At FabricAI, we have been researching the issue in the title for several years: how to automate the addition of accounting objects (dimensions/cost centers/tracking objects) to purchase invoices as accurately as possible using ai. The research has utilized millions of purchase invoices from Norway and Sweden, as well as, of course, Finland. This article summarizes the most important lessons and guidelines for success in this topic.

As background information, it can first be stated that currently ai can be used at a precise level in practice for two cases:

1. When the determining factor for the accounting object is the supplier
   1. For example, partner company codes or counterparties (supplier = accounting object)
   2. For example, certain types of departments (in practice, all invoices from the supplier always go to the same accounting object)
2. When the determining factor for the accounting object is the name or identifier of the accounting object found on the invoice
   1. For example, projects, construction sites, contracts, offices, etc.

Success in the topic at a general level consists mainly of the following three main areas

• How accounting objects are named in the accounting software
  • Is the accounting object named as uniquely and clearly as possible?
• What is the quality of the purchase invoice data
  • Are all possible invoices e-invoices?
• How the identifiers/names of accounting objects appear on purchase invoices
  • Have suppliers been required to provide clear identifiers in the invoice data?

Below, these three stages are discussed in more detail.

1. Naming accounting objects

Naming accounting objects in the accounting software forms the basis for the automation of adding accounting objects. Namely, in almost all cases, the logic works so that if the name as such or the identifier in the name of the accounting object is found on the invoice or line, ai adds the accounting object either to all lines of the invoice or only to a specific line. 

Generally speaking, it is important that accounting objects are named as uniquely as possible. Uniqueness ensures that ai does not unnecessarily add the accounting object, in other words, the predictions are as accurate as possible. Uniqueness can be ensured by including at least a five-character code in the name of the accounting object, consisting of either only numbers or a combination of letters and numbers. NOTE! There must be at least two numbers. We call this code an identifier.

• Good names for accounting objects from the perspective of ai (identifiers in bold)
  • 7P12K Business Finland
  • 7P12K
  • 273PK1 Tampere
  • Marketing 26749
  • 67359 Pyhäjärvenkatu 5
• Poor names for accounting objects from the perspective of ai (unless the name as such is found on the invoice)
  • Business Finland
  • Pyhäjärvenkatu 5
• Poor names for accounting objects from the perspective of ai in any case (name as such is too general, even if found on invoices)
  • Tampere
  • Marketing

2. Requiring e-invoices

In order for the name or identifier of the accounting object to be found on the purchase invoice with good accuracy, it is highly recommended that the invoice be an e-invoice. If your domestic suppliers are not yet sending e-invoices, remember that the company has a legal right to demand only e-invoices and thus leave paper invoices unpaid. You can read more about the topic, for example, here: https://netvisor.fi/blog/verkkolaskulaki-oikeuttaa-ja-velvoittaa/ 

E-invoice address.fi is a convenient service where you can direct your suppliers to view your e-invoice address.

3. Requiring the identifier/name of the accounting object on the invoice

Finally, it is only necessary to ensure that the supplier actually adds the identifier or name as such of the accounting object to the invoice. In our experience, suppliers are generally very cooperative in these matters, even though one might think otherwise. However, perhaps even more important is to instruct and require the buyers of goods/services to inform the supplier of these accounting object-related details when ordering, always with clear instructions.

From this perspective, invoices can be divided into two categories:

1. The invoice concerns only one accounting object – in this case, it is sufficient that the identifier/name is added somewhere on the invoice
2. The invoice concerns multiple accounting objects (e.g., summary invoice) – in this case, it is critical that the identifier/name of the accounting object is added to each invoice line (not as subheadings, but to each line)

However, if accounting objects cannot be named in the way described in the instructions for some reason and you are using Procountor or Fennoa, you can also read this guide.
Also read here for more detailed instructions on how to enable AI predictions for accounting objects and here on how AI performance can be supported if necessary with the Help AI feature.