AP Automation and ERP Systems: The Dynamic Duo

Enterprise resource planning (ERP) is a powerful solution with sophisticated modules, features, and functions. It connects various aspects of a business into a unified platform to provide a holistic view of its operations and performance. What you might not know is the solution can be integrated with additional systems like Accounts Payable Automation to expand its capabilities further. 

So, if ERP is already so complex, why should we further complicate it with an AP automation solution? 

Read more: The End Of Traditional ERP Solutions As We Know It?

Contents

• Why integrate AP Automation and ERP systems?
• How do AP automation and ERP systems integrate?
• Integrate your ERP with Yooz

Why integrate AP Automation and ERP systems? 

The goal of automating the accounts payable (AP) function is to better manage this back-end financial process more accurately, timely, and efficiently while at the same time reducing manual paperwork, by leveraging technology.  

Once enhanced through automation, AP processes can potentially improve relationships between businesses and partners, save resources, and boost cash flow. 

You may have heard of the term “touchless” in AP automation. All or part of manual tasks (e.g., data entry, document matching, etc.) are now eliminated or replaced by automation, hence the term "touchless". Users simply modify, check, and approve processes along the way. This helps save AP teams tons of valuable time and effort. 

ERP systems, on the other hand, facilitate smooth data flows across the organisation, ensuring everyone has access to the latest information. This single source of truth enables the business to minimise data entry and any human-related errors. 

Typical ERP software consists of, but is not limited to, the following modules: 

• Financial management 

• Supply chain management 

• Human resources management 

• Customer relationship management 

• Production and manufacturing 

Read more: A Nucleus Guide to Embrace Modern ERP Systems 

ERP systems are typically modular, allowing organisations to implement and integrate functions and features that best suit their requirements. ERP can be integrated with, for instance, e-commerce platforms, customer portals, or other industry-specific applications. 

Integrating AP automation will boost the performance of ERP software to a whole new level, beyond cost savings. The combo will provide businesses with enhanced financial visibility as well as control over processes. Imagine invoice data is instantly available across all ERP modules and the company to fuel real-time data access, analysis, reporting, decision-making, and more. 

Learn more: [Video] CIO of Ferrari talks about their ERP implementation 

Here is a comprehensive list of benefits of integrating AP automation and ERP solutions: 

Streamlined processes, enhanced accuracy 

• Eliminate manual data entry, PO matching, and approval chasing. 

• Reduce human involvement and, ultimately, eliminate potential related errors. 

• Reduce processing times, minimise errors, and boost overall productivity. 

• Cut down the time and resources needed for other AP chores, such as calculating labour costs, paper use, processing, etc. 

Better relationships with suppliers 

• Maintain healthy relationships by paying the right amount and on time. 

• Ensure that once the invoices are in, the details are recorded and processed immediately, thus leading to improved terms with suppliers. 

Improved visibility 

• Provide a single source of truth and real-time visibility of cash flow and financial health. 

• Gain more control over financial activities. 

• Constant access to updated data like vital metrics and KPIs to make more informed decisions and better strategic planning. 

• Spot possible problems early on and act proactively to resolve them. 

Enhanced compliance 

• Maintain a transparent audit trail. 

• Ensure every action is recorded, approvals are logged, and documents are properly stored. 

Read more: How to Successfully Adopt Accounts Payable Automation 

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How do AP automation and ERP systems integrate? 

ERP is sophisticated software. Any modifications done to the system require careful consideration and planning. 

The key to successful integration heavily relies on how smoothly the data flows between the ERP and the AP automation systems. Another factor to consider is whether the existing ERP system is cloud-based or on-premise. 

Read more: Understanding the 6 Most Common Migration Strategies 

With cloud-based software, the integration can be carried out via an application programming interface (API) with minimal to no downtime. 

Here are a few typical points of integration: 

• Two systems can exchange vendor data, including contact details and payment terms. 

• Pertinent information—invoice number, date, amount, etc.—captured and processed by the AP automation system is then immediately sent to the ERP system. 

• The ERP system's workflow processes can also integrate with the AP automation's approval workflows. 

• Payment data—including payment dates and amounts—can be automatically entered into the ERP system for record and reconciliation. 

The ultimate goal of combining the two systems, AP automation with ERP, is so that organisations can achieve a more efficient, accurate, and controlled financial process.  

On-premise ERP systems, on the other hand, tend to be more lengthy and complex and often require import/ export data using customised file templates. 

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Integrate your ERP with Yooz 

Whichever path you choose, integrating your existing ERP and an AP automation solution can open up countless new opportunities. 

Businesses should familiarise themselves with the current changing digital landscape and the available solutions as the role of automation becomes more prominent in the coming years along with "hot" emerging technologies like AI, machine learning, and big data. 

There is no "perfect recipe" for the best business solution, but there can be better options, and integration can be one of them. Embracing automation can empower your business to gain a competitive advantage.  

At TRG International, we offer Yooz, a leading cloud-based, AI-powered procure-to-pay automation solution designed to make your path to automation easy. 

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Wonder how our Yooz solution can integrate with your existing ERP system, and what benefit will the combo bring? Watch our on-demand webinar to get a taste of what Yooz is!