How to Extract Data from Proforma Invoice?

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Ashutosh Saitwal

Founder CEO - KlearStack AI

Extract Data from Proforma Invoice

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Proforma invoices are among the crucial documents in business that streamline pre-transaction processes by offering detailed cost estimates for goods or services. It smoothes the transaction process and provides transparency between buyers and companies. It plays a significant role in finalizing the deal, especially in international business,  arranging funds and advance for the goods/services, outlining the total payable amount, facilitating prepayment arrangements, and nourishing a healthy relationship with customers. 

Data extraction from such invoices is crucial for freight and logistics companies, manufacturing companies, exporters and importers, wholesale distributors, e-commerce businesses, and service providers. It helps keep records and track the estimation of costs with actual payments. 

If you’re into business seeking a solution to deal with proforma invoices, you landed at the right place. As, here in this blog, we have discussed everything you need to know about data extraction from a proforma invoice. 

What is Proforma Invoice Data Extraction? 

A proforma invoice often includes several pieces of information such as the description of the goods or services, quantity and price of each item, total value of the invoice, shipping costs and delivery terms, payment terms, validity period of the proforma invoice, and buyer and seller information. Extracting this information from digital or printed copies into your device for easy and centralized accessibility is the process of data extraction.  This data extraction must be accurate as it creates transparency and streamlines the sales process. 

Process of Data Extraction for Proforma Invoice  

Process of Data Extraction for Proforma Invoice 

Data extraction for Proforma invoices can be of two types. 

1. Manual Data Extraction – This is a traditional process of extracting data from any document. It requires manual data entry from the invoice to the system with the help of human resources. The manual process can be time-consuming and prone to human errors. It may also result in high costs as you need to deploy more staff, systems, and working space.  

2. Automated Data Extraction – Automated data extraction is a process of extracting data automatically from a document with the help of specific tools or software. The data extraction tool uses machine learning and artificial intelligence, is less prone to errors, and speeds the processing for further evaluation and tracking. 

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How Automation Works for Proforma Invoice?

Steps for automating data extraction of Proforma Invoice

Automated software or tools equipped with natural language processing, machine learning, OCR (Optical Character Recognition)  technologies, and artificial intelligence work for data extraction from proforma invoices. Advanced technologies capture the character from the digital or printed invoice, generate information in easy-to-understand language, and organize it in the system by understanding its priority and importance. Klearstack is a tool that helps automate data extraction from proforma invoices with high accuracy, efficiency, and cost savings. The tool follows different steps to extract data. 

Here are the steps for the proforma invoice processing.

Step 1: Pre-Processing 

In this step, the proforma invoice software evaluates the document’s quality. If it is in a sound step, the tool sends it for further processing; if not, it enhances the quality. If the tool finds the document extremely poor quality, it rejects it.  

Step 2: Document Classification 

Here, the software understands the pattern of the document and categorizes it with its type. It differentiates the proforma from its different types, such as invoices, receipts, bills of lading, policies, etc. 

Step 3: Data Capture and Digitization 

Using OCR, the document is scanned and converted into digital format and transferred to the next step for further processing. 

Step 4: Intelligent Data Extraction 

In this step, performa invoice software extracts valuable data from the documents using machine learning and intelligent analysis.  Here, data is extracted, analyzed, and interpreted.

Step 5: Data Validation 

Data is checked and validated against the available database to enhance its accuracy. However, if the software finds some errors, it flags them for review.  You can validate the data here manually and train the system for a similar data pattern. 

Step 6: Integration with Restful APIs 

The RESTful API (Application Programming Interface) integrates the proforma invoice data with other applications over the internet eases its use cases.  

Benefits of Automated Data Extraction for Proforma Invoice 

Proforma Invoice Data Extraction Benefits

Now that you know how proforma invoice data automation works, let’s understand some of its benefits and why you should opt for it. 

Reduced Errors 

Automating proforma invoices minimizes human errors, such as typos or misinterpretations, by following a predefined set of rules. It ensures consistent data quality. 

Improved Operational Efficiency 

Automated software, utilizing AI, ML, and OCR for data extraction, significantly speeds up processing proforma invoices, enhancing the overall efficiency of handling and preparing invoices.

Cost Savings

By reducing the need for human intervention, automation lowers labor costs. Additionally, eliminating manual data entry reduces the costs associated with workspace, systems, and repetitive task performance to check errors.

Scalability and Flexibility

During peak business periods, automated software can efficiently manage large volumes of proforma invoices without declining performance, resulting in maximized productivity.

Enhanced Customer Service

Automated data extraction facilitates faster and more accurate data processing, and businesses can respond to customer inquiries more quickly and accurately. It leads to improved customer satisfaction and better service levels.

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Step-by-Step Guide to Automate Data Extraction for Proforma Invoice 

You can automate the data extraction for Proforma invoices with Klearstack, the intelligent document automation software.   Here is a step-by-step guide to automating the process using the tool. 

Step 1: Register/Login to the Software 

Step-by-Step Guide to Automate Data Extraction for Proforma Invoice 

To automate the proforma invoice document process, register as a user on KlearStack. Upon successful registration, you will receive login credentials. Use these credentials to log in, carefully read the terms and conditions, and check the box to agree. Once completed, you can access the dashboard where the automated data extraction process begins.

Step 2: View the Dashboard to Upload Documents

Guide to Automate Data Extraction for Proforma Invoice 

After logging in, you will be directed to the dashboard where various documents can be uploaded. The software includes proforma invoices and other document types like Bills of Lading, airbills, purchase orders, receipts, and more. KlearStack supports bulk processing, allowing you to simultaneously upload and process multiple documents for efficient and accurate results. To process the proforma invoice section, select the invoice option to proceed to the next step. You can also create a custom model for a proforma invoice. 

Step 3: Upload the Proforma Invoice 

Automate Data Extraction for Proforma Invoice 

Click on the ‘Add new’ tab in the screen’s top right corner. KlearStack accepts various document formats, including Electronic PDF, Word, Excel, JPG, BMP, TIFF, PNG, scanned PDF, and ZIP files. Upload your proforma invoice in the desired format.

Step 4: Specify the Number of Pages and Business Type 

Step-by-Step Guide to Automate Data Extraction for Proforma Invoice klearstack

If your proforma invoice includes multiple pages, enter the specific pages or all the page numbers to process it—Klearstack processes various pages simultaneously. Additionally, choose whether the invoice is for a B2B or B2C transaction. It helps in streamlining the data in a better way.

Step 5: Review the Uploaded Proforma Invoice 

klearstack Step-by-Step Guide to Automate Data Extraction for Proforma Invoice 

Your recently uploaded proforma invoice will appear at the top of the list of processed documents. Here, you can take a quick snapshot of essential information.

Step 6: Examine the Extracted Data 

 Data Extraction for Proforma Invoice 

For a detailed examination, click on the uploaded proforma invoice. You will see the extracted data fields on one side of the screen and the original invoice on the other. This split view allows you to scroll through and verify the accuracy of the data against the original document.

Step 7: Verify and Edit the Captured Information

Automate Data Extraction for Proforma Invoice 

You can verify any specific information extracted from the document. To do so, click the corresponding field; the software will highlight the relevant section on the uploaded proforma invoice. If any information is incorrect, you can edit it here, helping to retrain the model for improved future accuracy.

Step 8: Approve the Verified Data

Once you have verified that all details are correct, click “approve.” The software’s models are designed to capture data accurately and quickly.

Step 9: View the Approved Data on the Dashboard

Guide to Automate Data Extraction for Proforma Invoice 

After approval, return to the dashboard, where your proforma invoice will be displayed with an approval sign. This section lets you view all uploaded documents and their respective data extractions, providing a comprehensive overview of all the processed information.

Features of Klearstack Proforma Invoice Software

Klearstack is one of the leading software for data extraction from proforma invoices, and it is equipped with several features. Some of the outstanding  features of Klearstack are:

  • Template-less Solution
  • Multi-lingual Support
  • Multi-page Data Extraction
  • Bulk proforma invoice processing 
  • Seamless Integration
  • Document classification

Want to Process Proforma Invoice with KlearStack? Schedule a Demo!

KlearStack provides an effortless and efficient solution for extracting data from your business’s proforma invoices. It ensures accurate data extraction and their proper categorization for subsequent use. You can upload a proforma invoice in any format, whether semi-structured or unstructured and in any language. KlearStack supports over 50 languages for document processing and extracts your data seamlessly with its trained models.

Want to know how KlearStack does this? 

We invite you to test our system with any format of a proforma invoice, structured or unstructured, and experience KlearStack’s exceptional data processing capabilities. 

Schedule a demo with Klearstack and examine our system using your choice document. 

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FAQs Related Proforma Invoice Data Extraction 

What is a Proforma Invoice? 

A proforma invoice is a preliminary invoice containing estimated costs of products/services and is issued before sales occur. It is an essential bill for freight and logistics companies, manufacturing companies, exporters and importers, wholesale distributors, e-commerce businesses, and service providers.

What is the Difference between Proforma Invoice and Commercial Invoice?

A Proforma invoice is issued before the sales take place and acts as a document that states the value of purchasable goods/services. A commercial invoice is the leading invoice generated after the sales. 

Should I Pay a Proforma Invoice?

A proforma invoice is not a legal document, and therefore, you are not obligated to pay the amount stated. It serves as a draft invoice that estimates the cost of your upcoming purchase. 

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