IAES International Journal of Artificial Intelligence (IJ-AI)

Vol. 12, No. 2, June 2023, pp. 514~521

ISSN: 2252-8938, DOI: 10.11591/ijai.v12.i2.pp514-521  514

Automated invoice data extraction using image processing

Akanksh Aparna Manjunath, Manjunath Sudhakar Nayak, Santhanam Nishith, Satish Nitin Pandit,
Shreyas Sunkad, Pratiba Deenadhayalan, Shobha Gangadhara
Department of Computer Science and Engineering, R V College of Engineering, Mysore Rd, RV Vidyaniketan Post, Bengaluru, India

Article Info ABSTRACT

Article history: Manually processing invoices which are in the form of scanned photocopies
is a time-consuming process. There is a need to automate the task of
Received Dec 17, 2021 extraction of data from the invoices with a similar format. In this paper we
Revised Aug 28, 2022 investigate and analyse various techniques of image processing and text
Accepted Sep 27, 2022 extraction to improve the results of the optical character recognition (OCR)
engine, which is applied to extract the text from the invoice. This paper also
proposes the design and implementation of a web enabled invoice processing
Keywords: system (IPS). The IPS consists of an annotation tool and an extraction tool.
The annotation tool is used to mark the fields of interest in the invoice which
Invoice recognition are to be extracted. The extraction tool makes use of opensource computer
Opensource computer vision vision library (OpenCV) algorithms to detect text. The proposed system was
library tested on more than 25 types of invoices with the average accuracy score
Optical character recognition lying between 85% and 95%. Finally, to provide ease of use, a web
Tesseract application is developed which also presents the results in a structured
Text extraction format. The entire system is designed so as to provide flexibility and
automate the process of extracting details of interest from the invoices.
This is an open access article under the CC BY-SA license.

Corresponding Author:
Pratiba Deenadhayalan
Department of Computer Science and Engineering, R V College of Engineering
Mysore Rd, RV Vidyaniketan Post, Bengaluru, India
Email: [email protected]

1. INTRODUCTION
Large and medium scale companies deal with a large number of invoices on a daily basis. The
companies need to keep track of the products being sold through the invoices, the cash flow generated, taxes
which are paid and other product related analytics which are useful for their business. Companies have a
dedicated set of data entry staff who manually enter these details into the systems or databases. This is a
laborious task and time consuming. This entire process can be automated with the help of a system which
extracts the data from these invoices and updates the databases with the product details. In general, all
invoices have a standard template consisting of the seller company’s name and address as well as the
consumer’s name and address. This is followed by an invoice number which may be of a different format as
adopted by the company. Then there is a table with product details followed by the transactional details like
tax and total amount. This would help design a system which provides flexibility to the user in selecting the
fields of interest, based on their use case. Hence, such a system which aims to capture this functionality of
invoices and provide automation resulting in saving countless hours of human effort will be described in our
paper. There are two parts to the system, an opensource computer vision library (OpenCV) [1] based
framework which runs in the backend detecting text from the invoice, an optical character recognition (OCR)
engine to extract text and a web application which serves as a tool to upload the invoices and view the
structured details as well as store them in the database. This paper in addition aims to present a system which
also automates the processing of an invoice. Another useful application of the text detection and recognition

Journal homepage: http://ijai.iaescore.com

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system has been described in [2] but this restricts the system to detect the text regions on objects which are
less clustered when compared to text present in documents and invoices. However, the paper presents some
useful approaches when dealing with problems belonging to the concerned domain.

2. RELATED WORK
Efficient and accurate scene text detector (EAST) is a deep learning-based architecture that is used
to recognize text in an image which is captured in an outdoor environment [3]. When the architecture was
applied to recognize text in documents, the results were not promising. In order to automate the process of
reading information from these invoices and either storing them in the databases or producing javascript
object notation (JSON) template files, character recognition engines are required which are called OCR
engines [4]. However, before the use of such software is made it is important to preprocess the invoices so
that the accuracy of text extraction will increase. The various steps involved in preprocessing are also talked
about which involve thresholding, binarization and morphological transformations. These methods have been
used to remove background noise and get accurate results. OpenCV is a popular framework among computer
vision enthusiasts. It has been used in the field of text detection as well. Almost all invoices contain tabular
data, [5] explains about the use of OpenCV methods in extracting tabular data as well as metadata about the
table stored in portable document format (PDF) formats. It gives a sound explanation of the algorithm used
while detecting tables.
The fundamentals of digital image processing [6] explains the fundamentals of image processing
and various operations such as image enhancement and restoration, morphological processing, segmentation,
object recognition followed by representation and description. The suitable operations were used while
preprocessing the invoice. The operations in MATLAB [7] gave a clear picture of what transformation was
being made to the invoice by the operation.
One of the recent technologies in the field of computer vision is the use of artificial neural networks.
[8] explains the use of one such deep network while performing text detection. A neural network architecture
called spatial transfer network (STN-OCR) is presented in which a single neural network is trained to detect
and recognize text from images. It makes use of semi-supervised neural networks for scene text recognition
which is further optimized. The model was tested against benchmark detection datasets [9] and gave
promising accuracy scores, [10] details the difficulty and challenges in developing a custom dataset and
finding high quality varied datasets to annotate and use for training and testing, hence it was made the most
out of publicly available datasets. The paper also details their efforts into automating invoice processing by
using feature extraction but does not consider the tables present in invoices and the items present in the tables
which also need to be processed and extracted if there is a need. It was observed that although the network
architecture is simple, it is not easy to train this system, as a successful training requires extensive pre-
training on easier sub tasks before the model can converge on the real task. Marinai et al. [11] Extends the
architecture of STN with an attention model and uses convolutional recurrent neural network (CRNN)
instead of traditional convolutional networks. One such similar neural network architecture is described in
[12] which is used to recognize characters. This also requires large volumes of training data in order to fine
tune to recognize special characters. A popular algorithm for object recognition is the you only look once
(YOLO) algorithm and this algorithm has also been used in order to recognize the various text regions which
are present in the document [13]. However, the use of the YOLO based detection module gave unsatisfactory
results when compared to OpenCV based method, with the YOLO algorithm failing to detect many text
regions. Considering the information extraction task as an image segmentation problem loses the text
semantics, which can further complicate the processing of unstructured documents [10]. The existence of a
dataset in order to train the network for segmentation is another problem in the case of training networks for
extracting relevant information from structured documents. Baviskar et al. [14] Provides a well annotated
dataset which helps in training a network which can recognize varying invoices of the same format.
However, in order to train a model which can recognize a wide range of invoices, the network should be
trained across a large number of invoices as well.
In order to detect the text present in the document, a recent algorithm as described in the paper [15]
has been considered. The algorithm uses neural nets in the backend in order to group characters together
which make up the region of text. However, it becomes difficult to categorize the text which is the required
use case. This has been mitigated with the help of an annotation tool developed as part of the web app. For
the text recognition part as well, the use of popular neural network-based algorithms such as [16] and [17]
have been considered and while they gave promising results during the trials, the performance of these
algorithms in recognizing new characters was found to be underwhelming. There are many OCR engines
available in the current day market, Tesseract being the most popular one [18]. Tesseract is an open-source
OCR engine. It follows a traditional step by step pipeline for performing image to text conversion. Outlines
of the components are detected which are grouped together to form blobs. These blobs are organized into text
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lines which are broken down according to the character spaces. A two-pass recognition step is performed on
these cells in order to identify the words which may have been skipped in the initial pass. Soille [19]
Describes in detail the various morphological transformations and their working, which have been used in the
image preprocessing module of the proposed system.
In order to improve the accuracy of the Tesseract engine and recognize new symbols and characters
[20], the Tesseract base model was trained with custom data files. The methodologies discussed in the paper
were followed and new data and config files were created. This paper helped in providing an insight into the
Tesseract training which helped in improving the Tesseract accuracy [21]. There are also some pre-
processing steps suggested for improving the accuracy of OCR in [22]. Characters and words are separated
from the background by using binarization, noise reduction, skew correction, and slant removal. Image is
segmented into text or word using word extraction and text line detection. Structural features like vertical and
horizontal lines are also extracted as features. Algorithms like k-nearest neighbour (KNN), support vector
machine (SVM), Naive Bayes and neural networks are used to classify characters of languages like latin and
devanagari.

3. METHOD AND IMPLEMENTATION

Selecting the methods of interest to us which best fit our use case, the proposed system consists of
two main modules, a frontend web application which is used to mark the annotations, create template files
and obtain the invoice data in a structured format. The other module is the backend which consists of an
extraction tool and further includes modules such as image preprocessing, text detection and text recognition.
The overall architecture of the system shown in Figure 1 contains two main sections, the annotation tool
provided as part of the frontend used to mark the fields of interese and the core extraction part which runs at
the backend and uses OCR to get fields and tables from invoice after performing the preprocessing steps.

Figure 1. The overall architecture of the system

The web application would be used to mark and annotate the fields of interest by drawing bounding
boxes around them. Further details with respect to the frontend are described in the following section. Before
the introduction of the algorithm for extraction, few pre-processing steps to be performed on the invoice are
discussed. The extraction part is concluded with a note on improving Tesseract accuracy by training the base
model and on expanding its functionality by increasing the number of characters it can recognize.

3.1. Web application

The web application was built using basic hypertext markup language (HTML) and javascript.
popular python web framework Django [23] was used in the backend to transform user uploaded files into
the required format to enable processing. Poppler was used to extract the pages from the PDF and render
them on the HTML canvas. A conservative estimate of 9001,200 pixels was assumed to give the best result
and hence the canvas size was also set to be the same. However, the image would be scaled to match the
canvas and the annotation coordinates would be with respect to the canvas. During extraction, the magnitude
of scaling will be used to correspond the canvas coordinates to the corresponding image coordinates so as to
ensure accurate extraction. This was done so as to avoid downscaling the image and hence losing clarity and
quality which would make it difficult to annotate in a previously low-resolution image. JavaScript is mainly
involved in registering the user click inputs and outputs on the canvas and draws rectangles with a unique
identifier (ID) associated with each of them. These are called annotations. As certain customizations had to
be made for flexibility during annotation, a custom annotation tool was developed using JavaScript and
HTML and an option was provided to edit a previous template by uploading it and editing, a feature which is
not included in publicly available annotation tools.

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Once the fields of interest have been marked, the invoice and the fields of interest registered as
coordinates are used to extract the details from the invoice. The steps have been divided into image
preparation or preprocessing to obtain higher accuracy results by normalizing the invoice, this step is
followed by a table detection step which detects the table of interest to the user. Once all the text has been
detected, it will be extracted by a custom trained Tesseract OCR engine in the text recognition phase.

3.2. Image preprocessing

The invoice has to be processed in order to improve the accuracy of detection and later on
recognition. In order to eliminate background noise, preprocessing is done. The various steps performed as
part of the preprocessing are mentioned in the subsequent sections. The first step is to remove noise using the
OpenCV’s denoising library. Denoising is done to remove the unwanted noise from the image so that
presence of such noise will not affect the further transformations. Denoising is followed by two
morphological operations performed in the same order, erosion, and dilation. Erosion removes white noises
but it also shrinks the objects in focus, in order to increase the size of words dilation is performed. A sample
invoice Figure 2 has been used to capture these operations and display the before and after state after
processing the invoice.

Figure 2. Picture of original image and image after performing preprocessing operations

3.3. Table detection

3.3.1. Bordered table detection
The horizontal and vertical lines in an image are identified using OpenCV functions. By
superimposing these identified horizontal lines and vertical lines, we will be able to identify the structure of
the table. After identifying the table structure, we will be applying morphological operations like dilation and
erosion to get the mask of the table region. After obtaining the masks, we will apply canny edge detection to
identify the edges of the rectangular region and then identify the contours. These contours are cropped from
the original image.
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3.3.2. Unbordered table detection

The table structure is identified by using a mix of template matching and an openCV based
algorithm. The start of the table is specified in a template file JSON. The template file can be created using
the user interface (UI) interface provided by the website. The number of columns in the table is also taken as
an input parameter. Morphological operations are performed on the image (like dilation) to convert the
regions of text into thick black boxes. Later contours are detected from these boxes. These contours are the
regions of text in the image. The contours lying along the same horizontal line are grouped together. If the
number of text regions along the same line match with the number of columns in the table, it is considered as
a row of the table. Each region in the row will be considered as a cell of the table. There are some limitations
to this approach as well:
− The text should be in dark colors and the background should be in white color. Otherwise, the text region
identification would fail.
− If some text region is not part of the table, but has the same number of columns as the table, then that
would be considered as part of the table.

3.4. Text recognition

In order to recognize the characters, present in the text region detected previously, OCR engines
such as Tesseract were used. The comparison of different OCR engines has been detailed further. Tesseract is
a popular OCR engine and its task is to recognize the characters present in an image or text file. The
Tesseract engine is used in the form of a Python wrapper called PyTesseract [24] which is installed as a
dependency in the Django platform. We went through a few opensource OCR engines like OCRopus,
PaddleOCR and Tesseract. OCRopus is a tool to extract text from scanned documents. The basic pipeline
includes binarization, segmentation and text recognition. It gave good results on normal English text but it
was not able to recognize certain special characters like the rupee symbol. We could not find good methods
to train the special characters on the existing model. Therefore, we could not use OCRopus in our
implementation. However, Tesseract was used instead of the other available OCRs mainly because it had
good documentation and an option to train special characters on the existing model.
While testing the performance of the system, few characters such as the Indian rupee or the pound
symbol were not recognized with the default trained data file provided during with Tesseract. In order to
rectify this issue, the base Tesseract model has to be trained to recognize special characters which are of
interest. This training has to be done with datasets which include properly formatted files having the required
special characters with annotated bounding boxes [25]. Open-source pretrained Tesseract files, trained on
special characters such as Indian rupee symbol were used during the recognition pipeline.

4. RESULTS AND DISCUSSION

The extraction step involves two parts, one being extracting product details inside the table and the
second part being extracting specific fields like company name, address and the total amount on the bill. The
results are presented for each part in the following section. For demonstration purposes the following publicly,
available invoice is chosen [9]. It is to be noted that the invoice in Figure 3(a) can be an image taken by a
smartphone or a computer-generated invoice. The image in Figure 3(b) is obtained after performing the image
preprocessing operations. The white regions in Figure 3(b) are contours detected. Using OCR engine text is now
detected in each one of these cells and for the purpose of data extraction from tables only the part of the image
containing the table is considered. By default, Tesseract expects a page of text when it segments an image.
However, as OCR was to be applied on a small region, different page segmentation modes were experimented
on. page segmentation mode (PSM) 4 and PSM 6 gave the best results and PSM 6 was used to extract text from
the annotation as they resembled a uniform block of text which matched the configuration expected by
Tesseract with PSM 6. After running Tesseract on table, we get the output as Figure 4.
Finally in the web application for the user who uploads the invoice the results are displayed as can be
seen from Figure 5(a) and Figure 5(b). Figure 5(a) shows the actual image which was extracted from the PDF.
Figure 5(b) shows the tables extracted from these images. The system was tested on more than 25 invoices which
were captured with varying background images and in varying shades of light. Few invoices were computer
generated whereas images of few invoices were clicked on smartphone devices. Using the confidence score given
by Tesseract the accuracy of extraction of products from tables was found to be between 80% and 95%.
The accuracy of the Tesseract engine is obtained in the form of confidence score which is given as
output by the python wrapper (PyTesseract) for Tesseract. The wrapper returns a list of bounding boxes, the
confidence score (accuracy) for each bounding box, detected text within each box when a call is made to the
image_to_data function. However, when the results of extraction were manually tested it was found that the
accuracy score on average was more than 85%. Text extraction on the entire invoice gave similar results with

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the average accuracy being around 85%. It was observed that accuracy was significantly higher for computer
generated invoices and was on the lower end for the invoices which weren’t generated by machines. The code
repository with contents details as well as the steps to setup, debug and run the program is available at [26].
Following this will lead to a web application where the features discussed in the paper are offered in the tool.

(a) (b)

Figure 3. Sample invoice under consideration for (a) demonstration purposes and (b) the image obtained after
converting to grayscale, performing binarization, applying morphology gradient, thresholding using Otsu
binarization, finding and drawing the contours

Figure 4. The tables recognized and the text extracted from the regions of interest in the template is shown

(a) (b)

Figure 5. Subsection of the invoice and the corresponding text details obtained from the system (a) actual
image with the bounding boxes around the regions of interest and (b) OCR performed on the regions of
interest and the tables detected by OpenCV based algorithms.

5. CONCLUSION
Computer vision has found many applications in various fields. In this paper one such application of
computer vision in the field of text recognition and extraction was presented. A system is presented which
involves a web application at the frontend, OpenCV and a fine-tuned Tesseract OCR engine to perform text
extraction at the backend. Algorithms used in image preprocessing for the invoices are also discussed. With

Automated invoice data extraction using image processing (Akanksh Aparna Manjunath)
520  ISSN: 2252-8938

the help of OpenCV background noises are removed and the lucidity of the pictures is improved. Image
preprocessing techniques have been applied in order to improve the image quality to get accurate results. List
of products were extracted separately and rest of the fields are based on the user’s needs. After the fine tuning
of the base Tesseract model, the system is able to recognize the special characters and symbols with an
accuracy of 90%. The system was tested on more than 25 types of invoices and gave promising accuracy
scores with the average score lying between 85% and 95%.

ACKNOWLEDGEMENTS
We are indebted to our guide, Dr. Pratiba D, Assistant Professor, Department of Computer Science
and Engineering for her wholehearted support, suggestions and invaluable advice throughout our proposed
work and also help in the preparation of this article. We also express gratitude to Dr. Shobha G, Professor,
Department of Computer Science and Engineering for her valuable comments and suggestions. We express
sincere gratitude to our beloved Principal, Dr. K. N. Subramanya for his appreciation towards our work.

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BIOGRAPHIES OF AUTHORS
Akanksh Aparna Manjunath is currently pursuing a B.E. degree in computer science
engineering from RV College of Engineering, Bengaluru, India (2018-2022). His research interests
include web development and development of deep learning models for computer vision. He can be
contacted at email: [email protected].

Manjunath Sudhakar Nayak is currently pursuing a B.E. degree in computer science

engineering from RV College of Engineering, Bengaluru, India (2018-2022). His research interests
include web development and deep learning. He can be contacted at email:
[email protected].

Santhanam Nishith is currently pursuing a B.E. degree in computer science

engineering from RV College of Engineering, Bengaluru, India (2018-2022). His research interests
include machine learning and deep learning. He can be contacted at email:
[email protected].

Satish Nitin Pandit is currently pursuing a B.E. degree in computer science

engineering from RV College of Engineering, Bengaluru, India (2018-2022). His research interests
include web development and machine learning. He can be contacted at email:
[email protected].

Shreyas Sunkad is currently pursuing a B.E. degree in computer science engineering

from RV College of Engineering, Bengaluru, India (2018-2022). His research interests include
cloud computing. He can be contacted at email: [email protected].

Dr. Pratiba Deenadhayalan is working as an Assistant professor in the Computer

Science and Engineering department at RVCE. She received her Ph. D degree from VTU. She has
published over 40 research papers. She can be contacted at email: [email protected].

Dr. Shobha Gangadhara Professor, Computer Science and Engineering Department,

RV College of Engineering, Bengaluru, India has a teaching experience of 26 years, her
specialization includes data mining, machine learning and image processing. She can be contacted
at email: [email protected].

Automated invoice data extraction using image processing (Akanksh Aparna Manjunath)