Evaluated receipts settlement (ERS) is a technological tool utilized by supply chain professionals to reduce the annual cost of processing and reconciling supplier invoices within the firm. Accurate and timely invoice processing ensures the supplier is compensated for delivering a resource to its customer. The process is complete when the invoice, the receivable, and the purchase order are matched successfully. Mismatches between any of the three result in a "payables discrepancy". On average, the rate of payables discrepancies at a firm usually ranges between twenty to thirty percent of all deliveries. Supply chain's task of resolving these accounts-payable errors constitutes a duplication of effort and does not add value to the firm. The ERS system utilizes electronic information technology to eliminate the two most common accounts payable mismatch errors: price and quantity discrepancies. This paper reviews the concept of evaluated receipts settlement, describes how ERS may benefit a supply chain organization, details the results of a research study involving the usage of ERS, and proposes a future stream of research.
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