Transforming Supply chain process Data Capture with IDP

Data capture is the beginning for process automation, data analysis, and forecasting in accounts receivable. Unfortunately, accessing, opening, reading, and keying or copying and pasting information from a huge quantity of documents and sources into accounting systems has historically required a significant human effort by accounts receivable employees. Manual document processing is inefficient, error-prone, and expensive.

Intelligent Document Processing (IDP) is a next-generation accounting and finance system. IDP automates accounts receivable processes by replacing human data entry and continuously improving accuracy and lowering costs using machine learning. Over time, corporations have seen up to a 90 percent expense savings, 90 percent straight-through processing, and 99 percent accuracy.

OCR and robotic process automation (RPA) can aid by converting scanned pictures into text. Nevertheless, they simply record characters. They do not "understand" the data and are unable to extract, categorize, index, or enter the necessary data into systems for further processing.

What is Intelligent Document Processing (IDP)?

Intelligent document processing, or IDP, is a software tool that automates the process of obtaining, processing, and analysing critical document data for corporate operations. Such solutions are critical for updating and optimizing the frequently antiquated, laborious, and time-consuming document processing procedures.

The use of Artificial Intelligence (AI) techniques for data extraction provides the "intelligence" in IDP. AI can do repetitive tasks without the cognitive limits that people have; in fact, AI can deliver more accurate results as it processes and learns.

Intelligent Document Processing (IDP) adds substantial value to supply chain finance by:

1. Automating the manual document management

2. Data extraction processes, decreasing errors and enhancing efficiency.

IDP can scan, process, and analyse invoices, purchase orders, bills of lading, and other vital documents in real time, providing critical data for financial analysis and decision making. This results in faster invoice processing times, more data quality and visibility, fewer human labour, and cost savings.

Intelligent document processing for quicker ROI

Intelligent document processing (IDP) platforms, which use AI for document management and data entry, are a relatively new offering in the automation industry. Accounts receivable operations have traditionally been extremely manual, concentrating on turning information into digital data for internal and client computer systems. Intelligent document processing can eliminate the majority of labour that goes into this, resulting in:

• Faster invoice submission
• Less human error
• Reduced processing costs
• More organized followup
• Less employee burnout

How IDP can improve your supply chain finance processes

Intelligent document processing in supply chain finance has the potential to revolutionise the entire process in three ways:

1. Integrate with existing solutions

Intelligent document processing solutions powered by AI are extremely adaptable and can connect effortlessly with ERP systems, invoice processing platforms, and other AR technologies that businesses now use. Many of them lack IDP capabilities, thus using AI, even through a different platform, may significantly increase accuracy and efficiency. For all-around corporate automation, the most powerful intelligent document processing technologies can even develop seamless workflows across point solutions from various departments.

2. Eliminate data entry

Most AR point solutions still necessitate manual invoice generation, data input, and other time-consuming tasks. IDP, on the other hand, automatically takes data from purchase orders and enters it into invoicing or associated ERP systems for speedier submission and reduced likelihood of human error. Similarly, when a payment is received, IDP may pull data from banking or bookkeeping systems and automatically update databases or business applications.

3. Streamline data transmission

Even with an enterprise ERP system in place, accounts payable and receivable procedures fluctuate from one firm to the next due to varying corporate regulations. This might complicate things even further for the AR team if they have to structure invoices according to customer specifications or send bills through customised portals. It also makes the collection of outstanding payments more difficult.

Benefits of IDP for accounts receivable

• Replacement of time-consuming manual data extraction methods
• 99% and above accuracy rates
• Reduction of document processing time by 70%
• Reduction in lockbox fees
• Improvement in employee productivity and morale
• Freeing human resources for higher-value tasks
• Reduction in AR cost

Where can IDP improve productivity in Financial Operations?

Intelligent Document Processing (IDP) helps boost finance department efficiency in areas such as claims (deductions) processing, supplier invoice input (accounts payable), order processing, cash application, and treasury.

IDP is more efficient, less expensive, and more accurate than having people read documents and keypunch data. Even Robotic Process Automation (RPA) is ineffective when dealing with many unknown document types.

IDP integration into supply chain management processes and the challenges this technology can overcome:

Manual Data Entry Errors

Manual data entry is one of the most despised office duties, resulting to significant staff turnover. IDP reduces the need for manual data input, allowing staff to concentrate on higher-value duties. Data quality increases as a result, and data is processed more quickly, saving organizations money and time.

Data Inconsistencies

IDP ensures data entry uniformity and quality. The system can read the page like a person, but it will detect and categorise material more effectively without mindlessly studying the layout. When the AI system is utilised more, it will improve its data collecting capabilities, making all entries more accurate. This can significantly reduce the amount of data disputes in supply chain.

Ongoing Backlogs

Backlogs and bottlenecks are continual contributors to shipping and logistics delays. This issue for individual businesses might have a negative influence on the global economy. IDP reduces the time it takes to handle backlogs, enabling for speedier product delivery. Invoices would be generated more quickly, document mistakes would be recognised more quickly, and the system might provide real-time error repair feedback.

Conclusion

Apart from the economic issues that many businesses face, it is simple to fall behind on accounts receivable operations, incur delays due to human error, or struggle to keep up during a development phase. Due to labour shortages, it is difficult to ensure that AR experts always get the assistance they require.

Although invoice processing platforms, ERP systems, and software meant to improve accounts receivable procedures make duties easier, many of them still have limitations. Artificial intelligence systems hold the key to improved processes. IDP interfaces smoothly with any user's point solution, and it can also link with customers' data systems, eliminating the laborious labour involved in invoice filing. Advanced platforms can even integrate with difficult-to-connect outdated systems. This link significantly speeds up accounts receivable operations and allows firms to collect payments more quickly. AI-enabled IDP is the missing piece that many businesses require to automate more of their accounting, cut payment processing costs, and shorten cycle times.