SAP invoice scanning and OCR: How to get it and alternatives

For businesses using SAP as an ERP, invoice scanning and OCR aren’t built-in but are available through add-ons. Whether you're exploring SAP’s native options or considering third-party tools, having the right OCR solution is essential when processing high volumes, minimizing manual entry, and ensuring accurate data extraction.

Let’s break down what to look for in an invoice scanning and OCR solution, how SAP’s available options compare, and how businesses can enhance efficiency without disrupting their existing systems.

Do SAP ERPs include invoice scanning and OCR?

Invoice processing is a critical function for businesses using SAP ERP systems. However, SAP ERPs don’t have built-in invoice scanning or Optical Character Recognition (OCR) capabilities. Instead, they rely on add-ons and third-party integrations to automate invoice capture and data extraction.

Before diving deeper into what these add-ons are it’s important to understand the difference between invoice scanning and OCR:

• Invoice scanning: Captures invoice images (physical or digital) before processing them
• OCR: Extracts text and data from invoices after scanning

Not all SAP add-ons offer both invoice scanning and OCR—some focus solely on OCR (data extraction), while others provide both for end-to-end invoice capture. For simplicity, we’ll focus on SAP add-ons that include both.

How to add invoice scanning and OCR to SAP ERPs

To enable invoice scanning and OCR, businesses need to integrate specialized tools that work within SAP’s AP ecosystem. Here are the three main add-ons available for SAP ERPs, along with how third-party tools compare:

• SAP Invoice Management by OpenText: Supports the digitization of physical invoices and uses OCR to extract data, automating capture and reducing manual entry.
• SAP Concur Invoice: Captures supplier invoices from various sources, including email and mail, and applies OCR to digitize paper invoices and standardize records.
• SAP Ariba Central Invoice Management: Provides centralized invoice processing within SAP Ariba, with embedded OCR via the Document Information Extraction service.
• Third-party OCR solutions: Many third-party OCR solutions offer scanning capabilities or integrate with existing scanning hardware to digitize physical invoices. Businesses looking for cheaper, more flexible, or independent options often choose this approach.

How do these solutions differ, and why does it matter?

The main difference between these invoice scanning and OCR tools comes down to how they integrate with SAP ERPs and the specific needs they address. Some solutions, like SAP Invoice Management by OpenText, are deeply embedded within SAP S/4HANA and ECC. Others, like SAP Ariba Central Invoice Management and SAP Concur Invoice, cater to different workflows within the SAP ecosystem.

Third-party solutions offer more flexibility but may require additional integration effort to fit within an existing SAP workflow. Choosing the right tool ensures smooth invoice processing, accurate data extraction, and minimal manual effort.

Here’s which solutions are compatible with different SAP ERPs (this may change overtime):

How much does it cost?

SAP doesn’t publicly list exact pricing for its add-ons, as costs vary based on company size, scope, and required features. Third-party OCR solutions may offer different pricing models, making it important to compare options. For precise costs, businesses should contact SAP or the respective service provider directly.

What are the benefits of invoice capture and OCR?

Beyond automation, invoice capture and OCR solutions streamline accounts payable operations in several key ways. Here’s what businesses can expect:

1. Accelerates invoice processing: Automated PO matching in SAP and data extraction reduce reconciliation time and improve processing speed.
2. Reduces manual workload: Automating invoice capture minimizes time spent on data entry and validation, freeing AP teams to focus on more strategic tasks.
3. Enhances financial accuracy: By minimizing manual input errors and ensuring consistent invoice data capture, businesses can avoid discrepancies in financial records.
4. Improves cash flow control: Faster invoice approvals and automated workflows help businesses manage payments more predictably, reducing late fees and optimizing cash flow.

Challenges of using invoice scanning and OCR add-ons in SAP

While SAP software offers powerful accounts payable automation features, some businesses encounter limitations that impact efficiency and scalability. Based on user feedback from G2, a leading software review platform, here are the main challenges to consider:

1. Pricing

Pricing is a major concern for some SAP add-ons. Many users find SAP Invoice Management by OpenText expensive. Reviewers also note that SAP Ariba comes with a high implementation cost, creating a barrier for smaller businesses and startups looking for a more affordable solution.

2. Accuracy and usability

Users report challenges with OCR performance in SAP Invoice Management by OpenText, particularly when selecting the correct line items during invoice validation. The process can be cumbersome, requiring manual adjustments that slow down efficiency. While minor, these disruptions can add up over time.

3. Complexity and learning curve

SAP’s invoice scanning solutions can be difficult to navigate, especially for new users. SAP Ariba, for example, is often described as complex, with a steeper learning curve. Reviewers also say that SAP Invoice Management’s workflow and indexing process could also be more intuitive, particularly when handling invoices with multiple line items.

How to choose the right invoice scanning and OCR software

Whether you’re evaluating invoice scanning and OCR solutions for the first time or looking for a better fit for your system, knowing what to prioritize is key. The right tool should streamline invoice processing, reduce manual data entry, and integrate seamlessly with your existing accounts payable workflows—whether within SAP or another ERP.

Here are five essential factors to consider when selecting an invoice scanning and OCR solution.

1. Intelligent invoice scanning and OCR automation

A robust invoice scanning and OCR tool should eliminate manual data entry by accurately extracting key details such as vendor names, invoice numbers, and amounts. AI-powered OCR improves accuracy over time, reducing the need for corrections and manual intervention.

Look for a solution that supports:

• Multiple invoice formats (PDF, email, scanned paper invoices) for flexibility
• Automatic data extraction with minimal errors
• Smart learning capabilities that improve recognition of recurring vendor invoices

2. Seamless ERP integration and workflow efficiency

If you’re using SAP or another ERP, your invoice scanning and OCR software should integrate without requiring extra steps. The right tool should:

• Sync extracted invoice data directly into the ERP to eliminate manual transfers
• Support automated approvals and workflows to speed up processing
• Prevent duplicate entries and ensure accurate invoice classification

3. Approval flexibility and vendor collaboration

A rigid invoice approval process can slow down AP operations. Your system should be flexible enough to adapt to your company’s structure while keeping vendor communication efficient. Key features include:

• Automated approval workflows that route invoices to the right approvers
• Role-based routing that allows approvals based on invoice amount, department, or vendor
• Vendor self-service portals that reduce back-and-forth communication by allowing vendors to submit and track invoices

4. Compliance, security, and fraud prevention

Since invoice scanning and OCR handle sensitive financial data, security and compliance are essential. A reliable solution should:

• Ensure data integrity with audit trails that log every invoice action for transparency
• Prevent fraud and errors by detecting duplicate invoices before processing
• Support regulatory compliance by accurately extracting tax-related details to minimize reporting risks

5. Cost, scalability, and ease of adoption

Your invoice scanning and OCR solution should not only meet your current needs but also scale as your business grows. Consider:

• Pricing model: Is it based on invoice volume, users, or a flat subscription?
• Scalability: Can it handle increasing invoice volumes efficiently?
• Ease of use: Does it have an intuitive interface that minimizes training time?

By prioritizing automation, integration, flexibility, security, and scalability, businesses can ensure their invoice scanning and OCR software enhances efficiency without adding complexity.

How Ramp Bill Pay meets key invoice scanning and OCR requirements

Before selecting an invoice scanning and OCR solution, it’s essential to evaluate whether it aligns with your business needs—especially if you rely on SAP as your ERP. Ramp Bill Pay is an AP automation platform that simplifies invoice processing by integrating scanning, OCR, and payments into a seamless workflow, giving businesses greater control over their AP operations.

Here’s how Ramp Bill Pay stacks up against key invoice scanning and OCR capabilities:

Why choosing the right invoice scanning and OCR solution matters

The right invoice scanning and OCR solution should integrate seamlessly with your AP workflows, reduce inefficiencies, and scale with your business. While SAP offers various invoice processing tools, businesses looking for greater flexibility can also explore third-party solutions to enhance automation.

That’s why more than 7,000 businesses trust Ramp to accelerate invoice processing and reduce errors. Frank Byers, Controller at The Second City, shared his experience:

“When we moved to (Ramp) Bill Pay, I was hesitant because we were promised the same type of functionality as our previous technology, which didn’t work. But Ramp’s OCR works seamlessly—it not only recognizes the vendor but reads each individual line item and uses accounting rules to code them correctly.”

And Alejandro, CFO at Roof Squad, also saw a major impact:

“The way bill pay works now is super easy. That was such a tedious process before. Now it’s just a couple clicks away, saving us about 10 hours a week, and reducing the number of errors we make.”

Investing in a flexible, high-performing accounts payable system with invoice scanning and OCR leads to faster approvals, fewer manual corrections, and a more efficient AP process.

Experience the same impact. Start processing invoices faster with Ramp Bill Pay.