---
title: Understanding Precoro’s Intelligent AP Automation and How it Works
description: Start using Intelligent AP Automation to cut data entry tasks and ensure supplier-issued invoices are processed quickly and accurately.
---

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1. [Knowledge Base](https://help.precoro.com/?hsLang=en)
2. [How to use Precoro](https://help.precoro.com/how-to-use-precoro?hsLang=en)
3. [AP Inbox and Intelligent AP Automation](https://help.precoro.com/how-to-use-precoro?hsLang=en#ap-inbox-and-intelligent-ap-automation)

# Understanding Precoro’s Intelligent AP Automation and How it Works

## Start using Intelligent AP Automation to cut data entry tasks and ensure supplier-issued invoices are processed quickly and accurately.

#### TABLE OF CONTENTS

- [What is Intelligent AP Automation?](https://help.precoro.com/understanding-intelligent-ap-automation-and-how-it-works#ap-automation)
- [How Precoro’s AP Automation Works](https://help.precoro.com/understanding-intelligent-ap-automation-and-how-it-works#how-it-works)
- [FAQs](https://help.precoro.com/understanding-intelligent-ap-automation-and-how-it-works#faqs)<https://help.precoro.com/understanding-intelligent-ap-automation-and-how-it-works#faq>

### What is Intelligent AP Automation?

Intelligent AP Automation is Precoro’s AI features in the AP Inbox for processing invoices and credit notes faster, with less manual work.

Precoro previously used OCR-based recognition, which helped teams extract invoice data with 96% accuracy. As AP workflows became more complex, invoice processing needed to go beyond text extraction.

Moved to Intelligent AP Automation, Precoro can:

- Collect invoices and credit notes sent to a dedicated **AP Inbox** email address automatically, so you don't need to upload anything manually.
- Recognize invoice and credit note data across different document layouts.
- Capture line items, taxes, totals, supplier details, and dates, even when supplier templates are complex or inconsistent.
- Match invoices to the right purchase orders using context, such as item descriptions, naming variations, and historical patterns.
- Create a clean, finalized invoice, and then instantly route it to the right stakeholder through your existing approval workflows.

Intelligent AP Automation is included in the **Automation** subscription plan, so companies with this plan can enable it at any time through the Configuration page. If you’re using the **Core** plan, consider upgrading or contact our Customer Success team for more information.

### How Precoro’s AP Automation Works

To fully experience AP Automation capabilities and tailor it to your company's needs, first customize the settings on the **AP Automation Configuration** page.   
See[this guide](https://help.precoro.com/how-to-set-up-ocr-in-precoro?hsLang=en) for the full setup steps.

Here's a possible example of the document processing:

1. A supplier sends an invoice or credit note to your **AP Inbox** by email, or you upload the document directly.
2. Precoro's AI checks the document type, then recognizes and captures its data, matching it to the right purchase orders or invoices at the document and item levels, if any exist.
3. Now you have several scenarios based on your setup:
4. The processed document appears in your **AP Inbox** with **Draft** status, ready for review. Depending on the document type, you create an invoice manually, choosing your preferred invoice type, or apply a credit note to an existing invoice.
   
   Learn more about such invoice creation options[in this article](https://help.precoro.com/how-to-create-invoices-from-ocr-processed-documents?hsLang=en), and about credit note creation[in this article](https://help.precoro.com/how-to-add-credit-notes-to-an-invoice-through-ocr?hsLang=en).
5. If you use the **AI-enhanced Invoice to Order Matching** feature, Precoro suggests the best-matching purchase order using AI, even with missing PO numbers or differing item descriptions. Matched items inherit their names and codes from the PO, and Precoro creates the invoice for your review once everything aligns. You can also trigger this manually with the **Auto-create (AI)** button on any draft attachment.
   
   Learn more about how it works[in this article.](https://help.precoro.com/ai-powered-invoice-to-po-matching-in-precoro?hsLang=en)
6. If the **Invoice from Order Auto Creation** feature is enabled, Precoro automatically creates invoices from captured data and matches them to purchase orders, so the only thing you need to do is review and confirm. You can also enable the **Automatically confirm autocreated invoices** feature to skip manual confirmation for PO-backed invoices created from supplier attachments. 
   
   Learn how to set it up[in this article.](https://help.precoro.com/how-to-match-documents-with-ocr?hsLang=en)

Let’s see invoice processing with **Invoice from Order Auto Creation** enabled in the video below:

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### FAQs

**What types of documents can I upload?**

You can upload PDFs, images, and Excel, Word, and Outlook files. See the full list of supported formats and the file size limit in [How to Process Invoice Attachments with Intelligent AP Automation](https://help.precoro.com/how-to-process-invoice-attachments-with-intelligent-ap-automation?hsLang=en#supported-formats).

**How does Precoro ensure accurate AP automation results?**

Precoro uses advanced AI technology to recognize data from your invoices and credit notes accurately. When configuring the module, you can choose to review documents before creation to fully control what gets sent for approval.

If Precoro detects a possible amount discrepancy, it flags the draft for you to check. See [Amount Discrepancy Warnings](https://help.precoro.com/how-to-process-invoice-attachments-with-intelligent-ap-automation?hsLang=en#amount-discrepancy-warnings).

If a field is misread, click [the Fix Recognition button](https://help.precoro.com/how-to-process-invoice-attachments-with-ocr-1?hsLang=en#recognition) to send us feedback. A short comment about what went wrong helps reduce manual corrections on future documents.

**How long does it take to process an invoice?**

The processing time can vary depending on the complexity of the invoice and the volume of documents being processed. Usually, it takes between 30 seconds and 24 hours.

**Is training required to use Precoro's AP Automation?**

No training is required. Precoro will seamlessly guide you through the process of uploading and managing invoices.

**What if my invoices have unique formats?**

Intelligent AP Automation is designed to recognize invoice and credit note data across different supplier formats, including complex layouts, multi-page documents, and long item tables. In addition, you can review and edit the generated documents before confirming them and initiating the approval process.

 

- [Precoro Setup](https://help.precoro.com/precoro-setup?hsLang=en#main-content)

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    - [Purchase Orders](https://help.precoro.com/how-to-use-precoro?hsLang=en#purchase-orders)
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- [Precoro Updates](https://help.precoro.com/precoro-updates?hsLang=en#main-content)

    - [Releases, 2026](https://help.precoro.com/precoro-updates?hsLang=en#releases-2026)
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    - [API Updates](https://help.precoro.com/precoro-updates?hsLang=en#api-updates)
    - [General changes](https://help.precoro.com/precoro-updates?hsLang=en#general-changes)

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