Even though, in keeping with tradition, invoices continue to be sent in hard copy by suppliers, Microsoft Dynamics NAV 2016 offers an opportunity to digitalise the process and thus map it more efficiently in the ERP process. Using an OCR service (optical character recognition) provided by Lexmark, each incoming receipt can be converted into a structure processed by NAV.
The new function sends PDF documents (scanned or electronically received incoming receipts) to the recognition service. The recognition service analyses and extracts the information located centrally on the respective receipt and then supplies the user with an “incoming invoice file” to be processed directly by Microsoft Dynamics NAV on the basis of this information.
However, it should be mentioned at this point that the recognition focuses only on information of the invoice head (creditor, receipt no., amount etc.), so that the invoice can be recorded in a purchase/accounting sheet or purchase invoice/credit note in the financial accounting department. Then, by means of the configuration settings, the information recognised can be assigned to various NAV database elements. The recognition of line items and the associated creation of an item-specific invoice in NAV are not provided in this version. The determination of the corresponding general ledger account has to be defined by “Mapping Text to Account”, since it is not automatically linked.
The OCR service is available as standard for all users of the 2016 version and requires only a registration. The user then receives corresponding access data and a certain monthly volume of documents to be processed from Lexmark for free. Lexmark offers different rates that can be booked additionally, if the usage increases.
This blog has helped me to understand the incoming invoice process along with OCR in Microsoft Dynamics. It has provided me the proper knowledge and understanding to help me out.