OCR and Accounts Payable
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      How to Set Up OCR in Precoro

      Learn how to configure OCR in Precoro in just a few steps to start paying invoices quicker and more accurately.

      TABLE OF CONTENTS

      How to Set Up OCR in Precoro

      đź’ˇ Please note: OCR is a paid add-on. To enable the OCR feature, please first reach out to your Customer Success Manager.

      Once the Precoro Team enables the feature, you can start customizing it for your needs. Follow these steps:

      Step 1: Assign User Roles

      Decide which users will use the OCR feature and assign them the following roles:

      • Invoice Creator: This role allows users to create and edit invoices.

      • OCR: This role enables users to interact with the AP inbox and manage recognized documents.

      Edit User

      Step 2: Choose Your Invoice Upload Method

      In Precoro, you have three options for uploading invoices for OCR processing. Pick the one that works best for you:

      • Via Precoro inbox email: This is a dedicated email address for your suppliers to send invoices to. Once sent, Precoro will automatically scan and upload them as drafts to your AP Inbox where you can track their processing status. To get the email address, click the “Upload Through Email” button at the top of the AP Inbox page and share it with your suppliers.

      • Via the AP Inbox page: Alternatively, you can upload invoices directly to the AP Inbox. Simply click the Upload Attachment button, select the document, and it will be processed for OCR recognition.

      • Via the Invoices page: Go to the Invoices page, click Add Invoice with OCR, enter the required CFD information, attach the document, and click Create to begin processing.

      upload invoices

      Step 3: Enable Automated Invoice Creation (Optional)

      To reduce manual work, you can set up Precoro to automatically create invoices based on incoming documents. Here’s a simple guide on how to do it:

      1. Go to the OCR Document Processing page. Here are the links to specific servers: US server link or EU server link.

      2. Check the Invoice from Order Auto Creation box.

      3. Enter the email of the person to be assigned as the default initiator of auto-created invoices.

      4. Choose the type of invoice to auto-create:

        • Standalone Invoices: An invoice will be created if no matching PO is found.

        • PO-Based: An invoice will be created only if it matches an existing PO. You can also choose matching rules for the invoices. Learn more about them here.

        • Enable both options to create invoices based on either matching a PO or as a standalone if no PO exists.

      Step 4: Activate the Enter Invoice as One Line feature (Optional)

      The Enter Invoice as a Single Line feature in Precoro allows you to consolidate all items on an invoice into a single line entry with the total amount. This feature is particularly useful for invoices where item-level detail isn’t necessary, such as service invoices or consolidated billing.

      If there’s a matching purchase order, Precoro will link this line to the first item in the PO. Additionally, when enabled, Precoro’s OCR automatically applies this setting for new suppliers

      To activate: 

      1. Go to the OCR Document Processing page. Here are the links to specific servers: US server link or EU server link.

      2. Check the Enter Invoice as one line setting.

      invoice as one line

      Step 5: Configure Tax Handling (Optional)

      To start tracking tax amounts as separate line items, reach out to our Customer Success Team to enable this setting for you. Once it's activated, follow the steps:

      1. Go to the OCR Document Processing page. Here are the links to specific servers: US server link or EU server link.
      2. Check the Enter Tax as a line item setting.

      If your document includes tax but your company settings have taxes turned off, each tax will be logged as "TAX {tax rate}" with the respective amount. If your document has multiple tax rates, the system will create separate item lines for each. 

      Learn more about how to handle taxes with OCR here.

      đź’ˇ Please note: This setting only applies to the document-level tax and not to individual items.

      How to Stay Updated on Document Processing

      To stay informed when your documents have completed OCR processing, you can configure email notifications. Follow these steps:

      1. Go to Email Preferences → Misc.

      2. Check the box for Document has been processed with OCR.

      ocr notifications

      You can also keep track of documents that were not processed. To receive updates on these unprocessed documents, select “Notification with the List of OCR Unprocessed Documents” in the same menu.

      When activated, users with OCR roles will receive a weekly email listing all documents that were not processed.

      Here are some common reasons why a document might not be processed:

      • The document is not an invoice.

      • It is not in PDF, JPEG, PNG, or TIFF format.

      • The document is password-protected or encrypted.

      Frequently Asked Questions

      What should I do if a document is not processed?

      Check that the document meets format requirements (PDF, JPEG, PNG, or TIFF) and that it is an invoice, not password-protected or encrypted. If the document status is "Unable to process," hover over it to see the reason for the rejection in a tooltip.

      How can I stay informed about document processing?

      Configure email notifications in your settings to receive updates on processed documents and unprocessed documents weekly.

      What do I do if my document is password-protected?

      You will need to remove the password protection from the document before submitting it for OCR processing.