Imagine the level of frustration caused by the lack of interaction between business systems. One puts information in one of the positions and you repeat the position another time. Numbers don’t match. Invoices get stuck. Work slows down. Now, envision a world in which there is smooth co-existence. What if your team could:
- Copy information in one system to another without typing.
- monitor all orders, invoices, and payments in real-time.
- prevent the mistakes that are a result of disconnected tools.
- use all the information to make full and accurate decisions.
Such is what will occur upon the integration of a procure to pay platform with the right ERP and financial systems. Nonetheless, integration should not be done in haste otherwise it would become an expensive affair. We will consider solutions before we look at the major issues that are experienced during integration.
Knowing the Significance of System Integration
The combination of P2P with the tools of ERP and finance is not only a technical operation. It has an influence on the work of all teams. It is why companies need to comprehend why integration is important before making the start.
Smooth data flow
- Information must have automatic flow between systems.
- This eliminates duplicating hand written entries.
One source of truth
- The same numbers should be visible to all the teams.
- This eliminates misunderstanding of expenditure or payments.
Better visibility
- The managers are able to view all the information in real time.
- This assists them in making downsizing decisions.
Strong financial accuracy
- When systems are fit right, the records of payments are clean.
- This decreases billing issues.
Foundation for automation
- Good integration enables companies to eliminate more steps.
- This lays the foundation to the subsequent phase in the set-up process.
When companies understand the importance of integration, they should design data structure in the correct manner.
Assuring Data Accuracy and Uniformity
It is data that makes the core of any integration. In case of messy data, all processes will fail. Business organizations have to exercise additional precautions to ensure that their records are clean and uniform.
Standard naming rules
- There should be defined naming patterns of items, suppliers and categories.
- This eliminates system misalignments.
Clean master data
- The old or duplicate records should be cleared.
- This facilitates ease of integration.
Matching fields
- Similar information must be having the similar form.
- This assists systems to comprehend other systems.
Regular data checks
- Enterprises have to correct mistakes prior to transferring information.
- This helps to avoid larger issues with setting up the workflow.
Up to date information
● Documentation has to be up to date when integration starts.
● This equips the business with the subsequent activity of alignment of the workflow.
When it comes to ready data, there should also be a matching of workflows between the P2P tool and the ERP.
Coordinating Workflows across Systems
Good data does not work well in case of bad workflow. A P2P tool is most effective when it is operating in the same line as the ERP and the financial systems.
Matching approval steps
- The approvals of both systems should be the same.
- This prevents the stalling of orders.
Clear roles
- The accountability of every individual has to be equivalent through systems.
- This maintains the approval uniformity.
Same document flow
- Invoices, requests and orders should be in the same order.
- This assists teams in not being confused.
Referring financial transactions
- The ERP should capture the payments immediately they occur.
- This maintains accuracy of accounts.
Easy tracking
● The teams must be in a position to see all the steps of each system.
● This creates the second obstacle of integration testing.
In cases where the workflows are synchronized, companies have to test them prior to their launch into the market.
Dressing The Dress Rehearsals Before Live
One of the most significant steps is testing. Small mistakes will result in big problems in the post launch.
End to end testing
● The overall purchasing process should be put to test.
● This is so as not to have something in the middle halfway broken.
Checking document flow
● Teams have to determine whether POs, invoices and receipts are transferred or not.
● This demonstrates whether the integration is complete.
Error detection
- Testing is used in the detection of missing fields or incorrect mappings.
- Fixing them early saves time.
Supplier testing
- The system should be also tested by some of the suppliers.
- This will make them be able to take and act on orders.
User practice
● Real tasks must be practiced by the teams in advance.
● This prepares the business towards the next move which involves working on updated data.
After the testing, companies should make the systems safe and stable, once the testing is completed.
Ensuring Data Protection and System Stability
Good integration should be also secure. Businesses need to ensure that their data is secure, maintain the integrity and reliability of the two systems.
Data security
- Sensitive information should be safeguarded against threats.
- This helps in safekeeping financial records.
Controlled access
- There are some information that only should be seen by the right users.
- This prevents misuse.
Stable connections
- The integration must not fail at the time of busy schedules.
- This avoids workflow delays.
Regular monitoring
- Companies should observe system flaws.
- Solutions on the fly eliminate inconvenience.
Reliable performance
● The two systems should remain quick and reactive.
- This demonstrates the relevance of reliable tools like the procurement software are important.
Secure systems and stable data enable firms to be able to utilize P2P tools with ease, not necessarily to break down.
Final Thoughts
An effective integration of P2P systems and ERP tools involves effective planning, clean data, simple workflow, effective testing, and constant monitoring. When properly made, it provides companies with improved visibility, expedites the company processes, and provides quality financial control. Procol can assist your business in starting up in the event it needs an easy and smooth P2P experience.