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MasterCard Smartlink ™ FAQ's

Question What is MasterCard SmartLink?
Answer MasterCard SmartLink is a new software solution that integrates MasterCard commercial card transaction data with enterprise resource planning (ERP) systems, such as SAP R/3. MasterCard SmartLink resides within the ERP environment and uses the ERP system’s own infrastructure and technology to perform functions that are integral to the ERP system.
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Question Why did MasterCard Worldwide develop MasterCard SmartLink?
Answer As private and public sector entities worldwide collectively pour tens of billions of dollars into ERP systems, the promise of automating and integrating business processes and gaining operational efficiencies has become the holy grail for CFOs and heads of procurement. MasterCard SmartLink was created to provide a new solution to meet the needs of business in this area and to support evolving organizations’ growing desire to enact a solid e-B2B strategy. Offered through MasterCard’s global network of member banks, MasterCard SmartLink provides organizations with a solution for driving effective e-procurement, as well as a very clear path to generating returns on their ERP investments.
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Question What are anticipated efficiencies for organizations using a MasterCard Corporate Purchasing Card® with MasterCard SmartLink?
Answer Generally speaking, the typical purchase process looks like this:
  • Step 1: An employee decides to purchase a good or service.
  • Step 2: The employee creates a requisition.
  • Step 3: The appropriate individual must approve the transaction.
  • Step 4: The approved requisition is forwarded to the purchasing department where a buyer orders the goods and services. The purchasing department issues an official purchase order (PO) to the supplier.
    • Two copies of the PO are held in the purchasing department for filing - both numerically by PO number and alphabetically by supplier name;
    • One copy of the PO is sent to the accounts payables (A/P) department;
    • One copy is sent to the receiving department;
    • The original is sent to the supplier;
    • An additional copy is sent to the requestor along with a copy of the requisition to confirm that the order was placed.
  • Step 5: The receiving department receives the goods and matches their PO with the packing slip and files the matched papers. The receiving department issues a two-part receiving document (receiver), matching one copy with the PO and supplier packing slip and then sending a second copy to A/P.
  • Step 6: A/P receives an invoice from the supplier.
  • Step 7: A/P matches the PO, invoice, and receiver before a payment is issued to the supplier. This step is known as the "three-way match." If a match does not occur, then manual intervention from either the employee, the purchasing department or the receiving department takes place.
  • Step 8: A/P makes payment to the supplier when a match is completed.
  • Step 9: A/P adds the transaction to the general ledger, likely via an ERP system.
By combining the MasterCard Corporate Purchasing Card with MasterCard SmartLink, we estimate that an organization can save as much as 60 to 80 percent of these labor-intensive processing costs. The MasterCard Corporate Purchasing Card eliminates much of the front-end purchasing steps while MasterCard SmartLink addresses the back-end steps. And substantial savings can be expected on an ongoing basis because mundane administrative tasks are minimized, allowing the organization to refocus staff on more strategic initiatives.
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Question Can all MasterCard commercial cards be used with MasterCard SmartLink?
Answer Yes, MasterCard SmartLink supports the entire suite of MasterCard Corporate Payment solutions. But because a large part of MasterCard SmartLink’s value proposition is its ability to capture data, we believe the MasterCard Corporate Purchasing Card®, the MasterCard Corporate Card®, and the MasterCard Corporate Multi Card® are the most suitable payment tools for this program.
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Question When was MasterCard SmartLink certified by SAP?
Answer MasterCard SmartLink was certified by the SAP Integration and Certification Center in Walldorf, Germany, as an interface software to SAP software solutions in March 2002. "View SAP Press Release"
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Question What other software programs currently exist in the marketplace that integrate purchasing data with ERP systems?
Answer Several middleware providers, or "mappers", exist that provide a simple, static link to an ERP system. Mappers typically move data into general ledger accounts, putting a number or "value" into an expense category as defined by some type of master mapping chart. Any changes to the general ledger require manual changes or rewrites to the mapping chart. As a result, simple mappers usually involve a high degree of maintenance and human intervention.

MasterCard SmartLink, on the other hand, utilizes SAP technology to put the data dynamically in multiple databases, everything from finance and accounting to HR. And since MasterCard SmartLink uses the ERP system’s own technology, no changes are required when general ledger changes are made.

Moreover, movement of data is only one of MasterCard SmartLink’s many features. MasterCard SmartLink also performs other functions, such as data validation, invoice generation and approvals, exception handling, and reconciliation with the bank statement.
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