Invoice parsing, or invoice extraction, is the process of extracting structured data from an invoice document. This process is typically automated using technologies like Optical Character Recognition (OCR) and Natural Language Processing (NLP) to read and understand the content of the invoice, just as a human would.

Sensible’s invoice parsing goes a step further. Not only does Sensible Instruct read and recognize the text on the invoice, but it also understands the context and semantic structure of the information. This means it can identify and extract key data points such as invoice number, date, supplier details, line items, quantities, prices, totals, and more.

This extracted data is then typically outputted in a structured format, such as JSON, CSV, or directly into a database or other software systems. This enables seamless integration of the data into your existing workflows, eliminating the need for manual data entry and providing a more efficient, accurate, and automated approach to invoice processing.

Extracting data from invoices can be a tedious manual task or an efficient automated process depending on the method and tools you employ. Here is a step-by-step guide on how you can do this using an AI-powered platform like Sensible:

• ‍Upload the Invoice: Start by uploading the invoice document you want to extract data from. Sensible supports a variety of formats including PDFs, TIFFs, and more.
• ‍Specify the Required Data: Describe the data you want to extract in natural language using Sensible Instruct, or use Sensible's document query language, SenseML, to specify precise extraction patterns. You might be interested in details like invoice number, date, supplier name, line items, amounts, taxes, and more.
• ‍Use LLMs (large language models) to Extract the Data: Sensible uses GPT-4 to read and understand the content of the invoice. GPT-4 has been trained on a massive corpus of text, including diverse invoice formats, and can accurately extract relevant data, even from complex or poorly structured invoices.
• ‍Get Extracted Data: Sensible processes the invoice and delivers the extracted data in a structured format. This could be a JSON, CSV, or Excel file that you can easily integrate into your existing workflows or systems.
• ‍Review and Validate: The platform offers tools for validating the extraction results. Sensible ensures high accuracy, but it's always good to review and make adjustments if necessary.
• Integrate with Your Workflow: You can use Sensible's API or other integrations to feed the extracted data directly into your existing systems like an ERP, accounting software, or a database. This seamless integration saves time and reduces errors associated with manual data entry.

A robust platform like Sensible can ensure accurate and fast data extraction from invoices.

​​Automating invoice processing can significantly increase the efficiency and accuracy of your accounts payable department. With the right technology, like Sensible, you can streamline the entire invoice processing workflow. Here's how:
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1. Digitize Invoices: The first step to automate invoice processing is to digitize all invoices. Whether you receive paper invoices or digital ones, ensure they are all converted to a digital format like PDF or TIFF.
2. Automated Invoice Data Capture: With Sensible, you can automatically extract key data from the invoices, regardless of their format or layout. Information such as supplier details, invoice date, due date, invoice number, line items, quantities, unit costs, totals, and VAT can be automatically extracted.
3. Validation: After the data extraction, Sensible validates the extracted data against predefined rules. This ensures accuracy and allows for automatic flagging of outliers or errors.
4. Integration with Accounting Software: Once the data is validated, it can be automatically fed into your existing accounting software or ERP system. Sensible can integrate with your existing systems via API or other integrations using Zapier.
5. Approval Workflow: Depending on your business rules, certain invoices might need to be approved by specific members of your team. Some advanced automation platforms offer automated routing of invoices to the appropriate person based on predefined rules.
6. Archiving and Retrieval: The final step is securely storing the processed invoices for future reference and audits. A good automation platform will make it easy to retrieve invoices and associated data.

OCR, or Optical Character Recognition, is used to convert different types of documents, including invoices, into editable and searchable data.

For invoices specifically, OCR works by scanning the invoice, whether it's a physical paper, a PDF, or an image file, and recognizing the characters within it. This technology is capable of identifying text within the document and converting it into a format that can be edited, searched, or digitally stored.

However, traditional OCR has its limitations. While it can effectively 'read' the text in a document, it may struggle with understanding the context or structure of an invoice, especially if the document's layout is complex or inconsistent.

That's where advanced document extraction platforms, like Sensible, come in. These platforms go beyond simple character recognition. They can understand the structure and context of the data in an invoice, which allows for more accurate and efficient extraction of key information such as vendor details, invoice dates, line items, totals, and more.

OCR for invoices is a crucial technology for automating invoice processing, enabling businesses to save time, reduce manual errors, and improve operational efficiency.