Smart Contract-Based Invoice Tokenization for Automated Accounts Receivable Workflows in ERP Systems

Abstract

Traditional invoice processing within Enterprise Resource Planning (ERP) systems is often limited by
manual reconciliation steps, fragmented record-keeping, and latency in validating payment events. These limitations
contribute to delays in accounts receivable (AR) cycles, reduced financial visibility, and increased audit complexity.
This paper proposes a smart contract-based invoice tokenization framework that converts each invoice into a
programmable digital token representing its financial attributes, state transitions, due dates, and settlement
conditions. Integrated with ERP financial modules—particularly SAP FI—the model enables event-driven financial
automation where every invoice-related activity, including validation, approval, dispute handling, and payment, is
recorded immutably on a blockchain ledger. The proposed architecture leverages decentralized execution to ensure
traceability, security, and multi-party synchronization across enterprises, suppliers, and auditors. Experimental
simulations demonstrate significant reductions in invoice processing time, improved transparency in payment
workflows, and automated reconciliation of journal entries. By embedding business logic into smart contracts, the
system enables real-time liquidity forecasting, minimizes outstanding receivables, and enhances compliance
reporting. This study shows that invoice tokenization provides a robust foundation for secure, responsive, and
interoperable financial automation in modern ERP environments.