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Financial Management Module

ERP helps with financial management in several ways. It automates tools for financial accounting like general ledger, accounts receivable, accounts payable, and tax accounting. It also helps with management accounting through modules for profit center accounting, cost center accounting and budgeting, project accounting and budgeting, and product cost accounting. Additional financial management functions include financial supply chain management, treasury applications, budgeting and planning, consolidation, and activity-based costing.

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JAYPALSINH GOHIL
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89 views8 pages

Financial Management Module

ERP helps with financial management in several ways. It automates tools for financial accounting like general ledger, accounts receivable, accounts payable, and tax accounting. It also helps with management accounting through modules for profit center accounting, cost center accounting and budgeting, project accounting and budgeting, and product cost accounting. Additional financial management functions include financial supply chain management, treasury applications, budgeting and planning, consolidation, and activity-based costing.

Uploaded by

JAYPALSINH GOHIL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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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)

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