ERP source validation on Sourcing and Procurement Operations objects

  • Release version: Xanadu
  • Updated August 1, 2024
  • 2 minutes to read
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    Summary of ERP source validation on Sourcing and Procurement Operations objects

    Sourcing and Procurement Operations supports multi-ERP integration, allowing organizations to use different ERP systems across regions or business lines. This functionality ensures that primary data and transaction data are validated and routed correctly according to the ERP source, maintaining data consistency and accuracy across multiple ERPs.

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    Key Features

    • ERP Source Validation: Ensures that data fetched and processed in Sourcing and Procurement Operations objects correspond to the correct ERP system by validating the ERP source linked to legal entities and transactions.
    • Foreign Currency Support: Supports foreign currency transactions where contract currency differs from the legal entity’s local currency. Conversion rates are applied using data from the Finance Exchange Rates (snfinfxrate) table, matched by ERP source.
    • Currency Conversion: FX currency amounts are converted into local and reporting currencies based on legal entity and ERP source, with converted values stored in the PSM FX Currencies (snshopfxcurrencyinstance) table.
    • Cost Center and GL Account Restrictions: When updating records, only cost centers and GL accounts corresponding to the ERP source of the legal entity are available, ensuring data integrity and preventing errors.
    • Validation Enforcement: Validations are active only if the legal entity is configured for ERP integration. Any data inconsistencies with differing ERP sources trigger integration error tasks for corrective action before further processing.

    Practical Impact for ServiceNow Customers

    By leveraging ERP source validation, customers can confidently manage complex multi-ERP environments without risking data mismatches or integration errors. The system automatically applies correct currency conversions and restricts financial attributes according to the ERP source, simplifying compliance and reconciliation processes. Integration error tasks provide proactive alerts to correct discrepancies early, reducing downstream processing risks.

    Overall, this feature enhances data accuracy, supports multi-currency transactions, and enforces ERP-specific controls, enabling seamless and reliable procurement operations across diverse ERP landscapes.

    Sourcing and Procurement Operations supports multi-ERP integration that enables you to use different ERP systems for different regions or lines of business, as required.

    Whenever Sourcing and Procurement Operations integrates with multiple ERPs, it validates the ERP from where the primary data is being fetched. It also ensures that the transaction data is routed to the right ERP with the right set of attributes. To validate ERP source to select correct attributes for Sourcing and Procurement Operations objects, and to support multi-ERP integration, these updates are enabled.

    Fx currency and conversion rates

    Conversion rates from the Finance Exchange Rates (sn_fin_fx_rate) table are used. This table has an ERP Source column, and records like purchase requisition and purchase order are also tied to the ERP Source column. By taking the legal entity and getting an ERP source from the legal entity, the right conversion rate is derived.

    Fx2 currency amount is converted into your legal entity local currency amount and legal entity reporting currency amount by using the conversion rate from the Finance Exchange Rates table. All these converted values are stored in the PSM FX Currencies (sn_shop_fx_currency_instance)​ table.

    Shopping Hub

    Foreign currency transactions are supported. A foreign currency transaction is one where the contract currency, also known as the transaction currency, is different from the local currency of the legal entity. For example, if an employee whose legal entity has a local currency of USD, purchases something which is in the contract currency of EUR, then it becomes a foreign currency transaction. In such cases,the contract amount is converted into the legal entity local currency in the shopping cart by using the exchange rate from the Finance Exchange Rates (sn_fin_fx_rate) table, where the ERP source in the Finance Exchange Rates table matches with the ERP source or legal entity of the employee.

    Also, purchase requisitions are split based on currency of the purchase requisition lines. Legal entity local currency is used to do the conversions during checkout.

    Cost center and GL account

    Cost center and GL account values are restricted by the ERP source on the object. The legal entity from the object is considered, and the ERP source is fetched. When a user updates the record, only those cost centers that have matching ERP sources are displayed in the Source-to-Pay Workspace.

    Note:
    These validations are enforced only when a legal entity has been set up for integration with ERPs. If you've set up integration with an ERP, then you’ll see the data having the same ERP source, thereby preventing downstream errors during integration.

    If there’s any record with different ERP sources, then an integration error task is raised. This is an indicator for your fulfiller to correct the record before processing it further.