Enterprise Resource Planning Systems (Erp)
ENTERPRISE RESOURCE PLANNING SYSTEMS
Enterprise resource planning (ERP) systems integrate the planning, management, and use of all of an organization’s resources. The major objectives of ERP systems are to tightly integrate the functional areas of the organization and to enable information to flow seamlessly across the functional areas. Tight integration means that changes in one functional area are immediately reflected in all other pertinent functional areas.
ERP systems provide the information necessary to control the business processes of the organization. A business process is a set of related steps or procedures designed to produce a specific outcome. Business processes can be located entirely within one functional area, such as approving a credit card application or hiring a new employee. They can also span multiple functional areas, such as fulfilling a large order from a new customer.
ERP software includes a set of interdependent software modules, linked to a common database, that provide support for the internal business processes in the following functional areas: finance and accounting, sales and marketing, manufacturing and production, and human resources. The modules are built around predefined business processes, and users access them through a single interface. The business processes in ERP software are often predefined by the best practices that the ERP vendor has developed. Best practices are the most successful solutions or problem solving methods for achieving a business objective.
Business Processes Supported by ERP Modules
• Financial and accounting processes: general ledger, accounts payable, accounts receivable, fixed assets, cash management and forecasting, product-cost accounting, cost-center accounting, asset accounting, tax accounting, credit management, financial reporting
• Sales and marketing processes: order processing, quotations, contracts, product configuration, pricing, billing, credit checking, incentive and
Enterprise resource planning (ERP) systems integrate the planning, management, and use of all of an organization’s resources. The major objectives of ERP systems are to tightly integrate the functional areas of the organization and to enable information to flow seamlessly across the functional areas. Tight integration means that changes in one functional area are immediately reflected in all other pertinent functional areas.
ERP systems provide the information necessary to control the business processes of the organization. A business process is a set of related steps or procedures designed to produce a specific outcome. Business processes can be located entirely within one functional area, such as approving a credit card application or hiring a new employee. They can also span multiple functional areas, such as fulfilling a large order from a new customer.
ERP software includes a set of interdependent software modules, linked to a common database, that provide support for the internal business processes in the following functional areas: finance and accounting, sales and marketing, manufacturing and production, and human resources. The modules are built around predefined business processes, and users access them through a single interface. The business processes in ERP software are often predefined by the best practices that the ERP vendor has developed. Best practices are the most successful solutions or problem solving methods for achieving a business objective.
Business Processes Supported by ERP Modules
• Financial and accounting processes: general ledger, accounts payable, accounts receivable, fixed assets, cash management and forecasting, product-cost accounting, cost-center accounting, asset accounting, tax accounting, credit management, financial reporting
• Sales and marketing processes: order processing, quotations, contracts, product configuration, pricing, billing, credit checking, incentive and