Term
What is OCR (optical character recognition)? Meaning and explanation
OCR (Optical Character Recognition) is technology that converts text on a scanned document, PDF or photo into machine-readable text, as the first step in processing data from an invoice or receipt.
Definition
OCR (Optical Character Recognition) is technology that converts text on a scanned document, PDF or photo into machine-readable text, as the first step in processing data from an invoice or receipt.
Also known as: OCR, Optical Character Recognition, Tekstherkenning
OCR stands for Optical Character Recognition. The technique recognises letters and digits in an image and converts them into text a computer can search and process. OCR itself does not know what an invoice number or VAT amount is: it only delivers the text. Turning that into a journal entry requires an interpretation step.
In accountancy, OCR was long combined with templates per supplier that record where each item appears on the page. That works as long as the layout stays the same, but needs maintenance for every new supplier or layout change. For firms with many different clients and suppliers, that maintenance adds up quickly, and every reading error has to be fixed by hand.
Autoboeker does not use templates. Instead of fixed positions on a PDF, it looks at context and the administration's history to determine the supplier, amounts, VAT, GL account and cost centre. Checks follow: subtotal, VAT and total are recalculated and VAT numbers are checked via VIES. A new supplier or different layout therefore requires no extra setup.
Example
A crumpled till receipt is photographed. OCR turns the photo into text, after which recognition determines which amount is the total and which part is VAT.
FAQ
Questions about OCR (optical character recognition).
No. OCR only provides text. To create an entry, the system also has to determine what the text means and how the invoice should be coded, such as GL account and VAT code.
No. Autoboeker recognises invoices and receipts without templates, based on context and the administration's history.
Further reading
Related in the knowledge base.
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