ERP - (Enterprise Resource Planning) - is a complex software applications and combines tools for managing most of the key processes of the enterprise. On the one hand, the ERP-system automates the activities of staff for planning, budgeting, logistics, records management, personnel management, production management, etc., on the other hand allows senior management to get a comprehensive picture of the company that makes the ERP-system an indispensable tool for the automation of the operating activities and to support current and strategic decision-making.
The main advantage of the ERP-system is an integrated storage and use of information (data integrity), i.e. the possibility of obtaining comprehensive corporate information on a particular activity of the organization in one system. This has a beneficial effect on reducing costs to support the internal information flow in the organization and, consequently, to reduce the risk of lack of information.
The main components of the ERP-system
Description of the components of the ERP-system
Financial management is an integrated suite of programs that can increase the efficiency of financial management owing to the developed system of financial accounting, reporting and forecasting cash flows.
The financial management includes the following modules:
- General Ledger module is intended for conducting a global accounting of financial data (journal entries, reports, etc.);
- Module settlements with customers, whose purpose is to manage the debtors and sales (invoicing, reconciliation acts, taxes, etc.), as well as control of accounts receivable;
- Module payments to suppliers needed to manage accounts payable and cost accounting;
- Asset Management module intended to maintain the registry of assets, asset transactions, taxation, depreciation and accounting for capital costs and construction;
- Cash management module that is used to manage cash flow and working with banks;
- Financial analysis module, whose purpose is to create all kinds of financial reporting and its analysis;
- Treasury module that allows you to optimize the process of conducting financial transactions of the enterprise;
- Consolidation module, designed to consolidate the accounting and the formation of the consolidated financial statements;
- Interbranch accounting module needed to support the branch structure of the enterprise and enable real-time monitoring activities of head office of the distributed units.
Financial reporting is a tool for flexible analysis, the main source of current information about the activities of the company and assesses its effectiveness.
Managerial accounting is an essential tool for decision-support of management organization for the collection and consolidation of all kinds of information about the business with the necessary degree of detail. In addition, this component can be a means to assess and analyze condition and competitiveness of the organization.
Budgeting is a set of subsystems under the unified name of EPM or CPM (Enterprise Performance Management and Corporate Performance Management - Performance Management Company). EPM (CPM) allows you to create, monitor performance and analyze budgets, financial plans, procurement plans, and strategic indicators and targets. The basic ideology of the EPM (CPM) is the connectedness of all parameters of plans in a single hierarchy that allows you to track the relationship between the company's strategic objectives and core targets. This component of the ERP-system supports the maintenance of a balanced scorecard organization and implementation methods of separate accounting of revenues and expenses by activity of the organization.
Project management is a tool for process optimization for enterprise project management at all stages of its implementation (planning, execution, analysis). Using the component will allow monitor and analyze the costs for projects, manage project resources, in order to improve performance and profitability of projects.
Production management allows control of productive resources, planning and monitoring of the production process, managing work orders and purchase orders, manufacturing documentation, quality management, management, maintenance and repairs, the analysis of the planned and actual production.
Warehouse management performs planning, monitoring and management of procurement processes, storage and delivery. This component allows you to effectively manage the transport, storage and other key components of the logistics system.
Human resource management is an effective tool for the organization of the personnel department and HR to find, evaluate, select, motivate, train and accounting staff. In addition, this component allows you to plan and carry out certification activities, monitoring and planning for career advancement of employees in a timely manner to carry out motivational activities. Also in the function of this component is included automation of payroll.
Customer relationship management improves employees productivity within and outside the organization and simplify the interaction of sales, marketing and customer service.
Sales and Procurement management provides a full range of financial transactions to settle with customers - from receiving the deposit or full payment to invoicing, shipping invoices, calculation of sum and exchange rate changes, the formation of sales book, debt analysis, calculation of interest and penalties, etc.
A single repository of data - database used to store information of all components of the ERP-system.
