Invoices that enter this flow can be scanned via AI Smart ScanAI Smart Scan is a tool that reads scanned invoice images or PDFs and extracts the details, which are used to populate the fields on a bill. for faster processing. Scanning involves copying invoice information into a bill, which can then be processed in the Tipalti Hub.

AI Smart Scan

AIArtificial Intelligence Smart Scan supports multiple languages from the countries listed in the table below. All bill-related emails, reports, IPNsAn Instant Payment Notification (IPN) is a messaging service that enables you to receive notifications from Tipalti. IPNs are triggered when defined events occur (e.g., updating payee details)., and APIs will show values in the language used. To get the best AI Smart Scan results, the invoice image quality needs to be a minimum of 300 dpi and the height at least 1100 pixels.

AI Smart Scan supported fields

The table below lists the fields captured by AI Smart Scan during the invoice scanning process.

AI Smart Scan learning component

AI Smart Scan has a learning component, which rapidly improves scanning results in a short amount of time. For example, if a value on the invoice is not captured during scanning or the scanned result is incorrect, inputting the value manually during review ensures that the next invoice scan with the same invoice template will return a better result. Tipalti corrects AI Smart Scan errors to ensure all invoice data are extracted accurately.

Our system intelligently separates PO number values during post-AI Smart Scan processing. When the AI Smart Scan system detects a separator value (such as a comma or semicolon), it treats it as the start of a new PO number value. This ensures that multiple PO numbers are accurately captured and processed.

If AI Smart Scan is enabled

• Collected invoices are assigned a status of "Pending scan" and are presented on the "All bills" subtab. The invoices are sent automatically for AI Smart Scan processing.
• Once AI Smart Scan processing is complete, the status of each invoice changes to "Pending review" and the invoices are forwarded to the "Pending review" subtab.

AI Smart Scan scanning typically takes a few minutes to complete; however, in extreme volume circumstances, it may take up to one hour. You may stop the scan and process the bill manually, if desired. Selecting this option changes the status to "Pending review" and the invoices are forwarded to the "Pending review" subtab.

If AI Smart Scan is disabled

Collected invoices are assigned a status of "Pending review" and are presented on the left side of the "Invoice review" screen; the empty bill displays on the right side. Invoice information must be input manually into the empty bill fields so that an electronic bill can be created and used by Tipalti (see Bill details for instructions on how to complete the bill).

E-invoices are electronic invoices that are submitted by the payee to Tipalti through a digital network such as PEPPOL. They follow a standard format and are encrypted, so only authorized people can access them. Before receiving it, PEPPOL, the EU digital network for e-invoicing that can integrate seamlessly with your ER, verifies if the e-invoice complies with EU regulations.

Only compliant e-invoices are sent through. Tipalti receives the e-invoice and processes it the same way as a PDF invoice. E-invoices are calculated automatically, ensuring accuracy and speeding up the invoice process.

Invoice processing

Bills that have been reviewed are forwarded to the bill approvers for their approval. They can perform any of the four actions shown in the diagram above (for further information, see Email actions). If an approver decides to send the bill back to AP, then AP will review the bill and make any updates to it. AP then submits the bill to the bill approvers again. Once the bill has been approved by all approvers, it is assigned a status of "Pending payment" and enters the "Exit" flow.

AP can also pull the bill back at any time during the "Approval" flow:

• If the bill has yet to be approved, they can cancel the approval request.
• If the bill has already been approved, they can retract the bill approval.

Self-billing

With internal approval only

Bills that have entered the "Approval" flow are forwarded to the assigned bill approvers. They can perform any of the four actions shown in the diagram above. If the bill is sent back to AP for any reason, AP can perform the same actions as in the "Invoice processing" flow. Once bills are approved, the bills are assigned a status of "Pending payment" and enter the "Exit" flow.

With payee approval only

Bills that have entered the "Approval" flow are forwarded to the payee. Depending on your configuration, payees will either be asked to approve the self-billed invoice or asked to send you an invoice. Some countries require payers to collect invoices from their payees if both the payer and payee reside in the same country (if the payee moves to a different country, you can change this setting in the Tipalti Hub; see Request for payee approval).

Once the invoice has been approved/ received, the bill is assigned a status of "Pending payment" and enters the "Exit" flow.

Similar to the "Invoice processing" flow, AP can also pull the bill back at any time during the "Approval" flow:

• If the payee has not yet approved or sent an invoice, AP can cancel the payee approval request. AP would then make the necessary updates to the bill and release it back to the payee for approval/ invoice.
• If the payee has already approved or sent an invoice, AP can retract the payee's approval/ invoice, make the necessary changes and release it back to the payee for approval/ invoice.

Unlike the "Invoice processing" flow, the AP Team can mark the invoice as approved/ received when:

• The bill is currently in their hands (i.e., in "Pending AP action" status).
• The invoice is in the payee's hands (i.e., in "Pending payee approval" or "Pending payee invoice" status).

Once the invoice is approved/ received, the bill is assigned a status of "Pending payment" and enters the "Exit" flow.

With internal + payee approval

The approval part of this bill flow involves both payer and payee approval steps. Bills entering the "Approval" flow are forwarded to the bill approvers and once approved, are forwarded to the payee for approval/ invoice.

• During the internal approval stage:
  • Bill approvers can perform any of the four actions shown in the diagram above.
  • AP can perform the same actions as in the invoice processing flow.
• During the payee approval stage, AP can perform the same actions as in the "Self-billing with payee approval" flow. The difference here is that AP can either release the bill back to the bill approvers for their approval OR back to the payee for approval/ invoice. If the AP Team had made changes to the bill, they would release it back to the bill approvers. If no changes had been made, AP would release the bill back to the payee.