AP Automation and the Total Cost of Ownership
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January 25, 2022 |
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| API-based Integration | File-based Integration | Explanation | |
|---|---|---|---|
| Identifying required data elements within the ERP system | $0 | $ | API-based integrations are pre-built and maintained by the vendor. They automatically read the structure of the ERP system and identify the required data elements. File-based integrations require knowledgeable IT and Finance resources to identify the required fields. |
| Developing scripts to move data to the AP Automation solution | $0 | $$$ | API-based integrations rely on API calls to fetch data. They take advantage of the API abstraction layer that insulates them from changes in the underlying ERP system. File-based systems require extensive coding to retrieve and load data. Moreover, they are susceptible to change any time a change is made in the structure of the ERP system. |
| Developing scripts to write data back to the ERP system | $0 | $$ | API-based integrations rely on API calls to push data back into the ERP. They take advantage of the API abstraction layer that insulates them from changes in the underlying ERP system. File-based systems require coding and testing to create output files and then push them back into the ERP system. |
| Developing scripts to support ongoing synchronization of data | $0 | $$ | An AP automation system synchronizes nearly 1,000 individual data elements with the underlying ERP system. API-based integrations synchronize the data in real time. File-based systems require the development of scripts that are executed on either a scheduled or triggered basis. Depending on the timing of the synchronization, changes in the ERP may not be reflected in the AP automation solution. |
| Installing and configuring software | $0 | $$ | Installing API-based software is simple and takes just a few hours. Pre-developed scripts automatically build the connection between the ERP and the AP automation solution. File-based systems have a much larger code base that require significant time to configure the connections between the ERP and the AP automation solution. |
| Configuring system to match business process | $ | $ | Most vendors provide tools that allow the system to be configured to match the business process. This typically includes establishing roles and rights, approval levels, workflow rules, messaging, and various other options. |
