OCR and Accounts Payable
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      How to Create Invoices from OCR-Processed Documents

      Learn how to create invoices based on OCR-processed documents in a few steps.

      TABLE OF CONTENTS

      How to Create an Invoice from a Processed Document

      To create an invoice from a processed document, start by navigating to the AP Inbox page. When a document is in Draft Status, you can press the checkmark action button and select your preferred invoice type.

      Option 1: Add Invoice

      Choose this option to create a standalone invoice:

      1. Fill in any required custom fields for the document that weren’t automatically filled out.

      2. Press Create to complete the invoice.

      3. Optionally, edit the invoice to fill in custom fields for individual items.

      add invoice

      Option 2: Add Invoice From PO

      Choose this option to create a PO-based invoice:

      1. Choose a purchase order from the list on which to base the new invoice.

      2. Fill in any required custom fields for the document, then press Create.

      3. Review and edit the invoice to complete custom fields for items.

      add invoice from po

      💡Pro tip: To quickly access related invoices and purchase orders, click on the link in the Related Documents # field on the AP Inbox page.

      related documents

      Additionally, OCR can automatically recognize Credit Note documents, making adding them to your records easier. Learn more about credit notes with OCR here.

      How OCR Identifies Shipping Items

      The Shipping Item type in Precoro categorizes charges related to shipping, such as delivery fees or freight costs. Shipping items do not require receiving, do not trigger invoice matching, and are not subject to tax, making it easier to manage shipping costs. However, if necessary, users can manually add tax to shipping items during the invoice creation process.

      OCR automatically identifies shipping-related charges during document scanning by detecting the following keywords:

      • Shipping

      • Delivery Fee

      • Freight Charges

      • Handling

      • Shipping & Handling

      Here’s how the OCR process works to automatically identify and categorize shipping items:

      1. Upload the document for OCR recognition.

      2. OCR detects Shipping items using keywords.

      3. Precoro checks if the Shipping item already exists in your catalog. If it does, the item is mapped. If not, the item is added as the Shipping type at the document level.

      For more details, refer to our Shipping Item Type guide.

      Frequently Asked Questions

      How does OCR process document totals?

      If OCR can't recognize an Item Name, Precoro will automatically create a placeholder item called "{file name}." Then Precoro will fill in the recognized price so that the Total Amount appears in the document even if the name isn't recognized.

      💡 Please note: This process doesn't apply to invoices with Single Line settings. For these invoices, the following rules are used:

      • SKU: The invoice ID will be set using SKU.
      • Item Name: The item name will be generated by combining the invoice ID, Supplier Name, and Date Received.
      • Amount: The total invoice amount will be used.

      How does OCR process discounts?

      Even if your company has disabled discounts, OCR will detect them. OCR adds any recognized discount as a separate line in the invoice.

      💡Please note: This feature does not apply to invoices with Single Line settings.

      How does OCR process due dates?

      If OCR hasn't recognized the Due Date, Precoro will automatically calculate it using the Invoice Date, Supplier, and selected Payment Terms settings. This applies to both new invoices and invoices created from purchase orders. Learn more about Payment Terms here.

      💡Please note: You can still manually edit the Due Date even if it was filled in automatically.