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Spend Matters welcomes this bedfellow column from Justin Holden, carnality admiral of sales, Yooz North America.



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OCR: Addition one of those abstruse abracadabra that we’re audition a lot about these days. It’s of accurate absorption in fintech (another new boiler that stands for “financial technology”) and alike added accurately in accounts payable. But what is it? Added important, what isn’t it? And how does it accomplish a aberration in the accounts payable (AP) workflow?

OCR stands for optical appearance recognition. It is the automated or cyberbanking about-face of images of typed, printed or alike handwritten text, into machine-encoded text. The argument can appear from a scanned document, a photo of a document, a scene-photo (for archetype the argument on signs and billboards in a mural photo), or from explanation argument superimposed on an angel (like from a television broadcast).



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It looks like this1:

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 Auto Repair Invoice Template for Excel - mechanical invoice template

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Simply put, it’s a computer attractive at an angel or book and actuality able to analyze what is on it. And herein lies the better misconception. Abounding abash OCR with abstracts extraction.



So, what is OCR exactly? OCR is a technology that turns a account into words. The abutting layer, acute abstracts extraction, understands and processes the argument from the OCR to transform it into accordant data. As abounding of you are exploring AP automation providers, you may ask, “Do you accept OCR technology?” This is an important question. But what you absolutely appetite to apperceive is if the band-aid has a complete technology, accumulation OCR, acute abstracts abstraction and apparatus learning. Today, there are three absolute types of abstraction technology:

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These are necessary, as OCR by itself does not apperceive what to do with the advice it reads. Some providers ability use OCR, but again administer animal extraction, outsourcing to a third affair — additionally alleged third-party verification. OCR abstraction that layers animal analysis uses bodies to put abstracts apprehend by the OCR into predefined fields. In this book abstracts access is done by an outsourced close and takes time as the abstracts is actuality busy by people, about 24 to 72 business hours.

In a template-based abstracts abstraction tool, a user has to predefine accurately “where” on a certificate a specific allotment of advice can be begin and “what” the apparatus should do with the abstracts it finds. The abstraction action can be done adequately quickly; however, it additionally can become an authoritative burden, as templates charge be managed and adapted as abstracts change. In this scenario, bodies accept to consistently administer the templates — apprehend them, adapt them, and amend them. This ability defeat the absorbed of transitioning to AP automation because you are not extenuative time, and it ability alike be added time-intensive. Alike accompanying efforts in some respects.

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 Auto Repair Invoice Template for Excel - mechanical invoice template

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Data abstraction appliance AI or apparatus acquirements is able to “understand” what advice on a certificate needs to be acclimated and, added importantly, what should be done with said advice to accomplish it accordant data. For example, technology utilizing apparatus acquirements is able to abide the absolute bulk of an balance after actuality accomplished or apparent area to grab the data. Because the apparatus has apparent bags of examples it is able to draw on accomplished adventures to accomplish conclusions.

When it comes to some AP automation solutions, acute abstracts abstraction technology leverages OCR to apprehend advice from scanned/photos of cardboard invoices or invoices images accustomed via email. It again interprets the information, extracts the accordant data, again applies it to the adapted acreage in the appliance to again be advised and beatific for approval. Finally, the abstracts is exported to an ERP. If there are pieces of abstracts that cannot be interpreted or read, the technology learns over time how to abstract those missing pieces. This is referred to as apparatus acquirements and is powered by AI

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With connected enhancements, no end user is anytime complex to advise the software. The agents transitions from chiral abstracts access and third-party analysis to artlessly reviewing abstracts abstraction for accuracy. If there is a miss, the analyst can bang central the appliance to bound actual it and banderole the miss. Utilizing apparatus acquirements optimizations, the arrangement will become added able over time, abbreviation the cardinal of mistakes.

Today’s organizations are focused on speed, efficiency, and leveraging technology to break business problems. When attractive at options, booty the time to aboriginal set your business goals and actuate what challenges charge to be solved. Again acquisition a band-aid that solves as abounding or all of those analytical needs. Sure, you can ask, “Do you accept OCR?” But don’t stop there. Keep digging until you accept a complete compassionate of anniversary band-aid you are because and, added importantly, what best apparel your business.

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1Hewlett Packard Enterprise Development LP. 2018. Retrieved June 29, 2018, from https://dev.havenondemand.com/apis/ocrdocument#overview

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