ERP integration is allowing companies to realise “Commitment Accounting” by fully automating the “procure to pay” process.

In any business large or small - double handling costs a great deal. So you need to find a supplier that can work with you and your systems to eliminate double entry. If possible partner with suppliers that can facilitate Enterprise Resource Planning (ERP) integration. ERP systems such as Oracle, SAP, Peoplesoft, Technology 1 and Mincom have all developed “punch-out” type components which allows companies to integrate with suppliers websites. Essentially this means that you and your company don’t have the hassle of maintaining a procurement catalogue. You can leave that up to the supplier, they’re the experts. This integration then allows you to take care of ordering over the Internet from within your own system. In laymen’s terms, when you raise a requisition in your own system you then click on the link for the appropriate suppliers catalogue, like NetXpress and build the order using a purpose made ordering system.

Once you’ve built the order, the system transfers those products into your Purchase Order Screen. When you’re all set, you hit the button and then that sends the purchase order off electronically. In this case, you have an electronic purchase order sitting in your system to the exact dollar amount and the order sent. The invoice can also be supplied electronically, your system then aligns the invoice for that purchase order, creates a payment for that and sends it back electronically. The only thing that has happened manually is the delivery of the goods. You’re not keying in purchase orders or invoices and you don’t have to maintain your own catalogue. Our customers have found that by streamlining the accounting process from procurement to payment in this manner, the process becomes as cost effective as you can possibly get, again saving you time and effort. OK. So maybe you’re not in a position to integrate your ERP system, so what else can you do?