Financial accounting module of ERP

Financial accounting module of ERP

Financial Accounting Module

The accounting segment of ERP systems is generally defined as including three major categories of functionality needed to run the financial accounts for a company – Financial (FI), Controlling (CO) and Asset Management (AM). ERP generally comprises of following core modules: Accounts Payable (AP), Accounts Receivable (AR), Cash and Banking System (C&B), General Ledger (GL), Asset Register/Fixed Assets (FA). Also included in the FI category are the procedures to post accounts, close the books for the month and year, prepare financial statements including the balance sheet and planning functions. Naturally, the system provides the capability to document processes, prepare reports, archive certain data and make additions and changes to the financial data as necessary.Image result for Financial accounting module of ERP
As with all the modules in the ERP system, the user will find all information current and integrated. Thus, an individual manufacturing plant or sales organisation will be able to run a profit and loss report at any time during the month and be shown the most up-to-date information. This, of course, depends on having set up the company hierarchy in such a way that the plant or sales group is designated as a profit and loss centre.
The controlling category includes costing, cost centre, profit centre and enterprise accounting and planning, internal orders, open item management, posting and allocations, profitability analysis and a variety of reporting functions. The accounting department can instantly generate necessary evaluation and valuation reports through ERP system like work in progress evaluation, job variance analysis, analytical reports on production capacity plan, etc. It also includes a project system to track activity and costs related to major corporate projects, such as the implementation of an ERP system. This is not the same thing as a project management system, which can be found in the manufacturing modules.
The asset management category includes the ability to manage all types of corporate assets including fixed assets, leased assets and real estate. It also includes the capital investment management module which provides the ability to manage, measure and oversee capital investment programmes. Treasury capabilities are offered, including the ability to manage cash and funds belonging to the corporation.