Modules of ERPModules of ERP

Finance and Finance and AccountingAccounting

ModuleModule

Fields In Which Finance Module Is Fields In Which Finance Module Is UsedUsed

BanksBanks Stock BrokeragesStock Brokerages Credit Card CompaniesCredit Card Companies Currency TradersCurrency Traders

Subsystems of Finance and Subsystems of Finance and Accounts ModuleAccounts Module

Financial Accounting ModuleFinancial Accounting Module Investment Management ModuleInvestment Management Module Controlling ModuleControlling Module Treasury ModuleTreasury Module Enterprise Controlling ModuleEnterprise Controlling Module

Financial Accounting ModuleFinancial Accounting Module

Accounts ReceivableAccounts Receivable Accounts PayableAccounts Payable

General LedgersGeneral Ledgers Fixed Asset AccountingFixed Asset Accounting Legal ConsolidationLegal Consolidation

Accounts ReceivableAccounts Receivable

Accounts receivable systems keep Accounts receivable systems keep records of amounts owed by customers records of amounts owed by customers from data generated by customer from data generated by customer purchases and payments. purchases and payments.

They produce invoices, to customers, They produce invoices, to customers, monthly customer statements and credit monthly customer statements and credit management reports. They maintain management reports. They maintain records on the amounts due by the records on the amounts due by the customers.customers.

Accounts PayableAccounts Payable

Accounts Payable system Accounts Payable system maintains the record of payable maintains the record of payable vendor invoices received and vendor invoices received and generates the data necessary to make generates the data necessary to make payment at the appropriate time.payment at the appropriate time.

This system keeps track of data This system keeps track of data concerning purchase form and concerning purchase form and payment to suppliers.payment to suppliers.

General LedgersGeneral Ledgers

General ledger systems consolidate General ledger systems consolidate data received from accounts receivable, data received from accounts receivable, accounts payable, payroll and other accounts payable, payroll and other accounting information systems.accounting information systems.

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Fixed Asset AccountingFixed Asset Accounting

Integration with plant maintenance for Integration with plant maintenance for management of machinery and equipment, management of machinery and equipment, management of leased assets, assets under management of leased assets, assets under construction and interactive reporting.construction and interactive reporting.

Integration with project management and Integration with project management and order accounting for management of capital order accounting for management of capital assets.assets.

Charts of depreciation, full support throughout Charts of depreciation, full support throughout the asset life cycle from acquisition to the asset life cycle from acquisition to retirementretirement

Legal ConsolidationLegal Consolidation

This sub system is closely linked to the This sub system is closely linked to the financial accounting system, permitting financial accounting system, permitting direct data transfer from individual direct data transfer from individual statements to the consolidated reports.statements to the consolidated reports.

Thus it helps in easing the workload of the Thus it helps in easing the workload of the staff and reducing data entry errors.staff and reducing data entry errors.

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Investment Management Investment Management Module Module

Any business must have cash to buy raw Any business must have cash to buy raw material, obtain the use of premises, material, obtain the use of premises, plant and equipment, pay salaries and plant and equipment, pay salaries and wages and meet administrative wages and meet administrative expenses.expenses.

Investment Management provides Investment Management provides extensive support for investment extensive support for investment processes right from planning through processes right from planning through settlement.settlement.

Controlling ModuleControlling Module

This system gathers the functions This system gathers the functions needed for effective internal cost needed for effective internal cost accounting.accounting.

It provides a versatile information It provides a versatile information system with standard reports and paths.system with standard reports and paths.

It can answer the questions likeIt can answer the questions likei.i. How are invoices sent out?How are invoices sent out?

ii.ii. How to prevent a fraud transaction?How to prevent a fraud transaction?

iii.iii. Are the financial matters handled promptlyAre the financial matters handled promptly

Sub Systems of ControllingSub Systems of Controlling

Overhead Cost Controlling ModuleOverhead Cost Controlling Module Cost centre Accounting Module Cost centre Accounting Module

Overhead Cost Controlling Overhead Cost Controlling ModuleModule

Overheads are inevitable and Overheads are inevitable and transparency is often lacking in over transparency is often lacking in over head cost areas.head cost areas.

Most of the organizations experience Most of the organizations experience a significant increase in the indirect a significant increase in the indirect cost percentage.cost percentage.

The Overhead Cost Controlling The Overhead Cost Controlling Module focuses on monitoring and Module focuses on monitoring and allocation of overheads. allocation of overheads.

Cost centre Accounting Cost centre Accounting ModuleModule

The costs can be reinforced by making The costs can be reinforced by making managers and workers down the line managers and workers down the line responsible for the costs incurred within their responsible for the costs incurred within their province.province.

This accountability will ensure that the This accountability will ensure that the managers and supervisors will take action to managers and supervisors will take action to keep the costs and wastage to the minimum keep the costs and wastage to the minimum level.level.

Each of the cost centers are analyzed to know Each of the cost centers are analyzed to know where exactly the overheads occur within the where exactly the overheads occur within the organization.organization.

Treasury ModuleTreasury Module

Treasury Module

Market RiskManagement

Funds Management

Treasury Management

CashManagement

Sub systems of Treasury Sub systems of Treasury ModuleModule

Cash Management ModuleCash Management Module

Treasury Management ModuleTreasury Management Module

Market Risk Management ModuleMarket Risk Management Module

Funds Management ModuleFunds Management Module

Plant Plant MaintenanceMaintenance

ModuleModule

Functions of Plant Maintenance Functions of Plant Maintenance ModuleModule

Routine preventive operationsRoutine preventive operations

Special overhaul and repair JobsSpecial overhaul and repair Jobs

Scheduling and follow up of operationsScheduling and follow up of operations

Predictive MaintenancePredictive Maintenance

Sub systems of Plant Maintenance Sub systems of Plant Maintenance ModuleModule

Plant Maintenance ModulePlant Maintenance Module

Production control SystemsPlant Activity/Operations

System

Production control SystemsProduction control Systems

Work order PreparationWork order PreparationThis step includes checking availability of raw material, This step includes checking availability of raw material, tools and instructions as well as preparing any tools and instructions as well as preparing any documents in the plant to carry out the operations as documents in the plant to carry out the operations as planned.planned.

Order DispatchingOrder Dispatching Includes scheduling the release of work orders to work Includes scheduling the release of work orders to work

centers, releasing work orders, defining and revising centers, releasing work orders, defining and revising work order priorities, and expediting delayed orders.work order priorities, and expediting delayed orders.

Plant Activity/Operations System Preventive Maintenance control

Lower repair costs Avoids down time No Breakdowns Process variability

Component and Equipment Tracking Acquisition and disposition information Associations between different pieces of equipment Running totals of operations units to date

Tracking of plant maintenance and warranty claims

Any claims entitled Reimbursements if any Features to establish the type and length of warranty

Materials Materials Management ModuleManagement Module

Material Planning

Purchasing Receiving Inspect

Raw Material Stores

Issues

Production Department

Finished components stores

ShippingDistributionCustomers

Sequence in a Material Management Function

Subsystems of Materials Subsystems of Materials Management ModuleManagement Module

Prior Purchasing ActivitiesPrior Purchasing Activities Vendor EvaluationVendor Evaluation PurchasingPurchasing Inventory ManagementInventory Management Material InspectionMaterial Inspection

Pre-Purchasing ActivitiesPre-Purchasing Activities Complete Cycle of Bid InvitationComplete Cycle of Bid Invitation Award ContractsAward Contracts Acceptance of servicesAcceptance of services

Vendor EvaluationVendor Evaluation Quality (40%)Quality (40%) Reputation and Service (35%)Reputation and Service (35%) Price (25%)Price (25%)

Calculate Requirements

Award Contracts

InvitingQuotations

QuotationEvaluation

Selection of theVendor

PurchasingPurchasing Procurement of required quality and quantity of Procurement of required quality and quantity of

goodsgoods Procurement of materials that suits the Procurement of materials that suits the

productionproduction Purchasing of material in advance to meet the Purchasing of material in advance to meet the

needs of production departmentneeds of production department Buying an optimum QuantityBuying an optimum Quantity

Inventory Management SystemInventory Management System Reflects all transaction resulting in a change in Reflects all transaction resulting in a change in

stockstock Update Inventory levelsUpdate Inventory levels To carry out Physical inventoryTo carry out Physical inventory To manage stocks on value and quantity basis To manage stocks on value and quantity basis

planplan