Processing vendor invoices can be a time-consuming, labor-intensive task. With their sheer volume and various formats, the intake step alone can require resource allocation that could otherwise be directed toward more knowledge-based, strategic efforts. Manual information entry can also be error-prone, leading to mistakes that must be corrected later.
Microsoft Dynamics 365 helps organizations simplify this process through its innovative Optical Character Recognition (OCR) Vendor Invoice Capture feature. This tool is designed to streamline the invoice processing workflow, enhancing efficiency and accuracy. It works by parsing data directly from invoices, whether scanned from a physical document or an electronic file, and automatically entering the relevant fields needed for processing.
The OCR Vendor Invoice Capture system begins with a comprehensive Power App that serves as the central hub for managing invoices. Users can configure the system to suit their specific needs, adjusting settings such as system parameters and processing models. The platform supports various file types, including PDFs, JPEGs, and PNGs, offering flexibility in handling different invoice formats. Additionally, the invoice capture tool allows users to configure different channels or methods of importing invoice attachments to the Power App platform. Common examples include SharePoint, Outlook addresses, manual upload, and OneDrive.
The system also features a continuous learning capability that allows it to adapt to new vendor templates, improving its accuracy and increasing efficiency over time. For example, a new vendor invoice may come with information formatted unlike previous documents the organization processed. Initially, the OCR tool may not fully capture some of the data, requiring a user to manually correct the form. But because the platform can adapt, it will learn to associate the manually entered information with the correct document fields and begin to capture the information it had previously missed — all while recognizing the new invoice format moving forward.
As part of the core configuration, the invoice capture solution also provides functionality to differentiate between different types of invoices. For instance, a purchase order (PO) invoice is recognized as a pending vendor invoice record, while an expense invoice is processed as an actual invoice journal. This differentiation is crucial for maintaining accurate financial records and maintaining compliance with accounting standards. The system also integrates seamlessly with Dynamics 365, allowing users to view and manage invoices directly within the ERP after the invoices have been captured.
Security is another critical aspect of the OCR Vendor Invoice Capture system. Users must have the appropriate security roles assigned to access the system, helping to ensure that sensitive financial data is protected. Organizations can configure the system within the Power Apps Admin Center and link it to the correct Dynamics 365 instance, meaning that the invoice capture tool is fully integrated with the organization's existing infrastructure. To further enhance its value, while all information related to an invoice capture is contained within the Microsoft ecosystem, it can also be expanded to function with third-party software and tools.
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The Microsoft Dynamics OCR Vendor Invoice Capture tool offers a robust solution for managing vendor invoices. Its advanced features, seamless integration, and focus on security make it an invaluable asset for organizations seeking to enhance their financial operations. As businesses continue to navigate the complexities of digital transformation, tools like this will play a crucial role in driving efficiency and accuracy in financial processes.
BDO's team of experienced Microsoft Dynamics professionals can help your organization implement and configure the tool to meet your needs. We can also provide guidance on how to integrate the OCR Vendor Invoice Capture tool into your existing framework. For more information and to get in touch with us, please visit BDO Digital.