Enterprise Resource PlanningEnterprise Resource Planning or ERP is actually aprocess or approach which attempts to consolidate allof a companys departments and functions into a singlecomputer system that services each departmentsspecific needs. It is, in a sense, a convergence of people,hardware and software into an efficient production,service and delivery system that creates profit for thecompany.
ERP ModulesERP software is made up of many softwaremodules. Each ERP software module mimics a majorfunctional area of an organization. Common ERPmodules include modules for product planning,parts and material purchasing, inventory control,product distribution, order tracking, finance,accounting, marketing, and HR. Organizations oftenselectively implement the ERP modules that areboth economically and technically feasible
It is scalable.It is customizable.It works on the Web.It is efficient and easyto use.It works with CRM andmore.
Project Production Human planning ResourcePurchase Functional Finance Modules Inventary Market control Sales
Production Planning ModuleIn the process of evolution of manufacturingrequirements planning (MRP) into ERP, whilevendors have developed more robust software forproduction planning, consulting firms haveaccumulated vast knowledge of implementingproduction planning module. Production planningoptimizes the utilization of manufacturing capacity,parts, components and material resources usinghistorical production data and sales forecasting.
Purchasing ModulePurchase modules streamline procurement ofrequired raw materials. It automates the processesof identifying potential suppliers, negotiating price,awarding purchase order to the supplier, and billingprocesses. Purchase module is tightly integrated withthe inventory control and production planningmodules. Purchasing module is often integrated withsupply chain management software.
Purchase Order When combined withAccounts Payable, InventoryControl, and Order Entry, thePurchasing module provides acomprehensive, fully integratedpurchasing system. We cancombine multiple purchase orderson a single receipt and multiplereceipts on a single invoice. TheShippable Backorder report helpsto identify orders that can becompleted based on recentInventory Receipts.
Accounts Payable This provides robust accountingfeatures to streamline entire cash flowprocess and help us to save money.Accounts Payable has a powerful libraryof accounting and reporting featuresthat facilitate rapid entry of vendorinvoices, flexible cash disbursement andfull check reconciliation using BankServices.
Inventory Control ModuleInventory Control is a complete multi-locationinventory management system that keeps track ofstock levels and processes inventory receipts,shipments, returns, and adjustments. It includesextensive screen inquiry and reporting functions togive us detailed, current information crucial foreffective inventory management.
Inventory module facilitatesprocesses of maintaining theappropriate level of stock in awarehouse. The activities ofinventory control involves inidentifying inventory requirements,setting targets, providingreplenishment techniques andoptions, monitoring item usages,reconciling the inventory balances,and reporting inventory status.Integration of inventory controlmodule with sales, purchase, financemodules allows ERP systems togenerate vigilant executive levelreports.
Sales ModuleRevenues from sales are live blood for commercialorganizations. Sales module implements functions oforder placement, order scheduling, shipping andinvoicing. Sales module is closely integrated withorganizations ecommerce websites. Many ERPvendors offer online storefront as part of the salesmodule.
Order EntryThe Order Entry allows us toenter orders and sales returnsand print invoices, credit notes,order confirmations, pickingslips, and shipping labels. We cantrack transaction details andsales information on-screen andin printed reports. Order Entryintegrates fully with InventoryControl and AccountsReceivable.
Accounts Receivable With this we can manage our customers and fine-tune customer relations by keeping track of important sales information and outstanding balances. It allows us to easily apply cash to outstanding invoices and create recurring charges for quick invoicing of monthly charges. Accounts Receivable is also fully integrated with Bank Services, for complete bank reconciliation.
Marketing ModuleERP marketing module supports leadgeneration, direct mailing campaign and more.
Financial ModuleBoth for-profit organizations and non-profitorganizations benefit from the implementation of ERPfinancial module. The financial module is the core ofmany ERP software systems. It can gather financialdata from various functional departments, andgenerates valuable financial reports such balancesheet, general ledger, trail balance, and quarterlyfinancial statements.
General Ledger It is the foundation ofaccounting system, with flexibilitythat meets the current and futurefinancial management requirementsof organizations of all types andsizes. It provides a robust featureset designed to handle our mostdemanding, budgeting andprocessing needs. General Ledgerfully integrates with all modules andis the key to maximizing theefficiency and accuracy
G/L Security This enables organizations to controlwhich users can view or use certain generalledger accounts based on segment validationin G/L Security settings.Multicurrency This delivers powerful andcomprehensive multicurrency accountingfunctions. Sophisticated multi-currencyaccounting management and the ability toprocess transactions in any number ofcurrencies give your business the globalcompetitive edge required in todays businessworld.
G/L Consolidations It helps us to transfer and merge GeneralLedger account and transaction informationbetween separate company and branch officelocations. It is also designed to enablesubsidiaries and holding companies to runwithout being on the same network oraccounting database. G/L Consolidationsprovides a feature set that allows ourcompany to define the level of detail toconsolidate and provides a comprehensiveaudit trail. The system is available in twoversions: a full version for the head office anda remote-sites version for branch
Intercompany Transactions It helps us to enter GeneralLedger and Accounts Payabletransactions that affect more thanone company by automaticallydistributing transactions across twoor more companies. In addition, itsbuilt-in flexibility automaticallygenerates intercompany loan accountentries according to user-definedrelationship tables called routes.Intercompany Transactions simplifiesand significantly reduces the amountof work required for intercompanyaccounting.
Transaction Analysis and OptionalField Creator Transaction Analysis and OptionalField Creator allows us to define allthe information we require for eachGeneral Ledger account, customer,vendor, item, transaction, andtransaction detail, making it easy torecord and track data from theoriginating transaction through to ourGeneral Ledger. We can defineunlimited text, amount, date, time,integer, number, and yes / no optionalfields for use.
HR ModuleHR (Human Resources) is another widelyimplemented ERP module. HR module streamlinesthe management of human resources and humancapitals. HR modules routinely maintain a completeemployee database including contact information,salary details, attendance, performance evaluationand promotion of all employees. Advanced HRmodule is integrated with knowledge managementsystems to optimally utilize the expertise of allemployees.
It provides support for a variety of HR tasks,including benefits, training, recruiting andcompliance. The module offers a flexible design thatlets users select their own database platform,including SQL or MSDE (Microsoft DesktopEngine).It includes powerful reporting and analysis toolsthat provide customized insight on almost any HRissue. Hundreds of standard report templates areincluded. An integrated database is designed to feeda steady flow of information to managers and staff.
Project ModuleProject and Job Costing This module provides an effective solution for projectmanagers in construction, job service, and other professionalindustries who require a time-and-material system. It deliversthe tools necessary to manage the simplest to most complexcontract or job. It makes the estimating, tracking, costing, andbilling of projects easy and manageable-simplifying costcontrol and planning. With the powerful features of Projectand Job Costing we can identify potential issues anddetermine success factors for any project. The automatedbilling features in this software streamline customer invoicing,reducing the time spent managing this process.
Other InfoFour strong players dominate the market ofERPs: SAP, Oracle, PeopleSoft and JDEdwards.
They share 50% of the big companies market.An oft-overlooked advantage in having aworkable and efficient ERP system in place issavings in relation to energy consumption anddata management.The savings generated from a minimum ofhardware and storage, coupled with operationalefficiencies created from a single system acrossall departments, translates into measurableprofit for the company.
Having an ERP system in place implies having a singlehardware system to handle the differentrequirements, translating into reduced powerconsumption operating off a single database whichtranslates into savings on storage.Sage Accpac, Microsoft Axapta, Infor, Abas,Compiere, SAP, JD Edwards, People soft, Oracle areWidely used Erp’s.
M.RAVISHANKAR MBA(AB) 2008-2010 BatchNIFT-TEA KNITWEAR FASHION INSTITUTE TIRUPUR OXYGEN024@GMAIL.COM