What is electronic document circulation and what does it involve?

What is electronic workflow?

Electronic document workflow automatically manages company records, sending, processing, archiving, and approving documents electronically. Unlike traditional work with paper documents, electronic systems allow for the rapid and secure flow of information within a company, regardless of size.

This means eliminating many manual operations, such as printing, physical signing, or transferring documents between company departments. Everything is done with the help of integrated IT systems, which provide transparency, an audit trail, and control over documents at every stage of their circulation.

Electronic document circulation in a company - what does it consist of?

Electronic document workflow in a company involves digitizing and automating all the processes involved in document management, from creation to transmission, approval, and archiving. The critical steps of this process include:

Document creation - Electronic tools can create documents in integrated systems such as ERP. Instead of creating paper documents, users can generate digital invoices, contracts, or reports.
Document transfer - Documents can be automatically transferred between departments, employees, and management, with an entire audit trail. Electronic transmission eliminates the risk of lost documents and minimizes waiting time.
Approval - Electronic document workflow systems allow the automatic assignment of document approval tasks to appropriate people. Approval can occur in the ERP system, and each approval step is automatically recorded.
Archiving - Once the workflow is completed, the documents are stored in an electronic filing system, which allows easy retrieval and monitoring of all processed documents.

Electronic document workflow system – examples

Examples of the most used documents in the electronic document circulation system are invoices, orders, reports, vacation requests, or business contracts. Also worth mentioning are:

Purchase invoices: The system can automatically read a purchase invoice, assign it to the appropriate purchase order, send it to the accounting department, and send an approval notification to the relevant people.
Vacation requests: An employee can submit vacation requests online. They are then automatically sent to the immediate supervisor for approval, after which the system archives approved requests.
Contracts: Integrated workflow systems also enable managing a contract's life cycle - from creation through negotiation, approval, and storage of documents in the company's database.

Electronic document circulation: When is it an obligation?

The issue of electronic document circulation is familiar, but in some sectors, such as public administration, such systems have been made mandatory. Electronic document circulation: When has it become an obligation? In Poland, as of January 2021, the Law on Digitization requires public administration to implement e-documentation. More and more private companies also choose to implement such solutions because of the legislation and the business benefits.

How can an electronic workflow in a company with ERP be implemented?

Implementing an electronic workflow in a company, especially one integrated with an ERP system, is a complex process that requires proper planning and the involvement of IT experts. Here are the critical steps in the implementation process:

Needs analysis - In the first stage, it is necessary to determine precisely what documents in the company will be digitized and what processes should be optimized. This allows you to identify what functions of the ERP system will be necessary to handle document workflow.
Selection of software - Various ERP solutions and systems dedicated to electronic document workflow are available on the market. The choice of the right tool depends on the company's specifics, size, and needs.
Data migration - The next step is to transfer the documentation to a digital system. This may include archiving and integrating existing paper documents into the new system.
Process automation - After implementing ERP software, a company can set up workflow paths to automate document creation, approval, and archiving.
Employee training - Training employees to use the new system is crucial in implementing an electronic workflow. Many companies must adequately prepare their employees for the change in their work.

Benefits of implementing electronic document circulation

Electronic document workflow in a company saves paper and space and offers many operational benefits. Here are the most important of them:

Increased work efficiency: Many automated processes have accelerated document circulation and significantly reduced waiting time for approvals and document execution.
Data security: Storing documents digitally eliminates the risk of losing or destroying them. Increased control over document access also ensures the protection of confidential information.
Cost savings: Implementing an electronic document workflow eliminates the need to print, store, and send paper versions of documents, leading to lower operating costs.
Transparency and auditing: An electronic document workflow system allows you to track every step of document processing, which is crucial during internal controls or external audits.

In summary, electronic document workflow is a crucial tool supporting modern companies’ digitalization of business processes. Its integration with an ERP system allows you to gain complete control over documentation, automate processes, and significantly streamline work.

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