The API Requirement: What Your ERP Must Have

The API Necessity 

AI agents cannot function without ERP API access. Understanding what APIs are, why they're required, and whether your ERP has appropriate capabilities determines implementation feasibility. 

Reality: Modern ERPs (2015+) typically have suitable APIs. Legacy systems may need work. 

What an API Is 

Application Programming Interface Explained 

Simple explanation: A standardized way for software systems to exchange data 

Analogy: API is like a restaurant menu. Menu provides standardized way to order (request) food, kitchen prepares and serves (responds). You don't need to know how kitchen works, just how to use menu. 

For ERP: API provides standardized way for external systems (like AI agents) to request customer data, invoice data, etc. ERP responds with requested information in standard format. 

Why Email/Manual Export Isn't Sufficient 

Manual approach: Export data to Excel, send to implementation partner, they load into AI system 

Problems: 

• Manual export every time data changes 

• No real-time access 

• Cannot write outcomes back to ERP automatically 

• Staff coordination burden continues 

Why this defeats purpose: AI agents need automatic, real-time access to reduce manual coordination 

API Types 

REST API (Most Common) 

Characteristics: 

• Modern, widely supported 

• Uses HTTPS (same as websites) 

• JSON or XML data format 

• Stateless (each request independent) 

ERPs with REST API: 

• Acumatica (Contract-Based API) 

• NetSuite (SuiteTalk REST) 

• Dynamics 365 (Web API) 

• SAP Business One (Service Layer) 

• Sage Intacct (Web Services) 

Suitability: Excellent for AI agent integration 

SOAP API (Older Standard) 

Characteristics: 

• Established, mature 

• XML-based 

• More structured than REST 

• Still widely supported 

ERPs with SOAP API: 

• NetSuite (SuiteTalk SOAP) 

• Some Dynamics configurations 

• Older SAP versions 

Suitability: Works fine for AI agent integration, just older technology 

Database Direct Access (Not Preferred) 

Characteristics: 

• SQL queries directly to database 

• No API layer 

• Requires database knowledge 

• More brittle (schema changes break integration) 

When this is necessary: 

• Legacy ERPs with no API 

• Highly customized systems 

• ERP vendors who don't provide API 

Suitability: Works but not ideal. More maintenance burden. Security concerns (broader access required). 

Required API Capabilities 

Read Access Requirements 

Customer master data: 

• Customer ID 

• Name 

• Contact information (phone, email) 

• Account status 

• Payment terms 

• Credit limit 

Transaction data: 

• Invoice numbers 

• Invoice amounts 

• Invoice dates 

• Due dates 

• Current balance 

• Payment history 

Communication history: 

• Previous notes 

• Activity records 

• Tasks 

• Communications log 

Write Access Requirements 

Activity logging: 

• Create call records 

• Create email records 

• Log communication attempts 

Notes: 

• Write conversation outcomes 

• Document commitments 

• Record next steps 

Tasks: 

• Create follow-up tasks 

• Assign to appropriate staff 

• Set due dates 

Status updates: 

• Mark exceptions as contacted 

• Update collection status 

• Flag for review 

What AI Does NOT Need to Write 

Never modifies: 

• Customer master data (name, address, etc.) 

• Invoice amounts or terms 

• Payment applications 

• Account balances 

• GL transactions 

• System configurations 

Why this matters: Security concern reduced. AI cannot corrupt financial data. Changes limited to notes and activities. 

Authentication Requirements 

OAuth 2.0 (Preferred) 

What it is: Modern authentication standard, secure token-based 

How it works: 

• One-time authorization 

• Token generated for AI agent 

• Token used for all subsequent requests 

• Token can be revoked if needed 

ERPs supporting OAuth: 

• Acumatica 

• Dynamics 365 

• NetSuite (OAuth 2.0 available) 

Benefits: 

• Secure 

• Auditable 

• Revocable 

• Industry standard 

API Key / Secret (Common) 

What it is: Long random string used to authenticate 

How it works: 

• API key generated in ERP 

• Key provided to AI agent 

• Key included with each request 

• Key validates authorization 

ERPs supporting API keys: 

• Most modern ERPs offer this 

• Alternative to OAuth 

Benefits: 

• Simple to implement 

• Secure if properly managed 

• Easy to rotate if compromised 

Username/Password (Less Preferred) 

What it is: Service account with username and password 

How it works: 

• Create dedicated service account in ERP 

• Provide credentials to AI agent 

• Login for each request or session 

Concerns: 

• Password management burden 

• Rotation complexity 

• Less secure than OAuth/API key 

When acceptable: 

• Legacy systems with limited options 

• Temporary implementations 

• When OAuth/API key unavailable 

API Performance Requirements 

Rate Limits 

What they are: Maximum number of API calls allowed per hour/day 

Typical limits: 

• High tier: 10,000+ per day 

• Mid tier: 1,000-10,000 per day 

• Low tier: 100-1,000 per day 

AI agent needs: 

• 50-100 API calls per exception handled 

• For 80 exceptions monthly: 4,000-8,000 calls monthly 

• Requirement: 1,000+ daily rate limit 

Most ERPs provide: Sufficient rate limits for mid-market AI usage 

Response Time 

What it is: How quickly API responds to requests 

Requirements: 

• Average response: Under 2 seconds 

• Maximum response: Under 10 seconds 

Why it matters: Voice conversations require responsive data access. Email-based can tolerate slower responses. 

Most modern ERPs: Respond in under 1 second for standard queries 

ERP-Specific API Assessment 

Acumatica 

API type: REST (Contract-Based API)  

Authentication: OAuth 2.0  

Documentation: Excellent  

Readiness: 95% implementations ready out-of-box 

Typical additions: 

• Custom fields for AI tracking (1 day) 

• Workflow for task routing (1 day) 

Assessment: Excellent API, minimal preparation 

NetSuite 

API type: REST and SOAP (SuiteTalk)  

Authentication: OAuth 2.0, token-based  

Documentation: Comprehensive  

Readiness: 85% implementations ready 

Typical additions: 

• Custom fields (1-2 days) 

• Saved searches for exception identification (1 day) 

• Script deployment if complex logic needed (2-4 days) 

Assessment: Strong API, minor configuration 

Dynamics 365 

API type: REST (Web API, OData)  

Authentication: Azure AD OAuth  

Documentation: Very good  

Readiness: 85% implementations ready 

Typical additions: 

• Custom fields/entities (1-2 days) 

• Security roles for service account (1 day) 

• Business rules if needed (1-2 days) 

Assessment: Good API, standard Microsoft approach 

SAP Business One 

API type: Service Layer (REST-like)  

Authentication: Session-based or OAuth  

Documentation: Good  

Readiness: 80% implementations ready 

Typical additions: 

• User-defined fields (1-2 days) 

• Authorization setup (1 day) 

Assessment: Capable API, some learning curve 

Sage Intacct 

API type: Web Services (XML-based)  

Authentication: Sender ID and credentials  

Documentation: Good  

Readiness: 85% implementations ready 

Typical additions: 

• Custom fields (1 day) 

• Web services user setup (1 day) 

Assessment: Functional API, slightly older approach 

Legacy or Custom ERP Challenges 

No API Exists 

Options: 

Option 1: API Development 

• Build custom API layer 

• Cost: $15,000-$40,000 

• Timeline: 8-12 weeks 

• Ongoing maintenance required 

Option 2: Database Direct Access 

• Read from database directly 

• Write via file import or stored procedures 

• Cost: $10,000-$25,000 

• Timeline: 4-8 weeks 

• Less flexible, more brittle 

Option 3: ERP Upgrade 

• Upgrade to modern ERP with API 

• Cost: $200,000+ (full ERP upgrade cost) 

• Timeline: 12-24 months 

• Best long-term but high cost 

Limited API Functionality 

Scenario: API exists but cannot write notes/tasks back 

Options: 

Option 1: API Enhancement 

• Add write capability 

• Cost: $5,000-$15,000 

• Timeline: 2-4 weeks 

Option 2: Workaround 

• AI documents outcomes in separate system 

• Staff manually updates ERP 

• Reduces but doesn't eliminate manual work 

Pre-Implementation API Assessment 

Assessment Checklist 

1. Does API exist? 

• [ ] REST API available 

• [ ] SOAP API available 

• [ ] Database direct access possible 

• [ ] No programmatic access (problem) 

2. What can API read? 

• [ ] Customer master data 

• [ ] Invoice/transaction data 

• [ ] Payment history 

• [ ] Notes and activities 

3. What can API write? 

• [ ] Activity records (calls, emails) 

• [ ] Notes/comments 

• [ ] Tasks 

• [ ] Status fields 

4. Authentication available? 

• [ ] OAuth 2.0 

• [ ] API key/secret 

• [ ] Service account username/password 

5. Performance adequate? 

• [ ] Rate limit > 1,000 daily 

• [ ] Response time < 2 seconds average 

6. Documentation exists? 

• [ ] API documentation available 

• [ ] Code examples provided 

• [ ] Support channel exists 

Assessment Timeline 

Standard modern ERP: 

• Assessment: 1-2 hours 

• Result: Ready to proceed 

Custom or legacy ERP: 

• Assessment: 4-8 hours (may require vendor/consultant involvement) 

• Result: Identify gaps and remediation needed 

The Reality 

AI agents require ERP API for automated data access and outcome writing. Modern ERPs (Acumatica, NetSuite, Dynamics, SAP Business One, Sage Intacct) have suitable REST or SOAP APIs with OAuth authentication. 

Required capabilities:  

• Read access (customer master, transactions, payment history, notes); 

• Write access (activities, notes, tasks, status updates).  

Never writes: Customer master changes, transaction modifications, GL entries. 

Authentication options: OAuth 2.0 (preferred, most secure), API keys (common, acceptable), Username/password (less preferred but works). 

Performance needs: 1,000+ daily rate limit, under 2 second response time. Most modern ERPs exceed these requirements. 

ERP-specific readiness: Acumatica 95% ready, NetSuite 85% ready with minor config, Dynamics 365 85% ready, SAP Business One 80% ready, Sage Intacct 85% ready. 

Legacy ERP challenges: No API requires development $15K-$40K or database direct access $10K-$25K. Limited API requires enhancement $5K-$15K or workarounds. 

Pre-implementation assessment: 1-2 hours for modern ERPs identifies readiness. 4-8 hours for custom/legacy identifies gaps and remediation. 

Standard modern ERPs ready out-of-box. Legacy systems may need investment before AI implementation feasible. 

About the Author: This content is published by ERP AI Agent. 

Published: January 2025 | Reading Time: 7 minutes