ERP Integration with Other Systems — API, Integration, and What You Need to Know

Why Integrate ERP with Other Systems?

Re-entering data between systems is a major source of errors, wasted time, and increased workload. Automated system integration helps by:

• Eliminating duplicate data entry: Data flows from one system to another automatically
• Reducing errors: No re-typing = no typing mistakes
• Real-time data: Executives see the latest data from all systems in one place
• Saving time: Tasks that used to take 2 hours now take 2 minutes

Systems Commonly Integrated with ERP

System	Purpose	Integration Type	Difficulty
GFMIS	Submit government financial data	File-based (Export Layout)	Medium
e-GP (Procurement)	Submit procurement data	File-based / API	Medium
DPIS (HR)	Employee / civil servant data	File-based (CSV)	Low
e-Saraban (Document Management)	Link official documents	API / Web Service	Medium-High
Banking	Transfers, Statements, Reconciliation	File-based / API	High
e-Tax	Submit electronic tax data	API / XML	Medium
e-Payment	Electronic payments	API (RESTful)	High

3 Integration Methods

Method 1: API (Application Programming Interface)

Integration via API is the most modern and flexible method. Systems send and receive data through HTTP/HTTPS in real-time.

• Pros: Real-time, flexible, supports various data formats, secure (HTTPS + Authentication)
• Cons: Requires a development team, the target system must have an API available, Error Handling must be managed
• Best for: Systems requiring real-time data such as e-Payment, banking systems

Method 2: File-based (CSV / XML Files)

ERP exports data as CSV or XML files according to a specified layout, and the target system imports those files.

• Pros: Simple, requires minimal coding, legacy systems can support it, data can be verified before import
• Cons: Not real-time (batch processing), requires someone to upload/download files (if not automated), potential encoding issues
• Best for: GFMIS, e-GP, DPIS, legacy systems without API

Method 3: Database-level (Direct Database Connection)

Directly connecting databases between 2 systems, e.g., DB Link, Replication, ETL.

• Pros: Very fast, handles large data volumes, no middleware needed
• Cons: High risk (incorrect SQL can corrupt data), requires opening database ports (security risk), vendor may not support it
• Best for: Internal systems within the same organization, Data Warehouse, BI Reports

Comparison of 3 Methods

Criteria	API	File-based	Database-level
Speed	Real-time	Batch (hours/days)	Near Real-time
Difficulty	Medium-High	Low-Medium	High
Security	High (HTTPS + Token)	Medium (files may leak)	Low (DB port exposed)
Vendor Support	Good (standard)	Good (simple)	Limited (not recommended)
Maintenance	Medium	Low	High

API 101 — Fundamentals for Implementation Teams

REST vs SOAP

Criteria	REST	SOAP
Data Format	JSON (lightweight, easy to read)	XML (heavy, strict)
Popularity	High (current standard)	Declining (legacy systems)
Ease of Use	Easy, quick to learn	Complex, requires WSDL
Best For	Web/Mobile, new systems	Legacy systems, transaction-heavy

Authentication — Identity Verification Methods

• API Key: The simplest method — send a key in the header with every request. Best for internal APIs.
• OAuth 2.0: The standard for third-party access with high security. Used for public APIs.
• JWT (JSON Web Token): A token that contains user information, eliminating the need to query the database every time. Read more about two-factor authentication (2FA)

Best Practices for Integration

• Error Handling: Handle every error case — target system down, data format mismatch, timeout. Must have Retry Logic and team notifications.
• Retry Logic: If connection fails, retry 3 times at intervals of 1, 5, and 15 minutes (Exponential Backoff) before marking as Failed.
• Logging: Log every transaction — who, what, when, and result — for troubleshooting when issues arise.
• Monitoring: Set up alerts when Error Rate exceeds threshold or the system becomes unresponsive. Read more about Disaster Recovery
• Idempotency: Sending the same data again must produce the same result without creating duplicate records.
• Version Control: APIs must have versioning (v1, v2) to allow updates without affecting connected systems.

10-Point Readiness Checklist Before Integration

#	Checklist Item
1	Identify all target systems to integrate + system owners
2	Determine the integration method (API / File / Database) for each system
3	Request API documentation / File layout from the target system
4	Define Data Mapping (what data goes back and forth, in what format)
5	Define frequency (Real-time / hourly / daily)
6	Prepare a Test Environment for testing (never test on Production)
7	Define Error Handling + Retry Logic
8	Plan Security — Authentication, Encryption, Firewall Rules
9	Test Integration at least 2 rounds before Go-Live
10	Set up Monitoring + Alerts for Production

Government Sector: Integration with GFMIS and e-GP

GFMIS (Government Fiscal Management Information System)

GFMIS is the government's fiscal management system. Integration with GFMIS typically uses the file-based method, where ERP exports data according to layouts specified by the Comptroller General's Department, then uploads it via GFMIS Terminal or Web.

• Data sent: Payment requests, payables, journal entries, financial statements
• File format: Text files following specified layouts (fixed-width or delimited)
• Frequency: 1-2 times per day (batch)
• Caution: Layouts may change — stay updated with announcements from the Comptroller General's Department

e-GP (Electronic Government Procurement)

The government's electronic procurement system can be integrated in 2 ways:

• Export Layout: ERP exports procurement data as files, then uploads to e-GP — the most commonly used method
• API: Some versions of e-GP support Web Services for automated data submission — check with the Bureau of the Budget

System integration is a component that must be planned from the Pre-Project phase, not left until just before Go-Live. Requesting API documentation, coordinating with target system owners, and testing integration can take 4-8 weeks.

"A good ERP system is not one that does everything by itself, but one that integrates seamlessly with other systems."