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SmartExtract

In short​

SmartExtract is TEM's AI layer that sits between what the employee selects and what gets posted to the GL. It does two things: reads receipt images to pre-fill expense fields (data extraction), and uses the receipt content to determine the correct posting group automatically - either by classifying a broad category into a specific one (Classify) or by splitting a single receipt into multiple lines with different posting groups (Split).

Why it matters​

Without SmartExtract, the only way to route expenses to the right GL account is to either give employees many specific categories to choose from - or to use TEM's built-in posting criteria (domestic/foreign, with guests, etc.). Neither is perfect: many categories confuse employees and cause misclassification; posting criteria alone can't distinguish a taxi from a flight.

The diagram below shows the three approaches side by side:

Traditional - long list of granular categories that employees must choose between:

Meals DOMESTIC
Meals FOREIGN
Meals Guest
Breakfast (FOR)
Meal (FOR)
Flight
Train
Parking
Rental
...

Standard TEM - a few broad employee-facing categories, with posting criteria applied automatically behind the scenes. An employee picks "Meals"; TEM routes to the correct Posting Group based on country, guest presence, and co-worker split:

Meals  →  Meals Domestic           → Posting Group
       →  Meals Foreign            → Posting Group
       →  Meals With Guest Domestic  → Posting Group
       →  Meals With Guest Foreign   → Posting Group
       →  Meals With Co-worker Share → Posting Group
       ...

SmartExtract Classify - one category ("Transport"), AI reads the receipt and routes automatically:

Transport  →  Taxi     → Posting Group
           →  Flight   → Posting Group
           →  Train    → Posting Group
           →  Rental   → Posting Group

SmartExtract Split - one category ("Hotel"), AI reads the receipt line items and splits the expense:

Hotel  →  Breakfast  → Posting Group
       →  Internet   → Posting Group
       →  Parking    → Posting Group
       →  Minibar    → Posting Group

How it works​

Data extraction (always on when a receipt is attached)​

When an employee attaches a receipt photo or uploads a file, SmartExtract uses OCR to read the receipt and pre-fill:

  • Date
  • Amount and currency
  • Merchant / description
  • Country

The employee reviews and corrects if needed before submitting.

SmartExtract Classify​

Configured per Expense Category Posting Setup. The employee picks one broad category; SmartExtract reads the receipt and assigns the matching Posting Group automatically.

Example - Transport: The employee selects "Transport". SmartExtract reads the receipt and identifies it as a flight. It assigns the Posting Group FLIGHT rather than the default. The expense posts to the flight GL account without the employee needing to know the difference.

Configure: On the Expense Category → Posting Setup → open the SmartExtract menu → click Configure (Configure opens the Classify setup) → add the Posting Groups to classify into.

Fallback: If SmartExtract cannot classify the receipt, the line marked Use as Default is applied. Always configure a sensible default.

SmartExtract Split​

Also configured per Expense Category Posting Setup. When a single receipt covers multiple cost types, SmartExtract breaks it into separate expense lines - each with its own amount and Posting Group.

Example - Hotel: The employee submits a hotel invoice under "Hotel". SmartExtract finds line items for accommodation, breakfast, parking, and minibar. It creates four expense lines, each posted to the correct GL account. The employee submitted once; finance gets four correctly routed lines.

Configure: On the Expense Category → Posting Setup → open the SmartExtract menu → click Split (Split is a separate button from Configure/Classify) → add the Posting Groups to split into.

SmartExtract Deferral​

Assigns a Business Central Deferral Template to an Expense Category. When an expense is submitted, SmartExtract identifies the relevant dates on the receipt and applies the deferral schedule automatically. Used for subscription-type expenses (annual software licences, prepaid services).

Practical guidance​

  • Use Classify when a broad user-facing category covers multiple distinct cost types that post to different GL accounts (Transport → Taxi / Flight / Train / Rental).
  • Use Split when a single vendor receipt routinely bundles costs that belong in different accounts (Hotel → Accommodation / Breakfast / Parking).
  • Write Posting Group descriptions in plain natural language. SmartExtract uses the Description field to match receipt content. "Food and beverage" classifies more reliably than "Meals, Personnel". "Flight and air travel" is better than "AIR-6120".
  • SmartExtract works best on domestic expenses where receipt formats are predictable. Flag receipts processed by SmartExtract for approver review - a notice appears automatically on any AI-processed expense.
  • Always configure a default Posting Setup line on any category using Classify or Split. If SmartExtract cannot match, the default is used; without a default, posting will fail.