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AI Agents for ERP Exception Handling

Exception handling creates bottlenecks in four areas of most ERP operations: finance, sales, operations, and procurement. AI agents handle these exceptions by applying your business rules to variable situations, taking appropriate action, and escalating when needed.


Typical mid-market ERP environments generate 20-40 exceptions daily. Each requires coordination across systems, communication with customers or vendors, and decisions based on business context.

What AI Agents Handle  

Common exception types by department:

💰

Finance

AR collections, AP matching, credit decisions

🏷️

Sales

Quote generation, returns processing, order holds

📦

Operations

Back orders, quality issues, expediting

🚚

Procurement

Vendor quotes, PO changes, receipt discrepancies

Where AI Agents Fit

Most mid-market ERP environments generate 20-40 exceptions daily across finance, sales, operations, and procurement. These exceptions follow business rules but include variations that need judgment based on context.

This is where agents add value. They handle the routine application of business rules while escalating situations that truly require human expertise.

Use Cases by Department

💰 FINANCE & ACCOUNTING

AR Collections

Manual collections consume 15-20 hours weekly in typical mid-market finance teams. Agents monitor aging, initiate systematic outreach, track payment promises, and escalate based on defined thresholds.

OPERATIONAL IMPACT

  • DSO reduction 20% - 30%

  • Collection staff time savings of 40-50%

  • Improved working capital

Vendor Bill Matching

Three-way matching exceptions (PO, receipt, invoice discrepancies) require investigation and coordination. Agents identify mismatches, investigate common causes, coordinate resolution, and route complex cases to AP staff.

OPERATIONAL IMPACT

  • Invoice processing time reduced 40-50%

  • Month-end close cycle shortened

  • Vendor relationships improved

Other finance applications: Credit hold reviews and releases, Period close exception resolution, Cash application discrepancies.

🏷️ SALES & CUSTOMER SERVICES

Customer Quotations

Quote requests require pricing validation, product configuration, margin analysis, and approval routing. Agents handle standard quotes, flag non-standard situations, and route to appropriate sales staff.

OPERATIONAL IMPACT

  • Quote turnaround time reduced 50-60%

  • Sales capacity freed for complex deals

  • Pricing consistency improved

Customer Returns

Return authorizations require policy application, exception handling, and coordination across sales, operations, and finance. Agents evaluate eligibility, generate RMAs, coordinate logistics, and process credits.

OPERATIONAL IMPACT

  • RMA processing time reduced 60%

  • Faster response improves satisfaction

  • Better documentation for analysis

Other sales applications: Order hold management and resolution, Credit approval workflows, Contract renewal notifications.

📦 OPERATIONS & SUPPLY CHAIN

Back Order Management

Back orders require customer notification, alternative sourcing coordination, priority management, and ongoing status updates. Agents proactively alert customers, coordinate with planning, and escalate based on urgency.

OPERATIONAL IMPACT

  • Customer communication gaps eliminated

  • Coordination time reduced 50%

  • Fulfillment metrics improved

PO Quality Issues

Quality defects on received goods require documentation, vendor notification, corrective action coordination, and financial resolution. Agents document issues, notify vendors systematically, track responses, and analyze trends.

OPERATIONAL IMPACT

  • Resolution time reduced 40%

  • Vendor accountability improved

  • Better quality trend visibility

Other operations applications: Production exception handling, Expedite request coordination, Inventory discrepancy investigation.

🚚 PROCUREMENT

Vendor Quotations

RFQ processes require vendor solicitation, response tracking, quote comparison, and recommendation generation. Agents distribute RFQs, track responses, normalize data for comparison, and generate analysis.

OPERATIONAL IMPACT

  • Sourcing cycle time reduced 50%

  • Vendor coverage increased

  • Better pricing documentation

Other operations applications: Production exception handling, Expedite request coordination, Inventory discrepancy investigation.

Use Case Comparison

Use Case
Department
Typical Volume
Time Saved
Primary Benefit
PO Quality
Operations
5-15 issues weekly
5-8 hrs/week
Vendor accountability
Vendor Quotes
Procurement
10-20 RFQs weekly
8-12 hrs/week
Sourcing efficiency
AR Collections
Finance
50-100 accounts weekly
15-20 hrs/week
Working capital improvement
AP Matching
Finance
30-50 exceptions weekly
10-15 hrs/week
Faster close, better vendor relations
Customer Quotes
Sales
20-40 quotes weekly
10-15 hrs/week
Sales capacity, faster response
Customer Returns
Sales
15-30 returns weekly
8-12 hrs/week
Customer satisfaction
Back Orders
Operations
10-25 orders weekly
8-10 hrs/week
Customer communication

Common Questions

Selecting Your First Use Case

High-Priority Candidates

  • Exception volume exceeds 20 per week

  • Staff spends 10+ hours weekly on coordination

  • Process follows documented business rules

  • Measurable financial or operational impact

  • Internal stakeholder support exists

Implementation considerations:

  • Data quality and availability

  • System integration complexity

  • Stakeholder involvement required

  • Change management requirements

  • Success measurement approach

Start with processes where:

  • Volume is high enough to measure impact quickly

  • Rules are well-defined and documented

  • Success metrics are clear and agreed

  • Stakeholder champion exists

  • Impact is visible to leadership

Implementation Approach

Most implementations follow a pilot structure: 6-8 weeks for development and initial deployment, followed by 4-6 weeks of validation and refinement.

Post-pilot, most companies expand to additional use cases. The same integration foundation supports multiple agents. Implementation learning applies to subsequent processes.

Getting Started

Identify your candidate processes: 

Review exception volume by type. Calculate current labor time and cost. Assess process documentation quality. Determine stakeholder interest.

Select pilot use case:

Balance ROI potential with implementation complexity. Consider stakeholder support and change management requirements. Ensure success metrics are clear.

Validate fit: 

Confirm exception volume justifies investment (typically 20+ weekly). Verify business rules exist and can be documented. Assess data availability and quality. Check system integration feasibility.

Discuss Your Specific Use Cases

Schedule a conversation about your exception processes, volume, and which use case makes sense for a pilot implementation.

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