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OCR - Optical Character Recognition Service - Invoice Automation for Scanned Documents

BillurSamdancioglu Profile Picture BillurSamdancioglu 15,786 Most Valuable Professional

Updates to Dynamics 365 Finance 2022 release wave 2 include general availability of vendor invoice OCR (optical character recognition). This will automate the reading and recognition of vendor invoices by providing OCR capabilities to complete the full end-to-end automation of accounts payable.

I was expecting this functionality for a while. I've not set it up or tried before but we were using some third parties to manage this functionality. 

According to the documentation, we will be able to

  • Upload vendor invoices to pending invoices as header and lines and related attachments. 
  • Will be managed through data entities.
  • Vendor pending invoice header entity will be change for to add attachment and new entity to be added for attachments.
  • Also for to manage the process UI forms will be added.

According to my previous experiences, there is still need to cover the processes below:

  • Use vendor invoice journal for the processes that do not use a PO or a pending invoice.
  • Use vendor approval journal process.
  • A little bit more information/documentation on the OCR process on how VAT(TAX), PO, company, product receipt, vendor code etc. is going to be managed.
  • To manage customer return invoices 

You may find details from the links below:

https://docs.microsoft.com/tr-tr/dynamics365-release-plan/2022wave2/finance-operations/dynamics365-finance/

https://docs.microsoft.com/en-us/dynamics365/finance/accounts-payable/vendor-invoice-automation

Comments

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  • ElaiNetgil Profile Picture ElaiNetgil
    Posted at
    "It's great to hear that the OCR will be able to recognize vendor invoices and complete the full end-to-end automation process." I understand that there is still room for improvement in terms of managing processes that don't use a PO or a pending invoice and better documentation on the OCR process. However, the addition of data entities and UI forms to manage the process is a step in the right direction. I currently use smart engines https://smartengines.com/ for it, but I'm always open to suggestions, so thanks for sharing!
  • ElaiNetgil Profile Picture ElaiNetgil
    Posted at
    It's great to hear that the OCR will be able to recognize vendor invoices and complete the full end-to-end automation process.
  • GuestSavian Profile Picture GuestSavian 25
    Posted at
    I understand that there is still room for improvement in terms of managing operations that don't use a PO or a pending invoice and better documentation on the OCR process. However, the addition of data entities and UI forms to manage the process is a step in the right direction. I currently use Smart Engines for it, but I'm always open to suggestions, so thanks for sharing!
  • GuestSavian Profile Picture GuestSavian 25
    Posted at
    It's great to hear that the OCR will be able to recognize vendor invoices and complete the entire end-to-end automation process.
  • ColmenSativa Profile Picture ColmenSativa 30
    Posted at
    Thanks for the useful post!