Document Processing Automation: AI-Powered Invoice & Contract Workflows

Invoice Received (Email/Upload)
     ↓
Document Classification
     ↓
OCR + AI Extraction
     ↓
Data Validation
     ↓
PO Matching
     ↓
Approval Routing
     ↓
ERP System Update
     ↓
Payment Queue
     ↓
Archive + Audit Log

Classify this document:

{{document_text}}

Categories:
1. INVOICE - Bill for goods/services
2. PURCHASE_ORDER - Order request
3. RECEIPT - Payment confirmation
4. CONTRACT - Legal agreement
5. QUOTE - Price proposal
6. OTHER - Specify type

Also identify:
- Vendor/sender name
- Document date
- Reference numbers visible

{
  "document_type": "invoice",
  "vendor": {
    "name": "Acme Supplies Inc",
    "address": "123 Main St, Boston, MA 02101",
    "tax_id": "12-3456789"
  },
  "invoice_details": {
    "number": "INV-2025-1234",
    "date": "2025-12-20",
    "due_date": "2026-01-19",
    "po_reference": "PO-5678"
  },
  "line_items": [
    {
      "description": "Office Supplies - Paper",
      "quantity": 50,
      "unit_price": 24.99,
      "total": 1249.50
    },
    {
      "description": "Office Supplies - Pens",
      "quantity": 100,
      "unit_price": 1.99,
      "total": 199.00
    }
  ],
  "totals": {
    "subtotal": 1448.50,
    "tax": 123.12,
    "total": 1571.62
  },
  "payment_terms": "Net 30",
  "confidence_scores": {
    "vendor_name": 0.98,
    "invoice_number": 0.99,
    "total_amount": 0.97
  }
}

✓ Vendor exists in master data
✓ Invoice number is unique (no duplicate)
✓ Line items sum equals subtotal
✓ Tax calculation is correct
✓ PO reference exists and is open
✓ PO amount >= Invoice amount
✓ Document date is within acceptable range
✓ Bank details match vendor master

If amount < $1,000:
  → Auto-approve (if validated)

If amount $1,000-$10,000:
  → Route to Department Manager

If amount $10,000-$50,000:
  → Route to Finance Director

If amount > $50,000:
  → Route to CFO

If vendor is new:
  → Add Procurement review step

If budget exceeded:
  → Add Controller approval

Contract Uploaded
     ↓
Document Type Classification
     ↓
AI Key Terms Extraction
     ↓
Obligation Identification
     ↓
Risk Flag Analysis
     ↓
Metadata Population
     ↓
CLM System Update
     ↓
Alert Stakeholders

Extract key terms from this contract:

{{contract_text}}

Required fields:
1. Parties involved (all named entities)
2. Effective date and term length
3. Termination clauses and notice periods
4. Payment terms and amounts
5. Auto-renewal conditions
6. Liability caps and indemnification
7. Confidentiality obligations
8. Governing law and jurisdiction
9. Key deliverables/scope
10. Service level commitments (if applicable)

For each extracted term, provide:
- Exact text quote
- Location (page/section)
- Confidence score
- Risk level (high/medium/low/none)

{
  "contract_type": "SaaS Agreement",
  "parties": {
    "customer": "Your Company Inc",
    "vendor": "Software Provider Corp"
  },
  "dates": {
    "effective": "2025-01-01",
    "term": "12 months",
    "expiration": "2025-12-31",
    "auto_renew": true,
    "notice_period": "60 days"
  },
  "financial": {
    "total_value": "$120,000",
    "payment_schedule": "Annual upfront",
    "price_increase_cap": "5% per year"
  },
  "obligations": [
    {
      "party": "vendor",
      "type": "SLA",
      "description": "99.9% uptime guarantee",
      "consequence": "Service credits",
      "location": "Section 5.2"
    },
    {
      "party": "customer",
      "type": "payment",
      "description": "Pay within 30 days of invoice",
      "consequence": "1.5% monthly interest",
      "location": "Section 3.1"
    }
  ],
  "risk_flags": [
    {
      "type": "auto_renewal",
      "severity": "medium",
      "note": "Auto-renews for 12 months if not cancelled 60 days prior",
      "action": "Calendar reminder 90 days before expiration"
    },
    {
      "type": "liability",
      "severity": "high",
      "note": "Unlimited liability for customer data breaches",
      "action": "Legal review recommended"
    }
  ]
}

Created Calendar Events:

📅 2025-10-01 - Contract Renewal Decision Due
   Contract: Software Provider Corp SaaS Agreement
   Action: Decide on renewal 60+ days before expiration
   Owner: Procurement Manager

📅 2025-11-01 - Contract Cancellation Deadline
   Contract: Software Provider Corp SaaS Agreement
   Action: Must notify by this date to prevent auto-renewal
   Owner: Procurement Manager

📅 Quarterly - Security Compliance Review
   Contract: Software Provider Corp SaaS Agreement
   Action: Review vendor security certifications
   Owner: Security Team

Form Submitted (PDF/Image/Web)
     ↓
Form Type Recognition
     ↓
Field Mapping & Extraction
     ↓
Data Validation
     ↓
Missing Field Detection
     ↓
Complete → Process
Incomplete → Request More Info
     ↓
Database Record Creation
     ↓
Next Step Trigger

{
  "form_type": "loan_application",
  "fields": {
    "applicant_name": {
      "extracted": "John Smith",
      "field_location": "top_left",
      "confidence": 0.98
    },
    "ssn": {
      "extracted": "XXX-XX-1234",
      "field_location": "top_right",
      "confidence": 0.95,
      "masked": true
    },
    "requested_amount": {
      "extracted": 50000,
      "field_location": "section_2",
      "confidence": 0.99
    },
    "employment_status": {
      "extracted": "Employed Full-time",
      "field_location": "section_3",
      "confidence": 0.92
    },
    "annual_income": {
      "extracted": 85000,
      "field_location": "section_3",
      "confidence": 0.94
    },
    "signature": {
      "detected": true,
      "date_signed": "2025-12-20"
    }
  },
  "completeness": 100,
  "validation_status": "passed"
}

LOAN APPLICATION COMPLETENESS CHECK

Required Fields (must have all):
✓ Full name
✓ SSN/Tax ID
✓ Date of birth
✓ Address
✓ Employment information
✓ Annual income
✓ Requested amount
✓ Purpose of loan
✓ Signature

Optional Fields:
✓ Co-applicant information
○ Employer phone (missing)
✓ Years at current address

Status: COMPLETE - Ready for processing

Subject: Additional Information Needed for Your Application

Hi {{applicant_name}},

Thank you for submitting your loan application.

To complete your application, we need the following:

1. Employer phone number
   Why: Required for employment verification

2. Two most recent pay stubs
   Why: Income verification

Please reply to this email with the information or
upload documents here: [Secure Upload Link]

Your application will remain on hold until we receive
these items. Current status: 80% complete.

Questions? Reply to this email or call 1-800-XXX-XXXX.

[Upload Documents] [Contact Us]

Receipt Image Captured (Mobile/Email)
     ↓
Image Enhancement
     ↓
OCR + AI Extraction
     ↓
Category Classification
     ↓
Policy Compliance Check
     ↓
Expense Report Assignment
     ↓
Approval Workflow
     ↓
Reimbursement Processing

{
  "receipt_type": "restaurant",
  "merchant": {
    "name": "The Capital Grille",
    "address": "900 Boylston St, Boston, MA",
    "phone": "617-262-8900"
  },
  "transaction": {
    "date": "2025-12-20",
    "time": "19:42",
    "payment_method": "Visa ending 4242"
  },
  "items": [
    {"description": "Lobster Bisque", "amount": 16.00},
    {"description": "Filet Mignon", "amount": 58.00},
    {"description": "Wine Pairing", "amount": 35.00},
    {"description": "Dessert", "amount": 14.00}
  ],
  "totals": {
    "subtotal": 123.00,
    "tax": 7.69,
    "tip": 27.00,
    "total": 157.69
  },
  "expense_category": "client_entertainment",
  "confidence": 0.94
}

EXPENSE POLICY CHECK

Receipt: The Capital Grille - $157.69

✓ Category: Client Entertainment (allowed)
✓ Per-person limit: $75 (2 attendees = $150 budget, over by $7.69)
⚠ Warning: Slightly over per-person limit

✓ Alcohol: Wine included ($35)
⚠ Note: Alcohol 22% of total - within 25% guideline

✓ Documentation: Receipt image captured
✓ Business purpose required: Yes
○ Missing: Business purpose not provided

✓ Tip percentage: 21.9% (within 20-25% guideline)

STATUS: NEEDS INFO
Required: Business purpose/attendee names
Action: Auto-request from submitter

Physical Mail Scanned
     ↓
Document Type Classification
     ↓
Recipient Identification
     ↓
Priority Assessment
     ↓
Data Extraction (if needed)
     ↓
Digital Routing
     ↓
Physical Handling Decision
     ↓
Archive/Shred/Forward

1. INVOICES → AP Department → Extract & process
2. CHECKS → Treasury → Deposit workflow
3. LEGAL → Legal Department → Flag as urgent
4. TAX_DOCUMENTS → Finance → Archive required
5. MARKETING → Recipient → Low priority
6. PERSONAL → Recipient → Forward physically
7. JUNK → Shred → No digital copy

{
  "document_type": "legal_notice",
  "sender": "State Attorney General",
  "recipient_identified": "General Counsel",
  "urgency": "high",
  "action_required": true,
  "routing": [
    {
      "channel": "email",
      "recipient": "general.counsel@company.com",
      "priority": "urgent",
      "attachments": ["scanned_document.pdf"]
    },
    {
      "channel": "slack",
      "recipient": "#legal-team",
      "message": "Urgent legal notice received from State AG"
    },
    {
      "physical_handling": "retain",
      "location": "Legal document safe",
      "retention": "permanent"
    }
  ]
}

Financial Document Received
     ↓
Document Type Identification
     ↓
Table Detection & Extraction
     ↓
Number Recognition
     ↓
Data Normalization
     ↓
Ratio Calculation
     ↓
Benchmark Comparison
     ↓
Report Generation

{
  "statement_period": {
    "start": "2025-12-01",
    "end": "2025-12-31"
  },
  "account": {
    "number": "XXXX-1234",
    "type": "Business Checking",
    "holder": "Your Company Inc"
  },
  "summary": {
    "opening_balance": 45678.90,
    "deposits": 125000.00,
    "withdrawals": 98765.43,
    "fees": 45.00,
    "closing_balance": 71868.47
  },
  "transactions": [
    {
      "date": "2025-12-02",
      "description": "ACH Credit - Customer Payment",
      "amount": 15000.00,
      "type": "deposit",
      "category": "revenue"
    },
    {
      "date": "2025-12-05",
      "description": "Wire Transfer - Vendor Payment",
      "amount": -8500.00,
      "type": "withdrawal",
      "category": "ap_payment"
    }
  ],
  "reconciliation_check": {
    "calculated_balance": 71868.47,
    "stated_balance": 71868.47,
    "difference": 0.00,
    "status": "balanced"
  }
}

High confidence (>95%): Auto-process
Medium confidence (80-95%): Quick human review
Low confidence (<80%): Full human review

DOCUMENT EXCEPTIONS - Today

Total processed: 234
Successful: 218 (93.2%)
Exceptions: 16 (6.8%)

Exception Breakdown:
• Image quality: 5
• Missing fields: 4
• Validation failed: 3
• Unknown format: 2
• Duplicate: 2

Aging:
• < 1 hour: 8
• 1-4 hours: 5
• 4+ hours: 3 (alert!)

Document ID: DOC-2025-12345

Timeline:
09:15:32 - Received via email (invoice@company.com)
09:15:33 - Classified as INVOICE (confidence: 0.99)
09:15:35 - OCR extraction completed
09:15:36 - Validation passed (all checks)
09:15:37 - Matched to PO-5678
09:15:38 - Routed to Finance Manager (amount: $15,420)
09:45:12 - Approved by jane.smith@company.com
09:45:13 - Posted to NetSuite (JE-78901)
09:45:14 - Added to payment batch PB-2025-52
09:45:15 - Archived to /Finance/AP/2025/12/

ROI Calculation - Invoice Processing

Volume: 10,000 invoices/month
Previous cost: $20/invoice × 10,000 = $200,000/month
New cost: $3/invoice × 10,000 = $30,000/month
Monthly savings: $170,000

Implementation cost: $150,000
Payback period: Under 1 month
Annual savings: $2,040,000
3-year ROI: 4,080%

Additional benefits:
- 5 FTE reassigned to strategic work
- 80% faster payment cycles
- Improved vendor relationships
- 2% early payment discounts captured