Tipalti: Driving End-to-End Automation in SAP Manufacturing

Manufacturing is evolving fast, but financial operations often lag behind core supply chain automation.

End-to-end automation, linking SAP-driven operations with tools like Tipalti cloud finance automation software, closes this gap and optimises efficiency and scalability.

SAP: a foundation for digital manufacturing excellence

SAP is a core ERP platform for manufacturers, providing deep visibility into business processes, procurement and manufacturing processes.

SAP S/4HANA manufacturing industry enterprise resource planning (ERP) modules include Finance, Controlling, Materials Management for inventory management, SAP Production Planning, Quality Management for product quality control and Plant Maintenance.

The SAP S/4HANA ERP solution can integrate with SAP Digital Manufacturing, a manufacturing execution system.

SAP S/4HANA Cloud’s real-time capabilities support global compliance, multi-plant coordination, advanced manufacturing workflows for production processes and Internet of Things (IoT) integration with SAP Digital Manufacturing Cloud. This provides edge computing connectivity with low-latency execution. 

With the rise of cloud and AI tools like SAP Joule, SAP is enabling smarter, more adaptive industrial manufacturing systems.

SAP’s in-memory HANA database platform enables fast data access and processing, and real-time analytics that manufacturers need. 

Where Tipalti adds value: automating the financial back-end

Tipalti’s SAP integration with the ERP system is a multi-industry manufacturing solution that brings financial workflows into the realm of automation.

Tipalti’s key features include:

• Touchless invoice processing with OCR and AI: Tipalti digitally captures invoices by headings and line items for automated invoice processing. It performs three-way matching of invoices with POs and receiving data (with approval tolerance), automatically codes accounts, checks for fraud and errors and ensures approvals before making payments.
• Global supplier payments in 200+ countries and 120 currencies: Suppliers are paid with their preferred electronic funds transfer (EFT) payment method (from 50+ choices) in 196 countries, using their local currency. 
• Built-in tax compliance: Tax compliance features include self-service supplier onboarding, which includes collecting W-9 or W-8 forms before the first payment, TIN matching and simple 1099 and 1042-S preparation reports. They also include optional e-filing of 1099-MISC and 1099-NEC forms through partnered tax software.
• Fraud controls: Fraud controls include supplier validation and Tipalti Detect®.
• Approval workflows: Approval workflows include automatic routing to designated approvers. 

Data flows seamlessly between Tipalti and SAP, eliminating the need for manual reconciliations and duplicated data entry.

Tipalti’s functionality includes real-time batch payment reconciliation for large batches with various payment methods and currencies.

Strategic gains from full financial integration within SAP 

Tipalti offers a cost-effective, robust digital transformation solution that utilises artificial intelligence and machine learning for manufacturing accounts payable automation. 

Multi-entity businesses using SAP with Tipalti integration achieve these advantages: 

1. Agility and time savings in onboarding new global suppliers in 27 languages through self-service onboarding. 
2. Reducing fraud risks and errors via 26,000+ automated payment rules, financial controls and audit trails.
3. Completing invoice processing quickly enough to take early payment discounts and make consistent, timely payments across global operations.
4. Improving supplier relationships, with fewer disruptions to supply flow that could cause shop floor downtime.
5. Experiencing better cash flow forecasting predictability and cash requirements visibility.
6. Automating cross-border, multi-currency payables with centralised payments for all subsidiaries through a virtual payment account with embedded live FX rates (as an advanced FX solution).
7. Accelerating the accounting close with automated touchless AP and real-time payment reconciliation with SAP. 
8. Viewing payables spend with real-time data by entity and with combined views, and making Tipalti AI℠ spend queries for informed decision-support analysis to reduce costs.
9. Shifting from routine accounting to more strategic projects that could improve business results.

A real-world example: Therabody and Tipalti

Therabody has been a Tipalti AP automation customer since 2018, achieving significant benefits from integrating it with its ERP.

Therabody manufactures Theragun percussive therapy devices for massage vibration and heat therapy to help customers recover from sports injuries. It also sells other wellness products.

The company chose Tipalti AP automation because it needed efficient supplier invoice processing automation, global payments with strong fraud controls, real-time spend visibility and scalability to support its rapid international growth.

As a result, Therabody saved 60 hours of accounts payable workload time each month.

“Now, we have time to find ways to reduce costs and enhance revenues. We’re focused on strategy, not just making sure that people are getting paid on time," says Kevin Crowley, VP of Accounting and Finance at Therabody

Final thoughts: scaling smarter with integrated automation

As manufacturing becomes more digital, siloed systems introduce bottlenecks.

In industrial manufacturing companies, SAP solutions lay the foundation with a real-time, multi-entity ERP for multinational corporations. Tipalti extends it to finance automation, enabling a streamlined and fully connected manufacturing enterprise.

Manufacturers embracing integrated automation gain agility, efficiency, long-term scalability, and better decision-making.