AP Capture AI uses Optical Character Recognition (OCR) and AI models to extract data from AP invoices and credit memos and map that data into R365 transactions. This reduces manual data entry and speeds up invoice processing.
The process starts on the Documents to Process page, where documents are uploaded and either sent to OCR, created manually, or attached to existing transactions. Capture AI reads each document, extracts available header and line‑item details, and uses that data to prefill fields on the Draft Transaction screen. From the Draft Transaction screen, AP users review and finalize the draft to create AP invoices and AP credit memos.
Capture AI only supports AP invoices and credit memos.
With continued use, Capture AI processing improves as mapping logic is updated.
This article references the new Draft Transaction experience, which is available to all users.
Learn more about the New Draft Transaction Screen.
Capture AI Setup
Before using Capture AI, confirm that key records are set up and current in R365. Capture AI reads invoice data and matches it to existing records; it does not create new master data.
Before you use Capture AI
Make sure the following records are configured:
Vendor Records, including contact details and default locations.
Default expense accounts for by‑account vendors.
Payment Terms used on AP invoices.
Purchase Item Records for items that appear on invoices.
A well‑maintained vendor and item setup improves Capture AI’s ability to map fields accurately.
Capture AI Settings
Capture AI settings are managed on the Miscellaneous tab of System Preferences. These settings are available only when AP Capture AI is enabled.
Click a section title to expand for additional information.
Always Require OCR Verification
Controls whether transactions processed by Capture AI must be reviewed before they are created.
When enabled, invoices and credit memos stay on the Draft Transaction Screen until a user selects Create.
When disabled, fully mapped documents without issues create transactions automatically after OCR processing.
Automatic OCR Processing
Controls whether OCR starts automatically when documents are uploaded to Documents to Process.
When enabled, Capture AI processes each document as soon as it is uploaded.
When disabled, documents remain on the Documents to Process page until a user selects Create to start OCR processing.
Consolidate GLs on Draft Transactions
Controls whether line items that share the same GL account and location are combined into a single line on the created transaction.
How Capture AI Processes a Document
Upload an invoice or credit memo to the Documents to Process page.
Capture AI runs OCR to read the invoice and populate key fields such as Vendor, Location, Invoice Number, Invoice Total, and Payment Terms, based on existing records.
Click Review in the Documents to Process page to open the Draft Transaction Screen.
Update any fields flagged for input. Capture AI flags fields when it cannot find a confident match and filters dropdowns to the most likely options.
Create the transaction.
Information added or corrected directly on the Draft Transaction Screen improves Capture AI’s accuracy over time for that R365 instance.
How Capture AI Learns
Capture AI learns from two types of input:
Instance‑level learning – Corrections made on the Draft Transaction Screen teach Capture AI how to map future invoices within that specific R365 instance.
Global mapping suggestions – Suggestions submitted in the OCR Mapping screen help improve mappings across all organizations that use Capture AI. These suggestions are reviewed and incorporated regularly. Changes may take time to reflect and may not apply if they are not in line with mapping suggestions across all organizations using the tool.
Where to View Completed Documents
Review documents processed in the last 90 days on the Recently Completed tab of the Documents to Process page.
OCR Processing and Captured Fields
Updating fields on the Draft Transaction Screen when Capture AI is enabled helps improve future mapping. Each correction reduces manual effort as more transactions are processed.
Click a section title to expand for additional information.
Fields Read by Capture AI
Capture AI reads the following information directly from invoices and credit memos:
Invoice Number
Invoice Total
Line item details, including catch weights when present in a dedicated column
Invoice Date
Due Date
When catch weights are present in a dedicated column, Capture AI uses the weight value as the Quantity for the line item in the draft transaction or in calculations for by‑account vendors.
Fields That Rely on Existing Records
The following fields are populated only when matching records already exist in R365:
Location
Vendor
Payment Terms
Vendor Item
GL Account
If a location is assigned by a user during import or when reviewing the Draft Transaction, Capture AI does not override that choice. Capture AI only replaces default locations when no user‑assigned location is provided.
Credit Memos and Negative Totals
Capture AI recognizes negative Invoice Totals as credit memos and updates the transaction type automatically. It also adjusts line item amounts so the sign of each line aligns with the overall invoice total:
If the invoice total is negative and all line items are negative, Capture AI converts line item amounts to positive.
If the invoice total is negative and line items mix positive and negative amounts, Capture AI flips each line item amount to its opposite sign.
OCR Functions and Limitations
Capture AI supports the following:
Catch weights in a dedicated column.
GL account mapping memorization on the Draft Transaction Screen.
European‑style date formats.
To use European‑style dates with OCR, contact R365 Support to flag the vendor accordingly.
OCR Limitations
Capture AI is optimized for standard AP invoices and credit memos. For the following document types, use manual workflows instead of relying on OCR results:
Receipts – OCR may not capture line items or totals accurately.
Vendor statements – use Manual Upload and attach to records as backup only.
Files containing multiple invoices – split documents on the Documents to Process page before running Capture AI.
Capture AI also does not create new vendors, items, vendor items, payment terms, or GL accounts automatically.
R365 Best Practices for Capture AI
Keep multi‑page documents in page order. If pages upload out of order, split, merge, or reorder pages before processing them with Capture AI.
Use OCR mapping to correct fields so they match how the invoice or credit memo should be read.
Do not use OCR mapping to create workarounds, remove entire tables, or force mappings that conflict with the document layout.
If multiple document types are uploaded regularly, consider disabling Automatic OCR Processing on the System Preferences – Miscellaneous page to prevent OCR from running on unsupported document types.
OCR processing applies only to AP invoices and AP credit memos.
How Capture AI Fits into Documents to Process
The Documents to Process page is the intake point for Capture AI processing. Uploaded invoices and credit memos appear in the grid. When Capture AI is enabled, the system uses OCR to extract key invoice details and prepare a Draft Transaction for review.
On the Documents to Process page, users can:
Upload and categorize documents.
Start Capture AI processing for invoices and credit memos.
Open Draft Transactions for review.
Security
The permissions listed here are associated with OCR. These permissions can be added to custom user roles or single users. Learn more about managing permissions and custom user roles here.
Administration → System Setup → Edit OCR Mappings
Administration → System Setup → Create Transactions with OCR
The Permission Access report can be used to determine which user roles or users already have these permissions assigned. Learn more about User Setup and Security here.
Draft Transaction Screen and OCR Mapping
The Draft Transaction Screen is where AP invoices are reviewed and prepared for entry into Restaurant365 after Capture AI processing. Capture AI uses OCR to extract and populate invoice data, significantly reducing manual data entry.
On the Draft Transaction Screen, users can:
Review and confirm values populated by Capture AI.
Update GL account mappings for line items to improve how future transactions are categorized.
Open the Review OCR Mappings sidesheet to suggest improved mappings for invoice fields.
Corrections and mapping updates made on the Draft Transaction screen improve Capture AI’s accuracy over time for that instance.
Capture AI and Default Mark as Paid
Capture AI can be used with the Default Mark as Paid function.
When Capture AI creates invoices for vendors with Default Mark as Paid enabled:
Invoices are created in an unapproved state, so no AP Payment is created immediately.
After a user approves the invoice, R365 automatically creates an AP Payment based on the vendor’s default settings.
For more information about how this workflow impacts payments, see the Default Mark as Paid article.
