In a recent webinar, Christopher Brooks from BEST and I explored the critical issue of open item clearing in SAP, discussing why the standard SAP clearing process is no longer sufficient for many organisations. We also introduced an automated alternative that can dramatically improve the efficiency of financial close processes.
For those who missed the session, the webinar recording is available so you can catch up on all the details. Below, I'll share some key takeaways from the webinar and explain why automating open item clearing is essential for modern businesses.
The Limitations of Standard SAP Clearing
While functional, SAP's standard open item clearing process presents several limitations, which are especially apparent in organisations with large transaction volumes. Here are a few key challenges companies face when relying on standard SAP for clearing open items:
- Time-Consuming Preparation:
Standard SAP clearing often requires extensive manual preparation. Finance teams need to reconcile data, generate reports, and process large volumes of transactions manually before the system can clear them. This is labour-intensive and prone to human error, slowing down the overall financial close process.
- Manual and Duplicated Efforts:
Clearing large numbers of open items manually can result in duplicated work. Finance teams often need to step in to make adjustments or corrections, adding more time to an already tedious process. These duplicated efforts can consume valuable resources in organisations that handle many transactions.
- Resource-Intensive:
Finance teams tend to focus on repetitive, manual tasks rather than on higher-value activities. This results in inefficiency and increased costs, as more personnel are needed to handle the administrative side of financial clearing.
Why Automation is the Solution
Christopher and I highlighted the advantages of automating the open item-clearing process during the webinar. Automation eliminates manual data preparation, reconciliation, and transaction matching, freeing up valuable time and reducing errors.
Key benefits of automation include:
- Faster Month-End and Year-End Close:
Automating open item clearing accelerates the financial close process, which can be delayed by unresolved open items. With automated systems, clearing is completed more quickly and accurately, allowing organisations to close their books on time.
- Reduction in Manual Errors:
Manual processes are susceptible to errors, especially when dealing with large data sets. By automating clearing, the risk of mistakes is significantly reduced, leading to more accurate financial statements and less time spent correcting errors.
- Better Use of Resources:
Automation enables finance teams to shift their focus from repetitive tasks to more strategic work, such as analysis and decision-making. This improved resource allocation boosts productivity and adds value to the organisation.
How BEST Automates Open Item Clearing
At the webinar, we introduced the BEST solution for automating open item clearing. Designed to address the shortcomings of SAP's standard clearing functionality, the BEST solution integrates seamlessly with SAP to automate critical tasks, reducing the need for manual intervention.
Some features of the BEST open item clearing solution include:
- Automated Matching and Clearing:
The system automatically matches and clears open items based on configurable rules, saving time and reducing the need for human oversight.
- Real-Time Visibility:
The BEST solution provides real-time visibility into the status of open items, enabling finance teams to monitor progress and address any issues quickly.
- Customisable Workflows:
Organisations can configure matching rules and workflows to align with their business needs, ensuring that the clearing process is tailored to their operations.
Why Automating Open Item Clearing is a Must
Standard SAP open item clearing has proven to be limiting for organisations dealing with large volumes of transactions. The manual nature of the process leads to inefficiencies, resource drain, and delays in financial closing. Automation is the key to resolving these challenges, enabling businesses to speed up their month-end and year-end processes, reduce errors, and reallocate resources to more valuable tasks.
Check out the full webinar recording for a deeper dive into the topic. Don't miss the opportunity to learn how automation can revolutionise your financial processes.