The Standard Workflow for Incoming Invoices
In many companies, the incoming invoice process follows a traditional workflow that may seem straightforward at first glance, but is often inefficient in practice. The process begins with the receipt of the invoice, which can arrive as a paper document, as a PDF via email, or through electronic platforms such as Electronic Data Interchange (EDI).
Once received, the invoice is recorded and registered. This involves entering key information—such as invoice number, date, amount, and supplier—into the accounting system, either manually or digitally. The next step is the verification of the invoice. For example, the invoice is checked to ensure it matches the purchase order and the delivery note. This so-called three-way match is one of the more time-consuming steps in the workflow.
Another crucial step is approval. Depending on the organizational structure, the invoice is forwarded to the responsible individuals or departments for authorization. Only after approval is the invoice booked and the payment initiated. Finally, the invoice is archived, either in paper form or digitally.
Typical Pain Points: Where the Workflow Gets Stuck
Despite a seemingly clear process, errors and inefficiencies often creep in. These pain points are frequently the cause of delays, rework, and additional costs. The most common issues include:
Manual data entry: Manually inputting invoice data is time-consuming and prone to errors. A simple typo or a missing item can have far-reaching consequences.
Lack of transparency: Paper-based or decentralized invoice management makes it difficult to track the current status of an invoice. This often leads to delays or duplicate processing.
Complex approval processes: Without clearly defined workflows, the process stalls during the approval stage—especially in large organizations or international teams.
Incorrect invoices: Incomplete details or formal errors in invoices are common. These must be corrected or returned, prolonging processing time.
Missed payment deadlines: Lengthy processing can result in missed due dates, leading to late fees or the loss of early payment discounts.
Workflow Optimization: How to Save Time and Costs
An optimized incoming invoice process starts with the digitalization and automation of workflows. Modern technologies make it possible to eliminate many manual steps, significantly reducing the potential for errors. Key approaches to optimization include:
Digital invoice reception: The first step is to receive invoices in a digital format whenever possible. Formats like PDF, ZUGFeRD, or XRechnung make further processing much easier.
Automated data capture: Tools using OCR (Optical Character Recognition) or Artificial Intelligence can automatically extract invoice data and transfer it to accounting systems.
Standardized processes: Clear and consistent workflows ensure that every invoice follows the same process. Escalation mechanisms prevent approval delays.
Use of workflow systems: Digital tools can automatically route invoices to the appropriate contacts, making the processing status transparent and ensuring deadlines are met.
System integration: Seamless connections between accounting, ERP systems, and invoice management tools ensure consistent and efficient data handling.
endless possibilities.
ExB is an Intelligent Document Processing platform that transforms unstructured data from any type of document into structured results. Our AI-based software can not only extract all relevant information from your documents, but also understand them. This allows you to automate your processes and save both time & money, while improving your customer experience and employee satisfaction. Win-win.
Tools for Digitizing Incoming Invoices
Technologies such as the IDP platform (Intelligent Document Processing) from ExB offer an ideal solution for digitizing and optimizing the invoice receipt process. ExB goes far beyond traditional approaches, offering an advanced, AI-powered platform specifically designed to help companies make their document-based workflows more efficient, accurate, and scalable.
ExB’s solution combines Artificial Intelligence with Machine Learning, backed by deep expertise in document processing. The focus lies in automating complex processes that were previously time-consuming and error-prone. With ExB, manual data entry becomes a thing of the past. The platform uses state-of-the-art OCR technologies (Optical Character Recognition) and NLP models (Natural Language Processing) to automatically extract relevant information from invoices—regardless of format or layout.
The AI continuously learns and adapts, making it capable of processing even unstructured data from a wide range of sources. Whether it’s a PDF, image file, or electronic invoice, the platform accurately captures all essential information, such as invoice numbers, amounts, payment terms, and supplier details.
ExB understands that no two companies are alike. The platform offers maximum flexibility and can be tailored to the specific requirements of any organization. From small and mid-sized businesses to multinational corporations, the solution is scalable and grows with your needs.
Another key advantage: the platform integrates seamlessly with existing ERP systems like SAP, Microsoft Dynamics, or other accounting software. This enables even greater workflow efficiency and ensures smooth data exchange.
But ExB’s IDP platform does more than just extract data. It also supports the automation of approval processes. With predefined workflows and intelligent rules, the platform automatically routes invoices to the appropriate stakeholders—complete with deadlines and notifications.
Conclusion
An inefficient invoice processing workflow can cost valuable time, money, and resources. Companies that continue to rely on manual processes not only risk errors and delays but also miss out on significant cost-saving opportunities. Digitalization offers tremendous potential here. By leveraging modern technologies such as OCR, AI, and workflow automation, invoices can be processed more efficiently, faster, and with fewer errors.
With the right tools and a well-structured workflow, companies save not only time and costs but also lay the foundation for transparent and scalable processes.
Embrace digitalization and future-proof your invoice processing!
OCR can recognize and process many types of documents, including scanned text, printed documents, handwritten notes and even graphical content such as tables and diagrams. Modern OCR solutions use artificial intelligence (AI) and machine learning (ML) to understand even complex document structures.
IDP (Intelligent Document Processing) goes beyond OCR by integrating additional technologies such as ML, NLP (Natural Language Processing) and computer vision. These technologies enable a deeper understanding of the content, including analyzing handwriting and more complex document types, making the entire document processing process smarter and more adaptable.
Yes, ExB’s IDP platform uses AI and ML to recognize and process handwritten text as well as complex, structured documents such as tables and diagrams. Using NLP, the platform can even recognize the meaning and context of the content.
