I have an ERP System, why do I need DocuWare?

We often hear the following question: I have an ERP System, why do I need DocuWare?

DocuWare is not an ERP or accounting system!

Just to set things straight: DocuWare is not a financial and accounting system. DocuWare’s power lies in its ability to manage documents and workflows that traditional financial and accounting systems may lack. More than 70% of new DocuWare customers start their digital journey with the automation of financial and accounting processes. By integrating with accounting systems, DocuWare saves time on invoice registration and shortens document workflow time, allowing specialists to focus on more important tasks. In this article, you’ll learn when to consider DocuWare and when Accounting/ERP software is sufficient.

How does DocuWare automate accounts-payable workflows?

DocuWare triggers the approval process and notifies users of tasks that have been assigned to them. Approvers will see a pending invoice or e-invoice in their task list and the required due date. If the task is not completed on time, DocuWare forwards it to a substitute. DocuWare also includes an organizational structure that defines users, substitutes and managers, as well as the level of authorization and approval limits of each user. As a result, the workflow automatically responds to the absence or non-completion of a task by sending a reminder or assigning it to the appropriate person in the organisational structure.

The invoice workflow in DocuWare has the following functions:

1. Capture and secure archiving of paper documents, e-invoices etc.
2. Automatic OCR of invoice data with DocuWare Intelligent Indexing (AI) and reconciliation of invoices even down to item level with POs (purchase orders) and GRNs (goods receipt notes).
3. Validation and submission of invoices based on defined business procedures and policies, reducing the need for manual document submissions.
4. Process automation allows existing procedures to be maintained and tasks to be automatically assigned to the correct decision makers.
5. Linking additional documents, such as stock receipts and purchase orders as well as additional information required to approve an invoice.
6. Document assignment and approval based on cost centres and/or GL accounts.
7. Export of approved invoices to accounting software, eliminating duplicate data entries and significantly reducing errors.
8. Quick mobile access and approval by company employees from any device.
9. Automatic document encryption, archiving and a clear approval documentation protect compliance and the entire audit trail.
10. Flexible integration into Power BI and other dashboards.

If you want to learn more about automating invoice approval processes, download our free InfoSheet now.

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When should you consider DocuWare?

You need to manage a large number of documents (invoices, GRNs, purchase orders):

DocuWare triggers the approval process and notifies users of tasks that have been assigned to them. Approvers will see a pending invoice or e-invoice in their task list and the required due date. If the task is not completed on time, DocuWare forwards it to a substitute. DocuWare also includes an organizational structure that defines users, substitutes and managers, as well as the level of authorization and approval limits of each user. As a result, the workflow automatically responds to the absence or non-completion of a task by sending a reminder or assigning it to the appropriate person in the organisational structure.

Your workflows are complex:

DocuWare not only stores invoices, it also allows you to fully automate workflows, which means fewer errors and faster approvals. ERP systems are not designed for document workflows. Some ERPs have their own built-in systems that work well for simple, straightforward invoice workflows. With DocuWare, you can set up and run invoice workflows and processes for any other type of document (HR, logistics, sales, administration). As a result, you get a solution that grows with you and isn’t just dedicated to automating one process.

You are thinking about hiring an additional person in accounting:

Your business is growing and you are receiving and issuing more and more invoices. Even though you have the best accounting professionals, you are reaching the limits of your capacity and can’t cope with the growing piles of documents. You waste time searching for paper and copying data into FK/ERP systems.

When will your accounting software be the better solution?

You only manage a small number of invoices:

If your company processes a relatively small number of invoices, such as 100 per month, an ERP may be a better fit. If this is the case, it’s worth calculating whether implementing a document workflow solution will bring improvements and the expected return on investment.

Your approval processes are simple:

If only a few people in the company handle documents and the workflows are very simple, the built-in workflow system in the FK/ERP may be sufficient. Ask your FK/ERP supplier how their invoice workflow will handle more complex processes (multi-level approval, several cost centres, multi-currency invoices, reconciling an invoice with a GRN, etc.). Then you can estimate how long the document workflow module of the FK/ERP system will be sufficient for your company.

Start-up costs:

Implementing a new system such as DocuWare involves higher upfront costs than continuing to use an existing ERP.

Watch this video to learn more about the price of DocuWare: How much does DocuWare cost?

If you have any further questions, reach out to us!