Transfer Accounting Files to
Blackline using SFTP

​BlackLine leverages SFTP (Secure File Transfer Protocol) for secure file transfer and often recommends it as the primary method for integration. Here’s a breakdown of how it works with Blackline:

SFTP for BlackLine Transfers:

• Initiating the Transfer: Your local system (accounting software, ERP etc.) initiates a connection to Blackline’s SFTP server using login credentials.
• Secure Connection: SFTP encrypts the connection between your system and Blackline’s server, ensuring only authorized users can access the data during transfer.
• File Transfer: The files containing your financial data (e.g., general ledger) are uploaded to a designated directory on Blackline’s server.
  Verification and Processing: Once uploaded, Blackline verifies the transfer and processes the data according to your configuration.

Additional Security with PGP:

While SFTP secures the connection, BlackLine also recommends PGP (Pretty Good Privacy) for an extra layer of encryption. Here’s how it fits in:

• PGP Encryption: Before uploading to SFTP, your local system encrypts the files using PGP with a public key provided by Blackline. This renders the data unreadable by anyone without the corresponding private key.
• Decryption on BlackLine’s Server: Only Blackline’s server has the private key to decrypt the PGP-encrypted files, allowing them to access the actual data.

Benefits of BlackLine SFTP and PGP transfers:

• Security: SFTP and PGP offer a strong two-layered encryption approach to safeguard sensitive financial data during transfers.
• Standardization: SFTP is a widely adopted protocol ensuring compatibility with various systems.
• Efficiency: Automated SFTP transfers streamline data exchange and reduce manual intervention.

Additional Points:

BlackLine likely provides documentation and resources to configure SFTP and PGP settings for your specific system. Consider using third-party Managed File Transfer (MFT) Software, such as, Diplomat MFT to automate and manage SFTP transfers for increased efficiency and security features.

SFTP and REST APIs are both tools for data transfer, but they approach it in fundamentally different ways:

Data Transfer Method:

• SFTP (Secure File Transfer Protocol): Transfers entire files over a secure connection. Imagine it like a secure courier delivering a package of data.
• REST API (REpresentational State Transfer Application Programming Interface): Uses requests and responses to exchange data in smaller chunks. Think of it like a conversation where you ask for specific information and receive it directly.

Use Cases:

• SFTP: Ideal for bulk data transfers, especially large files. Often used for scheduled exchanges or nightly batch jobs.
• REST API: More suited for real-time data access and integration. Great for situations where you need to retrieve or update specific data points frequently.

Complexity:

• SFTP: Relatively simple. You define the source and destination files, and the transfer occurs.
• REST API: Can be more complex. Requires writing code to interact with the API following specific protocols and data formats.

Flexibility:

• SFTP: Limited flexibility. You can only transfer entire files.
• REST API: Highly flexible. You can define specific data elements to retrieve or manipulate within a file.

Resource Consumption:

• SFTP: May use more resources for large data transfers due to the overhead of managing entire files.
• REST API: Typically uses fewer resources as data is transferred in smaller chunks, especially beneficial for frequent data exchange.

Here’s a table summarizing the key differences:

Ultimately, the choice between SFTP and REST API depends on your specific needs. SFTP is a secure workhorse for bulk data movement, while REST APIs excel in real-time data interactions and complex integrations.