Configure Document Recognition and Processing Options

Configure how Payables Agent recognizes, imports, validates, and creates invoices.

These settings determine how invoice attributes are processed and how invoices are created in Payables. Review each option and determine whether the default behavior aligns with business requirements.

Configuration area	Option	Purpose	Guidance
Tax recognition	Recognize Tax Amount	Controls whether tax amounts extracted from invoices are used during invoice import.	Enable when suppliers consistently provide accurate tax amounts and the organization wants imported tax amounts preserved. Disable when tax should always be derived using Oracle Tax calculations.
Tax recognition	Calculate Tax During Import	Determines whether tax calculations occur during invoice import.	Enable when tax validation should occur as early as possible. Disable when tax calculation should occur later during invoice validation.
Freight recognition	Recognize Freight Amount	Controls whether freight and shipping charges identified on invoices are imported.	Enable when freight costs should be imported as part of invoice processing. Disable when freight lines aren't required.
Freight recognition	Prorate Freight and Miscellaneous Charges	Determines whether freight and miscellaneous charges are prorated across invoice lines.	Enable when freight should be distributed proportionally across item lines. Disable when freight should be posted to dedicated freight distribution accounts.
Invoice line recognition	Recognize Lines for Matched Invoices	Determines whether invoice lines are imported and matched to purchase order lines.	Enable when the organization wants automatic PO line matching. Disable when only invoice headers should be imported or Payables users prefer to perform matching manually.
Invoice line recognition	Import Only Paired Lines for Matched Invoices	Determines whether invoice import includes only invoice lines successfully paired with a valid purchase order.	Enable when only paired lines should be imported for purchase order-matched invoices and unpaired lines should be excluded.
Invoice line recognition	Recognize Lines for Unmatched Invoices	Determines whether invoice lines are imported for invoices that don't reference purchase orders.	Enable when invoice line details are required for downstream processing. Disable when only invoice header information is required.
Legal entity recognition	Validate the Legal Entity Identified for Matched Invoices	Compares the legal entity identified on the invoice with the legal entity associated with the purchase order.	Enable when additional legal entity validation is required or the organization operates multiple legal entities and wants stronger controls. Before enabling, verify legal entity names and addresses and confirm that supplier invoices display the same legal entity information.
Invoice creation behavior	Always Create Invoices in Incomplete Status	Forces all invoices to be created in Incomplete status regardless of recognition success.	Enable when all invoices require manual review or regulatory or audit requirements mandate invoice verification. Disable when the organization wants to maximize touchless processing.
Service order processing	Create Single Invoice Line for Service Orders	Creates a single invoice line equal to the invoice subtotal for service purchase orders.	Enable when suppliers provide detailed service breakdowns, purchase orders contain a single service line, and simplified matching improves processing efficiency.
Utility supplier processing	Create Single Invoice Line for Utility Suppliers	Creates a single invoice line equal to the invoice subtotal for suppliers identified as utility suppliers.	Enable when utility invoices contain large numbers of usage or meter-detail lines and detailed line recognition isn't required.

To configure document recognition and processing options:

1. Go to Navigator > My Enterprise > Setup and Maintenance > Financials > Payables > Manage Intelligent Document Recognition Options.
2. Review the available options.
3. Select the options that match the organization’s invoice recognition, import, validation, and invoice creation requirements.
4. Save the configuration.

Validate the configuration by processing representative invoices and confirming that tax, freight, invoice line recognition, legal entity handling, invoice status, service invoice behavior, and utility invoice behavior match the selected options.