Configuration options
Before working with vendor invoicing and OCR, you'll need to set up the required parameters in Finance. You can also use this time to determine which functionality you want to enable for use with the OCR service. Functionality that you can enable includes:
- Automatically applying prepayments to invoices that are imported.
- Submitting invoices that have been imported into a workflow to match pending vendor invoice lines.
Note
To use the functionality for OCR integration, you'll need to turn on the functionality in the Feature management workspace. Go to the Feature management workspace, search for the Vendor invoice automation feature name, and then enable it.
After you've enabled Vendor invoice automation, you can begin using the functionality in your business.
Example
For an example of the functionality being used, consider the scenario with Contoso Entertainment as they deal with their different invoices and vendors.
Contoso Electronics vendors submit their invoices by using the Vendor collaboration portal in Finance. When an invoice is submitted, an accounts payable clerk at Contoso will manually process the invoice and then submit it to the invoice approval workflow. To streamline this process, Contoso can implement the OCR capabilities so that, when an invoice is submitted, it will automatically be sent to the Dynamics 365 workflow service. This approach will allow Contoso to have a vendor invoicing process that can be processed without manual intervention.
Parameters
To review the various setup elements for OCR configuration, go to Accounts payable > Setup > Accounts payable parameters. If the Vendor invoice automation feature is enabled, the Vendor invoice automation tab will display in the parameters; otherwise, the tab won't be visible. As shown in the following screenshot, the Vendor invoice automation tab gives the option for different settings that you can modify to enable certain behavior in the invoicing process.
You should consider the following key parameters and their functions when working with OCR in Finance:
Automatically submit imported invoices to workflow - Access this parameter under the Vendor invoice workflow tab. Leaving this option set to No means that you'll need to submit the invoices manually. If you set this toggle to Yes, then the imported vendor invoices will be submitted to the workflow system automatically. When the toggle is set to Yes, this process will only work if the vendor invoice workflow is correctly set up for the legal entity that you're working out of.
Match product receipts to invoice lines prior to automatically submitting - Access this parameter under the Match product receipts automatically FastTab. When this toggle is set to Yes, the invoice that's imported into the system by using OCR can't be submitted automatically to a workflow unless the matched product receipt quantity equals the invoice quantity. This parameter ensures that no discrepancies arise from improper matching because of imported vendor invoices. When the product receipt quantity matches the invoice quantity, the invoice will be submitted to the workflow automatically.
Automatically apply prepayment for imported invoices - Access this parameter under the Apply prepayments automatically FastTab. If this option is set to Yes, the system will automatically look up prepayments that exist for a specific purchase order when those vendor invoices are imported. If prepayments do exist, an extra line will be created to apply the prepayment to relevant vendor invoices that have been imported.
Block follow-up automation process in case of prepayment application failure - Access this parameter on the Apply prepayments automatically FastTab. If this toggle is set to Yes, the imported invoices will be blocked if a prepayment is unable to be applied. If it's blocked, the invoice automation process won't be able to process the prepayment until it's manually applied.
Quantity option - An additional parameter that can be enabled is for handling invoice lines and makes the task of an Accounts payable clerk easier because invoice lines can be created automatically. This would occur when, for example, a purchase order has been partially invoiced, and the invoice is then imported. Instead of having to manually go back and re-enter the lines, the Quantity option parameter allows the Accounts payable clerk to skip the step of entering lines because the imported invoice handles this step.
These parameters are a few that you should be aware of, along with the other capabilities in the Vendor invoice automation section of the Parameters page. Another consideration in this setup is the possibility of including an automated posting task within the workflow editor. This task will allow an imported vendor invoice to process through the workflow without manual intervention and it will end with posting the invoice.
Integrate with custom prebuilt model in Invoice capture
You can use custom prebuilt model for OCR recognition. Often, customers receive invoices with complex layouts and prebuilt models that can’t return an accurate recognition result. This creates bottlenecks in the process as the accounts payable team has to dedicate time to correcting and reviewing those invoices.
To streamline this process, you can upload a sample invoice, tagging desired fields, and finally training and publishing the custom prebuilt model in AI Builder.
Furthermore, the customized prebuilt model lets you specify and extract extra fields beyond what the standard model offers. These additional fields need to be mapped between the model and the invoice in the setup process.
When configured, the new fields are automatically extracted and transferred from invoice capture to Dynamics 365 Finance, ensuring that the system caters to the specific requirements of your organization.