Integrating Procure-to-Pay and ERP Systems

We live in a complex world where many businesses are operating with a mix of legacy systems and new systems. Though that in and of itself isn’t necessarily a problem, getting them to integrate and operate together smoothly is. In this blog, we’ll discuss key considerations when it comes to integrating ERP and procure-to-pay (P2P) systems and why it’s important to ensure that your P2P vendor can seamlessly integrate with your current systems and any new ones you may adopt in the future.

In the 2021 Gartner® Report “Quick Answer: What Are the Most Common Integration Scenarios Between Procure-To-Pay and ERP Systems?” they state, “Challenging integrations can complicate a procurement modernisation project. Application leaders responsible for procurement can reduce risk and better prepare for procure-to-pay projects by understanding what the common integration points with their ERP are and how the data and documents will flow.” So, let’s take a look at how to make the most of your integrations.

What’s an API and What is Data Exchange?

Simply put, an API is the acronym for Application Programming Interface, which is basically a defined entry point into the application through which data can flow in and out.

Of course, “The amount of integration points P2P and ERP systems will vary depending on how much of the procurement process the P2P solution will handle,” according to the Gartner report.

For instance, here at Basware, our APIs have the ability to exchange data across any part of the P2P solution, including:

• User information — for requestors, approvers, and anyone else who would log into the system.

• Supplier information — including name, identification number and additional default master data such as payment terms.

• Accounting information — which varies depending on the integration scenario and business or ERP requirements

• Ecosystem information — data needed to integrate with any specialist vendors that you work with to support a best-of-breed vendor strategy

Basware APIs power both your purchasing and accounts payable processes. They allow you to process your invoices in Basware P2P and transfer them to your accounting system using an API. You can import master data through a single point-of-entry into Basware systems. Additionally, they give you the ability to combine your purchasing and accounts payable processes to automatically validate invoices, whether the purchasing is done in Basware P2P Purchase or in your existing purchasing system.

Our APIs:

• Are flexible and provide solutions for different requirements
• Follow the OpenAPI Specification (OAS) specification and as such use modern standard methods
• Allow integration with SAP, Oracle, and Microsoft to enable integrated end-to-end solution deliveries with their ERP solutions
• Enable integration with complex multi-ERP environments

How Integration Happens at Basware

According to the Gartner report, most common integration scenarios between P2P and ERP Systems are:

1. “E-Catalog (purchase requisition only) or at Basware, Marketplace.

2. E-Procurement (requisition to purchase order)

3. Requisition to OK-to-pay (purchase requisition to invoice)

4. Full P2P (purchase requisition to pay)”

Gartner states:

“Mainstream P2P systems provide a variety of options for executing the integrations covered in this research. Many vendors will offer prebuilt “adapters” for specific ERP systems to ease the integration processes. These are ideal options for customers with up to-date, non-customised ERP systems. However, vendors also provide extensive and documented API integration points — and some will even provide cloud integration platforms to further ease the integration work.”

Our integration methods consist of standard integrations, advanced customised integrations, and partner system integrations to support the needs of our diverse customer base. The most suitable integration method, or combination of methods, is identified based on customer needs and environments. With Basware’s open APIs, you are in control of your integrations, regardless of whether the integration is done by you or an integration partner.

What does all this mean?

Basware’s 35+ years of experience and advanced API technology for integrations ensure that you can easily integrate Basware solutions within your existing ERP landscape. Currently, we have integrated into 220+ ERP systems. Learn more about our achievements and recognition in the 2021 Gartner® Critical Capabilities for Procure-to-Pay Suites.

_{Gartner, Quick Answer: What Are the Most Common Integration Scenarios Between Procure-To-Pay and ERP Systems?, Micky Keck, Keith Guttridge, 22 October 2021
Gartner, Critical Capabilities for Procure-to-Pay Suites, Micky Keck, William McNeill, Kaitlynn Sommers, Patrick Connaughton, 15 November 2021
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