Automated Invoice Processing for Trading Company

Project Overview

Gujarat Commodity Traders, handling agricultural and industrial commodities across Gujarat and Rajasthan, processes over 2,000 purchase and sales invoices monthly from 300+ suppliers. Their entire invoicing operation was manual — 5 data entry operators spending full days keying data into Tally, with error rates that made month-end reconciliation a nightmare.

The Challenge

Volume & Variety

• 2,000+ invoices monthly in 50+ different formats (handwritten, printed, PDF, email)
• 300+ suppliers each with unique invoice layouts
• Multi-language invoices in English, Hindi, and Gujarati
• No standardisation possible due to diverse supplier base

Error-Prone Manual Process

• 8-12% error rate in manually entered invoice data
• Common errors: wrong amounts, incorrect GST numbers, mismatched line items
• Reconciliation consuming 40+ hours monthly to identify and correct errors
• Payment disputes arising from data entry mistakes

Our AI Solution

Intelligent Document Processing

• Trained AI model on 50+ invoice formats using supervised learning
• Implemented multi-format OCR handling printed, handwritten, and digital invoices
• Built smart field extraction for invoice number, dates, amounts, GST details, and line items
• Created confidence scoring for each extracted field with automatic flagging of low-confidence entries

Validation & Business Rules

• Implemented 25+ validation rules matching business logic (GST verification, amount crosschecks)
• Built supplier master matching using fuzzy logic for name variations
• Created automatic GST number verification against government database
• Designed exception queue for invoices requiring human review

Tally Integration

• Developed direct API integration with Tally Prime
• Automated voucher creation with appropriate ledger mapping
• Built batch posting with rollback capability for failed entries
• Created reconciliation report comparing processed vs posted invoices

Results

Processing Efficiency

• 90% of invoices processed without human intervention
• Processing time reduced from 3 days to 4 hours per batch
• Error rate dropped from 8-12% to 0.5%
• 3 data entry operators redeployed to higher-value finance roles

Financial Savings

• ₹3.5 lakhs monthly saved in operational costs
• GST input credit claims accelerated by 15 days
• Payment disputes nearly eliminated
• Month-end closing shortened by 5 days

Client Testimonial

"The AI reads invoices in formats that even our experienced operators struggled with. The accuracy is incredible — our auditors were shocked at how clean our books became."

Suresh Gajera, Finance Manager, Gujarat Commodity Traders Pvt Ltd