An Improvised Way To Automate Logistic Payment Block Process: A Case Study on R-Payment Block

By the recent development of digitization in the businesses, the number of financial transactions increases for each business processes. It's very difficult to keep an eye on each and every transaction made in different departments in an organization like, accounts payable and receivable. Business never wants to pay more or less to their vendors, it wants to maintain a proper accounts of each and every transaction. In large-scale organizations having thousands of vendor invoice posted daily, it's very difficult to keep a track of each and every transaction. With the inception of ERPs (Enterprise Resource Planning), the business processes are tightly integrated and all the financial transaction are accounted as per the accounting principles. ERPs also help in automating the repetitive business processes. This helps in avoiding human error. This study will present how SAP (ERP software) automation helps in applying and removing the payment block for the vendor invoices which are accounted in a three-way match process, where the materials procured by Purchase order (PO), received by Goods receipt (GR) and the invoices posted via Invoice receipt (IR). This paper also tries to find the lacuna present in the existing payment block (application or removal of payment block) solution provided by SAP.