In a world where digitisation is becoming increasingly important, more and more companies want to make their administrative processes more efficient. One of the biggest gainers? Automatic invoice booking.
But how exactly does it work? And why are more and more organisations choosing this? In this blog, we explain it step by step.
What is automatic booking?
Automatic booking means that incoming invoices no longer need to be processed manually in the accounting system. Instead, software ensures that invoice data is automatically recognised and the correct financial data is found.
This saves time, reduces errors and makes administration more manageable.
Step 1: Receiving an invoice
The first step is to receive the invoice. Invoices can come in via e-mail, a customer portal, or be uploaded directly into an invoice processing system.
Most modern systems can work with various file formats, such as PDF, UBL (a standard XML format for electronic invoices), or even scanned paper invoices.
Step 2: Recognising data (OCR and UBL)
- AI:
When the invoice is supplied as an image (e.g. a scan or a plain PDF), the system uses AI technology. This recognises text from the image and converts it into readable data such as invoice number, date, amounts and VAT rates.
- UBL invoices:
Electronic invoices in UBL format do not require this recognition. UBL files already contain the data in a structured way. The software reads this data directly, which is faster and less prone to errors.
Step 3: Automatic booking proposals
Based on the recognised data, the software creates a booking proposal. This proposal includes:
- The supplier
- The invoice number and date
- VAT amounts and VAT codes
- The general ledger account to be posted to
- Any cost centres or projects
Some systems use smart rules or even machine learning to predict on which accounts costs should be booked, based on previous bookings.
Step 4: Verification and approval
Automatic does not mean that there is no check. Employees can check the posting proposal before the invoice is finally posted. Depending on internal processes, invoices can also go through an approval flow where budget holders or managers have to give their approval.
Step 5: Entry in the accounts
After review and/or approval, the employee books the invoice definitively in the financial system (e.g. Exact, AFAS, Twinfield, Visma, or another ERP system). The employee links the invoice to the correct entry and saves it for future reference (e.g. for VAT return or an audit).
What are the benefits?
- Time savings: Less manual work means more time for valuable tasks.
- Fewer errors: Automatic recognition reduces the likelihood of human error.
- Faster processing: Invoices can often be booked within minutes of receipt.
- Cost savings: fewer hours of administration = lower overheads.
- Better insight: Faster processing gives real-time insight into outstanding liabilities and cash flow.
Key points of interest
While automatic booking offers many advantages, it is important to:
- Agree well on verification and approval processes.
- Conduct regular checks on data recognition quality.
- Train employees well on how to deal with exceptions (e.g. non-standard invoices).
Automatic invoice booking is a smart step towards more efficient administration. Using modern technology such as OCR, UBL and smart booking logic, you can not only save time and money, but also professionalise your financial processes.
TriFact365 does not currently support automatic booking.
