The Importance of a Clean Core in SAP: Unveiling the Future of Intelligent Invoice Processing

26.04.2023

Topic: AP Automation | S/4HANA | Cloud

As companies strive to stay competitive in today's fast-paced business landscape, optimizing their financial processes has become a top priority. In this regard, accounts payable invoice automation (APIA) is a game-changer. It streamlines the invoice processing workflow, reduces manual errors, and optimizes overall efficiency in finance departments and beyond. However, companies are only able to harness the full potential of AP invoice automation when they create the right conditions for it. For most of our customers, this means achieving a clean core to join SAP’s envisioned journey toward the cloud and increasing standardization. In this article, we will explore the future of intelligent invoice processing and the reasons why maintaining a clean core in SAP is so important for businesses’ long-term success.

The landscape of AP invoice automation is rapidly evolving, driven by advancements in technology such as artificial intelligence (AI), and more specifically machine learning (ML). These technologies have enabled companies to automate repetitive and time-consuming tasks in the AP process, such as data entry, invoice matching, and approval routing, leading to significant cost savings and increased productivity. The future of AP invoice automation promises to be even more innovative, with touchless invoice processing, real-time analytics, and predictive insights.

Benefits of a Clean Core

To fully leverage the benefits of digital APIA solutions in the future, it is imperative for SAP customers to achieve and maintain a clean core. Here is why:

• Reduced Complexity: A clean SAP system minimizes complexity, making it easier to manage and maintain. It is achieved by eliminating unnecessary customizations, redundant data, and obsolete configurations that have accumulated over the years or even decades. Simplifying your SAP system reduces the risk of errors, enhances system performance, and improves user experience. It also lowers the total cost of ownership (TCO) by reducing maintenance efforts, support costs, and upgrade complexities.

• Shorter Release Cycles: Keeping the core of your SAP system clean ensures that it remains agile and flexible. It allows for faster implementation of updates and enhancements, leading to shorter release cycles. This means organizations can adopt the latest features and functionalities of AP invoice automation solutions more quickly, keeping them ahead of the competition.

• Standardized Processes: A clean SAP system enables companies to establish standardized best-practice processes across their organization, ensuring consistent and uniform handling of invoices. This is critical for maintaining accuracy and compliance, as it eliminates differences in invoice processing methods that can lead to errors, delays, and discrepancies. Standardized processes also facilitate seamless integration with other systems, enabling smooth data flow and end-to-end visibility into the AP process.

• Enhanced Analytics and Reporting: A clean setup ensures that data captured during the invoice processing workflow is accurate, complete, and reliable, enabling you to generate correct insights and reports. These insights can help you make data-driven decisions, identify potential bottlenecks, and uncover opportunities for process improvement. Clean data also supports regulatory compliance and audit requirements, as it provides a clear audit trail of all invoice processing activities.

• Improved Vendor Relationships: Standardized processes, supported by a clean core in SAP, can also positively impact the relationships with your vendors. Efficient APIA processes ensure that invoices are handled accurately and in a timely manner, resulting in prompt payments to vendors. This can help you build trust and credibility with your vendors, leading to stronger and more collaborative relationships.

• Future Readiness: As technology continues to evolve, businesses need to be agile and adaptable to stay competitive. Keeping the core of your SAP system clean positions your organization for future advancements in AP invoice automation and other financial processes. It allows you to readily embrace emerging technologies, such as AI and Machine Learning, which are expected to play a pivotal role in the future. A clean SAP system provides a solid foundation for integrating these technologies seamlessly, enabling your organization to stay ahead of the curve and reap the benefits of technological advancements.

In conclusion, the future of accounts payable invoice automation is promising, with advancements in technology enabling businesses to achieve higher levels of efficiency, accuracy, and productivity. However, to fully realize the potential of AP invoice automation, it is essential for companies to keep the core of their SAP system clean. This empowers organizations to optimize their invoice processing, streamline their financial operations, and stay competitive in today's dynamic business environment.

How to achieve a Clean Core

To keep your SAP system clean, consider conducting regular system audits, identifying and eliminating unnecessary customizations, redundant data, and obsolete configurations. Implementing best practices for data governance, master data management, and change management can also help maintain a clean SAP system.

A reliable approach to extending the functional reach of your SAP system while keeping your core clean is making use of the SAP Business Technology Platform (BTP). This enables companies to transfer custom code and extensions to the BTP, rather than modifying the core SAP applications themselves. It permits organizations to customize their SAP applications while preserving the stability and standardization of the core.

Investing in keeping your SAP system clean is a strategic move that can yield significant benefits for your organization in the long run. By leveraging the power of AP invoice automation supported by a clean core, you can optimize your financial processes, drive efficiency, reduce costs, and stay competitive in the ever-evolving business landscape. Embrace the future of AP invoice automation by prioritizing the clean core of your SAP system and unlock the full potential of automation for your organization's success.