Blockchain-Enhanced Double-Entry Bookkeeping for Transparent Audit Trails in ERP Systems

Abstract

Traditional Enterprise Resource Planning (ERP) systems, while robust in transactional processing, face persistent challenges related to data integrity, audit transparency, and resistance against unauthorized modifications. Conventional double-entry bookkeeping frameworks rely heavily on centralized databases that remain vulnerable to tampering, retroactive edits, and weak traceability. This research presents a blockchain-enhanced double-entry bookkeeping architecture designed to introduce immutability, verifiable audit trails, and automated reconciliation into ERP financial modules. The proposed model integrates a permissioned blockchain layer using Hyperledger Fabric, enabling secure ledgers, decentralized consensus, and cryptographically linked transaction blocks. A custom smart contract framework governs journal entry validation, dual-sided posting verification, and anomaly detection. The integration is demonstrated using a Hyperledger Fabric–SAP ERP testbed to evaluate interoperability, performance, and auditability gains. Experimental results show reduced reconciliation time, strengthened traceability, and enhanced integrity of financial data without compromising ERP performance. The model supports enterprise requirements such as role-based access, modular scalability, and compliance with internal control policies. This study highlights blockchain’s transformative potential in establishing transparent, tamper-proof accounting infrastructures suitable for modern digital enterprises.