ERP modules and business software package
- 1. ERP Modules and Business Software Package Dr. Usman Tariq Updated on 26 February 2019
- 2. Enterprise and ERP • Business uses resources to produce goods and services. These recourses are land, labor, and capital. • Entrepreneurs or managers combine resources in different ways to produce goods and services • So, it is the function of the management to plan effectively and efficiently the resources available to the enterprise. • ERP systems help the management by making the planning process more productive and efficient. • All ERP packages contain many modules. The number and features of the modules varies with ERP package. • Human Resource, Inventory, Sales & Marketing, Purchase, Finance & Accounting, Engineering/ Production, Supply Chain Management (SCM)
- 3. ERP System
- 4. ERP – Finance Module • An ERP (enterprise resource planning) finance module is a software program that gathers financial data and generates reports such as ledgers, trail balance data, overall balance sheets and quarterly financial statements. • General Ledger (GL) • Accounts Payable (AP) • Accounts Receivable (AR) • Asset Management (FA) • Cash Management (CM) • Index, track, value, and actively manage soft, and hard, assets across the enterprise by use of the FA tier in association with the GL integration.
- 5. Finance Module in ERP
- 6. ERP – Financial Management System
- 7. Extended Features of ERP in Finance Module: • Budgeting: Analysis of allocations, expenditures, revenues. • Cash management: Cash flow analysis, What-if analysis. • Investment management: Evaluation tools: Net Present Value-NPV, Internal rate of return -IRR, pay-back period. • Investment management: Financial statements for external reporting purposes. • Management accounting: Information on profitability. • External reporting: Set by general accounting standards Legal requirements • Includes accounts receivable subsystem: Interfaces with cash management Monitors accounts and updates, handles payments, creates due date lists, produces statements. • Includes accounts receivable subsystem: Interfaces with cash management Monitors accounts and updates, handles payments, creates due date lists, produces statements. • Accounts payable: Handles payments, applies available discounts to maximize profits, Internal accounting perspectives for directing and controlling operations. Information on variances between planned and actual data. • Key activities • Cost center accounting. • Internal orders as a basis for collecting and controlling costs. • Activity-based costing of business processes. • Product cost controlling for profitability analysis. • Profitability analysis by market segment. • Profit center accounting of individual areas of organization. • Consolidation of financial data for accounting perspectives. • Enable management to better allocate resources, maximizing profitability and performance. • Central clearing house for accounting information.
- 8. ERP: Manufacturing module • The manufacturing capabilities within ERP System should be designed to optimize production flow with effective planning capabilities, resource utilization, and streamlined business processes to help drive accurate delivery performance. 1. Finite and Infinite Capacity and Materials Planning 2. Job Scheduling and Sequencing 3. Resource Management 4. Work Order Management with Job Costing 5. Production Configuration 6. Quality Management 7. Lean Manufacturing 8. Forecast Scheduling
- 9. ERP: Human Resource Management module
- 10. • Manage Employee Information. • Define the emoluments, deductions, leave, TA. • Creating Salary Structure and formula. • Generate Pay-Slip, Reports related to Branch, Department, employee, attendance / leave, payroll, Bonus. • Generate Govt. forms like P.Tax, • Payroll management is one complete solution which you can get as individual package. our customized payroll management software will take care of Payroll Management, Personnel Management, Organization Management, Recruiting, Training, Time Management etc. HR Payroll Module in ERP
- 11. HR Payroll Module in ERP • Payroll Management Software gives you the power to : • Manage Employee Information Efficiently. • Define the emoluments, deductions, leave, TA, Clients Visit, Training etc. • Create his / her own Salary Structure and formulae. • Generate Pay-Slip at the convenience of a mouse click. • Generate and Manage the Payroll Processes, according to the Salary. • Structure assigned to the employee. • Generate all the Reports related to Branch, Department, employee, Attendance/leave, payroll, Bonus etc. • Manage your own Security.
- 12. Human Recourse – Payroll System
- 13. ERP: Material Management Module • MM provides a way to manage materials in an organization’s integrated supply chain. • The primary goal of MM is to make sure that materials are always kept in proper quantities and without shortages or gaps in the organization’s supply chain. • Everything in MM revolves around master data, which is stored and manipulated in centralized master-data tables. • Master data types include materials master, work center, bill of materials, and routing. • Benefits • Improved cash flow • Better reporting and forecasting capabilities • Reduction in storage costs (overhead) • Reduced labor costs • Reduction in dead stock • Better organization • Enhanced transparency • Improved supplier, vendor, and partner relationships
- 15. ERP: Quality Management module • In every organization, raw material, work in progress and end products are regularly inspected. • This is basically to ensure that nothing goes wrong during the process of procurement, production or distribution. • Thus, quality management module engages entire supply chain quality operations. • As a part of logistics application, quality management module handles the traditional task of quality planning, inspection and quality control.
- 16. ERP: Quality Management module
- 18. Review Questions 1. What are the different modules of ERP system? 2. Explain how ERP systems improve the performance of the organization by integrating the different functional modules? 3. Give a brief overview of most common ERP functional modules?