Validating Business Processes in ERP Systems

Connected Flows + Vision AI After ~3 decades working on ERP implementations, one pattern is consistent: ERP systems record what people confirm. Factories run on what actually happens. Manufacturing problems don’t occur inside transactions, they occur between transactions. That gap is where operational uncertainty lives. At ImageVision.ai, Vision AI becomes a real-time verification layer that continuously reconciles physical operations with digital records. Instead of asking: “What did the operator enter?” You can finally ask: “What actually happened on the floor?” 1) Receiving Verification? Ordered vs Received ERP Problem: - ERP trusts the GRN entry. If a pallet is short, wrong lot, damaged, or mixed the system still records it as correct. ImageVision.ai Layer (Receiving Verification) - Counts items automatically during unloading - Validates SKU, lot, and packaging condition - Detects mixed pallets and substitutions - Matches physical quantity vs ASN/PO Result: ERP no longer records what was declared, it records what actually arrived. 👉 Procurement discrepancies detected at the dock, not weeks later in production. 2) Production Run Intelligence ERP Problem: - ERP shows output numbers, not process behavior. - It cannot explain micro-stops, starvation, or hidden bottlenecks. ImageVision.ai Layer (Production Run Intelligence) - Tracks flow between stations - Identifies accumulation & starvation points - Detects micro stoppages & operator delays - Measures actual cycle time vs standard cycle time Result: You don’t just know output is low, you know the exact machine, time, and reason. 👉 From production reporting → operational diagnostics 3) Dispatch Verification ERP Problem: - Dispatch confirmation happens after loading (or by paperwork). - Shipping errors become customer complaints. ImageVision.ai Layer (Dispatch Verification) - Counts cartons/pallets during loading - Matches shipment vs sales order - Detects wrong SKU, wrong destination, partial loads - Triggers real-time stop/alert before truck departure Result: ERP shipment confirmation becomes a validated event, not a manual confirmation. 👉 Shipping errors prevented instead of investigated 4) Live Inventory State ERP Problem: - Inventory accuracy depends on scanning discipline and timing delays. ImageVision.ai Layer (Live Inventory State) - Detects production completion automatically - Tracks movement to staging/warehouse - Identifies unreported WIP & ghost inventory - Provides real-time stock reconciliation Result: ERP reflects operational reality continuously. 👉 Inventory becomes observable, not estimated The Shift: ERP = System of Record Vision.ai = System of Reality Together they deliver: - Continuous reconciliation - Real-time operational awareness - Audit-grade traceability - Predictable execution Digital transformation succeeds only when systems don’t just store data, they verify reality. #VisionAI #Manufacturing #SmartFactory #DigitalTransformation #OperationalExcellence

Hello everyone, Payment Audit : Material Procurement. Auditing payment to vendors for material purchase is one of the critical checking aspects of P2P process. The main areas to check are: a) Checking of invoices with the Purchase Orders & its commercial terms such as rates, payment terms compliance, description, shelf life etc. b) Ensure that materials are actually received and GRN against the PO quantity is done. Without material receipt (unless it is advance payment terms) payment should not be done. c) Ensure system control has been performed (walkthrough) to ensure controls are there so that receipt quantity cannot exceed PO quantity i.e. payment is only to the extent of PO quantity. That comfort through system control will reduce checking time d) Ensure that items received matches the description of the items ordered as per PO e) Quality inspection of the material is important to ensure that correct quantity of material as ordered is received. In ERP there is quality inspection clearance stage is usually there before GRN can be made. this will depend on company process and system used. f) Any quality or damage issue of product can be dealt with as per terms agreed with the vendor either through insurance claim or claim from vendor. Ensure claim has been lodged. g) Invoice authenticity to ensure invoice is issued by a legitimate supplier and matches contractual terms. Verify the supplier’s name, GST/VAT registration, bank details (generally master is defined), company VAT reference are correct. h) Ensure system has defined three way matching concept i.e. Invoice vs PO vs GRN. once system walkthrough is performed to ensure proper control then this does not have to checked each time. i) Verify that the invoice has been approved by the relevant department i.e. internal certification. j) Ensure po amendment or approval is obtained for any deviation than the agreed terms. k) Bank master update and or validation of banking details as per laid down process so that payment is done to the correct account of the vendor. l) Check for any prepayments done earlier and its adjustment before the payment. Check if the invoice has already been paid to avoid double payments. usually system has control to raise alert if same invoice no is getting booked. m) Ensure all deductions are adjusted with the payment. (such as old recoveries, expiry recovery, discounts etc). n) The entry should be under correct ledger account to ensure proper finacial reporting. o) ensure all documents processed are original and not xerox copies to ensure fraudulent payments are not done. p) Check for various delays such as delay in GRN as compared to receipt date, delay in invoice receipt from vendor, considerable delay in payments etc. q) Ensure there is material receipt acknowledgement (sign and stamp) by authorized recipient along with date of receipt to ensure validation of actual receipt. Happy Learning Soneel

𝗜𝗳 𝘆𝗼𝘂𝗿 𝘄𝗼𝗿𝗸𝗳𝗹𝗼𝘄𝘀 𝗮𝗿𝗲 𝗯𝗿𝗼𝗸𝗲𝗻, 𝗘𝗥𝗣 𝘄𝗼𝗻’𝘁 𝘀𝗮𝘃𝗲 𝘆𝗼𝘂. 𝗜𝘁 𝘄𝗶𝗹𝗹 𝗲𝘅𝗽𝗼𝘀𝗲 𝘆𝗼𝘂. Automating chaos never ends well. I see this again and again: → Teams invest in a shiny new ERP → Old bottlenecks remain → Bad processes run faster, not better The result? Expensive tech, frustrated users, and no real impact. Here’s what actually works before you sign that ERP contract: 1️⃣ Audit your operations first ↳ Where do tasks pile up? ↳ What gets stuck waiting for approval? ↳ Which steps are done twice (or more)? 2️⃣ Fix the foundations ↳ Streamline approvals ↳ Remove duplicate work ↳ Standardize steps that slow you down 3️⃣ Only then, automate ↳ ERP should scale what works-not multiply what’s broken A stat I keep coming back to: 73% of failed ERP projects tried to digitize inefficient workflows. Not surprisingly, those same projects take years to fix. ERP is not a magic fix. It’s a mirror. If your billing, invoicing, or resource planning is a mess on paper, it will be a bigger mess on screen. The best ROI starts with process clarity, not software contracts. How do you make sure your business fixes the right things first? #ERPImplementation #ProcessImprovement #BusinessEfficiency #ProfessionalServices

𝗘𝗥𝗣 𝗙𝘂𝗻𝗰𝘁𝗶𝗼𝗻 𝗣𝗼𝗶𝗻𝘁 𝗖𝗵𝗲𝗰𝗸𝗹𝗶𝘀𝘁𝘀 𝗔𝗿𝗲 𝗡𝗼𝘁 𝗛𝗲𝗹𝗽𝗳𝘂𝗹 They give the illusion of progress but rarely lead to better decisions. If you’re a CEO or CFO looking for a new ERP, CRM, Payroll, HR, or any enterprise-wide system, your key focus should be on whether the software you are evaluating will truly support your unique business processes. To get there, you need to invest time upfront documenting “𝗪𝗛𝗔𝗧” you want the system to do, clearly and precisely. The key is to avoid prescribing exactly “𝗛𝗢𝗪” these requirements are to be met, as this is how the different solutions distinguish themselves from others, particularly in capability and ease of use. At Combined Management Consultants, we use Business Scenarios written in plain English. This approach cuts through the ambiguity that often clouds Vendor conversations, providing clarity on exactly “𝗪𝗛𝗔𝗧” functionality you expect from your software and implementation partner. This is a game-changer compared to the usual functional checklists with ticks and crosses, typically in Excel, or spending months slaving over “𝗔𝗦 𝗜𝗦” and “𝗧𝗢 𝗕𝗘” Visio process diagrams. The reality is that Vendors can’t give you accurate cost estimates based on functional checklists or diagrams. If you want clarity around costs and scope, end-to-end Business Scenarios are the best approach. Beyond helping to control scope, they’re also incredibly useful to support planning end-user training and testing, thereby optimising your investment from start to finish. In short - clear Business Scenarios lead to clear expectations, more accurate pricing, and ultimately a smoother implementation. #erp #sap #epicor #ifs #acumatica #netsuite #microsoft #infor #eci #rootstock #crm