What is Optical Character Recognition OCR | VIM Tutorial for Beginner [Updated 2024] - igmGuru

Optical Character Recognition (OCR) in Vendor Invoice Management (VIM) is a technology that plays a crucial role in automating the processing of invoices within an organization. Vendor Invoice Management is a solution that helps businesses streamline and automate their accounts payable processes, particularly the handling of invoices from suppliers.

OCR is a technology that converts different types of documents, such as scanned paper documents, PDFs, or images captured by a digital camera, into editable and searchable data. In the context of VIM, OCR is used to extract relevant information from invoices, such as vendor details, invoice number, date, line item details, and amounts.

Here's how OCR works in the context of Vendor Invoice Management:

Document Capture: Invoices are received in various formats, including paper, email attachments, or electronic files. These documents are scanned or digitally captured.

OCR Processing: OCR software is employed to analyze the scanned or captured documents. The OCR engine recognizes and extracts text and data from the images. It identifies characters, words, and patterns within the document.

Data Extraction: The extracted data, such as invoice number, date, vendor information, and line item details, is then structured and organized. OCR helps convert the visual information on the invoice into machine-readable and usable data.

Integration with VIM: The extracted data is integrated into the Vendor Invoice Management system. This integration allows for automated workflows, validation checks, and routing of the invoice through the approval process.

Data Validation: The VIM system may perform additional validation checks to ensure the accuracy and completeness of the extracted data. Any discrepancies or errors can be flagged for manual review.

Approval Workflow: Once the data is validated, the invoice can be routed through the appropriate approval workflow within the organization.

The use of OCR in VIM significantly reduces the manual effort required for data entry, minimizes errors, and speeds up the overall invoice processing cycle. It enhances efficiency, reduces processing costs, and helps organizations take advantage of automation in their accounts payable processes.