AI-Based Software Product for Fully Automated Invoice Processing

About Our Client

The Client is a US technology company offering web and mobile solutions for procurement, expense, and accounts payable (A/P) automation, powered by robust automation, optical character recognition (OCR), AI, and machine learning capabilities.

Challenge

The Client wanted to enhance their Microsoft Azure-based A/P management software product with a module for intelligent paperless invoice processing, and was looking for an IT vendor with proven expertise in OCR and AI technologies.

Solution

INNERLUXES covered the end-to-end development of an AI-powered invoice processing module, from a proof of concept (PoC) to integration with the Client's core product. Within a month of the initial request, the team analyzed the Client's invoice processing needs and proposed an optimal concept for the module.

The module was designed to facilitate and speed up invoice processing while ensuring high accuracy. Key features included:

• Automated upload of invoices in various formats (PDF, XML, digital images, etc.) from emails and connected systems (such as a supplier portal).
• OCR-enabled capture and extraction of numeric and textual invoice content.
• AI-powered validation of invoice data at the line-item level (invoice number, date, quantity, price, etc.) and identification of invoice exceptions such as missing, mismatched, duplicate, or inaccurate data.
• Automated routing of valid invoices for multi-department approval.
• Automated submission of approved invoices for payment.
• Centralized cloud storage for digital invoices.

To guarantee high availability, scalability, and easy evolution of the new module, INNERLUXES opted for a microservices approach to the architecture. The team used Azure Service Fabric to streamline microservices development and Azure DevOps to automate and speed up deployment. With an Infrastructure-as-Code approach, the team ensured quick, error-free configuration of the cloud infrastructure for the module.

For security, all microservices were hosted in a private network with a single public, secure API gateway as the entry point. Data stored in the module was protected through encryption, multi-factor user authentication, and permission-based access control.

Instead of building a custom OCR engine from scratch, INNERLUXES relied on Azure Cognitive Services Form Recognizer. This helped the Client optimize project cost and cut time-to-market while obtaining robust OCR.

As part of the development service, INNERLUXES integrated the invoice processing module with the Client's existing A/P management product.

To ensure smooth performance of the new module and its compatibility with the A/P product, the team conducted frontend and backend unit tests with 95%+ coverage for specific code, load testing, and integration testing.

Results

The Client received a fully functional AI-based invoice processing module that reduces the time and effort of invoice processing while improving accuracy and performing stably even under heavy load. The new module extended the capabilities of the A/P management software product and made it more relevant to user needs.

Technologies and Tools

.NET Core, React, Redux, TypeScript, Microsoft Azure Service Fabric, Microsoft Azure DevOps, Microsoft Azure Cognitive Services / Form Recognizer.