Smart automation of incoming invoices

Digital Invoice Processing

Automatically extract data from your incoming invoices and process them in an intuitive approval workflow: with our solution, you can digitise your order-to-cash process and benefit from a high level of transparency, overview and precise documentation.

  • End-to-end digital process from invoice receipt to archiving

  • Flexible approval workflows with the best possible assistance: mass and position approvals, integrated chat, support for mobile devices and much more.

  • Significant reduction in processing times and expenditure
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Digital Invoice Processing

Steps In The Processing Workflow

1. Digital Invoice Receipt

Using AI for Intelligent Invoice Processing

In the first step, all relevant invoice data (header and item data) are automatically extracted. All common invoice formats can be used, including PDF invoices, XRechnung, ZUGFeRD, scans, and more. Manual invoice verification is suggested only in unclear cases. The vast majority of incoming invoices are fully recognized after a short time and automatically forwarded to the next system without any user interaction. During each invoice processing and analysis, all legally relevant invoice features as well as the consistency of the amounts are checked.

Automatic data extraction without prior training of specific layouts
Integrated compliance check, as well as validity and consistency checks
Processing of international invoices

2. Invoice Approval Workflow

The Smart Approval Workflow

The subsequent digital approval workflow is flexible, multi-stage, and multi-tenant capable, tailored to the requirements of your company. An intuitive user interface and integrated invoice display make it very easy for users to have all the necessary information at their fingertips. In addition, different approval limits and a deputy rule can be configured. Communication about the invoice takes place directly in a chat window, ensuring quick answers to all questions. Approvals can also be made on the go, thanks to mobile device support.

Automatic account assignment suggestions for general invoices
Optionally extendable with customized features and customer-specific logic
Easily record splits of invoice amounts
Inline calculations directly in the sum fields
Full transparency in the approval process
Support for documentation requirements through automatically generated audit reports

3. Automatic Posting

Automatic Posting and Legally Compliant Archiving

After collecting all necessary information for a complete booking, posting in the ERP system is the final step. Afterwards the invoice itself can also be archived securely, along with an audit report.

Invoice data is seamlessly posted in the ERP or accounting system
Legally compliant archiving with an audit report to support legal documentation requirements

SaaS option

The Smart Invoice Processing from the Cloud

As cloud solution, processing incoming invoices digitally becomes even easier. Invoices are read in the cloud and directly transmitted to your interface. Without installation but fully integrated into your environment, the solution is cost-effective for as few as 10 invoices per day. The solution is scalable to more than 10,000 invoices per day based on your current needs. Transitioning to an on-premises solution is possible at any time, giving you complete flexibility to choose the most efficient path for you.

Integration is possible with all common accounting systems, including BMD, DATEV, Dynamics 365, BC, SAP S/4 Hana (Cloud), and more. You can archive all documents, including an audit trail, in your own M365 tenant.

 

With the cloud solution, it takes only a few weeks to go live with full flexibility in workflows and accounting dimensions through low-code customization options.

We rely on thoroughly audited European data centers to ensure maximum data security.

Benefits of Digital Invoicing

Benefits Of The Digital Solution Include

Open to All Invoice Formats

The solution can already process both traditional paper and PDF invoices as well as future formats (EDI, ebInterface, XRechnung, etc.).

Transitioning seamlessly is possible.

Reduce Expenditures and Processing Times

You will register significantly reduced expenditure and processing times per document. This has numerous positive effects, including relieving employees, meeting prompt payment discount deadlines, and gaining a better overview of the current status.

Microsoft 365 and Teams Integration

Benefit from seamless integration into your Microsoft 365 environment. Integration into MS Teams allows for invoice approvals directly within the Teams interface.

Independent of ERP and Archive

You receive a flexible, focused solution instead of an overloaded DMS or bumpy ERP add-ons. Our solution comes from a team dedicated to the complex topic of incoming invoice processing.

Compliance

You automatically have a complete documentation of the entire workflow, including an audit report for legally compliant archiving. This supports compliance with legal documentation requirements according to GoB and internal control procedures.

Honest focus on the User

Our solution is intuitive to use and offers numerous features to support your employees effectively. No lengthy training is necessary for both users and the solution itself, allowing for a quick start.

User Interface Screenshots

Incoming Invoices Processed Digitally

1. Verifier: Overview
2. Selection of the Department(s)
3. Verification of the total amounts
4. Processing of multiple VAT rates
5. Processing of invoices with PO reference
6. Search by PO number
7. Task Overview in the Verifier
8. Invoice Approval: Overview of all tasks
9. Details view of the user interface
10. Editing cost centres, account assignment and amounts
11. All documents provided as attachments
12. History of all approval steps and integrated chat
14. Overview of all tasks
Testimonials

What Our Clients Say about Our Invoice Processing

“The implementation of the project was a lot of fun for everyone involved and thanks to the user-friendly and highly modern software solution, our employees were able to adopt it with minimal training effort and questions. We were able to communicate directly and quickly and chose a step-by-step approach in which in which all parties were involved from the beginning. This worked extremely well and the colleagues from free-com were a highly solution-orientated counterpart.”

Jasmin Dizdarevic
Head of IT, Walter Bösch GmbH & Co KG

“Yesterday, I was shown the entire development status through your demo. And I have to say: WOW!!! … I think you have created the currently best electronic incoming invoice workflow on this planet!”

Anonymous customer
from our mail inbox

Also available for SAP

Are you working with SAP?

On our page for incoming invoice processing with SAP, you will find specific information for your use case.

Success Stories

Success Stories

Intelligent incoming invoice solution for automated data extraction with subsequent approval process

Client Service Automobile Walter Bösch

Central management of incoming invoices and digital, location-independent approval workflows – our incoming invoice solution in university operations.

Intelligent data extraction from scans and PDFs, flexible approval workflow directly in SAP

Integration of Our Invoice Processing Solution

Seamless Integration Into All Common Accounting / ERP Systems

Among others:

  • BMD
  • DATEV
  • MS Dynamics 365 Finance&Operations or Business Central

  • MS Dynamics NAV

  • MS Dynamics AX

  • SAP S/4HANA (Cloud)
  • SAP Business One

  • SAP ECC

  • Sage Office Line

  • IBM Maximo

  • Infor

  • Oxaion
FAQs

FAQ about Digital Invoice Processing

Incoming invoices are invoices directed to a company by suppliers, service providers, merchants, and other third parties that contain (outstanding) claims. Unlike outgoing invoices, where the company invoices its products and services to customers, incoming invoices represent incoming payment requests to the company. The claim itself arises upon contract conclusion, and the incoming invoice serves as evidence, especially regarding payment deadlines, and must contain the following information:

• Name and address of the recipient and issuer of the service
• Invoice number
• Issue date
• Delivery date/service date
• Nature/scope/quantity of the service
• Net amounts
• Value-added tax or exemption
• Tax number/value-added tax identification number of the issuer.

Consequently, companies must consider how to internally manage incoming invoices, i.e., how to develop an efficient workflow through the relevant departments (accounting, management, purchasing, etc.) and manage invoice approvals.

An incoming invoice is a payment request to the company. Invoice processing typically involves capturing, verifying, approving, releasing, posting, and archiving the invoice. This means that the validity of the claim must be verified, the invoice must be approved by the relevant authorities (department heads, management, etc.), and then it must be correctly accounted for and posted (accounting). Afterward, the invoice can be paid and archived. Legal retention periods must be observed for archiving, and a complete documentation of the preceding processing process up to invoice approval must be included.

An incoming invoice is proof of a pre-existing claim. This claim already exists upon contract conclusion, and the incoming payment request serves only for documentation and definition of the payment terms (deadlines, prompt payment discounts, etc.).

Electronic invoices can be structured data (machine-readable only, such as XRechnung, EDI, or XML), unstructured data (human-readable, such as TIF, JPG, or PDF format), or hybrid formats (combinations of these formats, such as ZUGFeRD, PDF/A3).

In a broader sense, electronic invoices are all invoices that exist in digital form and are transmitted by email, download, or fax. If the invoice recipients agree to this form of transmission, electronic invoices are generally equivalent to paper invoices.

In a narrower sense (according to EU standard EN-16931), especially in invoicing to the federal government or in public administration, only structured data is considered an electronic invoice. In Austria, ebInterface is the standard for this, while in Germany, XRechnung is used. Invoices are transmitted via web entry, upload, or through a central invoice entry platform (PEPPOL). Structured data is directly transferred into the recipient’s system, eliminating manual processing. Reading this information is possible for humans only after appropriate training. Due to numerous different approaches and interfaces, as well as relatively high costs, no uniform standard has been established in the B2B/B2C sector, except for B2G invoicing to the federal government.

In practice, hybrid formats and PDF invoices are often used. Especially for small businesses, PDF invoices still play a significant role because they are cost-effective and the solution can flexibly adapt to growth. When these invoices are automatically captured, they can be efficiently processed digitally.

When you digitize your invoice receipt, you benefit from a variety of advantages and positive effects: Automated data extraction reduces time and error rates. The invoice approval workflow can take place from anywhere, and all participants can easily access relevant information and the current status in one place. The entire invoice processing gains transparency, speed, and efficiency. Implementation does not require prior training of different layouts or lengthy employee training. The entire process, up to legally compliant archiving, can be implemented without printing anything,
Blog

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