Launched in 1991, Kofax Readsoft is one of the most common invoice automation solutions. Its ability to aggregate various document sources, document capture capabilities and integrations with numerous enterprise software enabled it to gain significant market share in the 1990s and 2000s.
While its document aggregation and integration capabilities are quite valuable, its flexible document capture approach can be improved with modern deep learning powered software optimized for specific document types such as invoices. At Hypatos, we help Kofax Readsoft customers bring the power of deep learning to their Kofax Readsoft installation, dramatically increasing their level of automation.
What are the important steps in invoice/accounts payable automation?
There are the important steps in accounts payable automation:
- Document aggregation: Documents arrive in multiple email addresses and various physical mailrooms of a company. An accounts payable automation solution can support companies in collecting documents from all these sources
- Document capture: Most documents can be automatically captured using today’s technology. This is the most important functionality of an accounts payable automation solution.
- Human-in-the-loop: Regardless of the performance of the document capture module, there will be cases where extraction will not be correct. Human operators need to have an easy-to-use interface for correcting mistakes
- Continuous learning: As humans fix extraction mistakes, these need to be identified by the document capture module and used for continuous learning to save humans from repetitive work
- Invoice validation: Duplicate invoices are hard to discover manually and can wreak havoc on a businesses’ finances. Moreover, invoices need to be checked for VAT compliance and for other internal and external requirements
- Integration with enterprise systems: All of this data needs to be added to the company’s ERP system.
What are the areas where Readsoft’s solution can be improved with a deep learning module?
Readsoft provides an extremely flexible approach for document capture however this flexibility limits the levels of automation. Readsoft provides templates which can be used by its end users to identify how data will be captured from documents. Templates rely on two technologies that have been mature since 1990s: OCR and rules based automation. Templates can be used to capture data from any document. However, templates are fragile. When companies make tiny changes to the layout of their documents, such as changing the font of their logo, templates can start to produce wrong results.
A more robust solution is deep learning. Deep learning solutions learn from millions of labelled entities which enables them to be significantly more robust than deep learning based solutions. As a comparison, Hypatos’ pre-trained model is able to provide >95% accuracy on most fields. With custom training, we are able to further increase that level. This enables >80% no touch rate which reduces most of manual work.
Readsoft Verify module is used to correct mistakes in extraction. Understanding from the mistakes in the extraction, the operator makes changes to the templates to ensure better extraction quality in the future. This approach can be effective for companies with a fixed set of suppliers and with suppliers whose document formats remained stable. However, both of these are quite challenging. Suppliers change the formats of their documents without even noticing when they change their address or deliver invoices with different numbers of line items or when they need to include the discount rate in the invoice.
Hypatos does not rely on templates which makes the job of an operator simpler. The operator simply needs to correct extraction mistakes. Using these mistakes, Hypatos deep learning model corrects its extraction results.
Features like duplicate invoice identification, VAT compliance checks and other compliance checks are offered in Hypatos’ pre-trained solution. In Kofax, these features can be implemented but they require implementing business logic which needs time and effort from both the business and technical teams.
How can Readsoft users improve its performance?
At Hypatos, we primarily serve enterprises and we understand their requirements such as observability, auditability and scalability. Even more importantly, enterprises do not want to break their current functioning workflows. That is why we have focused on integrating with existing solutions such as Kofax. Within weeks, enterprises can integrate Hypatos to their existing Kofax installation and benefit from higher rates of automation.
For more on Hypatos, feel free to
- try out our invoice or receipt extractor
- ask questions to our team
- talk to our experts
- get our solution to see its benefits yourself