ERS Saves Time & Money

Evaluated Receipt Settlement (ERS) is a process pioneered by the automotive industry to save the company time and money – a goal common to most organizations. Simply put, ERS eliminates the vendor’s invoice; vendors are paid based on the packing lists for goods received. You probably wouldn’t work with all of your suppliers in this way, but if you converted the right 20% to ERS, you’d likely reduce invoices received by 80%. The savings becomes more dramatic as purchasing works to reduce inventory with more frequent, smaller quantity purchases (subsequently increasing the number of vendor invoices).

Traditionally, purchasing issues a purchase order (PO) to the vendor, a copy of which is sent to accounting. Next, goods are received against the PO and a receiving report is generated -- again, with a copy going to accounting. Finally, when the vendor invoice arrives (historically via US Mail) and it goes to accounting. Accounting does the three-way match: they compare the invoice to the receiving report to verify that the correct quantity was invoiced and then they pull the PO copy to verify the invoiced price is correct.

PowerShift’s ERS system eliminates the paper -- and the shuffling of said paper -- between purchasing, receiving, and accounts payable. When a receiver is created for an ERS PO, the system creates an invoice for the quantity received at the PO price. The labor to do the three-way match is eliminated; the time to schedule payment for an entire day’s worth of ERS receipts is reduced to the time to process a single accounts payable batch!

Let us show you how ERS can fit in your organization. Contact the Qantel Helpdesk or call us at 630.300.6997 to arrange a demo.