---
title: What is invoice capture software and how does it work?
url: https://www.medius.com/videos/finance-insights/what-is-invoice-capture-software-and-how-does-it-work/
updated: 2026-09-10T18:22:32Z
---
# What is invoice capture software and how does it work?

This video explains the function and benefits of invoice capture software within accounts payable workflows. The content describes how the technology extracts key details from various formats—including paper, PDF, and e-invoices—to automate data entry and reduce manual errors. The discussion highlights the evolution from traditional template-based methods to modern AI-powered solutions that utilize optical character recognition and machine learning to adapt to different layouts. Ultimately, the presenter notes that effective software aims to improve data accuracy, support touchless processing, and integrate with ERP systems to enhance efficiency as invoice volumes grow.

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Transcript

Invoice capture software automatically extracts data from supplier invoices and converts it into structured information that can be processed within accounts payable workflows.

When an invoice is received, whether as a paper document, PDF, e-invoice, or other electronic format, the software captures key details such as supplier information, invoice numbers, dates, amounts, and line-item data. That information is then validated and sent into the accounts payable process for matching, coding, approval, and payment.

The most advanced solutions can also integrate directly with ERP and financial systems to reduce manual intervention throughout the process.

Traditionally, AP teams had to manually enter invoice information into financial systems, which can be time-consuming and prone to errors.

Invoice capture software reduces manual effort by automating data extraction and helping ensure invoice information is captured accurately and consistently.

Modern invoice capture solutions often use technologies such as optical character recognition, artificial intelligence, and machine learning to recognize invoice data across different layouts and formats.

Unlike traditional template-based approaches, AI-powered systems can adapt to new invoice formats, improve accuracy over time, and reduce the need for ongoing manual review.

For finance teams evaluating invoice capture software, the goal is not simply to digitize invoices.

Effective solutions improve data accuracy, reduce manual reviews, support touchless processing, and help invoices move through matching, approval, and payment workflows more efficiently.

As invoice volumes grow, these capabilities become increasingly important for maintaining speed, control, and visibility across accounts payable.

Invoice capture software transforms invoice information into usable financial data, helping organizations automate invoice processing, improve efficiency, and build a stronger foundation for accounts payable automation.

## Explore more:

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### [Explore AP automation solutions](https://www.medius.com/solutions/medius-accounts-payable-automation/ "Medius Accounts Payable Automation")

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### [Improve performance with benchmarks](https://www.medius.com/customers/ap-benchmark-report/ "AP Benchmark Report")

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### [Discover the Medius platform](https://www.medius.com/solutions/ "Solutions")

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[Watch more videos](https://www.medius.com/videos/ "Watch more videos")

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