Enterprise resource planning (ERP) systems are foundational to how businesses manage finance, operations, procurement, and more. But many ERP systems weren’t designed with automation or real-time intelligence in mind. As a result, finance teams still spend hours each week on data entry, invoice processing, and manual approvals — leaving little time for strategy.

ERP automation addresses this gap by connecting your ERP with intelligent technologies that streamline workflows, reduce human errors, and accelerate outcomes. This article explores what ERP automation is, how it works, and how it empowers finance teams to operate at a higher level.

What is ERP automation?

ERP automation refers to the use of advanced technologies like artificial intelligence (AI), robotic process automation (RPA), and optical character recognition (OCR) to improve and accelerate the processes that run through an ERP system. Rather than relying solely on human users to complete every task, automation tools handle repetitive, rule-based actions autonomously.

The benefits of ERP automation include:

• Less manual entry: Data is extracted, validated, and synced automatically, reducing time spent on administrative work.
  
  
• Improved accuracy: Automated tools reduce the risk of human error during coding, matching, or approvals.
  
  
• Faster cycle times: Workflows move faster when tasks like data capture, routing, and validation are handled automatically.
  
  
• More scalability: Teams can handle growing invoice volumes or process complexity without needing to hire additional staff.
  
  
• Better visibility and control: Automation platforms often come with real-time dashboards, audit trails, and analytics to help finance teams stay in control.
  

In short, ERP automation helps companies turn their ERP from a system of record into a dynamic engine for intelligent finance operations.

How does ERP automation work?

ERP automation works by connecting external tools, often cloud-based, to your ERP system. These tools either sit adjacent to the ERP or are embedded within the ecosystem via integrations or APIs. The tools handle tasks the ERP isn’t optimized for, such as document ingestion, invoice coding, PO matching, and approvals.

Here’s an example of how automation works in an accounts payable (AP) context:‍

1. Invoice ingestion: Invoices are received via email, portal, or upload and automatically captured by the system.

2. Data extraction: OCR and AI extract invoice data—including vendor name, amounts, dates, and line items—without relying on templates.

3. Validation and matching: The system matches invoices to POs or receipts, validates totals, and applies business rules.

4. Coding: AI assigns GL codes based on historical data and learned behavior.

5. Approval routing: The invoice is routed to the correct approver(s) based on configurable rules (e.g., department, amount).

6. ERP sync: Approved invoices are posted to the ERP for payment, and payment status can sync back to the automation platform.

This process not only saves time — it ensures consistency, accuracy, and transparency across the entire invoice-to-pay cycle.

What does a typical AP tech stack look like?

Finance teams today often rely on a tech stack that includes both the ERP and a series of best-in-class tools that support more advanced capabilities. The ERP serves as the system of record, but the stack is expanded to handle more specialized tasks like invoice capture, AI processing, and automated payments.

A typical AP technology stack includes:

• ERP system: The core platform (e.g., Oracle NetSuite, SAP, Microsoft Dynamics) that houses vendor master data, GL accounts, and financial records.
• Vendor portal: Provide suppliers with a self-service hub to submit invoices, track payment status, and resolve exceptions — reducing back-and-forth emails and improving vendor relationships.
  
  
• Invoice automation platform: A solution like Vic.ai that handles data capture, invoice processing, coding, and approval routing autonomously.
  
  
• Payment automation tools: Manage digital payments (ACH, wire, checks, virtual cards) and integrate with the ERP to track payment status and reconcile transactions.
  
  
• Spend analytics and reporting tools: Deliver real-time visibility into invoice cycle times, approval bottlenecks, vendor performance, and payment terms.

By combining these layers, sometimes with multiple offered within one platform, finance teams create a more agile and intelligent AP process — while keeping the ERP at the center of their operations.

What types of software are typically purchased to complement an ERP?

While ERPs are powerful, they’re not purpose-built for every finance function. Companies often invest in additional tools to modernize their operations, especially in areas like accounts payable, procurement, and expense management.

Common types of complementary software include:

• AI-powered invoice processing: Platforms like Vic.ai use proprietary AI to understand invoice data, assign accurate GL codes, detect anomalies, and process invoices autonomously. Unlike template-based systems, AI learns and improves with each invoice.
  

• Automated payments solutions: These tools streamline the final step in the AP process by initiating payments directly from approved invoices, offering flexibility across ACH, check, and card-based methods, while capturing rebate or early payment discount opportunities.
  

• Expense management tools: These manage employee reimbursements, card transactions, and travel-related expenses and typically integrate back to the ERP’s expense module.
  

Together, these tools bring automation, intelligence, and flexibility to areas where ERPs alone can’t deliver maximum efficiency.

How does an ERP integrate with AI tools?

Most modern automation platforms integrate with ERPs via APIs, middleware, or certified connectors. These integrations allow for real-time or scheduled data exchange between the ERP and the automation tool.

Here’s how it works with a platform like Vic.ai:

• Inbound sync: The ERP sends vendor master data, PO records, and GL structures to Vic.ai. This data informs how invoices are processed and coded.
  

• Autonomous processing: AI ingests and processes invoices — handling extraction, coding, PO matching, and approvals without templates or manual input.
  

• Outbound sync: Once approved, the fully coded invoice is pushed back into the ERP for posting and payment. Payment status updates can flow back to Vic.ai for tracking.
  

This seamless, bi-directional data exchange ensures your ERP stays accurate and up to date, while AI handles the heavy lifting behind the scenes.

What is important to consider when adding automation tools to your ERP?

Adding automation to your ERP can significantly improve efficiency, but the implementation should be deliberate and aligned with your business goals.

Here are key factors to evaluate:

1. Integration quality: The tool should have a proven, well-documented integration with your ERP, including real-time data syncing and support for your existing workflows.

2. Security and compliance: Make sure the vendor is SOC 2 Type II compliant, uses end-to-end encryption, and meets your organization’s IT and data governance standards.

3. Scalability: The solution should grow with your business—supporting new workflows, invoice volume, and business units over time.

4. User experience: Adoption is key. Look for a clean, intuitive interface built for finance and accounting professionals, not IT teams.

5. Automation depth: Some tools simply digitize manual steps. Others, like Vic.ai, offer true autonomy — processing invoices without templates or manual entry.

6. Support and onboarding: Evaluate the vendor’s implementation timeline, change management support, and post-go-live services.

Taking these considerations into account will help ensure your ERP automation project is successful from day one.

What is common ERP automation software?

There are several categories of ERP automation software on the market today. Each category brings some level of value to specific finance workflows. While OCR and RPA are more traditional ways to augment automation, they lack the flexibility and adaptability of an agentic ro AI solution.

• OCR (optical character recognition): Used to convert paper invoices or image-based files into structured digital data. Often used with legacy document formats or in industries that still rely heavily on scanned paperwork.
  

• RPA (robotic process automation): Automates high-volume, rules-based tasks. Examples include copying data between applications, triggering invoice approvals, or generating routine reports.
  

• AI (artificial intelligence): Offers decision-making capabilities that go beyond rules. AI learns from historical behavior to predict coding, detect outliers, and process invoices with high accuracy and autonomy.
  

• Workflow automation tools: Manage routing rules, conditional logic, and approval chains, helping ensure timely review and compliance.
  

The most effective AP automation platforms — like Vic.ai — combine multiple advanced technologies (AI, Gen AI, agents, and workflow automation) into a single system for maximum impact.

What data is exchanged with the ERP to automate processes?

ERP automation relies on accurate and timely data exchange between systems. The types of data shared depend on the tools and workflows in place but often include:

• Vendor master data: Names, addresses, tax IDs, and payment terms used for invoice validation and coding.
  

• GL codes and cost centers: Used to classify spend and ensure invoices are correctly coded.
  

• Invoice header and line-item data: Captured and processed by the automation platform, then synced back to the ERP.
  

• Purchase orders and receipts: Used to match invoices for 2-, 3-, or even 4-way validation.
  

• User roles and approval hierarchies: Define how invoices are routed and approved.
  

• Payment data: Status of payments, remittance details, and confirmation records.
  

Vic.ai, for example, enables bi-directional data sync with the ERP. Master data flows in to support autonomous processing, and completed invoices flow back out for final posting and payment — maintaining integrity across systems.

How does my data stay secure when I connect more tools to my ERP?

Security is a top priority when introducing third-party tools into your ERP environment. Trusted automation vendors follow strict standards to keep financial and personal data secure.

Key security features to look for include:

• End-to-end encryption: Protects your data while in transit and at rest.
  

• SOC 2 Type II compliance: Demonstrates that internal processes meet rigorous security, availability, and confidentiality standards.
  

• Role-based access controls: Ensures that only authorized users can access or modify sensitive data.
  

• Audit logs: Track every user action and system event for compliance and traceability.
  

• Single Sign-On (SSO) and Multi-Factor Authentication (MFA): Enhance user authentication and reduce risk.
  

At Vic.ai, security is embedded in every layer of the platform — from architecture to access control — so you can scale automation with confidence.

Conclusion

ERP automation is redefining how finance teams operate. By integrating intelligent tools with your ERP, you can eliminate manual work, improve accuracy, and unlock real-time visibility across the invoice-to-pay process.

Whether you're adding AI for invoice processing, automating vendor payments, or extending your ERP’s capabilities, the right technology stack can help your finance team move faster — and smarter.

Want to see it in action? Learn more about Vic.ai and how it powers autonomous AP and payments for modern finance teams.