REPORTERS:

Denmark Cabaddu
Ma. Khaterine Quimuyog
Lorika lovely Time
Ailene Talosig
Lovely Galvez
Landel Martinez
Michel Joy Tierro
 Enterprise Resource Planning
FINANCE MODULE

! We are the
Group 7.
Our report is all about ERP FINANCE MODULE. The ERP
finance module is the software component that handles the
main accounting and financial management functions of an
enterprise resource planning system. Click learn more for
more informations.

Learn More
Whats is
The ERP finance module is the software component that handles the
main accounting and financial management functions of an enterprise
resource planning system. The ERP finance module, which is also
referred to as ERP core finance or financial management, also
commonly supports functions such as profitability analysis and
revenue management. ERP is modular software designed to integrate
an organization's business processes into a single system running on a
central database. The finance module shares data with other core
business functions, including inventory management, production
planning, purchasing, customer relationship management (CRM) and
others. When a transaction in one of these other modules has a
financial impact or must be recorded in the accounting system, it
usually triggers an action or transfer of data in the ERP finance module.
Importance of
The finance module is usually the first component
activated in an ERP system and the reason organizations
replace their standalone accounting software with ERP.
The finance module is also the component that most
differentiates ERP from other integrated business
applications, such as human capital management (HCM)
suites, and from its predecessor, material requirements
planning, which mostly addresses the raw materials and
components needed in manufacturing.
➢ Integrating the finances of the various business
functions helps ensure accounting accuracy,
which is essential in meeting financial regulations
and reporting requirements that have grown more
stringent in recent years.
➢ It also provides the consolidated financial
data needed to measure and improve
corporate performance.
➢ The financial module is the core of many ERP
software systems. It gathers financial data from
various functional departments and generates
valuable financial reports. Reports such as
general ledger, trial balance, balance sheet, and
quarterly financial statements.
Key Features of ERP Finance Module
Profit tracking Accounts payable (AP) Fixed asset
management.

General ledger Accounts receivable Purchasing

(AR)

Risk management Reporting Tax management

The profit tracker provides a business with a Therecord
The GL is a comprehensive GLofis aa
all of The finance module's enterprise risk
picture of its overall financial health and an comprehensive
company's record
financial transactions. It tracks management features enable an

ofaccounts,
all ofassets
a company's
overview of how it is using its financial such things as income and expenses, organization to predict, analyze and manage
resources. With profit tracking -- sometimes capital and liabilities. risks to its operations and financial stability.
called profitability analysis -- an organization financial transactions. Risk management features can also help

It such things as
has visibility into where most of its profits companies deal with issues related to
come from. Some profit trackers will also security, legal liabilities, compliance and
forecast an organization's return on income and expenses, reputational risks.

capital accounts,
investment (ROI) from all channels based
on historical sales transactions and expense
data. assets iabilities.

Profit tracking General ledger Risk managemen

 The AR function is where a company Basic reporting features provide
The AP feature of the ERP finance
manages the money that customers access to financial data, often in real
module can quickly process a large
owe. It tracks payments and manages time, and help a company to prepare
number of invoices and other financial
cash and invoices. An organization can financial reports typically for internal
transactions between an organization
use this function to automate such tasks use, though some products can
and its vendors. AP also integrates an
as generating recurring invoices, produce reports and audit trails
organization's payables data with its
financial statements and payment needed for regulatory requirements.
purchasing system, which may be part
reminders. By automating the AR The reporting features' visibility into
of core finance or in a separate
process, a company can accelerate ERP financial data helps an
purchasing or procurement module,
collections and make it easier for organization make data-driven
enabling better control of cash flows.
customers to pay, thereby improving decisions and predictions about its
cash flow and customer satisfaction. finances.

Accounts receivable
Accounts payable (AP) (AR) Reporting
Companies use this feature to track and
manage tangible assets, such as
computers, factory equipment and
vehicles. Fixed asset management lets
an organization take into consideration
depreciation calculations, compliance
requirements and tax implications. By
using this feature, it can get better
visibility into how it uses its fixed assets,
along with the associated costs and
maintenance.
Fixed asset management.
Most core ERP financial modules
have some features a company needs
for basic purchasing of supplies and
services, including generating the
required paperwork, such as
requisitions and purchase orders.
Integration to AP usually provides the
necessary handling of invoices, while
invoice matching ensures that vendor
invoices match the information in AP
before payment is processed.
Purchasing
This feature, available in some finance
modules, stores the ERP system's tax
settings and provides tax reporting and
audit functions. It enables an
organization to collect tax information
from all of its financial documents into
a single repository. It also generates
the reports a company needs to file its
taxes.
Tax management
Benefits
OF

The ERP finance module helps speed up an

enterprise's financial processes and offers auditable
revenue management and expense management. It
also enables a company to more clearly communicate
financial information to external parties, including
vendors and customers.
Financial transparency. The GL and analytics Tracking and organizing financial documents. The
dashboard give authorized users the information they digital format means an organization is less likely to
need to understand their company's financials. misplace or lose documents. In addition, documents are
usually filed in the proper place automatically.

Improved productivity. Once a company automates its

manual and time-consuming finance processes, No missed payments. The AP feature notifies a
productivity will improve. company about upcoming payments. The company can
also have payments taken out automatically.

Reduce human errors. Accounting errors, including

data entry mistakes, are easier to detect and avoid. Centralization. A company can access its financial
information in one place.

Better-informed
Premium User planning
– Since 2020and budgeting. The ERP Integration. Because the ERP finance module integrates
finance module's analytics and reporting functions help with other ERP modules and business systems, an
a company to forecast costs and revenue and produce organization has access to key data, such as sales
more accurate budgets. figures and marketing budgets.
ERP

A business use case is a common task or

workflow carried out in software.
 Payables:Invoice processing, cash Receivables: Billing, extending credit and
management and bank reconciliation. matching invoices with cash received.

Revenue recognition: Recording revenue that Reconciliation: Automatically

is received over time rather than in a single reconciling account discrepancies to
transaction. Strict regulations require this avoid delays in the monthly close.
revenue to be recognized properly in the
general ledger and income statement.

Collections: Analyzing receivables and

customer accounts to identify payment
risks and executing steps to encourage
timely collection.
thank you
ERP INFRASTRUCTURE
-FUGABAN, MERGIELYN -SALAMANCA, KIMBERLY
-LUNATO, RHAMCHEL SEBASTIAN -TEJERO, MA. TRICIA
-PASCUAL, LOVELY -UNIPA, MAYNARD
Cloud ERP, also known as Software-as-a-Service
(SaaS), is hosted on the vendor’s servers and accessed
through a web browser.
On-premises ERP is installed locally, on a company’s
own computers and servers.
Hybrid, some systems combine on-premises and
cloud modules
Advantages and
Disadvantages of
On-Premise ERP
Advantages of an on-premise ERP
Security – If a company owns extensive intellectual property, proprietary information or
high liability concerns over the production of its products, an on-premise ERP can offer
strong security. This keeps third parties from having any access to such data and can
protect it from potential loss. The security in place must be robust, however, it always
remains in control of the company.
Reliability – On-premise ERP systems do not rely on internet connections. As a result,
the loss of an internet connection either short or long-term means the company can
remain in business and continue to produce. This may be an important consideration for
process manufacturers such as those producing perishable goods such as food or
medicines.
Naturally Aligned Skillsets – If the manufacturer produces highly technical products
that require a high level of skillsets in-house then an on-premise ERP may make sense as
those skillsets may already exist among staff already on board. This alignment will depend
on the type of product manufactured but having specific engineering skills in-house at the
outset reduces the required investment and training compared to a “cold start”.
Disadvantages of an on-premise ERP
Cost – On-premise servers are a costly undertaking. To put this cost in
focus, on-premise ERP systems are usually classified as a capital expense
while cloud-based are classified as an operating expense. The up-front costs
include the purchase of the system itself, the physical assets including server,
racks and interfaces, as well as the training and support costs.
Skillsets – For small manufacturers who do not produce highly technical
products or who have limited resources for hiring, the skills required to set
up an on-premise system may be limited or non-existent. It may also be
outside the manufacturer’s salary budget to hire those with the skills to set it
up.
Scalability – As a small manufacturer scales, an on-premise ERP must scale
with it. This means additional server space for additional data storage, racks,
upgraded and updated versions, training and a host of other costs related to
scalability.
Advantages and
Disadvantages of
Cloud-Based ERP
Advantages of cloud-based ERP deployment include:
 Lower Start-up Costs – Cloud-based ERP systems usually consist of a contracted or monthly
fee or subscription service. Because the system runs web-based, there is no investment in
physical assets required by the manufacturer. Maintenance costs and other system costs
are provided by the third-party software provider under the covers and included as part of
the subscription or monthly cost. Cloud-based ERP providers also deploy improvements,
patches and service enhancements seamlessly and on an ongoing basis, reducing the time
and cost required for a small manufacturer to take advantage of these improvements.
 Scalability – Small manufacturers may not always need a full-service ERP system. There
may be specific features required as well as many that are not depending on the final
product, mode of production, company size and other factors. Cloud-based ERP systems
are flexible in terms of scalability as it is often possible to purchase a la’ carte to tailor the
system to the needs of the manufacturer. This saves cost and reduces training as well as
shortening the adoption time and learning curve. It also means that as a company grows,
increases in access to the system can be purchased as needed in the form of additional
“seats” while new features that may be required that were not in the past can be added
incrementally.
Flexibility – Cloud-based ERP systems are flexible
in that backup is automated. It provides an
inherent “disaster” plan for restart in the case of
natural disasters because production data and the
production system is still accessible. By
comparison, on-premise systems must still send
their data to a reserve site or manually back it up
to realize the same benefit.
Disadvantages of a cloud-based ERP deployment include:
Security – With a cloud-based ERP, a small manufacturer’s data is always in
the hands of a third party. As a result, it must rely on the third party’s security
to safeguard its data. This is a concern for many manufacturers depending on
the type of product manufactured or the level of IP and proprietary data
involved. However, most third-party providers have demonstrated security
on par with that of the small manufacturer’s security measures themselves
and in some case may exceed that of the company.
Reliability – Cloud-based ERP systems require an internet connection. In
locations where services is not reliable, or in the case of certain disruptions of
service due to natural disasters, an interruption in internet service could
mean the difference between operating the factory or not during the
disruption.
THANK YOU!!!
ERP Selection and
Implementation
 5-Step Process

• Step 1: Preliminaries
• Assemble your team

• Outline the project strategy

• Take a good look at the current
state of business
Step 2: Get everyone on the same page

• Requirements and project planning

Step 3: Choose a solution provider and
implementation partner

There are many ERP software systems to choose

from, ranging from:
• The well-known “Tier 1” big systems (SAP & Oracle
are the largest)
• The so-called mid-range or “Tier 2” systems
designed for medium sized companies
• Smaller “Tier 3” systems that are less expensive
but more limited in functionality and ability to support
a large number of users.
Step 4: Implement

Here are some basics that most successful implementations have in common:
•Do take the time to lay out a complete and thorough plan.
•Use standard tracking tools like Microsoft Project to manage the effort.
•Have regular (weekly) project team meetings to monitor progress and address
any issues.
•Keep the project and its progress highly visible to the entire enterprise.
•Get future users involved early to establish a sense of ownership in the new
system.
•Don’t skimp on training – it’s the best investment you can make in future
system success and benefit.
•Pay attention to change management – to build on the feeling of ownership
company-wide and eliminate resistance to the new system.
Third party resources

Use third party resources appropriately where they can

save time, improve results, and help your project
succeed. Paying an expert can help you avoid common
mistakes, take advantage of “tips and techniques” that
others have discovered over the years, get your system
into productive use faster, returning benefits sooner.
Step 5: We went “live”…now what?

In today’s world of technology, new products,

new techniques, and new business processes
are emerging at a breakneck pace.
There are also many things your company can do in
order not to stagnate and to take full
advantage of your ERP investment:
MANUFACTURING
MANAGEMENT
Manufacturing
To process or make
raw materials or
components into a
finished product,
especially by means
of a large scale
industrial operation.
whAT IS MANUFACTURING
MANAGEMENT?
►Manufacturing
management refers
to all aspects of the
product
manufacturing
process.
3 Aspects of Manufacturing

1. Manufacturing Strategies
2. Manufacturing Processes
3. Total Cost of
Manufacturing
1. Manufacturing
Strategies
2. Manufacturing
Processes
3. Total Cost of
Manufacturing
3 types Of Manufacturing
production process
1. Make-To-Stock (MTS)
2. Make-To-Order (MTO)
3. Make-To-Assemble (MTA)
1. Make-To-Stock (MTS)
2. Make-To-Stock (MTS)
3. Make-To-Assemble (MTA)
The Triple Bottom Line
The Triple Bottom Line
Social Responsibility - This pertains to fair and
beneficial business practices toward labor, the
community, and the region in which a firm
conducts its business.
Economic Prosperity – the firm is obligated to
compensate shareholders who provide capital
Environmental Stewardship – this refers to the
forms impact on the environment
Competitive
Dimensions
1. Price – make the product
or deliver the service cheap
2. Quality – make a great
product or deliver a great
service
3. Delivery Speed – make
the product or deliver the
service quickly
4. Deliver Reliability – deliver it
when promised
5. Coping with changes in
demand – change its volume
– high variable demand
6. Flexibility and new
product introduction speed
ORDER WINNERS AND ORDER
QUALIFIERS
ORDER QALIFIERS –Those
dimensions that are necessary
for a firms products to be
considered from purchase by
customers. They are the basic
criteria that permit the firms
products to be considered as
candidates for purchase by
customers
ORDER WINNERS –
Criteria used by customers
to differentiate the
products and services of
one firms from those of
other firm's. Features that
customers use to
determine which
products' to ultimately
purchased.
PRODUCT DESIGN
PROCESS
Companies continuously bring
new products to market . Product
design is Integra to success.
Product design differs
significantly depending on the
industry. Companies often
outsource major functions.
1. Time to Market – there are two aspects to this,
the frequency of new product introductions and
the time from initial concept to market
introduction
2. Productivity – such measures as the number
of engineering hours , the cost of materials and
tooling costs are used in this measures
3. Quality – measures that relate to the
reliability of the product in use, the products
performance feature's compared to customer
expectations, and the ability of a factory or service
process to produce the product
 DESIGN FOR LOGISTICS
Design of products for manufacturing, packaging
shipping warehousing merchandising and
repacking fro returns

Flat Standard shipping

packs container
 Fits the Reduce the
warehouse and packaging
store shelves

Benefits – Reduce costs, optimize

logistics operations, look good for
customers
BSAIS 4B
VERLYN GORGONIO
ARLYN TALOSIG
SHARON CABEZA
JESSA MAE CORDERO
NORIZA MAPE
CRISTINE VILORIA
CHRISTINE SIBBALUCA
SUPPLY CHAIN MANAGEMENT
 WHAT IS SUPPLY CHAIN MANGEMENT
(SCM)?

Supply chain management is the management of the flow of goods

and services and includes all processes that transform raw materials into
final products. It involves the active streamlining of a business's supply-
side activities to maximize customer value and gain a competitive
advantage in the marketplace.
 FIVE COMPONENTS OF SUPPLY CHAIN
MANAGEMENT
SCM encompasses a wide range of activities that generally fall
into one of five buckets: planning, sourcing, manufacturing, delivery and
returns. Let’s take a more detailed look at each component:
1. Planning
SCM starts with planning. A company must first determine the
quantity of supplies or products it needs, typically by using supply
chain and inventory management software that helps build accurate
forecasts and provides detailed analytics. As part of this process,
SCM must figure out the labor, capital and partners it will need to
meet expected demand.
2. Sourcing
This is when a business identifies the suppliers, manufacturers and
distributors that can provide the goods or services it needs based on
its plan. In an effort to build supply chain resilience, a manufacturer
might have multiple suppliers for an important component, in case
one supplier shuts down or has reduced capacity. That adds
redundancy but may come at the cost of more complexity. Managing
redundant relationships falls into this part of SCM, as well.

3. Manufacturing
Even for companies that outsource manufacturing or buy fully or
partially finished products, this is a key step. The company must
acquire finished goods or all the parts and materials it needs to
produce goods based on its demand plan, inspect them for quality,
then package items for direct shipment or distribution.
4. Delivery
Delivery is the final step in the forward supply chain and entails getting goods or
services to customers, whether another business or consumers. The company
must organize and prioritize orders to ensure it can meet promised delivery
timelines and avoid downstream issues, like high-demand SKUs going out of
stock. This component includes invoicing and collecting payments from
customers, as well.

5. Returns
The product lifecycle doesn’t always end when the end user receives an item.
Sometimes products are sent back, whether due to customer dissatisfaction,
defects, excess inventory or a warranty claim. The item then moves through the
reverse supply chain until it reaches the company responsible for issuing a
refund or replacement. That company then either scraps the item, repairs it or
returns it to available inventory.
A recent trend is the “returnless refund,” where an online seller determines that it
will cost more to take an item back than it can recoup and chooses to simply
issue a refund and tell the customer to keep the product.
 Why Is Supply Chain Management Important?
Supply chain management has increasingly become a top priority as
business leaders realize how critical an efficient, resilient supply chain is to
their bottom lines. Supply chains are among a company’s largest expenses, so
it makes sense to evaluate and optimize all of the processes involved in getting
a product or service to the end customer. Over time, that fosters loyalty and
distinguishes a company from its competitors.

Advanced companies understand that a well-executed supply chain

reduces waste by keeping supply aligned with demand. When all parties are in
synCc from suppliers to manufacturers to retailers to planners — they can
avoid overstock or out-of-stock situations that generate unnecessary costs or
frustrate customers and lead to lost sales.
 How Supply Chain Management Works?

SCM requires establishing relationships between all the entities

that form a supply chain for a discrete product or service. Most items
are not sourced, designed and built by a single company; rather, a
number of businesses work together to produce and distribute a finished
good or service.
To better understand what goes into SCM, it helps to separate the
physical flow from the information flow.
 To better understand what goes into SCM, it helps to separate the physical
flow from the information flow.

•Physical flow
Companies that sell products must figure out the best way to receive materials,
parts or finished goods and then move them on to the next stage in the chain.
The physical flow of goods begins with a supplier sourcing raw materials,
which then move on to a manufacturer, distributor, retailer and finally the end
customer; of course, certain supply chains may skip or consolidate some of
these steps.

At each step, physical items must be transported to the next destination and are
often stored for some period of time, which requires planning and coordination.
• Information flow
As goods or services progress through the supply chain, all stakeholders need
visibility into detailed status information. The supplier relies on purchase
orders from manufacturers to plan production runs and allocate inventory. A
distributor needs to know the product types and quantities included in
upcoming shipments, as well as expected arrival dates.

Keeping a supply chain running smoothly requires a constant flow of data

between all organizations involved, including updates about delays, shortages
and other changes. Supply chain management software plays a central role in
tracking and sharing all of this information.
 SIX BENEFITS OF SUPPLY CHAIN MANAGEMENT
An effective SCM strategy has a host of benefits that make it more than worth the
investment in employees, training and technology. Top benefits of SCM include:
1. Cost savings
An overarching goal of SCM is greater efficiency, which translates to cost savings. A company that
can accurately predict demand won’t overspend on inventory. That improves cash flow — less
money is tied up in products sitting in a warehouse, and companies realize lower production,
shipping and inventory carrying costs. By adopting more efficient processes, businesses can also
boost productivity and reduce labor costs.
2. Better customer experience
SCM minimizes situations where a company runs out of a popular product. That keeps customers
happy and may entice them to buy from you in the future versus a competitor. As they optimize their
supply chains, organizations may also find ways to ship products faster and for less money,
potentially passing along savings. Finally, greater transparency allows customers to track the status
of their orders at any time.
3. Fewer quality issues
Improving the quality of goods and services is one of the primary goals of SCM. A
company might come up with a better quality assurance (QA) procedure or notice
that a certain supplier or courier has a much higher rate of damaged shipments,
then work with the partner to correct that. Customers will obviously appreciate
noticeable quality improvements, and service teams appreciate getting back the
time and money once spent resolving quality-related issues. Effective SCM
minimizes the product recalls and lawsuits that cause lasting damage to your
brand’s reputation.

4. A stronger, more resilient supply chain

Companies that nail SCM have visibility into their entire value chains and can
share information with all stakeholders. CFOs can quantify the financial impact of
a supplier facing a shortage of a key component or a retailer seeing sales for a
certain product drop off. The key is that the business has advance notice so it can
react quickly and avoid a dip in revenue or uptick in missed orders to customers
while keeping partners informed. This ability to quickly shift gears puts those with
clear SCM strategies in a much better position should a natural disaster, disease
outbreak, economic instability or a similar event affect the supply chain.
5. Greater sustainability
A supply chain that optimizes purchasing and manufacturing will produce less
waste. An accurate demand plan helps purchasers buy only what they need, which
means less inventory to dispose of. Master supply chain sustainability and you’ll
manufacture and ship fewer unnecessary items. That lowers a business’s
environmental footprint, which is increasingly important to customers — 81% of
global consumers answering a Nielsen sustainability survey said it’s very or
extremely important that corporations reduce their impact on the environment.

6. Create a competitive advantage

The ultimate goal of SCM efforts is to give companies a clear competitive
advantage. The benefits discussed above can separate an organization from its
competitors, whether through lower prices, an exceptional customer experience, a
more resilient supply chain — or all the above. And once a business secures a
position at or near the top, it will gain market share and watch the bottom line
grow.
 EIGHT KEY SUPPLY CHAIN MANAGEMENT
PROCESSES
Because SCM covers everything from raw-material sourcing to final
delivery and returns, it includes a number of different processes.
1. Purchasing
Before a business can manufacture or sell anything, it needs to purchase
materials or goods. That’s where purchasing, or procurement, comes in.
Based on its demand plan, a company sends purchase orders to its suppliers
and ensures they can meet quantity and timeliness requirements.
2. Manufacturing
If your organization is in the business of making things, that process is
obviously a fundamental piece of SCM. Manufacturers must plan
production runs and ensure they have the necessary capacity to meet
demand. They must also track goods-in-progress and finished goods.
3. Inventory management
A company must keep a close eye on the status of all components and
items as it receives, uses and ships them out. It needs to know the details
on and location of every piece of inventory coming into and going out of
its facility. Inventory management focuses on optimizing stock levels to
increase inventory turns and reduce holding costs.

4. Order management
Companies — in particular, retailers — may receive orders through many
channels and need a way to organize them. Order management involves
sorting and prioritizing orders and routing them to the appropriate
fulfilment locations, like a regional warehouse or retail outlet. An order
management system also tracks orders as they’re fulfilled and shipped to
customers.
5. Warehouse management
Although similar to inventory management, warehouse management
focuses on the movement of goods in the warehouse and related workflows.
For example, directing workers as they put away incoming products and
fulfil customer orders —picking, packing, shipping — can increase
efficiency.

6. Customer service
Businesses must keep customers informed as their orders move through the
supply chain. Communication starts with letting customers know whether
you can fulfil their requests, then giving them a way to track orders in real
time. A high-performing supply chain demands frequent and consistent
communication with your partners and clients.
7. Reverse logistics
Customers send back, on average, 30% of online purchases, with a
return rate as high as 50% for some apparel brands, say experts.
Companies must figure out efficient ways to process returned products.
A supply chain partner, such as a retailer or distributor, or the end
customer could initiate this process. SCM teams should have a clear
policy around when returns are allowed and rules detailing when to
return goods to inventory, repair them or destroy them.

8. Supply chain performance tracking

Leaders must establish supply chain KPIs and other metrics to
understand if their organizations are meeting operational performance
standards. These metrics should be monitored in real time and reviewed
frequently lest issues fly under the radar. Companies may measure productivity,
costs, fill rate, on-time delivery rate and customer satisfaction.
 THANK YOU!!!!!!

2022/1/16