How to Automate Email Data Extraction in Accounts Payable

Your AP inbox holds thousands of dollars in unprocessed invoice data, right now. Vendors email invoices as PDF attachments. They send purchase order confirmations in message bodies. They include payment terms in subject lines or email bodies. Bank details arrive in follow-up emails. Your AP team reads each email, downloads attachments, and manually types the data into your ERP. The same information gets entered twice. Once by the vendor when they write the email. Again by your AP specialist when they process it.

Download your free eBook. Your AP Automation Wake-Up Call.
Calculating the Cost of Doing Nothing [2025 Edition].

This double handling creates AP bottlenecks that cost money and slow payments. Automated email data extraction eliminates manual data entry by automatically capturing invoice information from vendor communication and feeding it directly into your AP systems.

What is email data extraction in AP?

Email data extraction uses advanced AI to identify invoice-related emails, extract data from message content and attachments, and transfer that information directly into AP systems.

The technology monitors your accounts payable inbox continuously. When a vendor email arrives, machine learning models analyze the message. They identify the email type. Invoice submission. Purchase order confirmation. Remittance update. Payment inquiry.

For invoice emails, the system extracts key data fields automatically. Vendor name. Invoice number. Date. Line items. Amounts. Payment terms. Tax details. All captured without human intervention.

The extracted data flows into your AP workflow. Invoice information populates processing queues. Your team validates and approves rather than typing and entering.

This differs from basic email management. Standard email tools organize messages and flag priorities. Email data extraction goes further by reading content, understanding context, and capturing structured data that feeds downstream systems.

Traditional invoice processing starts after someone manually downloads an attachment and begins data entry. Email data extraction starts the moment the vendor hits send.

The invoice data hiding in your inbox

Vendor emails contain more processable data than most AP teams realize. 

Invoice attachments and embedded data

PDF invoices attached to emails are the obvious target. Email data extraction reads these attachments automatically and captures all invoice fields in seconds.

Some vendors embed invoice data directly in email bodies. No attachment. Line items appear as text. Amounts sit in formatted tables. Email data extraction reads this body content and structures it as invoice records.

Payment terms and discount information

Early payment discount terms often appear in email bodies rather than invoice documents. “Pay within 10 days for 2% discount” or “Net 30 with 1.5% discount if paid by month-end.”

Manual processing misses these opportunities because your AP team focuses on the invoice attachment and overlooks terms mentioned in the email body. Automated email data extraction captures payment terms from both the invoice and the email text, then compares them with your vendor master data in your ERP. Any discrepancies or early payment discount opportunities are flagged for review, ensuring discounts are captured without compromising financial controls.

Invoice corrections and adjustments

Vendors email corrections. “Please adjust invoice 12345 to $5,000 instead of $5,500.” Email threads document the reason. 

Email data extraction links these communications automatically by identifying the referenced invoice and capturing the context of the message. Rather than changing the financial records based on informal email instructions, the system flags the discrepancy and alerts your AP specialist. The invoice is shelved until a revised invoice or credit note is received. This maintains internal controls while ensuring all related communication is documented in one place.

Why manual email processing creates AP bottlenecks

Several factors make email a major source of AP inefficiency when handled manually.

High-volume data entry

Email-based invoice submission has become standard. Vendors prefer email over portals because it’s simple and universal.

Each invoice email requires manual handling. 

• Download the attachment
• Open your ERP
• Navigate to invoice entry
• Type vendor name
• Enter invoice number
• Input date
• Add line items
• Calculate totals
• Verify tax amounts
• Save and route

This can take 5-8 minutes per invoice for straightforward documents. Complex invoices with multiple line items need roughly 10-15 minutes. An AP specialist processing 30 invoices daily can spend 3-4 hours on pure data entry.

The time cost extends beyond data entry. AP specialists constantly switch between the ERP and the email platform to clarify missing information, resolve discrepancies, or ask for corrected invoices. Each exception triggers manual follow-up emails and waiting, with no standardized tracking or automation. This broken communication slows processing and increases the risk of invoices getting stuck in inboxes without clear ownership or status.

Inconsistent email formats

Every vendor sends emails differently. Some attach clean PDF invoices with standard layouts. Others send poor quality scanned images. Some embed invoice details in email bodies with no attachment.

Subject lines vary. “Invoice 12345” or “Payment request – ABC Company” or “Statement for October” or “Bill.”

Manual processing means reading each email to understand its content and purpose. You can’t create rules or filters because vendor communication patterns differ too much.

Manual attachment handling

Invoice attachments need downloading, storing, and organizing. Your team creates folder structures, renames files for consistency, and ensures attachments link to correct invoice records.

Some vendors send multiple invoices in one email. Others attach supporting documents alongside invoices. Credit memos, delivery receipts, and contracts arrive mixed with invoices. Sorting through these attachments manually wastes time. 

Data entry errors

Manual data entry introduces errors. Typos in invoice numbers. Transposed digits in amounts. Wrong vendor selections. Incorrect purchase order matching.

Industry research suggests data entry error rates in manual AP processing typically range from 1-3%.

Each error triggers additional work. Your team investigates discrepancies. They contact vendors for clarification. They void and re-enter transactions. These exceptions consume hours that should go towards processing clean invoices.

The financial impact of manual email data handling

Manual email processing creates systemic financial impact across cost, cash flow, and supplier relationships…

• High processing costs
  Manual invoice processing typically costs $12-26 per invoice when labor, overhead, and error correction are included. 
  
• Lost early payment discounts
  Slow email-based processing causes organizations to miss available early payment discounts.

• Error correction expenses
  Data entry mistakes trigger rework, investigation, and vendor follow ups.
  
• Vendor relationship impact
  Delayed acknowledgment and payment visibility weaken vendor relationships and negotiating power. Delays make them question whether their invoice was received.

For example, an organization processing 5,000 invoices per month by email can spend $720,000 to $15 million annually on manual processing alone. Missing a 2% early payment discount on $500,000 eligible invoices adds another $120,000 in lost savings each year. Costs that automated email data extraction directly reduces.

How email data extraction works

Email data extraction combines AI technologies to automatically process vendor communications and capture relevant data, while keeping the AP automation platform or ERP as the system of record. Information extracted from emails is presented as needed alongside invoice data and vendor master records, giving your AP team full visibility into context, discrepancies, and supporting communication. Without relying on unofficial email text to override financial documents

The extraction process

The system connects to your AP inbox through secure API integrations. It monitors incoming messages in real time.

Machine learning models analyze each email. They examine the sender, subject line, email body, and attachments. The system classifies the email’s purpose – invoice submission, PO confirmation, payment inquiry, remittance update, or general correspondence

For invoice emails with PDF attachments, OCR technology – optical character recognition –  and intelligent document processing read the document regardless of format variations. The AI identifies invoice fields by understanding document layout and context.

When vendors include invoice details in email bodies rather than attachments, natural language processing extracts structured data from unstructured text. The system identifies key information patterns and parses them into data fields.

Advanced AI document processing platforms achieve 95%+ accuracy rates on standard invoice documents. Localization management means they can handle multiple languages, currencies, and regional format variations automatically.

Data validation and transfer

Extracted data undergoes automated validation before entering your AP system. The technology checks for common errors and inconsistencies.

• Does the invoice number match expected formats?
• Does the total equal the sum of line items?
• Do tax calculations look correct?
• Does the vendor name match your master file?

Validation identifies extraction errors and vendor mistakes. Suspicious data gets flagged for human review. Clean data flows directly into processing workflows.

Validated invoice data transfers to your ERP through direct API integrations. The invoice appears in your system in seconds. Every extracted field includes confidence scores showing the AI’s certainty.

Real-world workflow example

Here’s an example of how email data extraction can work in practice…

• Day 1, 9:00 AM – Vendor sends invoice PDF with payment terms in email body  
• Day 1, 9:01 AM – System extracts invoice number, amount, line items from PDF  
• Day 1, 9:01 AM – System captures “2/10 net 30” discount terms from email text  
• Day 1, 9:02 AM – Extracted data flows to ERP, matched against PO  
• Day 1, 9:05 AM – Invoice routes to approver with full context  
• Day 1, 2:30 PM – Approver reviews and approves
• Day 1, 2:31 PM – Payment scheduled for day 8 to capture discount  

Total processing time – 5.5 hours, most of it waiting for human approval. Manual processing would take 3-5 days to get the invoice into the system.

Implementation strategies for email data extraction

Successful email data extraction demands careful planning.

Current state assessment

Start by analyzing your email-based invoice volume… 

• How many invoice emails do you receive per month? 
• From how many vendors? 
• What percentage includes PDF attachments versus embedded data?

Document current processing times. How long does manual email handling take per invoice? Identify your biggest pain points.

Platform selection criteria

Evaluate email data extraction platforms based on these capabilities…

• Extraction accuracy – Leading solutions achieve 95%+ accuracy on standard invoices. Ask for proof-of-concept testing with your vendor emails.
  
• Format flexibility – The system must handle PDF attachments, scanned images, and email body text without extensive configuration.
  
• Language support – If you work with international vendors, ensure the platform handles multiple languages accurately.
  
• ERP integration – Look for pre-built connectors to systems like SAP, Oracle, NetSuite, and Microsoft Dynamics.
  
• Scalability – Cloud-native platforms like Rossum scale effortlessly when volume increases – without performance degradation.

Phased rollout approach

Start with a pilot group of high-volume vendors sending standardized invoices. 

• Phase one should process 20-30% of your invoice volume
  Monitor extraction accuracy and processing times closely during the pilot. Collect feedback from your AP team about what’s working and what needs adjustment.
  
• Phase two expands to additional vendor segments
  
• Phase three achieves full automation coverage

Change management and training

Your AP team’s role shifts from data entry to data validation. It’ll need training on reviewing extracted data, correcting errors, and handling exceptions.

Celebrate early wins. Share metrics showing time savings, accuracy improvements, and processing speed increases.

Best practices for AP email data extraction automation

Organizations getting the most value from email data extraction use strategic approaches to email management, data quality, and continuous improvement.

Dedicated AP email address

Use a dedicated email address exclusively for invoice submissions. This separates transactional emails from inquiries and general correspondence.

Communicate this address clearly to vendors. Include it on purchase orders, vendor portals, and communication templates. The more vendors use the dedicated address, the cleaner your extraction workflow will be. The system processes invoices without filtering through unrelated messages.

Attachment format guidance

While email data extraction handles various formats, some work better than others. PDF documents with embedded text extract more accurately than scanned images.

When onboarding new vendors, ask that they submit invoices as PDF documents rather than photos or scans if possible. Most accounting systems can generate clean PDFs directly.

For vendors who must send images, request high-resolution scans with good contrast. Poor image quality reduces extraction accuracy.

Exception analysis and resolution

Review extraction exceptions regularly. Why did certain invoices require manual intervention? Were there common patterns?

You might learn that specific invoice fields consistently extract incorrectly. Or that certain vendor email formats cause problems. These insights guide system improvements and vendor communication.

Exception analysis also identifies suspicious or fake invoices. Unusual amounts, unexpected vendors, or inconsistent data patterns get caught during review.

Measuring email data extraction success

Comprehensive measurement frameworks help you quantify benefits, identify optimization opportunities, and justify continued investment.

Key performance indicators

Processing time reduction measures immediate benefit. Organizations typically reduce this from 5-8 minutes per invoice to under 30 seconds.

Extraction accuracy rates show system performance quality. Target 95%+ accuracy on standard invoices.

Manual intervention rates indicate what percentage of invoices still require human handling. Start with 20-30% exceptions during initial rollout. This should drop to 5-10% as the system matures.

Financial impact

Labor cost savings represent the most quantifiable benefit. If email data extraction saves four hours daily across a five-person AP team, that’s 400 hours monthly. At $35 per hour, monthly savings equal $14,000 or $168,000 annually.

Error correction cost reductions quantify quality improvements. Fewer data entry mistakes mean fewer correction transactions. Each avoided error saves $25-50 in investigation and correction work.

Most organizations achieve positive ROI within 6-12 months. High-volume operations see faster returns.

Technology requirements for email data extraction

When evaluating email data extraction platforms, enterprise leaders should focus on critical capabilities…

• Email system integration
  Does the solution connect securely and reliably to your email platform – e.g., Microsoft 365, Google Workspace, on-premise Exchange?
  
• ERP connectivity
  Are there pre-built connectors to your ERP or AP automation system, and who maintains them?

• Security and compliance
  Does the platform meet enterprise-grade security standards – data encryption, role-based access, audit logs, SOC 2 Type II?
  
• Scalability considerations
  Can the solution handle volume growth without performance degradation or infrastructure investment?
  
• Support and maintenance
  How frequently are models update, and what support is available for optimization and change management?

The right platform minimizes technical complexity while supporting long-term scale, control, and compliance.

Email data extraction FAQs

Taking action on email data extraction

Email remains the default channel for invoice submission, yet most accounts payable teams still treat it as an inbox to manage rather than a data source to automate. The result is hidden cost – manual entry, fragmented communication, missed discounts, and rework that accumulates across days, weeks, and months.

Email data extraction addresses this gap at the point where work begins. By capturing invoice data, payment terms, and context directly from vendor emails, organizations shorten processing cycles, reduce error rates, and remove unnecessary back-and-forth from AP workflows.

The opportunity starts with understanding what email is costing your AP operation today. Measure how many invoices require manual re-entry. Track how often teams switch between email and the ERP to resolve missing or conflicting information. Identify where delays originate and how much rework follows. This visibility turns email from an unmanaged intake channel into a measurable source of inefficiency – and creates a clear path to faster processing, fewer errors, and more predictable AP operations.