ABCAdda | Updated Mar 02, 2023
Invoice data extraction is the process of extracting information like suppliers name, his address, contact information, amount etc., and verify the relevant data by uploading it to an ERP software and at last initiate payments.
Traditional invoice data extractions methods are extremely time consuming and require more manual effort so use data extraction tools to make the work simpler by using ERP software. By implementing systematic way of invoice data extraction eliminate back payment errors and also saves lot of time.
Here in this blog we will discuss in detail regarding “what is invoice data extraction” and explain the types of invoice data extraction.
What is invoice data extraction? Is a question often occurs in the minds of people who are new to the term invoice data extraction. We now explain in detail the various methods used for invoice data capture. So, without further wait let’s get into the topic.
Invoice also named as bill or commercial documents given by sellers to buyers about the transaction sale. Invoice generally includes data like sellers and buyer name, contact information, company logo, payment methods, due date, taxes, and cost of the products or services delivered to the buyer. Invoices are also a legal record as it contains all the information regarding transaction sale.
We have already discussed “what is invoice data extraction” let us take a look at the various types of data capture methods.
Manual data entry is done by an operator who enters relevant invoice data into the computer.
This method suits for small companies who have limited operations.
As human is involved in data entry there is possibility of errors, and is extremely time consuming.
Nanonets an AI based invoice OCR software capture all the invoice information from various formats. Nanonets normally use advanced artificial intelligence and machine learning tools for document processing and extract useful information even from unknown documents.
AI based invoice OCR captures information fastly within 27 seconds when compared with manual data entry.
The cost of processing invoice is $0.05 per invoice whereas manual processing cost upto $1 to $5.
AI and ML tools are known for smartly capturing invoice data with minimal errors using neural networks.
It takes some time for operators to switch to new software and understand how the AI and ML algorithms work.
Traditional methods uses template based invoice OCR for data extraction. This method well suits for organizations that have limited set of invoice operations.
Low capital investment.
No need for outsourcing and coordination with suppliers.
More errors occur while gathering invoice data and this may lead to late payments and penalties.
We hope our article on “what is invoice data extraction” has given the answer you are looking for. This article clearly has given insights about the challenges a staff encounter while extracting and processing the data and various types of data extraction methods. So, here is the end of our writing.