offers actionable financial insights, leading to smarter cash management.

Different software systems do not communicate efficiently #

Solution
AI ensures seamless integration, transferring data automatically between systems.

Benefit
Connects disparate software, creating a cohesive financial ecosystem.

Technical problems with conventional OCR #

and how they can be solved with Deep Learning AI width ai, ref

Solutions #

How Spacy can be used? #

ref

From the reference #

Matcher rule: How to write the matcher rule, is it based on some explicit format like Regular Expressions.

Statistical NER: Is it by training on the spacy model for my custom NER. And this can resolve cases with Context of the phrase.

Correct me if I am wrong.

Also I would like your suggestion on creating training/testing/validation set. In my case: I have 6-8 custom NERs per invoice. 1st Approach: I train all the NERs on my first invoice and then on next invoice and so on… 2nd Approach: I put all the phrases for one type of NERs in a single file and train the model. And subsequently train for next NER. In this case I can also train one model per NER. I am not sure if this will be advisable.

Really appreciate your valuable input on this.

Invoice matching #

How Automated Invoice Matching Saves Your Business Money and Time

Two-way matching #

Three-way matching #

In three-way matching, accounts payable team compares the details in three separate documents:

The Purchase Order issued by the purchasing department
The goods received note issued by the purchasing department on receipt of goods
The vendor’s invoice

4-Way Matching #

Four-way matching is like three-way matching but includes a fourth document in the comparison:

the inspection report by the accepting department.
The accepting department inspects the goods for quality and conformity to requirements.
Only accepted goods are cleared for payment.

This method is ideal for industries like automotive and manufacturing where quality control is critical.

OCR of Images #

2024-04-25_12-57-54_screenshot.png #

Deep Learning Models - - - - - Entities Recognized Entities Relationships INVOICE U 0IO Output Processing Width.ai Invoice Processing Text Extracted Fields Extracted JSON Confidence metrics Results Alerting Notifications Custom NLP Pipelines (Customer) Customer DB

2024-04-25_12-59-37_screenshot.png #

2-Way Matching 2Wayl Invoice - Matching Automated Matching - - - - - $ - - - - Purchase Order Invoice - - - to 0a Quantity Quantity Total Value Total Value

2024-04-25_13-00-00_screenshot.png #

vviamnal - Whatis Three Way Matching? - - - - R - Es 00 Purchase Order Receipt Invoice Quantity Quantity Quantity Value Value Value