I love competition. I can relate every business success I have had from some source of competition; however, when it comes to competition in Accounts Payable Automation, it can create a lot of problems. The competition I am referring to is the competition between your AP Automation System and your Dynamics ERP system.
And the Winner Is?
The competition between systems seems like an innocent situation. Notice my use of the word, “situation.” That is what people think about when they are faced with competition between systems. However, it is not a situation… it is a full on problem.
Things to Think About
I have seen many automation disasters that started with good intentions and ended with two systems trying to electronically enter an invoice into the Dynamics. Here is an example:
An AP Automation Service Provider enters an invoice into AP and there is an open purchase order (PO) that also enters the invoice into AP when there is a 3-way match. If you look back at that sentence, the competition is between the Automation System and the PO system. Their end goal is to both put an AP transaction into Dynamics.
Here are a few other places AP Automation and Dynamics compete:
- Check Numbers
- Cash Management
- Job Cost – Project Accounting
- Financial Reporting
- Aging
- Vendor Management
So Which Should Be the System of Record?
My recommendation is to make your Dynamics ERP system the system of record. It’s the boss. All financial and cash management should be done in Dynamics. Let the AP Automation System focus on getting rid of the paper, speeding up the approval process and eliminating the manual data entry so you can do better things with your time.
About AvidXchange
AvidXchange is an industry-leading, SaaS based AP and Payment Automation solution provider located in Charlotte, NC. AvidXchange has been helping companies eliminate 100% of paper invoices and paper checks from their AP process since 2000 creating more efficient and scalable processes for their customers. AvidXchange is integrated with Dynamics AX, GP, SL, and NAV.
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