Evaluated Receipt Settlement (ERS)

Posted in Operations and Supply Chain Terms, Total Reads: 206
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Definition: Evaluated Receipt Settlement (ERS)

Evaluated receipt settlement is a process when an Enterprise Resource Planning system uses the Purchase order (PO) information and Goods Receipt Note to automatically pay the supplier on delivery of goods


Benefits of ERS System

• On time payment on regular basis to supplier resulting in better cash flow

• No need to print and send invoices to customer and also there will elimination of cost associated with clerical job and postal charges

• Ensures payments are done at contracted rate mentioned in the Purchase order

 


Flowchart of ERS working

 



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