ERPs in Finance
by ShahTypical Enterprise Resource Planning systems consist of modules which provide the following:
- Ledger
- Control of Payments
- Tracking of Revenues
- Management of Fixed Assets
- Management of Work Flow
The Ledger is the accounting system of the ERP. It provides the ability to create, update, approve, lock, delete statistical and post entries, budgets, check funds, merge several books, and deliver reports. Additional features may include currency conversion and the management of fiscal calendars.
The Control of Payments is a system meant to control and process payments for purchases of goods, services, taxes, and so forth.
The system provides the ability to maintain supplier records, generate invoices, expense reports, maintain payment schedules. acounting distributions.
Sales tax and VAT processing is an additional feature. Also, expenses from the Leger system can be accessed.
The Tracking of Revenues system has as goal to recognise revenues, process cash receipts, and collect money that is owned to your business. In keeping with the chemistry of the ERP, all applications share the data - the Tracking of Revenues system can retrieve data from the Control of Payments for example.
The system is capable of setting up and maintaining customer records, and processing cash receipt transactions. Also, it is capable to keep a lot of statements. Accounting distributions, revenue and cash receipt journal entries, foreign currency and local transactions are also features. Added to these, archiving is common.
The Management of Fixed Assets system is set to maintain asset records and process transactions like the creation, maintenance, and retirement of asset records. It is able to calculate and maintain depreciation calculations. Capital budgeting and tax accounting are also present.
The Management of Work Flow system is very important - it defines the work break down solutions, maintains cost and revenue budget entries, keep records of transations, allocate functionality from costs within systems (deals with both input and output-based systems,) tracking contracts and generates costs and revenue reports.
The above mentioned are typical systems to ERPs.
Below is what Oracle provides:
Now, that you’re versed in the basics of Enterprise Resource Planning, the next posts will be about Software Implementation Ways.
Read more here