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SmartExtract

In short​

SmartExtract is TEM's AI layer that processes receipts at two points in the expense flow.

When the employee attaches a receipt (photo or PDF) in the portal or mobile app, SmartExtract immediately reads it and pre-fills the expense fields - date, amount, currency, and country - and suggests a description and category based on the receipt content. The employee reviews and corrects before submitting. (Merchant information is also extracted, but it is surfaced only in Business Central, not to the employee.)

When the expense is submitted, additional processing can happen based on configuration in Business Central. SmartExtract can split a single receipt into multiple expense lines with different posting groups (Split), or classify a broad category into a more specific posting group based on what the receipt shows (Classify).

Why it matters​

Posting criteria alone (domestic/international, with guests, etc.) cannot distinguish a taxi from a flight within the same "Transport" category. SmartExtract closes this gap: the employee picks one broad category, and the AI routes to the correct posting group based on what the receipt actually shows - without requiring a separate category for every GL destination.

For guidance on how to design categories around SmartExtract, see Designing expense categories.

How it works​

Phase 1 - Receipt attachment​

When an employee adds a photo or PDF to an expense in the portal or mobile app, SmartExtract reads the receipt and pre-fills the fields the employee sees:

  • Date, amount, currency, and country
  • A suggested description
  • A suggested expense category

The employee reviews these values and can correct any of them before submitting. No configuration is required for this phase - it is always active when a receipt is attached.

SmartExtract also extracts the merchant from the receipt, but this is surfaced only in Business Central for finance - it does not appear to the employee in the portal or app.

Phase 2 - Submission processing​

After the employee submits, additional SmartExtract processing runs if configured on the expense category in Business Central. There are two modes:

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 licenses, prepaid services).

Tax areas (North America)​

In North America, SmartExtract can determine the Tax Area for a domestic expense from the receipt. It reads the list of Tax Areas defined in Business Central and, based on the information on the receipt, selects the one that best matches - also identifying the taxable and non-taxable amounts and updating the expense accordingly.

  • United States - controlled by the Process Tax on Domestic Expenses setting in Basic Setup. Enable it for SmartExtract to attempt tax-area identification on domestic expenses.
  • Canada - happens automatically, with no setting required.

See North America and Basic Setup.

The AI notice​

Any expense that SmartExtract has processed carries an automatic notice on the expense card, so approvers and finance know an AI step was involved and can give it an extra glance. SmartExtract is most reliable on domestic receipts, where formats and tax rules are predictable.

For how to design categories so SmartExtract works well - when to reach for Classify, how to write category and Posting Group descriptions, and why a default line matters - see Designing expense categories.