Accounts payable automation: Thinking outside ERP

31.07.2012

Running a variation of an ERP system is another option that sounds good in theory, although, since they are all based on the same platform each system can be different enough to require special attention. From a high-level view, they appear identical, but it can be a very different picture at the operational level. Even if a company has standardized on an enterprisewide ERP solution, multiple instances in different locations around the world can require integration of multiple workflow tools in order to automate AP workflow, complicating initiatives such as setup of shared services centers.

There is a misconception that, because all actions can be performed from within the ERP interface, "inside ERP" workflow is a more streamlined and effective solution. However, this does not reflect the multitude of problems that many companies face in reality. Consider:

* The problem of access. Inside ERP processing can impede the ability of some users to perform their daily tasks. Storing an invoice inside the ERP provides access to the document, yes, but only select, high-ranking team members have access to all of the information needed to decipher how an invoice was approved, whether signatures were received, or whether instructions were followed correctly. Unlike an ERP-independent solution, it's difficult to configure the options and resources shared by all of the users so that usability and visibility are maximized while still protecting . In other cases, especially when or traveling, some users may prefer to not use the ERP interface for AP workflow altogether. It's more efficient for them to use a mobile device to check and approve invoices, especially if it's a Web-based application that doesn't require incremental ERP licensing costs to approve invoices through the ERP interface.

* The problem of complexity. Opening up your ERP system to add AP workflow automation is not as easy as 1-2-3 -- with it comes a significant amount of costs, risks and complexities. More often than not, solutions that function within the ERP environment require a major investment of time and money for installation, integration and maintenance by ERP application engineers.