Understanding Precoro’s Intelligent AP Automation and How it Works

TABLE OF CONTENTS

• What is Intelligent AP Automation?
• How Precoro’s AP Automation Works
• FAQs

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.

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 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:
1. 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, and about credit note creation in this article.
   
   
2. 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.
3. 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.

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

FAQs