ERP System Controls That Could Be Giving a False Sense of Security
You might think your ERP System is fail-proof, but could its controls actually be causing financial leakage? In this video, Pearsall Smith walks you through the areas of weakness to watch out for so that you don’t fall for a false sense of security.
1. 3-Way Match Systems Can Create Duplicate Vendors, Resulting in Overpayments.
Simple keying errors such as transposed digits and existing vendor duplicate records can make an invoice appear to be “unique” in your ERP System.
2. Optical Character Recognition is Not Infallible.
Many ERP systems use automated scanning software like Optical Character Recognition to match your invoices to vendors. However, they’re not always accurate and can create issues resulting in numerous overpayments.
3. Platform Limitations of ERP Systems
If you’re merging systems or have vendors paying outside of the platform your system or systems won’t stay accurate, creating a new source of financial leakage.
Watch the full video for more information on areas of weakness in enterprise planning resource systems, and insights on how to mitigate these common causes of financial leakage. Questions? Fill out the form below to get in touch with an AP Recovery expert.