Automated invoice processing systems use (Optical Character Recognition) OCR technology to read data from scanned invoice documents. They classify the documents based on their type, apply configurable validation rules to ensure data accuracy, and then format the extracted data for integration with existing systems like accounts payable or ERP platforms.

Optical Character Recognition (OCR) is a technology that transforms images into machine-readable text. Imagine you have a physical paper document, and you want to edit the text on it digitally. You would scan the document, and then use OCR to create a digital version of the text that you can edit on your computer.

On the other hand, data capture is the overall process of reading the data from various documents – in the case of invoices it extracts the data like invoice number, date, total amount, line items, etc. Data capture would use OCR as one step in the process – specifically to turn a scanned image into machine-readable text. But data capture also includes many other steps, like identifying which pieces of information are important by learning from the user’s feedback, checking that the information is correct (data validation), and organizing the data in a useful way.

So, in a nutshell, OCR is that step in data capture that converts an image to a set of text characters, while data capture makes sense of those characters to read and comprehend the documents.

SmartSoft Invoices can process various types of documents, such as invoices, receipts, purchase orders, contracts, financial statements, shipping documents, application forms, HR documents, insurance claims, medical records, tax forms, bank statements, delivery notes, questionnaires, utility bills, shipping manifests, bills of lading, packing slips, insurance claims forms and others.

The system can handle documents in multiple formats such as PDF, TIFF, JPEG, PNG, BMP, and scanned paper documents.

It can process both structured documents, where content is consistently placed, and semi-structured documents, where the placement of content varies such as invoices. It handles fixed-form documents such as medical forms, which often include checkboxes, multiple-choice selections, and fill-in-the-blanks sections. SmartSoft Invoices also employs Natural Language Processing (NLP) to understand and extract information from unstructured documents like contracts, where key data is embedded in flowing text without a consistent layout.

The accuracy achieved by SmartSoft Invoices automation software can vary depending on the complexity of the document and the quality of the scan. However, in many cases, the software achieves an accuracy rate of 100%. When the rate is lower, the system offers fine-tuning options to enhance this figure, effectively learning from instances where a user corrects an error. 

SmartSoft Invoices also provides aggregated reports to track accuracy within your specific document environment and identify areas that may require attention or configuration to improve the rate.