Vendor Invoice Automation

and OCR Service

March 17, 2022

 Overview

Scope and Roadmap

Agenda Demo

Working Model during Private Preview

Q&A
Vendor Invoice Automation - Vision

❖ Touchless
❖ Traceable Vendor Invoice Automation
Imported Vendor
❖ Auditable Invoice
Auto Apply Auto 3-way Auto Submit to
Auto Approve Auto Post
Automation Manually created Prepayment Matching Workflow
80% Vendor Invoice

Pareto Vendor
principle Invoice
AP
AP Clerk
ClerkWorklist
Worklist
(Exceptional
(Exceptional Case
Case Handling)
Handling)
20%
Manual Work Rules
Batch Job
❖ Simple
❖ Intelligent
Machine
❖ Efficient
Learning

Target of Invoice Automation

❖ Reduce or completely eliminate manual intervention during vendor invoice processing
❖ If possible, invoices shall be automatically processed at import or creation phase
❖ One central place for AP clerk to handle all exceptions – efficiently, simply and intelligently enough
❖ Leverage rules or machine learning to support exception handling
Vendor Invoice Automation - Current Status
Existing

Recently released automation functionality

Planned innovation for automation

Manual
Input/Import

Create Pending Apply 3-way Submit to

Invoice OCR Approval Posting
Batch Import Invoice Prepayment Matching Workflow
Service

Invoice Image
Original Invoice Cognitive Service Invoice Staging Area Dynamics 365 F&O
Persistent

Paper format Microsoft OCR data persist Vendor invoice creation

File server
AI Builder
Data pre-processing
Email Microsoft
and validation
One Drive
1 2 3 Exception handling 4
Invoice Portal Azure Data
lake
Version Management

1 Invoice can come via different channels in different formats

2 AI Builder processes persisted invoice images
3 Recognized form data is persist to vendor invoice staging area
4 After pre-processing and validation in staging area, invoices are generated in Dynamics 365 F&O
 Overview

Scope and Roadmap

Agenda Demo

Working Model during Private Preview

Q&A
 Vendor Invoice OCR Service
Invoice Image Dynamics 365 F&O
Original Invoice Cognitive Service Invoice Staging Area
Persistent

Paper format File server OCR data persist Vendor invoice creation
Microsoft
AI Builder Data pre-processing and
Microsoft One Drive validation
Email
1 2 3 Exception handling 4
Invoice Portal Azure Data lake Version Management

PDF format image via In-application persistent Load legal entity from
Pre-built AI Model PDF format PO Invoice
email attachment in Dataverse Dynamics F&O
Private Other Channel via manual Limited Invoice language Basic configuration for PO Invoice with header
configuration and currency types UI and Scoring and lines
Preview Custom AI Module via Mapping Rule for Legal
Side-by-side viewer
Scope manual configuration Entity
Mapping Rule for
Invoice data versioning
Vendor Accounts
Mapping Rule for Statistics of processed
Items invoices
Basic invoice
validation

Other format image via Easier way to consume Further refinement of Advanced validations
Manage Invoice Images Non-PO Invoice
email attachment custom AI Model UI for invoice data
Easier way to support Trigger invoice Feedback to AI model More invoice image
Electronic invoice data Invoice Journal
other channels recognition from pool via corrected data formats
Features More Invoice languages Header only invoice
Customer extensibility Invoice Automation at
and currency types of invoice fields invoice Importing phase
planned Upload invoice image Out-of-box Better support of Invoice
via side-by-side viewer deployment charges and taxes
Change log of invoice More analytical figures Vendor Invoice
data for processed invoices Management New UX
Monitoring tool for Integration and
Derivation rules
invoice processing navigation
Validation rules
D365 Integration with AIB OCR Service
Private Preview • Just highlight it’s an integration topic by leveraging different
services from MS infrastructure
• Quick win by providing wizard/configurations to connect and
enable different platforms
• Will NOT be standalone solution, thus may not be that easy to
have a price tag

Generic & Standalone OCR Service for Vendor Invoice

Public Preview • Highlight it as OCR service – as same as what Readsoft or other
OCR vendor provide
• It will be standalone solution and has separate price tag.
However we need to align with marketing guy for how to do
pricing.
• Many fundamental services are used here – Data lake,
Dataverse, Power App, Power automation, Microservice.
• Each piece has its own pricing model. If just do a simply total,
the TCO of this solution will not be competitive in the market.

Generic & Standalone Intelligent Vendor Invoice Management • Highlight it as Intelligent Vendor Invoice Management – this is
Long Term
the key differentiator to other OCR providers.
• It will provide standalone Vendor Invoice Service, which can
enable customer to have central vendor invoice management.
• Mean to replace vendor invoice management in ERP. ERP only
needs to manage finance part - AP/AR
• Simplified modern data model in Dataverse and modern UX via
PowerApps.
• Can be integrated to D365 or other ERP
 Overview

Scope and Roadmap

Agenda Demo

Working Model during Private Preview

Q&A
Demo - Scenarios
❖ Scenario 1: Out-of-box usage
o With basic deployment and configuration, system is running!!
o Vendor invoice via email can be automatically recognized and persisted
o AP clerk will need to manually enter additional information to make invoice complete

❖Scenario 2: Advance functionalities

o With business rules, whole process can be largely automated !!
o Mapping rule brings basic master data attributes from F&O system. Once Mapping
rules is maintained, system automatically derives information needed for vendor
invoice creation in F&O
o AP clerk only needs to check the processing status from time to time

❖Scenario 3: Invoice image management

o All invoice images from different channels can be centrally managed
o Clear processing status of invoice images
o [Coming soon] Advanced configuration allows flexible checks on invoice image (duplication, file format, file
size, file name)
 Overview

Private Preview Scope and Roadmap

Agenda Demo

Working Model during Private Preview

Q&A
 Working Model during Private Preview – Timeline
8 February 28 February 31 March 30 April 31 May

Kick off First checkpoint Second checkpoint Third checkpoint End of

Private Preview
First batch of preview Second batch of preview Third batch of preview

Learning & Basic know how & Basic testing

Customer/partner feedback and questions

Customer/partner deployment and advanced testing

Product team support on customer partner issues during deployment and testing

Continuous development for new features and improvements

Rollout of new Rollout of new Rollout of new Rollout of new

features features features features

Customer/Partner activities Product team activities

Working Model during Private Preview – Testing Environment

❖Option 1 Microsoft owned environments

o Pre-deployed and configured
o Dynamics 365 F&O system
o Power Platform tenant
o Outlook account
o Samples of invoice images
o For basic learning and basic testing purpose

❖Option 2 Partner/Customer owned environments

o Deploy by partner/customer self with Microsoft engineering team’s support
o Own Dynamics 365 F&O system, with code enhancement
o Own Power Platform tenant, need to install and configure the OCR solution
o Own email account for testing purpose
o For learning of deployment and advanced testing purpose
Working Model during Private Preview - Communication
Yammer Group FINANCE AND OPERATIONS
INSIDER PROGRAM - Vendor Invoice OCR Service
❖ Demos
❖ All code package/artifacts newly developed
❖ Implementation guide document
Customers
❖ Direct engineering support from product peam
Microsoft
❖ Questions during deployment and usage
Product Team
❖ Customer/Partner feedback collection

Email exchange
❖ Customer/Partner specific issues/feedback
Partners

Periodical & Adhoc meeting

❖ Introduction of new features and releases
❖ General feedback sessions, like UX review,
usability observation
 Private Preview Usability Study

To make our product better progress in user experience, we want to learn your first-time using experience with Staging
area for vendor invoice service. We want to recruit 5 users from AP department who never use or saw our service before
and complete some specific tasks in our testing environment, the testing will be remote unmoderated, and the tasks need
to be complete by the following order :
• 1. Find out through what channel(email, OneDrive, etc.) the current vendor invoices been imported into the service.
• 2. Add one header field “Vendor Contact” to be shown in vendor invoice details page.
• 3. Add a mapping rule when company name contains “Orange Juice”, the legal entity code would be USP2.
• 4. Tell what you saw on Summary page, find the vendor invoices need you to take actions.
• 5. Pick one vendor invoice to fixing all the errors and make it a system vendor invoice.

❖ Please contact us if you are interested in this usability study and we will send you invitation accordingly.
❖ You can choose to complete these tasks alone on your own convenient time within the next 2 weeks, please help us to recording it
through Teams meeting so we can watch it afterward.
❖ We hope you can think out loud while completing the tasks, tasks can be bypassed if you have no clue to finish it.
 Overview

Private Preview Scope and Roadmap

Agenda Demo

Working Model during Private Preview

Q&A
 Questions ?

Contacts
Rayne Zou
Product Manager - Accounts Payable
raynezou@microsoft.com

Zezhang Zhao
Group Manager - AP&CM
zezhangzhao@microsoft.com