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The Resource Group

Save Money and Reduce Fraud by Eliminating the Paper in the Disbursement Process


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As a consultant working on implementations of Microsoft Dynamics® GP, it’s often surprising to find how many organizations still rely on paper-based checks as the primary form of payment in their disbursement process. Sure, I get that you might need to write a paper-based check every now and then, but with modern technology options it doesn’t have to be the only or primary method for processing payments. Actually, if you consider all the factors, paper-based checks can be a much more expensive process to support than you may realize. Organizations often need special check paper, special MICR fonts, special printers and ink, and even special software programs to support the process. Check writing also is a huge fraud risk, which to mitigate often requires additional controls and steps in the internal processes. 

 

A full featured ERP system should provide an organization with additional options, outside of writing checks, for handling payments . With Microsoft Dynamics GP one of those options is the EFT for Payables module. This module allows you to work with your bank requirements so that electronic payments to your vendors can be initiated from the system using the same disbursement functionality you would use for creating a printed check. Payments are sent using standard ACH formats, which are supported across the US. Additional formats are supported for international requirements if needed. Think of it as a "Direct Deposit" for vendors.

 

Want to talk about saving money, the processing cost of an EFT transaction from your bank is roughly the cost of the envelope you mailed your check in! Add in the cost of postage, check paper, and the additional time to stuff envelopes and sign checks and it’s easy to show a return on investment. And to top it off, EFT for Payables is available for no additional cost on the current licensing model for Microsoft Dynamics GP and implementation usually takes less than a day. Microsoft Dynamics GP also supports e-mailing so you can send an electronic remittance advice to your vendor showing them what’s being paid. This can eliminate all the paper in the process! Fraud risk is also greatly reduced as you are electronically transmitting the payment information securely to your bank so the number of ”touches” in the process is dramatically reduced.

 

With the advent of electronic banking I stopped using checks as a primary payment method on a personal level more than 10 years ago. Businesses have been slower to change due to additional complexities and control requirements. There is no reason though why an organization can’t do the same thing today if they have the proper ERP system in place like Microsoft Dynamics GP.

 

To learn more about the benefits of the EFT for Payables Module for Microsoft Dynamics GP, please contact The Resource Group.

 

By The Resource Group - Washington Microsoft Dynamics GP Partner

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