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Lebanon

Can your ERP's figures be trusted in both currencies?

What does an ERP audit look at for a Lebanese company?

An ERP audit reviews how a live system is configured and used; it is not a financial or statutory audit. For a Lebanese company the main questions are whether exchange rates are applied the way finance intends, whether reports in pounds and dollars agree, how cash and checks are controlled, how the system copes with power or internet cuts, and who can approve what. I run it remotely and deliver ranked, practical findings.

Last reviewed by Vikas Saroj

In many Lebanese businesses the ERP records the transactions, but the numbers management trusts come from somewhere else: a workbook that applies the right rate, a cash sheet kept by the owner's assistant, an outlet report that never quite matches the ledger. The system is live, yet it is not where the truth lives.

I review that situation as an independent ERP audit consultant. The review compares how the ERP is configured with how your company actually prices, collects, pays and reports, with particular attention to exchange rates, cash, checks and resilience, and closes with a ranked list of fixes.

This is a review of the system and the processes around it. It does not replace your external auditor or your accountant's tax work, though both usually find the evidence helpful.

Power BI service report view of the Competitive Marketing Analysis sample, with KPI cards, a donut chart, bar chart and monthly column chart, plus the pages pane
  • Rate types and revaluation
  • Pound and dollar report checks
  • Cash boxes and check registers
  • Backup and outage readiness
  • User rights and approvals
  • Arabic, French and English printouts
What I Review

Where Lebanese ERPs most often drift from reality

The review concentrates on the areas where a small configuration choice changes the numbers management sees.

Exchange Rate Logic

I test which rate each transaction type actually uses, where rates are entered and by whom, and whether that matches the policy your finance team and accountant agreed.

Dual-Currency Reporting

Profit, receivables, payables and stock value are compared in pounds and dollars against finance's own figures, and each difference is traced to a setting, an entry or a report formula.

Cash and Check Controls

Cash boxes per currency, transfers to head office, petty cash and post-dated checks are reviewed for counts, approvals, segregation and links to the ledger.

Resilience Check

With your IT lead I review hosting, backup restores, power protection, offline point of sale behavior and how transactions captured during an outage are brought back in.

Access and Approvals

Users, roles, approval limits and shared logins are compared with who should raise, approve, pay and change rates, and conflicts are listed by name.

Documents and Licenses

Printed outputs in Arabic, French or English are checked for data and layout errors, and paid modules and users are compared with what the business really uses.

How I Work

Three stages, all delivered online

Prepare

Agree scope and gather inputs

01
Request an Assessment
  • Kick-off with owner and finance
  • Collect the rate policy
  • Read-only access arranged
  • Pick sample periods

Test

Recompute and compare

02
Discuss Your Project
  • Trace rates on samples
  • Match reports to finance
  • Walk through cash routines
  • Review roles and backups

Conclude

Rank findings and fixes

03
Talk About Next Steps
  • Check drafts with owners
  • Grade by impact
  • Remote readout
  • Agree first actions

What this review covers, and what stays with your auditor

By an ERP audit I mean a structured review of a working system. It asks four questions: does the configuration reflect how the company really operates, can the data be trusted, do the controls work, and do people rely on the system's reports or on something else?

The accounts themselves are outside its scope, and so is tax advice. Your external auditor, your accountant and your legal advisors keep their roles. The review does, however, produce evidence they often value: a list of users who can both raise and approve payments, a rate entered by hand that differs from the agreed source, a cash box whose movements never reach the ledger.

For a Lebanese company, this kind of review is worth commissioning when:

  • The owner sees different results depending on which currency or report is used.
  • Finance still adjusts heavily in spreadsheets before every management meeting.
  • Outlets, branches or sister companies abroad report figures that do not reconcile with head office.
  • A new finance manager or partner wants an independent view of the system they inherit.

My ERP health check page sets out the general method; the sections below focus on Lebanese conditions.

Testing exchange rates and dual-currency results

Lebanese companies may hold several rates for the same currency pair, each used for a different purpose, and they often want results in pounds and dollars side by side. An ERP can support that, but only if every transaction type picks the intended rate and every report reads the right one.

I begin by collecting your written rate policy, or writing a short one with finance and your accountant if none exists. Then I take sample transactions across a period and recompute them by hand:

  • A sale quoted in dollars and collected in pounds, including any exchange difference.
  • A supplier payment made in cash dollars and one made by bank transfer.
  • A payroll or expense journal posted at the rate payroll uses.
  • Month-end revaluation of open receivables, payables and bank balances.

For each, I check that the original currency amount is stored, the rate used is the intended one and the result matches what finance expects. I then compare key reports, such as profit, receivables ageing and stock value, in both currencies with finance's own figures. Differences are traced to their cause: a default rate, a manual override, a report built on the wrong field. The multi-currency ERP page describes the target design behind these tests.

Cash, checks and the controls around them

Many Lebanese businesses handle a large share of their receipts and payments in cash, often in two currencies, and still use checks, including post-dated ones, with some customers and suppliers. These flows are where controls are most easily bypassed, so the audit examines them closely.

I walk through the actual routine at a sample of locations with the people who run it, then compare it with what the system records:

  • Is there a cash box or journal per location and currency, with opening and closing counts recorded by a named person?
  • Do transfers to the bank or to head office appear as documents on both sides?
  • Can the same person receive cash, record it and approve its deposit?
  • Are post-dated checks held in a register with due dates and status, and are returned checks reversed correctly?
  • Do petty cash expenses carry approval and receipts, and are limits enforced?

Where the system holds only a daily total, I note what evidence is lost and what a better setup would look like. For hospitality and retail groups, the link between point of sale and the ledger gets the same scrutiny, since outlet cash is where differences tend to hide. The restaurant ERP page covers that flow in more depth.

Outages, backups and access rights

Power at Lebanese sites may switch between the grid, generators and batteries during a single day, and internet quality differs from one location to the next. An ERP that worked well in testing can behave badly when a connection drops halfway through a transaction or a server restarts without warning.

With your IT lead and the implementer I review the practical setup: where the system is hosted, whether backups are taken and, more importantly, whether a restore has ever been tested; whether servers and network equipment are on protected power; how point of sale or warehouse apps behave offline; and how transactions recorded during an outage are entered afterwards without duplicates. I look in the data for signs of trouble, such as repeated documents or gaps in numbering around known outages.

Access rights get the same practical treatment. I pull the user list, role definitions and approval thresholds and set them beside a grid showing who ought to create customers and suppliers, change prices, edit exchange rates, approve payments and post manual journals. Conflicts, shared logins and accounts still held by former staff or the implementer are listed by name. Who can change a rate deserves particular attention, because one wrong entry affects every report that follows.

The report, the readout and next steps

The findings report is written in English for owners and finance heads. It starts with an overall assessment and the most important risks, then sets out every finding in the same pattern: what I saw, the proof, why it matters commercially, where it probably comes from and how to correct it, graded by impact and urgency.

Two further sections are often useful in Lebanon. The first covers documents: invoices, quotations and statements in Arabic, French or English, checked for missing fields, wrong totals and broken layouts, with the wording itself confirmed by your bilingual staff. The second covers licensing: modules and users you pay for and do not use, and how subscriptions are billed, which matters when payment routes are not straightforward.

I present the results in an online meeting, where your implementer is welcome. The tone is neutral; most problems come from rules that were never written down rather than from careless work. Your staff can work through the list themselves, hand it to the implementer, or ask me to lead the follow-up as ERP optimization work.

If the review shows a project that never settled after go-live, see the ERP rescue consultant page for Lebanon. For selection and design work, start from the ERP consultant page for Lebanon or the Lebanon hub.

Not sure where to start?

Tell me about your business and current systems. I’ll suggest the most sensible first step.

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ERP Audit Consultant Elsewhere

  • USA
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  • Saudi Arabia
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  • Oman
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Not sure which ERP you need?

Do not choose software first.

Share your business requirements with me and I will help you understand the right process, architecture and platform before implementation.

  • Independent ERP advice before you invest - I do not resell software
  • Work directly with Vikas - no account managers or junior handoffs
  • Business analysis before software implementation
  • One consultant who understands both your business and the technology
FAQ

Questions About ERP Audit Lebanon

No. The rate policy is a decision for your management, accountant and auditor. What I do is check whether the ERP applies the policy you have chosen, consistently and on every transaction type, and show where it does not. If no written policy exists, I help finance put one on paper for their approval.

Usually because different transactions or reports use different rates, original currency amounts were not stored, or revaluation was run inconsistently. The audit recomputes sample transactions and compares key reports with finance's figures, so each difference is traced to a specific cause and fix.

No. My review covers configuration, data, controls and reports in the ERP. Signing off the accounts remains the job of your external auditor, and nothing in my report substitutes for their opinion. Findings such as access conflicts or unrecorded cash movements are often worth sharing with them.

No. I review the system remotely and walk through cash and point of sale routines with your staff over video, using screen sharing and photos of documents where helpful. Lebanon and India share good working-hour overlap. A visit can be discussed by arrangement, but is rarely necessary.

Still have questions? Let’s talk them through.

Every business is different. Share where you are today and what you want to fix, and I’ll tell you honestly whether and how I can help.

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Vikas Saroj seated at a meeting table with a laptop and notebook
Working Model Remote · Worldwide
Email Address hello@vikassaroj.com
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