The complexity of the CapEx Management policies.
The lifecycle of Capex varies greatly between industries and company sizes, making it difficult to incorporate broad CapEx functionality into ERP systems. While CapEx projects in some industries like financial services are straightforward, others like pharmaceuticals, mining, or manufacturing may involve complex multi-phased development and staged clearances. CapEx rules may also determine how multi-year, multi-disciplinary projects are managed through various stage gates with milestones, and scope adjustments and budget overruns can further complicate matters. As a result, one-size-fits-all approaches to Capex management software implementation are often inadequate.
The rules and regulations surrounding CapEx management can differ significantly across industries, and even within the same industry, there may not be a standard set of guidelines to follow. This is why using Appropriation Request forms for CapEx management may not always be feasible, as it would require extensive customization and cost to adhere to varying capital management standards.
By integrating with specialized CapEx software like Capex360™, most ERPs can extract data and provide customers with a best-of-breed solution. This allows customers to easily manage the complex CapEx lifecycles within their policies by leveraging their ERPs to provide actuals and commitments for each project, while maintaining proper controls. With an ERP integrated with Capex360™, customers can streamline their CapEx management and ensure compliance with capital management standards.
