What is invoice recognition? Meaning and explanation

Invoice recognition turns a document into structured data. First the text is read, then the meaning of each item is determined: which name is the supplier, which amount is the total and which part is VAT. Older systems rely on templates that record, per supplier, where each field sits on the page. Newer systems interpret the invoice based on context.

For a firm, the quality of recognition determines how much rework remains. Templates have to be created and maintained, and break with a new layout or a new supplier. Every error in a recognised field carries through to the entry and the VAT return. Good recognition therefore also checks whether the subtotal, VAT and total add up.

Autoboeker recognises supplier, date and invoice number, amounts and line information, VAT, GL account, cost centre and optionally project, without templates. Subtotal, VAT and total are recalculated, VAT numbers are checked against VIES, IBANs are checked and duplicate invoices are flagged. Payment terms are read and foreign currencies detected. Existing suppliers are recognised and linked, and new suppliers can be created automatically.