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ADR-006: ERP at the periphery — statutory reporting only

Status Accepted
Date 2026-04-10
Deciders CFO, CTO
Affects repos bank-risk-platform

Status

Accepted — 2026-03-23

Context

Many banks run core operational processes through their ERP. This creates tight coupling between the ERP's data model and the bank's operational systems, and makes the ERP a critical path dependency. The bank's ledger, P&L, and balance sheet are computed from Postgres and Snowflake — the ERP should consume these outputs, not drive them.

Decision

A tier-2 ERP (e.g. Xero, NetSuite) is used solely for statutory financial statements, tax compliance, and accounts payable/receivable. The ERP consumes aggregated financial data from Snowflake via a read-only data feed. The ERP does not write to any operational system. The bank's general ledger is Postgres — not the ERP.

Consequences

Positive - No ERP on the critical transaction path — outage does not affect banking operations - ERP can be replaced without affecting any operational system - Statutory reporting is derived from the same authoritative data used for regulatory reporting

Negative / trade-offs - Custom ERP integration feed must be built and maintained - Statutory accounts require reconciliation between ERP and Snowflake data

Constraints this creates for bank-risk-platform

  • ERP feed is read-only from the bank's perspective — bank-risk-platform pushes aggregated data out
  • Feed driven from Snowflake aggregated financial data — not from direct Postgres connections
  • ERP must never be given write access to any bank operational system

Principles alignment

Principle Assessment Notes
AP-001 KISS ERP at periphery means no ERP on critical path; simpler operational model
AP-006 Cost effective Tier-2 ERP (Xero/NetSuite) is cheap; no enterprise ERP licensing
AP-007 Evolution ERP can be swapped without touching any operational system

Perspectives

Perspective Assessment Notes
Strategy Avoids ERP vendor lock-in on core banking operations
Integration One-way feed from Snowflake; simple and auditable
Cost Tier-2 ERP pricing; no implementation consulting overhead
Regulatory Statutory accounts derived from same source as regulatory returns — consistency
Support & Maintenance Minimal integration surface; ERP is largely self-service

See perspectives.md for how to use these evaluation lenses.


Relevant viewpoints

  • System viewpoint — ERP as a consumer of Snowflake aggregated data; one-way data flow
  • Information viewpoint — Which GL aggregations are published to the ERP feed

See viewpoints.md for guidance on producing these viewpoints.



Signoff record

Date Name Role Status
2026-04-10 Ross Millen CTO Approved
2026-04-10 Ross Millen Head of Architecture Approved
2026-04-10 Ross Millen Head of Data Approved

Capabilities

Capability Description Relationship
CAP-025 Automated regulatory reporting pipeline governed — ERP consumes Snowflake aggregates; not the source of truth for regulatory returns
CAP-126 Statutory financial reporting (ERP feed) enabled — automated one-way Snowflake to ERP feed for statutory accounts

ADR Title Relationship
ADR-002 Snowflake as the analytics and risk compute platform ERP receives a read-only aggregated feed from Snowflake

All ADRs Compiled 2026-05-22 from source/entities/adrs/ADR-006.yaml