Many companies forget to include their invoice processing in their SAP S/4HANA migration. This leads to delays, additional costs, and compliance issues, warns Basware CMO Kira Mondrus. With the 2027 deadline approaching, the transition offers an opportunity to modernize Accounts Payable once and for all.
The clock is ticking for companies using SAP ECC. The transition to S/4HANA must be completed by 2027. However, the reality is proving difficult. Figures from early February from research firm ISG show that nearly 60 percent of SAP migrations are delayed and exceed their budget. Underestimated complexity, scope expansion, and internal capacity constraints are identified as the main causes.
Basware’s new CMO announced around the time of her appointment that companies should focus particularly on Accounts Payable. Invoice processing contains data from which useful information can be extracted. “When AP isn’t included in the migration plan and stays stuck in outdated systems, it creates integration issues, delays, compliance challenges, and extra costs down the line,” says Mondrus.
Basware sees that AP can be useful in every phase of the migration. So make sure you assess, integrate, and map out invoice processing. “By decoupling the AP process from the core ERP migration, we allow companies to modernize their global compliance and invoice automation independently,” Mondrus explains. The idea is that this will allow the finance department to maintain a clean core.
Basware’s CMO points to a deeper problem: the gap between IT and finance managers. CIOs want a clean core SAP with simple integration. CFOs, on the other hand, demand AP automation and agility. These interests are not easy to align.
Clean core under pressure
SAP S/4HANA promises a modernized ERP core. However, in Mondrus’ view, the system does not have all the functionality that finance teams need. Invoice processing is one area that is repeatedly underestimated. “ERP can’t be expected to do everything,” says Mondrus. “SAP is designed to be the operational heart of a company, covering everything from supply chain to HR. Their AP tools are naturally built as horizontal features. Organizations with high invoice volumes, multiple ERP environments, or complex global footprints need specialized solutions focused on the complexities of the invoice lifecycle.”
Without that specialization, Basware says AP becomes a source of custom code within the ERP. That’s what companies want to avoid. By decoupling AP from core ERP migration, companies can independently modernize their global compliance and invoice automation. “Essentially, we help bridge the gap so that AP becomes a modular, plug-and-play component rather than a source of custom-code complexity and costs,” says Mondrus.
From technical discussion to ROI issue
The complexity and costly delays of SAP S/4HANA migrations make the transition an ROI issue. According to Basware, companies that recognize the value of specialized financial solutions often separate their accounts payable operations and integrate them with their existing SAP ERP system. This simplifies invoice processing without adding extra complexity.
The American manufacturing company Mauser is an example of this. By integrating Basware into its existing ERP system, it benefited from plug-and-play integration. This allowed the company to focus on the SAP S/4HANA upgrade while achieving greater automation, better visibility, and faster approval times within its financial functions. The approval time for non-PO invoices fell from 3.6 days to just 1.6 days.
AI makes the difference
According to Mondrus, AI delivers the most measurable value in SAP environments for “messy data” that would otherwise require manual intervention. “While an ERP like S/4HANA is great at processing structured data, it can struggle with the unstructured reality of global invoicing. That’s where our AI-driven capabilities—what we call InvoiceAI—actually move the needle.”
Basware calls its AI technology InvoiceAI. SmartPDF has replaced traditional OCR. Instead of someone having to double-check whether a zero was read as an O, the AI uses context to understand invoices. In practice, a Basware customer reduced processing time from 48 hours to two hours.
Then there is SmartCoding. This feature tackles non-PO invoices that normally remain in an inbox until someone guesses the correct ledger code. The tool analyzes years of historical data to immediately suggest the correct coding. For SAP users, the value goes beyond efficiency alone. It’s about maintaining a clean core.
Together with integrators
Basware works closely with system integrators Accenture and Deloitte. These partners play a crucial role in the success of S/4HANA programs. They act as strategists, helping companies with their SAP S/4HANA migration programs, modernizing core processes, and managing risks. They are essential in aligning upgrades with broader business results.
Basware enhances partners’ value by providing a specialized Invoice Lifecycle Management platform that complements ERP implementations. Its plug-and-play nature promises to reduce complexity, while automating accounts payable delivers faster operational gains for finance teams. Many system integrators use this platform to expand their offerings and open up new growth streams.
Mondrus bases her approach on previous experience with SAP-focused organizations. “Global systems integrators play a crucial role for SAP customers moving to S/4HANA because these programs are large, complex, and require tight coordination. At the same time, customers also need best in class technology partners who can complement SAP with deeper capabilities in areas like automation and compliance.”
Modularity as future-proofing
If financial and IT leaders could change one thing about their S/4HANA transition, what should it be? Mondrus is clear: maintain a clean core while building an ecosystem of specialized, interoperable tools. Investing in modular, open technologies that can grow with the business and avoid the rigidity of all-in-one systems is a trend she sees as future-proofing operations.
Basware sees itself well-positioned to support this through simple integration. This enables organizations to extend ERP capabilities without increasing complexity or the need for customization. By decoupling Invoice Lifecycle Management from the core ERP, finance, and IT teams can accelerate their time-to-value, maintain financial compliance with global regulations, and reduce operational risk during the migration journey.
In doing so, they work with experienced partners who have done this countless times. Ultimately, a successful S/4HANA migration is not just about technology. It’s about intelligently combining a strong ERP foundation with the right specialized tools that truly advance the finance function.