Even if you have a comprehensive ERP system from SAP, Oracle, Microsoft, etc., there are tremendous efficiencies and cost savings if you implement a CTRM system with native accounting. Choosing to stick with your existing accounting system when you deploy CTRM software may make sense for your business, but integrating that ERP with CTRM can be challenging.
However, if the CTRM software was developed with native accounting, integrating the CTRM software with your existing accounting software is easy. A CTRM system built with its own accounting functionality is designed to share the right data at the correct level of granularity and specificity that accounting systems require. The two systems can share data seamlessly and remain completely aligned because both systems are designed with accounting requirements in mind.
With the two systems completely aligned, you gain complete, real-time visibility into finances at every level of granularity you need and automatically tie the general ledger to trade profit and loss by transaction for every trade. If commodity prices change while in transit, the price change is automatically tracked and recorded in your CTRM software and transmitted to your ERP system. Both systems reflect a current, accurate view of your business.
This built-in CTRM-ERP compatibility delivers tremendous benefits.
- Reduce implementation time and costs. Fewer, less complicated integrations are required, enabling a faster, less expensive implementation.
- Get reports in real time. Spend less time creating reports and avoid errors created by manually manipulating data.
- Gain an accurate view of your finances. Eliminate manually tracing financials to the trade system. Ensure that your trade profit and loss automatically matches your financial reporting profit and loss.
- Gain automatic visibility into credit limits and position limits. Employ integrated trade finance. Know when a credit limit is reached and take appropriate action, even stopping shipments if credit is unavailable.
- Track accounting for shipments across oceans and ensure transportation accruals and shipment statuses are accurately reflected.
- Get accurate inventory valuations in real time.
You can rely on the accounting functionality in a CTRM system for one, complete system to manage commodities, or you can choose to integrate CTRM with ERP. Either way, choosing a CTRM solution with native accounting ensures the most efficient, cost-effective commodity management system for your business.
Download our integrated accounting fact sheet to learn how CTRM with native accounting can help you get the most from your CTRM and ERP systems.