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Open ECX eInvoicing vs OCR Scanning

Scroll down to see the eInvoicing vs OCR comparison chart

Across many construction and supply chain businesses there is often the need to reduce costs and increase efficiencies. One way to do this is to find a way to effectively manage and process invoices into back office systems.

By automating this process, it allows a business to save costly staff time that instead can be deployed into other high-quality activities. Also, with the reduction of manual intervention, there is a reduction in human error, and often, a higher level of consistent quality, allowing the finance department to have greater control.

What is eInvoicing by Open ECX?

eInvoicing is a cloud-based technology that sits between the supplier and the buyer. It converts software application generated documents into data structures that are automatically processed into the client’s back office finance system. All the supplier needs to do is send an invoice via email. As it is cloud-based, there is no hardware installation required and is completely paperless.

What is OCR Scanning?

Optical Character Recognition (OCR) is a technology that tries to convert typed, handwritten or printed text from an image into editable and searchable information. Made up of hardware and software, OCR still requires paper and manual intervention to scan the paper documents.

OCR often misinterprets certain characters meaning there is a lack of accuracy. This can result in errors which requires further manual intervention in fixing these errors in the back office system.

What are the differences between eInvoicing by Open ECX and OCR Scanning?

Firstly, a clear difference between the two solutions is the quality of data. OCR converts pixels from an image of a document into machine readable characters. Therefore, by nature, OCR often confuses letters with numbers and vice versa, making timely mistakes that need to be manually rectified. eInvoicing by Open ECX maps data direct from application generated documents such as PDF’s, therefore it can never make the same mistakes as OCR and ensures 100% accuracy.

Along with 100% accuracy, eInvoicing can deliver real-time data processing. When a document is received, the data can be processed and validated within 5-10 minutes of the supplier sending it. The documented is then uploaded straight into the finance system. This omits the need for any manual processing. With OCR, paper documents can take a few days to process, even if they are sent via email. The documents still need manual intervention and processing.

Below is a chart on why eInvoicing is the smarter choice for finance departments.

Open ECX eInvoicing vs OCR Scanning
Next generation end-to-end solution which processes invoices emailed in any file format by your supplier Solution Type A first-generation solution which reduces manual keying by scanning invoices from you supplier
Embedded data is extracted directly from the invoice, and supports any data file format Technology Optical Character Recognition (OCR) is used to convert images on the page to text and numbers
Cloud-hosted service which requires no software installation or on-premise technical support Hosting On-premise system which requires hardware and software to be installed, supported and upgraded, along with the client purchasing necessary scanners
100% conversion accuracy guaranteed, along with real time invoice processing Accurate and instant Can easily mistaken letters with numbers, decreasing the accuracy rate
Requires no manual intervention from the client to correct invoices Manual Intervention Requires manual intervention to handle documents and to correct errors
PDF data extraction is a true paperless and people-less solution, delivering significant staff time savings People & Paper Savings The scanning solution required staff to handle documents/emails and operate scanners and manual intervention
Supports complex validation of data based on business rules including advanced matching Validation Does not support smart validation or matching of scanned invoices
Mapping of invoice layouts is managed by Open ECX’s Onboarding Team Supplier Onboarding Mapping of invoice layouts is the client’s responsibility
Medium cost of entry but delivers significant staff time savings so a good return on investment Cost of Entry & Return on Investment Low cost of entry but requires high level of staff time due to manual scanning so it delivers a low return on investment
As a PEPPOL Access Point, Open ECX can provide a P2P document hub, allowing inbound and outbound documents Inbound & Outbound document service OCR applications convert inbound document and image files into data structures
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