BPA vs ERP Workflow Modules: What CFOs Need to Know

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• BPA Software, ERP, limitations of erps

As more and more companies invest in Business Process Automation (BPA), Artificial Intelligence (AI), and other new business technologies, you might be wondering how those are different from the technology you already have.

Enterprise resource planning (ERP) software is one of the most commonly used types of business technology. Like BPA, ERP is advertised as a software system that streamlines and unifies business processes for you. So if you already have an ERP system, why do you need BPA software as well?

BPA and ERP systems can overlap, but they have different workflows and different functions. ERP systems often include basic automation, but BPA tools offer greater flexibility, cross-system integration, and user-friendly customization. If you get BPA software that integrates with your ERP system, then they work together to provide much more robust business management tools than you’d get using ERPs on their own. This is particularly true if your company is using a legacy ERP system and wants to improve its functionality without completely replacing it.

ERP Workflow

ERP software standardizes and streamlines core business functions, including inventory management, procurement, and accounting. Traditional ERPs like NetSuite, SAGE, and QuickBooks Enterprise provide a holistic view of business processes within a company. Workflows are focused on specific tasks within the ERP system, such as automating purchase order approvals.

Let’s take QuickBooks Enterprise as an example of traditional ERP workflows. This feature-rich version of QuickBooks includes tools to help you run your company’s accounting, inventory, time tracking, payments, and payroll all in one software platform. One of the features QuickBooks includes is workflow templates to automate certain repetitive tasks.

For example, you can set up a payment reminder workflow that automates sending invoices to your customers and triggers an automated payment reminder if the invoice is not paid within a set timeframe. Or you can set up an approvals workflow that triggers when invoices above a set amount enter the system and automatically sends approval reminders to designated people within your company. These types of workflow automation are confined to the scope of the ERP software and typically don’t involve cross-department collaboration.

BPA Workflow

BPA software streamlines entire departments, and software modules from the same company can work together to create end-to-end automation solutions across departments. It often overlaps with and covers more than ERP systems. If you have an ERP system already, make sure you look for a BPA system that integrates seamlessly with your ERP so you won’t have to deal with software conflicts.

Let’s use NextProcess as an example of BPA workflows. We offer modules to power and automate capital project management, procurement and purchase orders, accounts payable, travel & expense, and payment disbursements. You can also digitize document management with our software modules.

You can implement our software modules separately or together, depending on your company’s exact needs. We very commonly have clients automate procurement and accounts payable at the same time because those software modules are so vital to automating the procure-to-pay process.

Purchasing and Accounts Payable with BPA

Let’s take a closer look at the procure-to-pay workflow with BPA modules. Procurement BPA and your existing ERP work together to centralize vendor information, enabling the procurement team to easily manage suppliers and vendors. Using this information, the procurement team sets up item catalogs and punch-out catalogs that make it very simple for all employees to comply with purchasing policies. Employees making purchases simply log in to the system and place an order for pre-approved items.

Once an order is placed, the system automatically kicks off the procure-to-pay workflow by generating a purchase order (PO). After the supplier replies with a PO acknowledgement, the BPA system automatically checks that the acknowledgement matches the original PO. If everything checks out, the workflow moves on uninterrupted, but if there’s an issue, the purchasing software alerts the procurement team for manual review.

The procure-to-pay workflow moves to accounts payable with invoice receipt. The system tries to automatically match incoming invoices to POs previously generated in the purchasing software module. If the invoice matches the PO, it automatically moves to the next step in the workflow. If it doesn’t match, the system routes the invoice for manual review. Autoprocessing checks for errors and possible fraud before moving the invoices on to the payments system, either for automatic payment or for approval (depending on your customized settings). To learn more, check out our article, “What Does Accounts Payable Workflow Automation Look Like In Practice?”

Filling In The ERP Gaps

BPA platforms can extend the life of legacy systems by filling automation gaps without requiring a full ERP upgrade. All ERP systems have limitations. They’re often challenging to customize, miss details in data, struggle with moving documents through complex workflows, and are costly to change or update. Integrating Software-as-a-Service (SaaS) BPA systems with your existing ERP is typically a much more cost-effective way to improve functionality than a complete overhaul of the ERP system.

Many ERPs are not designed to integrate with external software. That’s why it’s essential to choose your BPA partner carefully, to ensure that they have a high success rate with successful integrations between their software modules and ERP systems. Here at NextProcess, we have a 100% success rate integrating with ERP software, including software like NetSuite that is notoriously resistant to integrations.

CFOs should evaluate total cost of ownership, scalability, and alignment with finance-specific needs before choosing which BPA system to use. Not all BPA systems offer the same level of functionality, nor do they all guarantee seamless integration with existing ERPs. Contact us today to set up a free demo and see how NextProcess software can enhance ERP workflow for your company’s specific needs.