1. The document discusses several key modules that are typically included in ERP systems, including finance, human resources, manufacturing, material management, sales and marketing, and quality management. 2. ERP systems help management plan resources more efficiently by integrating different functional modules like finance, HR, manufacturing, and supply chain management. 3. Key ERP modules manage finances, human resources, manufacturing, procurement, and quality to provide end-to-end visibility and optimize business processes across the enterprise.

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?