ERP and Financial Management
ERP system implementation and application of the basic requirements should be the logistics, information flow and capital flow integration. Logistics and information flow in a unified and integrated implementation of the ERP should be a basic requirement. Goods out of inventory, including procurement warehousing, production and receive materials, finished products completed in warehousing, stock commodity sales business, include a stock of goods movement, logistics and information flow of the uniform, they are required for each transaction must be in the ERP in real-time, accurate and complete records, that is, to ensure that information in real-time, accuracy and completeness. For the ERP in the information flow and cash flow of unity, it is another criterion for the successful implementation of ERP, but also must reach a higher standard. Otherwise, ERP implementation is successful, out of the question.
How to understand the ERP in the information flow and capital flow of a unified and integrated? The successful application from the ERP system, how a corporate finance from the traditional financial accounting into a simple modern ERP financial management?
Traditional accounting bookkeeping for the company's general economic activity, accounting and bookkeeping has lagged behind, are in fact accounting model. As to the summary of inventory of raw materials out of the end of storage operations, manual or system account.
ERP financial management, financial accounting and operations will be integrated ERP, namely, logistics and information flow, capital flow integration, real-time billing, the following standard cost for instance.
Such as purchasing the same amount of storage services, traditional accounting book keeping, and general warehouse each month according to the procurement warehousing matrix manual accounting:
By: raw materials
Credit: Accounts payable
The ERP finance a purchase in each storage operations, it can automatically generate real-time accounting entries. According to the procurement chain and can be temporarily closed for inspection and qualified storage segments, while the detailed accounting information produced:
Procurement of materials from the Warehouse staff temporarily closed, waiting for submission, the resulting accounting information:
By: Material Procurement
Credit: accrued liabilities
Warehouse members will be qualified and material storage, press the purchase price of the default to produce the accounting information.
By: raw materials
Credit: Material Procurement
Borrow / loan: Material cost difference - Order Spread
At the same time, the supplier invoices and purchase orders received matches the write-off, then automatically creates accounting information:
By: Accrued liabilities
Loan / borrow: Material cost difference - Invoice Spread
Credit: Accounts Payable
Every sum of procurement operations through the same time, there are suppliers of information, materials information, quantitative information and price information, real-time purchase accounting information generated, you can link to the entire procurement of information to conduct a detailed analysis of the procurement. At the same time, through the system automatically creates a business accounting information, you can finance staff from the cumbersome manual bookkeeping and accounting documents freed, genuine concern for businesses of financial risk.
Effective risk control. If the procurement of the sessions, the price of the purchase order and invoice price difference statistics, analysis and monitoring is an effective means of financial management, using ERP information system of enterprise management, reduce cost of enterprise purchasing is not just an empty phrase, but ERP system through the effective support to achieve the anticipated management objectives.
Collar material aspects such as production workshop, also reflects the information flow and capital flow and effective integration:
Workshop collar material, the system collar material according to workshop services, automatically creates a sub-record:
By: Production costs
Credit: raw materials
Workshop completed storage, then the completion of the finished product according to the number and cost, automatically create accounting entries:
By: stock commodity
Credit: production costs
Loan / borrow: the cost of production - consumption differences
The traditional accounting, you need to receive material and stock commodity through the shop at the end of the summary records storage, and then hand the preparation of accounting documents. As the statistics lag, in the factory production chain losses have occurred, including normal and abnormal wear and tear can not be real-time, accurate statistics and monitoring, leading to plant the cost of waste. Workshop cost accounting, ERP systems can be generated through the workshop loss analysis and monitoring. Corporate cost accounting from a simple accounting of the cost of materials, complex product costing in the liberating point of focus in the workshop will focus on the cost of planning and control, how to effectively reduce the manufacturing cost of finished products workshop, how can we effectively reduce the material loss, from the the perspective of financial cost manufacturing workshop to provide more effective management of data and financial goals. Through the ERP system implementation, cost management workshop fully reflects the information flow and capital flow integration, so that the cost of ERP systems for enterprise planning, budgeting, analysis and control, provides an effective data support, in order to meet the provision of Enterprise Cost Management more forceful means.
To sales, for example, accounting and bookkeeping generally based on monthly sales of a library storage summary table, manual bookkeeping, accounting and processing are as follows:
By: Main business costs
Credit: stock commodity
The ERP financial management through the process sales orders, sales delivery confirmation step, for each sum of shipments for each order to automatically generate accounting entries, and at the same time generate receivable accounting entries reflect the revenue and cost allocation than the principle.
By: Main business costs
Credit: stock commodity
At the same time generate receivables generated sales invoices, verify income:
By: Accounts receivable
Credit: Main business revenue
ERP system, sales orders and order processing operations and financial integration, real-time synchronization generated sales of accounting information, can provide the user according to the customer on the sale of products to sell customers and business analysis.
As the ERP system is based on a powerful database development integration of a unified system, in various business modules and finances an effective integration between to meet the business information and financial data-sharing. Procurement of materials, such as coding, sales of goods codes, procurement supplier codes, sales customer's code and so on, not only in purchasing management, sales management exist, while simultaneously responding to and receivables are unified.
ERP purchasing and selling real-time according to each business account detailed business information systems, providing financial management to meet the statistical and analytical data. Such as the procurement of goods monthly analysis, monthly sales of product analysis, production analysis. Provide real-time reporting to meet the needs of a number of financial management, while the traditional accounting is the basis of inability to business data through the statistics, statistics and compiled manually, resulting in volume and complexity of statistics, data collection and other reasons can not be caused by management failure bit.
Same time, through the application of ERP systems, logistics, information flow and capital flow and effective integration of the most details of the business through business data recording and analysis for the enterprises to implement BI systems provide the most details of the data elements for the company's future business intelligence applications the original data to provide the most support for the enterprise business and provide a powerful foundation for intelligent management. |
