Enterprise Resource

Planning

Financial Management
 Financial management
 ERP helps in management of finance very easily.
 It helps by including various automation tools integrated in
financial management.
 It helps in:
 Financial management
 Management accounting
 Accounts payables
 Receivables
 Tax accounting
 Financial modules
 Traditional ERP applications can be
classified in to 4 categories:
 Financial accounting applications
 Management accounting applications
 Financial supply chain management
applications
 Treasury applications
 Financial accounting
 General ledger: (used to record all business
transactions)
 Accounts receivable: (customer payment records for
particular duration)
 Accounts payable: (manages vendor accounting data)
 Assets accounting: (fixed assets after depreciation)
 Contract accounting: (contract based accounting)
 Bank accounting: (records banks transactions)
 Cash journal accounting: (records different cash
accounting)
 Inventory accounting:
 Tax accounting:
 Management accounting
 Profit centre accounting: (checks different profit center
by(cost, revenue and balance sheet)
 Cost centre accounting and budgeting(budget and record
cost and calculate the variances)
 Project accounting and budgeting: (helps in execute project
on time and within budget)
 Product cost accounting: (cost of goods manufactured,
sold)
 Transfer pricing: (values goods and services transferred in
an organisation)
 Financial supply chain
management
 Self-service portals for customers(customers access
invoices, a/c status and payment information)
 Collections management(payment reminders ,collection
controlling, amount due)
 Credit management (checks the credit limit, helps in bad
debts)
 Dispute management (improve cash flow as it helps
solve disputes)
Treasury applications
 Helps in managing and monitoring cash
flow and liquidity as well as cash
forecasting
 Reporting of finance in the company
 Auto connects with bank and
communicates for different transactions.
 Emerging areas in financial
management
 Budgeting/planning: (estimate of expenses, expected
income and fund flow)
 Consolidation (continues reporting of results, helpful in
mergers)
 Business performance management(captures the
performance from four terms i.e. finance, customer,
internal and learning and growth)
 Activity based costing(SAP, Peoplesoft,SAS,Oracle)
 Corporate performance management(for students)