Document and data capture has long been one of the most discussed and researched technologies in the financial back-office and accounts payable worlds. The need to automate the digitization of documents and the capturing of data from those documents was the driver of the development of both OCR and workflow technologies, starting back in the 1980s. Companies with high-volume transaction processing requirements must process incoming invoices for payment, therefore driving the need for utilizing emerging advances in computing technology to develop document and data capture technologies. The constantly changing environment is why so many document and data capture options exist.
These environments process these documents and retrieve the critical data contained therein. Before the advent of document and data capture automation, this meant employing many human resources to manually enter data from the incoming paper documents into financial and claims processing systems. The advent of document imaging and related OCR software was the beginning of a new era for these large processing operations.
Like everything else around us, the world of capture has evolved, and there are more choices than ever before to obtain the documents and data critical to running your businesses. Many methods now include web form submissions, emailing invoices embedded in PDF files, EDI, and receipts. These are just a few of the more popular methods of digitizing documents and electronically capturing data without the need for manual data entry.
More Than OCR
Many document and data capture solutions are cloud-hosted and can be easily incorporated into an AP Automation system. One of the more popular methodologies is the use of vendor portals to take advantage of some of the other electronic capture solutions:
- PO Flip: Pull lines from PO in the back-end financial system to populate the invoice
- Invoice Web Form: Vendor provided data entry via a web form
- File Submit: Submit billing files via the portal in defined formats
- EDI light: Vendor-supplied data for lost or dropped EDI data from a transmission
- Document Assembly: Parse out PDF files into individual invoice documents for data capture
Through integrations or interfaces, buying companies can take electronic data and import that data into their ERP or back-end financial systems with little to no human intervention. These processes not only save money and allow companies to redeploy resources to more value-added tasks, but also decrease cycle times, which allows companies to take advantage of early pay discounts offered or even to implement a dynamic discounting program.
There are many opportunities for companies to up their game when it comes to capturing actionable data with minimal or no human intervention. The methods you choose depend on several factors, including vendor makeup, technological footprint, and management support.
Automated data capture is one example of how document and data capture are unlike OCR. ADT encompasses the use of AI and ML for the capture of information from more complicated documents.
Get Started
One of the first steps in evaluating what options may be available in your organization starts with a vendor stratification exercise. To perform this task, you can evaluate each of your vendors based on volumes, level of spend, criticality of products and services provided, level of discounting offered, technological savvy, current document/data submission methodologies, and the perceived potential to adapt to new methodologies.
If you would like to evaluate how your organization can take advantage of capture technologies or need help in developing a supplier stratification exercise, contact ICG today, and we can set up a conversation with your team. If you would like to view a demo of some of the solutions and methodologies we have discussed, request a demonstration.