AP First, ERP Next: KION’s Smarter Path to SAP S/4HANA

Most companies approach AP modernization as part of their ERP journey. KION Group took a different path—and now others are paying attention.

While planning their S/4HANA rollout, they chose to modernize AP separately. This meant they were able to digitize processes quickly, free their teams from paper bottlenecks, and build a standard approach in their shared service center—before the ERP migration was complete.

This reduced risk by ensuring AP teams could continue operating smoothly during the S/4HANA transition. It also accelerated benefits, as KION gained faster invoice processing, stronger compliance, and a simpler handover to the new ERP system.

In our recent webinar with SAPInsider, Basware and KION discussed why decoupling AP from ERP migration can be a smart move, and what lessons other organizations can apply as they prepare for S/4HANA.

Why AP matters in the S/4HANA journey

S/4HANA offers a powerful ERP foundation, but many organizations are finding that true business value comes from modernizing core finance processes alongside the upgrade. In AP, three major forces are driving this need:

• ERP migration: With ECC support deadlines approaching, organizations must decide how to prepare processes for the future and avoid carrying inefficiencies into a new system.
• AI-driven automation: New technologies are delivering significant improvements beyond older tools like OCR, making AP an area where AI brings real, practical value.
• Global tax compliance: Mandates across Europe, Latin America, and beyond require organizations to standardize invoicing and ensure regulatory alignment. No two countries are the same, making compliance a complex, ongoing challenge.

Rather than treating AP as a secondary consideration, companies are increasingly viewing it as a way to reduce risk, stay compliant, and accelerate ROI in their S/4HANA projects.

The value of a clean core

One of the most important themes from the discussion was SAP’s “clean core” strategy. The principle is simple: keep the ERP as standard as possible, and use best-of-breed solutions for specialized processes like AP.

Basware supports this approach. One customer was able to retire more than 3,000 SAP customizations by using Basware’s native capabilities. The result: a simplified architecture that makes it easier to adopt future innovations, speed up migrations, and scale without adding complexity.

With over 600 joint customers, including more than 100 already live on S/4HANA, Basware and SAP have proven how a clean core strategy can reduce risk and deliver results. Independent analysts, including Gartner and Forrester, continue to recognize Basware as a leader in AP automation and invoice lifecycle management.

Lessons from KION Group

KION Group, a €11 billion global leader in supply chain solutions and industrial trucks, shared how it modernized AP while rolling out S/4HANA. As Thomas Mueller, Senior Director of Processes and Digitalization, explained, the company faced a fragmented ERP landscape and significant reliance on paper-based processes in some entities.

In France, for example, supplier invoices were still handled manually. To centralize processes into a shared service center in Poland, KION needed to digitize AP quickly rather than wait for the ERP migration to be complete.

By implementing Basware, KION moved from paper-heavy AP to a fully digital invoice lifecycle management approach. This not only delivered immediate efficiency gains but also meant that when S/4HANA went live, AP operations could continue seamlessly with minimal disruption.

Key takeaways from KION’s experience include:

• Start early: Don’t wait until the ERP project is underway to modernize AP. Decoupling reduces complexity and risk.
• Focus on people and change management: Moving from paper to digital requires new ways of working, clear approval structures, and strong change support.
• Standardize and simplify: Eliminating exceptions and harmonizing processes across countries is essential for scalability.
• Take a wave approach: Rolling out country by country gave KION a clear path to scale global standardization while managing risk.

Delivering measurable business outcomes

Organizations that modernize AP alongside their S/4HANA journey typically see benefits in three areas:

• Innovation and ROI: Many achieve double-digit millions in savings, with automation reducing manual effort and unlocking working capital benefits.
• Simplified architecture: Fewer customizations and a clean core create flexibility for future upgrades.
• Speed and compliance: Decoupling AP from ERP allows companies to meet country-specific tax deadlines and keep ERP rollouts on track.

For KION, moving AP to a SaaS platform also created agility. New capabilities like AI-based invoice capture, smart PDF processing, and supplier data insights can now be adopted quickly—without waiting for lengthy ERP projects.

What comes next

As the webinar made clear, AP transformation is no longer just about efficiency. It’s about building a finance function that is scalable, compliant, and ready for innovation.

For organizations preparing for S/4HANA, the message is clear: modernize AP early, simplify processes, and keep the ERP core clean. Doing so creates a foundation not just for a successful migration, but for long-term agility in a rapidly changing business environment.

Watch the full discussion with Basware, SAPInsider, and KION on demand here: Rethinking Accounts Payable for SAP S/4HANA.