OCR (Optical Character Recognition)
Technology that converts images of text into machine-readable text data.
Definition
Optical Character Recognition (OCR) is technology that recognizes and extracts text from images, scanned documents, and PDFs. In AP automation, OCR is used to capture data from invoices, eliminating manual data entry. Modern OCR is often enhanced with AI/ML for improved accuracy.
Why It Matters
OCR eliminates manual data entry, the most time-consuming part of invoice processing. It enables same-day processing and reduces data entry errors significantly.
Examples
Invoice capture
A PDF invoice is uploaded, OCR extracts vendor name, invoice number, date, line items, and totals automatically.
Email processing
Invoices emailed as attachments are automatically processed by OCR without any manual intervention.
How Nexus AP Helps
Nexus AP uses advanced AI-powered OCR that achieves 95%+ extraction accuracy across any invoice format. Our AI learns from corrections to continuously improve.
Start Free TrialFrequently Asked Questions
How accurate is OCR for invoices?
Basic OCR achieves 70-80% accuracy. AI-enhanced OCR like Nexus AP achieves 95%+ accuracy.
Can OCR read handwritten invoices?
Some AI-powered OCR can handle handwritten text, but accuracy is lower. Typed/printed invoices achieve best results.
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