Intelligent document processing (IDP) uses artificial intelligence to extract and structure data from unstructured documents. It can increase productivity in accounts receivable and accounts payable operations by 70-90% by automating tasks like claims processing, cash application, and invoice processing. A global medical products supplier saw improvements using IDP - their auto-cash hit rate increased from 10-70% to 80-95%, and deductions resolution time decreased from weeks to under a week. IDP enables faster customer response, higher accuracy, and improved productivity compared to manual work or other automation methods.

1. How IDP is Driving AR and
AP Productivity

2. • Introduction
• What is Intelligent Document Processing (IDP)
and How Does it Work?
• IDP Driven Productivity Increases in:
• Claims (Deductions) Processing
• Cash Application
• Credit Control
• Supplier Invoices (Accounts Payable)
• Benefits
• Customer Success Story
• Conclusion
• Your Questions
Agenda

3. 3
Introduction
• In our view the critically important tasks in AR are:
Credit Risk Assessment
Collection Contact
• In AP, the critically important tasks are:
Validating the legitimacy & accuracy of vendor invoices
Scheduling their payment to optimize cash utilization
Are operational & clerical tasks diverting too much staff time
from these important tasks?
If so, then Intelligent Document Processing (IDP) can help!

4. 4
Introduction (continued)
Financial documents are numerous, vary widely in format (unstructured),
and contain lots of information, making data extraction difficult.
It is estimated (by 10xDS) that 80% of financial data arrives in an
unstructured form
Key Tasks in Processing Unstructured Data:
a. understand the context and use of the document
b. extract only the required data (even from handwritten documents)
c. combine the context with the data
d. route to next step in the process
Historically, processing unstructured data required human intelligence to
cope with the wide variation.
IDP automates the handling of unstructured data.

5. 5
What is Intelligent Document Processing
and How Does It Work?
Intelligent Document Processing (IDP) extracts & converts unstructured data into a usable
structured, format for the next step in processing that data. It extracts all and only the
required data.
It utilizes cognitive Artificial Intelligence (AI) and other related technologies such as
Machine Learning, Natural Language Processing, and Robotic Processing Automation
(RPA).
Source documents are scanned & data is extracted:
• The documents are stored digitally
• The data is available to authorized users anywhere in the world, 24/7/365 in digital form.
Cognitive AI data extraction is faster, cheaper and more accurate than having humans
read documents. Even Robotic Process Automation (RPA) doesn’t work as well with
multiple unknown document formats.
IDP accommodates multiple languages and currencies & delivers substantial
increases in speed, accuracy and productivity

6. 6
What is Intelligent Document Processing
and How Does It Work? (continued)
Intelligent Document Processing (IDP) converts unstructured data into structured data
which facilitates the “next step” in processing.
The “next step” can also be highly automated using AI powered Digital
Assistants and /or RPA (which requires structured data), for example:
• Claims: routes claim to designated resolver based on type, customer, etc., attaches
supporting documents (invoice, claims document), etc.
• Cash Application: processes remit data thru auto-cash engine, executes auto-
small-balance-writeoffs, etc.
• Credit: administer on-line credit application, import credit bureau information, verify
tax ID, business licenses, OFAC, etc., compile credit score, etc.
• Supplier Invoices: validating that an invoice is suitable for payment (3 way match),
routing it for approval if required, etc.
IDP combined with AI powered Digital Assistants and/or RPA, can
deliver enormous increases in speed, accuracy and productivity

7. 7
IDP in Claims (Deductions) Processing
• Extracts required data from Vendor or EIPP Portal, Remit advice,
email, debit memo, etc. and automatically create deductions to be
routed for resolution
• Key data includes customer number, invoice # & value, payment #
& value, deduction value, dates, reason code, etc.)
• Data arrayed in CSV file and fed into downstream processing
• Establishes unique record for every individual deduction
• Stores digital images of all documents
• Executes Automatic Small Balance Write-Off

8. Extracts remittance data from multiple customer sources with varying
formats, such as:
• Customer Vendor Portals & your own EIPP Portal
• Remittance Advice contained in Excel spreadsheets, PDF/tiff (tagged image file
format), email attachments
• Checks and check stub images and bank statement PDF’s
• Lockbox image files in PDF, tiff, gif (graphics interchange format), other formats
• Lockbox Data files in Excel, MT940, EDI 820 formats or BAI2 transmissions from
customers
8
Constructs file (CSV or other formats) for input into auto-cash engine
to apply receipts to correct invoices
• Integrates with bank lockboxes, your own AR and Collection modules and with
ERP system
• Auto-Cash engine can yield 85 – 95% hit rate
• Outperforms RPA when dealing with multiple unknown document formats
IDP in Cash Application

9. 9
IDP in Credit Control
• Extracts required data to conduct a credit investigation from the credit
application (company legal name, address, tax ID, etc) submitted via Fax,
email (including pdf files), postal mail, etc.
• Automatically checks business licenses, OFAC list, credit bureau data, etc.
to enable credit vetting
• Establishes credit file for the individual company
• Data arrayed in client specified format to facilitate review

10. 10
IDP in Processing Supplier Invoices
• Extracts required data from invoices delivered via Customer Portal,
EDI, email, postal mail, etc.
• Automatically extracts data required to approve & pay an invoice
(vendor name & number, PO #, invoice # & value, payment due date,
prompt payment discount, etc.)
• Retrieves applicable receiving document and PO
• Establishes unique record for every individual vendor invoice
• Data arrayed in CSV file and fed into AP system

11. Case Study: Simplify digitization in AP operations
of global accounts payable organizations
Paper documents
scanned
Digital information
sent to database
Invoices coming
from vendors
Scanned forms
classified and
information
extracted
Data sent to
processing
system
Document
data
processed
Invoice
data
capture
verified
ERP data for
verification
AP vendor portals
Data sent to
repository
Account
updated
Data accessible for
company lookup
The Capture Process for Accounts Payable
Automate Invoice Processing

12. 12
Benefits of IDP in AR and AP Operations
Substantially Increased Employee Productivity & Morale
Increased accuracy and quality of operations
Faster response to Customers
Speed, Productivity and Accuracy
Improved Customer
Experience/Satisfaction
Increased
Productivity
Lower Cost Increased Revenue
& Profit

13. 13
Challenge:
Operates in 45 countries, 15 languages, 16 bank accounts
Established in-house SSC while embarking on digitization of OTC
Solution:
Emagia IDP combined with AI Powered Digital Assistants for Claims,
Cash Application, and Collections modules
Customer Value Achieved
Cash Application: Auto-cash hit rate increased from:
a. 10% to 80% in Australia
b. 70% to 95% in France
c. 50% to 80% overall
Deductions: Resolution time decreased from several weeks to < one week
Customer Success Story – Global Medical
Products Supplier

14. Conclusion
IDP in AR and AP Financial Operations:
• Are used by many leading companies TODAY !!
• Can increase productivity by 70 - 90% for manual operations
• Enable faster response to customers
• Improve the accuracy of transaction processing

15. Orders
Credit
Cash
Application
Collections
Deductions
Payments
Invoicing
If you have any questions or comments
about this session, please let us know
in the chat box or write to us at
info@emagia.com
Next Emagia Master Class Session:
Topic: Top Technology Trend in 2021: Hyper-
Automation of Accounts Receivable Operations