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ERP
ERP Functions & Architecture Overview & Emerging Trends
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Module 1 - Objectives
To give a high level overview of the ERP domain,architecture, vendors and market trends. This
will prepare the readers for a better appreciationof Module 2.
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Module 1 - Agenda To introduce the ERP functional & technology domain and concepts,
covering the following:
What is ERP? Why ERP? Typical ERP Modules, ERP supported functions ERP Architecture & integration with legacy
applications
ERP evolution & emerging technology trends Hype Cycle, Gartner Magic Quadrant in ERP space ERP Vendor Positioning, Revenues, Focus Areas ERP Market and Deployment Trends
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What is Enterprise Resource Planning (ERP)? (1)
ERP comprises of a commercial software package that promises the seamless integration
of all the information flowing through the company such as financial, accounting, humanresources, supply chain and customer information.[T.J. Davenport, Harvard Business
Review, July Aug., 1998]
PP
GL
Plants
Shop
Floor
Sales
HRFA
AP
AR
Purchasing
PartnerSystems
Payroll
TreasuryMarketing
Mfg.
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What is ERP? (2)
Supply Chain
$$
FinanceHR
Customer
Warehouse
$
$
$
Purchasing
Quality Assurance
Manufacturing
Marketing
Inventory
$
$
Accounts
$
$
ERP
IntegrationOf all keyBusinessFunctions ofEnterprise.
But ERPIs muchMore thanThis, asExplained
In next fewslides
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What is ERP? (3)
GARTNER GROUP
ERP IS AN INTEGRATED APPLICATION SOFTWARE SUITE THATBALANCES MANUFACTURING, DISTRIBUTIONAND FINANCIALBUSINESS FUNCTIONS.
WHEN FULLY IMPLEMENTED , ERP CAN ENABLE ENTERPRISES TOOPTIMISE THEIR BUSINESS PROCESSES
ERP IS THE TECHNICAL EVOLUTION OF MRP-II THROUGH THEINTRODUCTION OF RDBMS, CASE, GUI, 4GL DEVELOPMENT TOOLS,
AND Client/Server ARCHITECTURE.
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Purchase Off. B
Central Contracting
Purchase Off. A
Central Purchase Local Call-Offs a best practice
Updates
Ship-fr. Y
Contract
Item 12342000 ea
Ship-fr. Y
P.Orelease
Supplier ABC
Ship-from X
Update of
called/inv.qty and am.
Schedule
Replic. of called / invoic
qtys and amounts
Purchase Off. C
Central ContractSupplier ABCPur.Off.X
Item 1234
Off. A 1000Off. B 2000Off. C 1250
Local copy of
central contract
Item 12341000 ea
Contract
Ship-fr. X
Item 12341000 ea
Contract
Ship-fr. Z
Item 12341250 ea
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General Functional Model of ERP
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WHY ERP? (1)The 3C Crisis
CUSTOMERS
New markets/ High Expectations/ Unique Needs
COMPETITION
Global; World-class
CHANGE
Technology
Product life Cycle
Customers Preferences
Competitors
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WHY ERP? (2)(multi-site) Enterprise Concept
ENTERPRISE:
IS EVOLVED AS ANETWORKED STRUCTURE
CONSISTING OF MANY MEDIUM-SIZED ORGANIZATIONS
HAVING THEIROWN SPECIALIZATIONS and CORECOMPETENCIES
WORKING IN COLLABORATION TO CREATEVALUE FOR THEIRSTAKEHOLDERS
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Profits / Dividends
Market Share
Corporate Image
Brand
SHAREHOLDER
EmploymentGeneration
Revenue / Exports
EnvironmentProtection
Societal Development
GOVT. / SOCIETY
Quality of Life
Compensation
Challenges
Work Environment
Job Security
EMPLOYEES
Cost, Quality
Delivery/Agility
Flexibility
Sales Services
CUSTOMERS
ProfitsCash Flow
Business Growth
Relationship
SUPPLIERS
ORGANIZATION
Why ERP? (3)Stakeholder expectations
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Why ERP? (4)Benefits
What Benefit How
Delivery, procurement, mfg.CYCLE TIME REDUCTION Minimizes communication, retrieving andreporting delays.
Cost reduction / Reduced
Inventory
Time-savings, improved control by enterprise-
wide analysis of organizational decisions.
Improved Flexibility (Changes
in Prodn Volume, Product-
Mix, Product Configuration)
Automated and fast planning changes
What-If Scenario
Reliable information accessCommon DBMS, consistent and accurate data,
improved reports
Avoid Data and operations
redundancy
Modules access same data from the central
database, avoids multiple data input and update
operations.
Easy adaptabilityChanges in business processes easy to adapt and
restructure.
Improved scalability Structured and modular design with "add-ons".
Global outreachcan be extended to modules such as CRM and
SCM.
E-Commerce, e-businesscan utilize Internet commerce, collaborative
culture.
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Module 1 - Agenda To introduce the ERP functional & technology domain and concepts,
covering the following:
What is ERP? Why ERP? Typical ERP Modules, ERP supported
functions ERP Architecture & integration with legacy
applications
ERP evolution & emerging technology trends Hype Cycle, Gartner Magic Quadrant in ERP space ERP Vendor Positioning, Revenues, Focus Areas ERP Market and Deployment Trends
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Typical ERP Modules
Manufacturing
Human Resources
$
$
Finance and Accounts
$
$
$ $$
Material Management
Plant Maintenance
Quality ManagementSales & Distribution
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Typical ERP Supported Functions
Financial HR Logistics Sales & Mkt.
Accts receivable Time accounting Inventory Orders
Asset account Payroll MRP Pricing
Cash forecast Personnel plan Plant Maintenance Sales Mgt
Cost accounting Travel expense Prod planning Sales plan
Exec Info Sys Project Mgmt
Financial consol Purchasing
General ledger Quality Mgmt
Profit analysis Shipping
Standard costing Vendor evaluation
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Module 1 - Agenda To introduce the ERP functional & technology domain and concepts,
covering the following:
What is ERP? Why ERP? Typical ERP Modules, ERP supported functions ERP Architecture & integration with legacy
applications
ERP evolution & emerging technology trends Hype Cycle, Gartner Magic Quadrant in ERP space ERP Vendor Positioning, Revenues, Focus Areas ERP Market and Deployment Trends
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ERP- Architecture (three main parts)
Standard
Localization
Customization
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Independent of OS, Hardware
Support to all major Operating Systems like Unix, MS-NT, all
Windows platforms
Independent of Database and UI Interfaces:
- Supports all major Database Systems like Oracle, Informix, SQLServer, DB2, Sybase
User Interfaces:
Supports various Windows platforms, Browsers
Open Communication Protocols: TCP/IP
ERP- Architecture (Open System)
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Typical REQUIREMENTS with ERP Architecture
Performance:Good performance for processing and opening pages/ giving outputs.However it depends on UI design, S/W modularity, Inter-processcommunications etc
Distributed System
- Different data/ Modules/ Transactions to be used at different locations- Disparate Operating Systems
Security
- Data/ Processes for only authorized persons
- Sensitive Business data security from outsiders
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Typical REQUIREMENTS with ERP Architecture
Scalability:
@ Larger volume of Data / larger no. of users
@ Load balancing / Server Farm
@ Multi-language Support
Flexibility
@ Ease of Change/ Update/ Replace
@ Integration to new Technologies (Bar Code/ RFID)
Maintainability
@ Ease of decoding, debugging
@ Normally supported by different vendors
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HARD WARES
OS Driver
APPLICATION LOGIC ( Mfg., Procurement, W/H..)
APIs and Tools ( customize/ maintain)
VIRTUAL MACHINE
ORACLE
SQLServer
INFORMIX
DATA BASE DRIVERUI DRIVER
Windows
Variants
CLIENTV.M/C
Browser
n-Layer common ERP Architecture
DataBase Layer
Logic Layer
resentn Layer
UnixVariants
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Module 1 - Agenda To introduce the ERP functional & technology domain and concepts,
covering the following:
What is ERP? Why ERP? Typical ERP Modules, ERP supported functions ERP Architecture & integration with legacy
applications
ERP evolution & emerging technology trends Hype Cycle, Gartner Magic Quadrant in ERP space ERP Vendor Positioning, Revenues, Focus Areas ERP Market and Deployment Trends
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Typical ERP Integration with legacy Applications
Finance
Inventory
and Supply
Sales &
Delivery
HRMS
Managers &
Stakeholders
Employees
Front
Offic
e
Back
offic
eService
Manufacturing
Shared
Database
System
Enterprise
ERP
CRM SCMEAI EAI
APO WMS
BI & Reporting Tools
BanksLegacy
Planning
EAI
EAI
EAI
EAI
EDI/Gateway
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EAS
ERP
MRP
MRP II
ExtendedERP
Industry X
Industry Class
A
IndustrySegment
Z
IndustrySector Q
Technology
Infrastructure
FunctionalityWidens
Functionality
Deepens
Increasing External Connectivity
ERP II
Evolution of ERP & Emerging Trends
SIC60s 70s 80s 90s end-90s 2000s
Source: Gartner Rese
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1
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ERP was not built for
Collaboration with & among Business Partners
Mass Customization and Product Configuration
Outsourcing in Place of Vertical Integration
Supply Chain Planning across whole Collaborative Value Chain
Pace of Mergers and Acquisitions & Dynamic change in the relationshipamong the Business Partners (Dynamic A2A integration)
Truly Global Businesses
ERP investments will fail to meet enterprise demands to extend planning
and collaboration beyond the enterprise
Source: Gartner Group, May 2001
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How ERP II Evolves From ERP
ERP ERP IIValue chain participation/c-commerce enablementEnterprise optimization Role
All sectors/segmentsManufacturingand distribution Domain
Cross-industry, industry
sector and specificindustry processes
Manufacturing, sales and
distribution, and financeprocesses Function
Externally connectedInternal, hidden Process
Web-based, open,
componentized
Web-aware,
closed, monolithic Architecture
Internally and externallypublished and subscribed
Internally generated andconsumed Data
Source: Gartner Research
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Major ERP Service Providers (Gartners Magic Quadrant)
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Module 1 - Agenda To introduce the ERP functional & technology domain and concepts,
covering the following:
What is ERP? Why ERP? Typical ERP Modules, ERP supported functions ERP Architecture & integration with legacy
applications ERP evolution & emerging technology trends
Hype Cycle, Gartner Magic Quadrant in ERP space ERP Vendor Positioning, Revenues, Focus
Areas ERP Market and Deployment Trends
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ERP vendor competitive positioning
Largeenterprise
SAPmySAP
Business
Suite
OracleEBS and
Enterprise
NetSuite
Lawson/Inte
ntia
SAPBusiness
One
MBSAX
MBSGP
MBS
NAV
MBS
SL
OracleE1
Epicor
SageGroup
SSAInfor
QADIFS
Exac
t
Unit 4Agresso
Midmarket
Smallbusiness
Source: Forrester
Research Inc
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Large CompaniesUpper Mid market Lower mid marketSmall businesses
SAP
Oracle
SAP Business OnemySAP All-in-One
Oracle E-Business Suite Special Edition
Microsoft Dynamics Product Suite*
Axapta
Great Plains
Navision
CRM
Other mid-market players
The Enterprise Services Battlefield
$1 billion plus $1 billion to $250 million $250 million to $50 million Under $50 million
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Top 10 ERP vendors by total 2009** revenues(in $ millions)
$10,536
$4,651
$1,600
$1,414
$855
$747$439
$319
$289
$289
SAP
Oracle
Infor*
Sage Group
Microsoft (MBS)
LawsonUnit 4 Agresso
IBS
Epicor
IFSSource: ForresterResearch Inc
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Vendors focus on different verticals
VendorPublicsector
Finance/insurance
Utilities/telecom Healthcare
Businessservices
Retail/wholesale
Manu-facturing
SAP
Oracle
Sage Group
MBS
Lawson-Intentia
SSA Global
Infor
Unit 4 Agresso
IBS
Epicor
IFS
Exact
Capability
Low HighSource: ForresterResearch Inc
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Module 1 - Agenda To introduce the ERP functional & technology domain and concepts,
covering the following:
What is ERP? Why ERP? Typical ERP Modules, ERP supported functions ERP Architecture & integration with legacy
applications
ERP evolution & emerging technology trends Hype Cycle, Gartner Magic Quadrant in ERP space ERP Vendor Positioning, Revenues, Focus Areas ERP Market and Deployment Trends
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ERP Market Trends (1)
The ERP landscape in 2005 was significantly altered due to the level of mergeractivity.
For 2006 through 2007, growth will be closer to 5 percent.
As we approach the end of the decade, the market will begin to undergo a significanttransition.
Many enterprises will begin a journey to upgrade systems to new architecturesand products.
Choices will be many, and users will have a plethora of decisions ranging fromplatform to products to enhance business processes and differentiation.
For smaller and niche providers that align themselves with the platformtechnologies of the market leaders, the market will offer opportunities throughseamless integration and vertical solutions.
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ERP Market Trends (2)In next few years
Source: ForresterResearch Inc
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ERP Deployment Trends
Use a single ERP vendor versus multiple vendors.
Run fewer instances or single instance.
Customize less and reduce over time.
Add ERP modules to replace one-off systems.
Use hosting, outsourced support, and SaaS (Software as a Service).
Integrate using Web services.
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Module 1 - Summary
This module gave an introduction to the ERP functional & technology
domain and concepts, covering the following:
What is ERP? Why ERP?
Typical ERP Modules, ERP supported functions ERP Architecture & integration with legacy applications
ERP evolution & emerging technology trends
Hype Cycle, Gartner Magic Quadrant in ERP space
ERP Vendor Positioning, Revenues, Focus Areas
ERP Market and Deployment Trends
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Module 2 - AgendaTo focus on overall product architecture andtechnology comparison, functional overview and
detailed functionalities of a few modules like Sales &Distribution and Financials in the ERP space:
Product Architecture, Technology Trends & ERP
Survey
Functional Overview
Sales & Distribution
Financials
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Sales & Distribution
Sales Processes
Process Flow in Order Cycle all products
Sample Requirements
Product Overview
Product Comparison
Solutions to Sample Requirements
Module 2 - Agenda
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Sales & Distribution
Sales Processes
Process Flow in Order Cycle all products
Sample Requirements
Product Overview
Product Comparison
Solutions to Sample Requirements
Module 2 - Agenda
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Process Flow in Order Cycle - Oracle
CustomerMaster
AR
INV
OMOrder Capture
Credit Check
Availability
Reservation
Release to WHS
Ship Confirm
InvoiceInterface
WMS
ReceivablesTransacti
ons
Item Masterand
InventorySynch.
QUOTES
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Process Flow in Order Cycle - SAP
l d l l f
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Process Flow in Order Cycle - PeopleSoft
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Process Flow in Order Cycle: Dynamics AX
CustomerInventory
UpdateAccounts
Receivable
Warehouse
Update
Not in
stock
ReturnItems
Vendor
Purchase
Order
Co
nfirmation
Qu
otation
P
ackingslip
Inv
oice
Creditnote
Pickinglist
Sa
lesOrder
SalesOrder,CustomerBalance
Etc..
Re
servation
Blanket orderSubscription,Tradeagreements
GoodsReceipt
Direct Ship
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Sales & Distribution
Sales Processes
Process Flow in Order Cycle all products Sample Requirements
Product Overview
Product Comparison
Solutions to Sample Requirements
Module 2 - Agenda
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A Hi-tech Organization, with 40 offices and 1000Customers and 15000 Employees across the worldneeds an evaluation of an ERP system across theQuotation, Order Entry, Order Processing, Change
Orders, Shipping and Picking and Invoicingfeatures.
Case Study: Package Requirement (1)
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Case Study: Package Requirement (1)
Quoting
Ability to convert to quote from opportunity automatically toeliminate redundant data entry
Ability toprovide a complete view of the quote cycle (customerquote history, quote version history and maintain relationship betweenlead, opportunity, quote, contract & order)
Ability to provide fully automated online approval process to enforcepricing compliance and trigger quote approvals based on changes toterms and conditions.
Ensure validity of quoted product configurations, ability to applycomplex pricing variables to arrive at the product price, ability tocapture alternative items
Ability to create quotes by a rep that can be published on theWeb for immediate access by customers and others involved inthe deal.
Order Entry
Ability to capture and validate orders from multiple sources(electronically via an extended repertoire of EDI transactions, from Webstores, third party entry systems and outsourced call center)
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Order Entry Contd.
Ability to capture an attachment to the order/return (e.g.: Photograph of the returnedproduct during inspection)
Ability to provide a single User Interface that provides the following features: Ability to default values in fields based on defaulting rules setup in the system. Enable search on various fields for a customer to bring that customers information into
the order Display headers and lines in a single window Display price, availability, associated price breaks and display available to promise dates in
the same view. Ability to configure the UIby displaying/hiding additional tabs, buttons, change
prompts, assign hotkeys at both header and line levels
Order Processing Ability to perform Credit Check Ability to apply complex pricing variables like discounts, item upgrade, free item, favorable
payment and shipment terms, coupons etc.
Ability to provide customers with accurate order promise date using ATP by checkingavailable to promise through the entire supply chain
Case Study: Package Requirement (1)
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Case Study: Package Requirement (1)
Order Changes Ability to apply changes to a set of orders/lines in one single transaction. In case
of partial success, specify whether to commit or rollback already processed orders or returns. Control changes to sales orders based on responsibility
Pick Release & Shipping Ability to configure drop ship orders. Some of the products can be shipped directly from
a third party vendor to the customer. Flexibility to define the criteria for selecting orders/lines for pick release.
Ability to automatically or manually pack delivery lines into detail and master containerswhile enforcing packing constraints such as min/max fill percentages and weight and volumelimits
Packing Calculatorto help plan packing requirements. Role-based views/access for all shipment data Auto-Pick, Auto-Pack and Auto-Ship to maximize operational efficiency Proactively resolve and manage shipping issues using exceptions
Invoicing Invoice by shipment or by entire order Send details of discounts, freights and other charges to Receivables for inclusion on invoice
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A Manufacturing Organization, with 5 LegalEntities spread across the Geography needs anERP evaluation across the Presales, Order Entry,Processing, Shipping, Billing, Inter company and
Internal Order Handling functions.
Case Study: Package Requirement (2)
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Case Study: Package Requirement (2)
Presales (Inquiry and Quoting)
Ability to store customer inquiries and quotes and the probabilityofthese being converted to Orders (This is applicable to businessscenarios)
Ability to Create quotations in reference to customer Inquiries andmaintain traceability between the original Inquiry and the Quotationsubmitted in response
Order Entry and Processing
Ability to allow creation of Stand Alone orders or Orders in referenceto Quotations
Ability to allowmultiple methods of Order Entry (EDI(B2BOnly),Telesales, Web Interface (Both B2B and B2C)
Ability to perform Credit Checkand only on clearance of CreditCheck, continue further processing, ability to allow paymentguarantee and settlement through credit cards
Facility to allow customer to check order status on the web
Complex pricing to allow bundled product discounts, discounts
based on customer hierarchy and seasonal discounts Allow free u raded substitutes to hased out roducts
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Case Study: Package Requirement (2)
Shipping
Ability to allow shipping some of the products directly from a thirdpartyvendor
Ability to allow shipping to Customers across the border and ensuringcompliance to export regulations including sanctioned party listscreening
Ability to over deliver / under deliver subject to tolerance limits inorder to optimize shipping costs
Billing
Ability to club multiple orders of a customer into a consolidatedinvoice
Ability to allow customer to pay in installments (and generate invoice
for each installment) Ability to provide retroactive volume based rebates to the customer
Complaint / Correction Processing
Ability to take returns and provide credit to the customer after charging
restocking fees
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Case Study: Package Requirement (2)
Inter Company Processing
Ability to fulfill order placed on one subsidiary through stock available inanother subsidiary
Ability to charge selling subsidiary for product sourced from anothersubsidiary
Internal Orders Ability to create Internal Orders for the organizations internal
requirement
C S d P k R i (3)
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A Trading Organization, with Liaison Officesacross the Geography and working throughcommercial agents and brokers needs an ERPevaluation across the Order Management,
Promotions management, Shipping, Billing andInvoicing and System Traceability functions.
Case Study: Package Requirement (3)
C St d P k R i t (3)
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Case Study: Package Requirement (3)
Orders Ability to capture Sales orders from external sources like field sales, the web, email, call
centers, electronic data interchange (EDI), or fax.
Ability to accept the orders from customers with multiple currency and language.
Ability to provide flexible pricing from Simple Price lists to Sophisticated multi level pricingStructures.
Ability to provide Computer Telephony Interface for Sales Representative.
Ability to suggest alternate items to the customer.
Ability to carry Customer Catalogue name for the Items.
Orders Promotion
Ability to plan, maintain and approve national and account specific promotions. Ability to carry out comprehensive analytics to enable to reviewand evaluate promotion
performance.
Ability to manage promotion payment process Authorizing payment, entering claims,generating payments to customers.
Ability to synchronize demand planning and promotional events to execute the orderfulfillment life cycle flawlessly from order capture to account settlement
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Case Study: Package Requirement (3)
Order Processing Ability to perform the Credit Checkfor the Customer before executing the order.
Ability to process partial orders (independent of availability of stocks in Inventory).
Ability to provide the Delivery date to customers from the available inventory levels and
future production plans. Shipping
Ability to supplythe goods to the customer from the nearest location.
Ability to hold the deliveryif the quantity is less that the Minimum Quantityor morethan Maximum Quantity.
Ability to hold the deliveryif the rate is less than the Minimum Selling Price.
Ability to allowsupplyof goods from Vendor directly.
Billing / Invoicing Ability tobill customer in different currencyand language.
Ability tobill in installment / Consolidatebilling.
Ability to applyunlimited, multilevel percentage or specific amount discounts andsurcharges.
Ability to storebill-to, ship-to, sold-to, and service-to customer information.
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Case Study: Package Requirement (3)
Other Important requirements
Ability to trackthe Orders up to the final reporting level and vice-a-versa.
Ability to trackthe receivablesbased on the Customer Orders (And not necessarily onthe basis of the Bill generated from the system.)
Easy to understand and easyto operate the system.
Better look and feel of the panels where the orders are entered, processed and managed.
Ability to provide Inter and Intra Unit sales.
Ability to provide limited and secured access to customers to update the Quotes andview the receivables projections.
Ability to give access to usersbased on the roles performed in the organization.
Easy to customize the system.
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Sales & Distribution
Sales Processes
Process Flow in Order Cycle all products Sample Requirements
Product Overview
Product Compari`son
Solutions to Sample Requirements
Module 2 - Agenda
O l
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Oracle
Oracle E-Business Suite is a fully integrated, comprehensive suite of business
applications for the enterprise. Whether you implement one module at a time,multiple modules or the complete suite Oracle E-Business Suite provides better
business information for effective decision-making and enables an adaptiveenterprise for optimal responsiveness.
Complete suite of business applications that run the world's largest enterprises
Specially packaged edition, E-Business Suite Special Edition, for mid marketcompanies
Industry-specific functionality to meet your industry's unique needs
O l O i ti St t ithi S l
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Oracle Organization Structure within Sales
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Oracle Organization Structure within Sales an exampleSet of Books
(FRANKFURT)
Legal Entity(FRANKFURT)
Operating Unit(Motorcycles)
Operating Unit(High Tech)
Set of Books(LONDON)
Legal Entity(LONDON)
Operating Unit(Motorcycles)
Oracle Organization Structure within Sales
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Oracle Organization Structure within Sales
Set of Books - A financial reporting entity that uses a particular chart of accounts,functional currency, and accounting calendar
Legal Entity- A legal company for which you prepare fiscal or tax reports. Youassign tax identifiers and other legal entity information to this type of organization.
Operating Unit - It may be a sales office, a division, or a department Inventory Organization - An organization for which you track inventory
transactions and balances, and/or an organization that manufactures or distributesproducts. Examples include (but are not limited to) manufacturing plants,
warehouses, distribution centers, and sales offices
Multiorg features: Use a single installation of oracle Applications to support any number of
organizations, set of books and Legal entities. Secure access to data Sell products from a legal entity that uses one set of books and ship them from
another legal entity using a different set of books, and automatically record theappropriate inter company sales by posting inter company accounts payable andaccounts receivable invoices.
Purchase products through one legal entity and receive them in another legal entity.
SAP
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SAP
The Sales and Distribution Module within mySAP ERP Central Component provides
extensive functionality to support most of the common business requirementsacross industry verticals.
It has functionality to support Inquiries/Opportunity processing, Quotationprocessing, Sales orders, Shipping and Logistics ,Customer Invoicing, RetroactiveRebates, Invoice corrections (credits and debits), Returns Processing
To support these processes, SAP Sales and Distribution has the following features Ability to define rules and requirements for data transfer across various Sales
Steps (Opportunity, Quote, Sales Order, Delivery, Invoice etc.)
Support for integrated complex pricing
Support for dynamic, real time credit checks
Integrated availability check (including product allocation) and ATP andsubsequent transfer of requirements to Procurement / Sourcing
In addition to these, SAP also provides industry solutions that address certainrequirements that are specific to industry verticals
SAP Organization Structure within Sales
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SAP - Organization Structure within Sales
SAP Organization Structure within Sales (Sales Area)
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SAP Organization Structure within Sales (Sales Area)
SAP Organization Structure
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SAP Organization Structure
Client A client in SAP represents an Enterprise and all its subsidiaries
Company Code A company code represents an independent accounting entity. It is a financialreporting entity that uses a particular chart of accounts, functional currency, and accounting.
Sales Organization - The sales organization is an organizational unit within logistics, thatstructures the company according to its sales requirements.
Distribution Channel - The distribution channel represents the channel through whichsaleable materials or services reach customers. Typical distribution channels include wholesale,
retail and direct sales.
Division - In the SAP System you can define a division-specific sales organization. Productgroups, i.e. divisions, can be defined for a wide-ranging spectrum of products.
Sales office - Geographical aspects of the organization in business development and sales aredefined using the term sales office.
Sales group - The staff of a sales office may be subdivided into sales groups. For example, salesgroups can be defined for individual divisions.
Salespersons - You can maintain personnel master records for sales representatives in yourcompany. In the personnel master record, you assign the salesperson to the sales office and thesales group
PeopleSoft
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PeopleSoft
Oracle's PeopleSoft Enterprise Supply Chain Management(SCM) provides acohesive yet flexible solution for the synchronized supply chain, driving efficienciesin cost savings over your entire supply chainincluding your plan-to-produce andorder-to-cash business processes.
Extends your supply chain in real time by connecting suppliers and customers withcompany business processes.
Provides integrated spend management for all categories of goods and services.
Delivers embedded analytics to monitor supply chain performance and adjust asconditions and business goals shift.
PeopleSoft - Salient Features
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PeopleSoft Salient Features
Order Management
Optimize distributionthrough distributed fulfillmentfrom the right location within your supply chain. Get insight into your product and customer profitability across the entire supply chain with real-time
analytics. Get information regarding fulfillment rates and customer service statistics. Equip your customer service representatives with a computer telephony interface (CTI) so they can provide
superior call handling. Check real-time product availability to manage orders accurately through tight integration with PeopleSoft
Enterprise Inventory and Order Promising. Support your global orders with multiple currency and language capabilities. Define flexible pricingfrom simple price lists to sophisticated multi level pricing structuresto maximize
product revenues.
Billing Share customer information across business units, and maintain unlimited customer addresses and contacts. Record unlimited bill lines with definable line types. Apply unlimited, multilevel percentage or specific amount discounts and surcharges Streamline manual bill entry, and support online credit card authorization and credit card payment
settlement. Print invoices and billing reports in your customer's preferred language and currency.
Calculate value-added tax (VAT) and create VAT invoices and VAT reports. Assign sequencing numbers to documents to meet European reporting and control requirements. Generation of Inter unit and Intra Unit entries. Give customers the freedom to monitor account status, view recent transactions and invoices, and make
payments over the Internetall by simply using a web browser.
PeopleSoft - Salient Features
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Contd
Promotions Management Set up and configure the system, with minimal customization, to accommodate the way you
do business while saving time and money. Create, allocate, and analyze the performance of trade spending for maximum ROI.
Plan, maintain, and approve national and accountspecific promotions to encourage trials orincrease sales volume.
Synchronize demand planning and promotional events to execute the order fulfillment lifecycle flawlesslyfrom order capture to account settlement.
Manage the promotion payment processfrom authorizing payment to entering claims andgenerating payments to your customersand ensure proof of performance for each claim.
Product Configurator Share valuable knowledge among your sales, marketing, engineering, and manufacturing
groupsmaking it easier for your sales force, customer service representatives (CSRs), andcustomers to design the products they really need.
Allow customers to customize a product or CSR to search for a compatible product online,saving time and resources.
Easily track the status of a customer's custom order through integration with PeopleSoftEnterprise Order Management.
PeopleSoft - Salient Features
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pContd
Sales Collaborate across multiple sales channels. Improve sales execution using inline analytics to trigger recommended actions. Offer the right value proposition to meet customer needs. Increase sales velocity and win rates by providing real-time, 360-degree visibility for pipeline,
opportunity, and account management, with context-specific selling knowledge on keycompetitors, partners, and market issues.
Order Capture Streamline the sales process by centralizing access to product, pricing, customer information
from a single order pageorders can be created quickly and easily with a minimal number ofclicks.
Trigger alerts to sales representatives and agents about potential cross sell and up sell
opportunities using inline sales analytics. Support a variety of order types, including bulk orders, subscriptions, engagements services,and agreements.
Extend the order-to-cash process to partners and other sales channels, ensuring that orderinformation is seamlessly passed to back-office order management systems.
Increase revenue from agreements by automatically associating products and trackingexpiration dates for renewal notification and processing.
Check order status and inventory availability through integration to supply chain andfulfillment systems.
PeopleSoft Organization Structure
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PeopleSoft Organization Structure
LEDGER
General LedgerBusiness Unit 1
OM
BU
PM
BU
INV
BUBILLING
BUARBU
General LedgerBusiness Unit 2
OM
BU
PM
BU
INV
BUBILLING
BUARBU
Microsoft DynamicsTM AX
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Microsoft Dynamics AX
An integrated, adaptable and global business management solution that workslike and with familiar Microsoft software and helps you drive business success.
Value Proposition
Global solution Works like and with familiar Microsoft software Scalable architecture Highly flexible code base, upgrade tools help preserve
customizations Lower TCO with higher ROI
Targeting mid-sized businesses to divisions of large companies(20 to 1,000+ users)
Designed to help drive customers business success
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MS Dynamics AX - Fully Integrated
Streamline business operations and gain efficiencyImprove information management and accessEnable highly productive work environments
Module 2 Agenda
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Sales & Distribution
Sales Processes
Process Flow in Order Cycle all products
Sample Requirements
Product Overview
Product Comparison
Solutions to Sample Requirements
Module 2 - Agenda
Package Comparison Higlights(1)
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Package Comparison Higlights(1)
Sr Parameters Oracle SAP
Microsoft
Axapta PeopleSoft
1
Ability to copy data fromQuote/ Opportunity toOrder and subsequentprocesses in order toreduce redundancy in
data entry
Available Available AvailableNot
Available
2Existing Templates forcommon businessprocesses
Available Available AvailableNot
Available
3
Ability to disallow certainproducts for certain
customers OR allow onlya certain set of productsto be available for certaincustomers - ProductExclusion based oncomplex criteria
NotAvailable
Available AvailableNot
Available
Package Comparison Higlights(2)
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Package Comparison Higlights(2)
SR.NO Parameters Oracle SAP MicrosoftAxapta PeopleSoft
4
Highly configurableOrder entry screenallowing different
settings for each user
AvailableNot
AvailableAvailable Not Available
5ConfigurableProducts
Available Available Available Not Available
6Multiple mechanismsof Order entry
Available Available Available Available
7 Single invoice formultiple ordersNotAvailable Available Available Not Available
8 Retroactive RebatesNot
AvailableAvailable Not Available Not Available
Package Comparison Details
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Package Comparison Details
d l d
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Sales & Distribution
Sales Processes
Process Flow in Order Cycle all products
Sample Requirements
Product Overview
Product Comparison
Solutions to Sample Requirements
Module 2 - Agenda
Solution to Sample Requirement - 1
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Proposed package to implement the first set of requirements is Oracle e-Business Suite 11i. KeyDifferentiators are:
Powerful quoting capability through Oracle Quoting The sales application thatautomates and manages the entire quoting process and is a key component of the OracleCustomer Relationship Management solution. It also facilitates easy conversion of quote toorders.
Oracle Order Management captures orders accurately and processes them efficiently to slashfulfillment cycle time by organizing and automating all order management processes.
Provides robust mechanism to capture and validate orders coming from multiple demandchannels (like field sales, call center, web store or electronically through XML or EDI )
Tailorable User Interface speeds direct entry - Quick Sales Order reduces dataentry and shortens the time required to perform this task through the use of a streamlinedentry window. Configurable user interface ( hide, display tabs), suggestions on cross sellingand up selling being given to the user based on the ordered items being entered are a fewof the features offered in Oracle that serve as key differentiators from other packages.Other features include Customer easy search feature to find and populate customerinformation into orders, check for price and availability etc.
Ability to capture an attachment to the order/return
Ability to apply mass changes at header or line level through Mass Change feature ofOracle.
Ability to control changes to orders based on responsibility through the use ofprocessingconstraints
Solution to Sample Requirement - 2
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Proposed package to implement the second set of requirements is my SAP ERP ECC
Key Differentiators are: Ability to Store Probabilities of Conversion The presales functionality allows orderprobability to be captured at the quote/ opportunity stage in order to provide demandplanning with the probable requirement.
Ability to exclude some materials for some customers The Sales order functionalityallows one to configure the system so as to disallow certain products for a set of customers
Flexible invoicing Allows multiple invoices to be created for the same order Allows multiple invoicing to support instalments
Robust foreign trade functionality Enables export control and compliance
Several pre-built templates for large variety of order process Enables complainthandling and order corrections
Comprehensive Customer Hierarchy functionalityAllows one to replicate thecustomers organization structure enabling easy and accurate volume based discounts etc. forvarious levels in the customers organization
Retroactive Rebate Processing Allows an organization to provide loyalty benefits tocustomers periodically
p q
Solution to Sample Requirement - 3
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Proposed package to implement the set of requirements is PeopleSoft V 8.9Key Differentiators are:
The Supply Chain Management and the Sales Solution of PeopleSoft integrates seamlessly with all
the modules to benefit the organization to minimize cost, time required to process the request,increase efficiency and accuracy. Integrates with the Third Party applications very easily and validates all the transactions using the
Component Interface. Powerful Internet Architecture : PeopleSoft Internet Architecture (PIA) is very powerful. The
system is robust while performing with the Internet. PeopleSoft supports the databases like MS SQL, Oracle, IBM DB2 etc, which gives liberty to the
users to choose from the options best suitable. PeopleSoft delivers the ability of Self Service, wherein the Customers can log in into the PeopleSoft
system and can carry out certain changes like revising the orders, looking for the amounts due,
paying of the amounts etc. PeopleSofts Computer Telephony Interface (CTI) provides superior call handling to speed the order
process and multiple routing options, quick transaction selection and streamlined order tracking. Support your global orders with multiple currency and language capabilities Various roles can be defined in the system to give the required access to the panels and enable
workflows to intimate the superiors to carry out the necessary approvals. With its unique feature of SetId, PeopleSoft system can be twisted according to the requirements to
share the customers, Inventory items, various chartfields across various modules as per themanagement requirements.
To view a transaction a user can drill down from the General Ledger to Receivables, Billing and thereto Order Management, its a complete integration of the module up to the General Ledger stage.
Payment Predictor of Receivables can look for the customer quotes and can apply the payments andreport for the receivables based on the customer orders rather than providing the billing details tocustomers.
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Module 2 - AgendaTo focus on overall product architecture andtechnology comparison, functional overview anddetailed functionalities of a few modules like Sales &Distribution and Financials in the ERP space:
Product Architecture, Technology Trends & ERP
Survey Functional Overview
Sales & Distribution
Financials
Module 2 Agenda
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Financials
Product Overview & Process Flow
Sample Requirements
Product Comparison
Module 2 - Agenda
SAP
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The Finance & Controlling Module within mySAP ERP Central Component provides
extensive functionality to support most of the common business requirements acrossindustry verticals.
Financial Accounting is designed for automated management and externalreporting of general ledger, accounts receivable, accounts payable and other sub-ledger accounts with a user defined chart of accounts. As entries are made relating tosales production and payments journal entries are automatically posted. Thisconnection means that the "books" are designed to reflect the real situation.
ControllingControlling represents the company's flow of cost and revenue. It is a managementinstrument for organizational decisions. It is also automatically updated as eventsoccur.
Assets ManagementAsset Management is designed to manage and supervise individual aspects of fixedassets including purchase and sale of assets, depreciation and investmentmanagement.
In addition to these, SAP also provides industry solutions that address certainrequirements that are specific to industry verticals
SAP Organization Structure
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SAP Organization Structure
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SAP Organization Structure
Client A client in SAP represents an Enterprise and all its subsidiaries
Company -A group of statutory entities for consolidating results
Company code - (external purposes)A Company Code represents an independent balancing/legal accounting entity. Anexample would be a company within a corporate group. Balance sheets andprofit/loss statements required by law, can be created at the company code level.Therefore, a company code is the minimum structure necessary in R/3 FI.
Business area - (internal purposes)Business areas represent separate areas of operation within an organization and can
be used across company codes. They are balancing entities which are able to createtheir own set of financial statements for internal purposes. The use of business areasis optional.
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SAP - Accounts Payables & Receivables
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For all payment methods, automatic payment can be done based on due date
Different levels (starting from reminded to legal action) of correspondence can be sentto customer for long due items
In case of more than one subsidiaries, inter company flows can be automated. In thiscase, flow has to be created only in one subsidiary
Documents can be generated Directly in Financial accounting (Quantity is not updated in this case) Automatic flow from Purchasing & selling
Provisioning for bad debts & reversal on receipt can be done Special ledger functionality can be used to record abnormal items (Normally otherthan invoice, credit note & payments) separately for reporting & various actions
More than one currency can be used for reporting purpose at same time. Customer / Vendor data can be maintained on company level or purchasing / selling
level. Division of fields is based on the relevance. Items are cleared when a corresponding reversal / payment / receipt is posted Reporting can be done the basis of open (not cleared), cleared & all line items
Reconciliation ledger functionality is used to reconcile data with general ledger
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SAP - General Ledger
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Repetitive entries can be recorded & passed periodically such as rent, fixed royalties etc
General ledger master is maintained at chart of accounts & company code level
Provisioning entries for month / year end can be passed at end of period & can bereversed automatically at the beginning of next period
Organization Elements (Clients)
Clients are used to divide data in a SAP System into various data areas for variouspurposes. If a company, for example, wants to use its SAP System for both test andtraining purposes, a client is created for each purpose.
Master dataG/L Accounts, Customer/Vendor Accounts, Bank Master Data & Asset AccountingMaster are main master data used in Finance
Document control
A document is identified by the combination of document number, company code &fiscal year
Posting controlSetting default values, rules governing changes to documents, Tax (sales tax,
withholding tax etc.), payment terms and automatic discount postings & documentreversal can be customized
SAP - General Ledgercontd
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Posting tips
Documents can be used as reference, documents can be put on hold (if not final) &can be deleted / posted later on.
CurrenciesEvery currency which will be used has to be identified by a currency code . Most of theworld's currencies are already defined in the SAP R/3-System. Each currency codecan have a validity date.
Taxes
Tax (sales tax, withholding tax etc.) can be customized at state /country level GL accountThe chart of accounts (group of GL accounts) is a variant which contains thestructure and the basic information about general ledger accounts.
OthersDay to day cash / fund flow planning, check deposit, manual bank statement entry &customization is also possible
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SAP - Assets Accounting
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Fixed assets can be valued as per 99 valuation methods (any no. of valuationmethods can have impact on general ledger)
SLM, WDV & other methods of depreciation can be used Depreciation can be rounded off (as per requirement) to day / month / quarter/
half year / year. For example asset purchased on 30 Sep gets full yeardepreciation in India (income tax)
Depreciation can be posted monthly
Major functionalities supported are
Low value assets
Asset under construction
Leased assets
Revaluation of assets (manual & inflation based)
Subsidy on assets by any agency ( can be managed on assets / liability side)
SAP - Controlling basics Cost side
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Cost Elements Cost element in Controlling is same as GL account in Financial accounting
Cost element can be of 2 types Primary (same number as GL account) Secondary (different number from GL account) This is used for internal
transfer & allocations (analysis purpose)
Cost Centre Used to determine where Costs have occurred (to determine responsibility)
Must be assigned to a Cost Center Group (Hierarchy Area) before values may beposted
Internal Orders are used to collect costs relating to a separately identifiable Cost Object Unlike Cost Centers it does not represent an Overhead Responsibility area e.g.
Advertising Campaign for New Depot - collects the total cost
Internal Orders are settled to Cost Centers / Fixed assets / Cost elementPeriodically
SAP - Controlling basics Profitability side
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Profit centre
Focuses on Profitability and Margin Analysis from different angles
Mirror image of Cost Centre Accounting All cost centers are linked to a profit centre
Revenue postings are posted directly to profit centre
Profitability analysis
Based on business / geographical / any other criterion, profitability analysis can be
done. Profitability segments are designed & derivation rules have to be define with proper
priorities
Product costing
Supports cost calculation of independent products in
Scrap products
Multiple products from same process (allocation can be based on any definedcriterion)
Valuation of material at different levels of production
Peoplesoft (PS) Financials
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Designed to address the most complex business requirements.Provide comprehensive business and industry solutionsOffer web services integration to fit seamlessly into a heterogeneous applicationsenvironment and a broad choice of technology infrastructure.Simple configuration ensures that the most unique customer requirements can be met.
General LedgerIt is an accounting, consolidation, management reporting, executive information, decisionsupport, and budget system clustered into one streamlined package. Key features include:
Unrestricted chart of accounts definitions, Balancing by ChartField, summary ledgerprocessing, average daily balancing, unlimited number of accounting periods, effectivedated information, summarization using graphical tree structures, multiple ledgers,multiple business units, sophisticated allocation and budgetingplus, probably the mostinnovative integration of spreadsheet technology and financial reporting.
Accounts PayableEnables you to efficiently manage disbursements while keeping strong controls over
matching, approval processes, and payments. The main activities are:Record transactionsAnalyze and review payables to vendorsMatch payments with duesMake payments to vendors and Get ageing analysis of payables
PS Financials
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ReceivablesPeopleSoft Receivables enables you to streamline your accounts receivable processes toaccelerate collections, reduce credit risk, resolve exceptions quickly, and ultimatelydecrease your cost of working capital.
Asset ManagementPeopleSoft Asset Management offers a fresh approach by delivering maximum financialcontrol and system flexibility. Leverage the value of your fixed asset inventory andminimize the cost of tracking physical assets. Use a flexible system that extends beyondadding, transferring, depreciating, and retiring.
BudgetsCombines your favorite desktop spreadsheet, powerful relational database technology,and PeopleSoft Workflow to create a robust set of budget entry, process management,reporting, and analysis tools for managing your most complex budgeting projects.Monitoring the flow of budget documents throughout your organization, it updates thestatus of budgets from the time they are scheduled through approval.Financial Management
PeopleSoft Enterprise Financial Management helps in meeting the challenge of multiple
compliance deadlines along with investor demands for improved earnings. It helps to.achieve productivity gains, slash implementation time and costs, and significantly lower
risks associated with human error, employee changes, and other factors.
PS Fin Organization Structure
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PeopleSoftGL Business
Unit
PSBI BU 1
PS
BI BU 2
PSAR BU 1
PSAR BU 2
PSAP BU 1
PSAP BU 2
PSAP BU 3
PSAM BU 1
PSAM BU 2
Business Units and Tableset in PS
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Information stored in two types of tables
Transaction Tables - keyed by business unit; contain dynamic information;
Control tables - keyed by SetID. Contain information that describe accounting structure and processing rules used when a business transaction
is recorded
contain static or definitional information e.g. List of customers, accounts, products, etc.
YCD
A456
CANADA
Business Units Record Groups SetIDs Control Tables
FS_01
SetID Account
SHARE 000001
SHARE 000002
SHARE 000003
USA A123
USA
SHARE
SetID Dept ID
SHARE AAA
SHARE BBB
SHARE CCC
USA ZAB
USA
FS_01 USA
FS_01 SHARE
USA
MEXICO
PS GL Common Business Functions
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Interunit
Accounting
Workflow
Budgeting
Year-End
Close
Trees
Journal
Processing
Table Setup
& Maintenance
Commitment
Control
Consolidations
Multi-Currency Reporting& Inquiry
Allocations
PS/GL
PS Journal Process Flow
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Direct Online
GL Entry Feeder Systems
Edit Process
Budget Check
Posting Process
Check Journal Status
Spreadsheet Journal
Entry
PS Receivables Process Flow
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PS AR Features
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PS Accounts Receivables Integration
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BillingDeduction
ManagementGeneral Ledger
OrderManagement
Receivables Treasury
ProjectsAccountsPayable
Sales OrdersInvoice & CreditCard Information
AccountingEntries Deductions
RefundProcessing
TreasuryNetting
PlaceOrders on
hold
TreasuryNetting
ProjectInformation
PS AP Features
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PS Voucher Processing Flow
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Journal Generator
Unpost
CloseGenerate Journals
Post Payments
Pay Voucher
Approve Voucher
Match Voucher
Create Control groupEnter Voucher
Post Voucher
Edit VoucherBatch EditVoucher Build
Update VoucherDelete Voucher
Quick Invoice EntryBatch processes Online Entry
PS Payment Processing Flow
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Payment Selection
Draft Staging
Selection Exception
Discount AlertNegative
BalancesConversion
AlertWithholding
Alert
PayCycle Approval
Print CheckEFT FormatACH
FormatPrint
Advice
Paymentconfirmation
Format PositivePayments
Produce PositivePayment File
Complete
Payment Creation
PrintTrial
Register
PrepaymentsWithholdingNetting
PS AM Features
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PS Billing Features
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Oracle Financials
Process Flow in FA Cycle - Oracle
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AP
FA
Asset Addition
Asset Posting
Asset Transfer
Adjustment
Retirement
Depreciation
Asset Invoice
GL
Quick Addition
CalculateGain/Loss
Transfer to GL
Process Overview in FA - Oracle
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Prepare
Requisition
Create a
Purchase Order
Approve the requisition
Receive Asset
Accept/
Reject
Invoice Creation
& Payment
Approve the PO
Enter Receipt / Auto Create Invoice
thru a receipt
Accept
Return The
MaterialReject
Create Assets
thru the Mass
Additions .
Direct Addition
in FA Module .
Inventory
Management
for Assets
Adjust Asset
Assets
WorkBench for
Adjustment
Approval for
Adjustment
Run
Depreciation
Calculate
Gains./
Losses
General Ledger
Purchasing
Inventory
Financials
Process Flow in AP Cycle - Oracle
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PO
APInvoice
Creation
Validation &Approval
Create Payment
Make Payment
Accounting
PO Invoices
GL
Expense Invoices
FA
Supp
lier
Master
Bank
Master
Recurring Invoices
PO Matching
Entering Invoices in AP - Oracle
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Receive invoices Enter invoice
Approve
invoice
(Optional)Match to PO
or receipt
File invoice
View invoice
Pay invoice
100,000
A/P
60,000
10,000
30,000
Create
accounting
Entering Invoices batches in AP - Oracle
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Batch invoices Enter a batch of invoices
Receive invoices inthe mail
Prepare a batchcontrol form
Review batchcontrol reports
Update the batchcontrol form
File invoice
Matching Invoices to POs in AP - Oracle
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Enter or importinvoices
Approve invoice
Optionally
match to POor receipt
Createaccounting
View invoice
Pay invoice
Receive invoiceselectronically or
in the mail
100,000
AP
60,000
10,000
30,000
Approve invoice
Issuing payments in AP - Oracle
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Select
invoices
Build payments
using paymentbatch
Format
payments
Print checks orcreate electronic
payments
Confirmpayments
Process Flow in GL Cycle - Oracle
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GL
Journal Entry
Reversals
Define BudgetsPost Budgets
MassAllocations
Journal Import
from Sub ledgers Manual
ADI
Post Journal
Recurring
Journals
FSG
FinancialReports
Journal Entry Process - Oracle
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Identify Method ofentry
Entering Journals /Importing Journals
Review /ApproveJournals
Post Journals
Consolidation
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Used to combine the financial results of multiple companies, even if their sets of books usedifferent currencies, accounting calendars, and charts of accounts.
Consolidating Transactions General Ledger creates a single consolidation journal batch, consisting of the subsidiarys
transactions and their corresponding effective dates
Consolidating Balances Standard or average balances can be consolidated independently into a consolidation set of
books. When consolidation is run, General Ledger will create two consolidation journalbatches: Standardupdates standard balances without affecting average balances
Averageupdates average balances without affecting standard balances
Process Flow in AR Cycle - Oracle
ADI
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AR
Invoice Entry
InvoiceApplications
Collections
Credit Review
Auto Invoice
from Sales Orders Manual
ADI
Receipts
Refunds
Customer Aging
Transfer to GL
Custom
er
Master
Credit Memo
Receipts
On Account
Lockbox
GL
Transaction View in AR - Oracle
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Enter receipt
Deposit Guarantee Standard invoice
Copy
Correct invoice Overinvoice Invalidtransaction
Underinvoice
Process and printVoid
Generate statement Interface to Oracle General Ledger
Print and send invoice to customer
Delete
Receipts View in AR - Oracle
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Update customer balance
Automatic Internal Process
Enter receipt
Apply to
customeraccount or
invoice
Clearreceipt
Reconcilebank
statement
Collection cycle in AR - Oracle
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Identifypast-due
items
Monitoractivity
Adjustcustomeraccount
Reviewcustomer
account details
Resolve past-dueand disputed items
Collection scenario in AR - Oracle
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Customerremitsin full
Customerremits
partially
Customerdoes not
remit
Give backto salesperson
Send tocollection
agency
Recordbad debt
Apply partialreceipt
Createchargeback
Adjust
account
Paid in Full
PartialPayment Not Paid
Organization Structure - Oracle
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Organization Structure - Oracle
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Set of Books - A financial reporting entity that uses a particular chart of accounts,functional currency, and accounting calendar
Legal Entity- A legal company for which you prepare fiscal or tax reports. Youassign tax identifiers and other legal entity information to this type of organization.
Operating Unit - It may be a sales office, a division, or a department
Inventory Organization - An organization for which you track inventorytransactions and balances, and/or an organization that manufactures or distributesproducts. Examples include (but are not limited to) manufacturing plants,warehouses, distribution centers, and sales offices
MS Axapta Financial
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General Ledger
Chart of AccountsCompany details
DimensionsPeriods
Reports
AccountsReceivables
Accounts
PayablePostingprofiles
Postingprofiles
Taxsetup
MultipleCurrencies
Banksetup
Inventorytransactions
Fixed
Assets
Balance sheetProfit & Loss
Cash Flow
MS Axapta - General Ledger
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Manages flexible accounting periods and uses a reliable year-end procedureincluding a closing sheet
Multiple configurable journals with approval capability can be maintained
Recurring journals to post repetitive transactions can be set up
Extensive posting control system, including validation prior to posting, isavailable
Handles multicurrency and exchange adjustment (secondary currency is usedfor reporting in more than one currency)
Multiple structured budgets possible
Extensive, flexible tax module feature for different types of calculation andreporting available
Advanced financial statement including alternative rows can be configured
Dimensions enable you to slice your data different ways for more flexibleanalysis, while reducing the complexity of your chart of accounts
Allocation based on percentages for accounts possible
MS Axapta - General Ledger
AR L d /AP
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Validation/Approval
Audittrail
Post
Transactions
Voucher
BudgetsGeneralLedgerBudget
models
Allocations
Settlementterms
Budgetreports
Balances
Correctiontransactions
Salesjournals Purchase
journals
Inventoryjournals
Balance sheetProfit & Loss
Generaljournal Fixed Assets
journals
Liquidityrequirement
AR opentransactions
Ledger a/crequirements
AP opentransactions
CreateNew year
Adjustmententries
Year endclosing
TransferBalances
Back ups
MS Axapta Accounts Receivables
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Monitor credit checks Flexible terms of payment, including advanced payment schedules and cash discounts
Prepayment capabilities
Draft handling (bill of exchange)
Payment proposal feature with flexible payment method
Free text invoicing (non-inventory item invoicing) Advanced collection letter and interest calculation
Payment journal with payment proposal features
Multiple currency handling and exchange rate adjustment
Export and import formats for electronic payments
MS Axapta - Accounts Receivable
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Accoun
tsReceivables Customer
Debit notes
Invoice
Credit notes
Paymentsettlement
Invoicelines
Paymentjournal
Customer
payment
Customer
Bank
Reconciliation
Salestax
Customer reportsSales reports
AR balances due
General Ledgervoucher
Electronic
payment
Taxreports
Taxsettlement
Checks Deposits
InventoryCollection
lettersInterest
notes
FreetextInv
oices
MS Axapta Accounts Payable
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Bridging accounts
Flexible terms of payment, including advanced payment schedules and cash discounts
Prepayment capability
Promissory note handling
Payment proposal feature with flexible payment method
Multiple invoice entry options, such as separate handling of approved and unapprovedinvoices, and matching invoices to physical deliveries
Payment journal with payment proposal features
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Payment
settlement
Invoicelines
Invoicejournal
Vendor
Bank
Checks issue
ReconciliationPayment
due datesPaymentdiscounts
Payment
journal
Invoiceregister
Approvaljournal
voucher
Nonpurc
hase
transactions Invoice
pool
AccountsPayable
Vendor
Debit notes
Invoice
Credit notes
Electronicpayment
General Ledger
Inventory
Vendor reportsPurchase reportsAP balances due
MS Axapta BANK
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Bank account reconciliation, including electronic bank account statement import (forselected countries)
Check setup
Monitoring deposits, payments, drafts, and bank balances
Electronic import of bank account statements (available for selected countries) Multiple currency handling and exchange rate adjustment
Export and import formats for electronic payments
MS Axapta - Fixed Assets
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Manage the full life cycle from acquisition to depreciation and disposition
Projects can be transferred as fixed assets for capitalization and depreciationpurposes
Maintain asset status information
Improve control over fixed assets to drive accuracy and timeliness in your accountingresults
Multiple depreciation models
Forecasts using fixed-asset budgets
Integrated to purchasing and inventory functionality
Barcode handling
MS Axapta - Cost Accounting
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Flexible mapping of cost accounts into cost categories Dimensions setup for cost accounting Service categories for quantities management (integrated with Production and
Project) Flexible reporting system featuring multiple line definitions and structural
hierarchies Integrated cost accounting journals for booking internal cost accounting transactions
on cost amounts or quantities Flexible and versatile allocation and distribution capability, including multiple
parallel calculation versions Specific budgeting and forecasting capability, linked to ledger budget
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Financials
Product Overview & Process Flow
Sample Requirements
Product Comparison
Module 2 - Agenda
Case Study Package Requirement( AP)
Supplier Creation
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Supplier Creation
Ability to enter Supplier information like name, classification, type, taxpayer id,terms, liability account etc.
Ability to create more than one site for supplier, each site representing a differentaddress and contacts
Ability to define and restrict various functions at each supplier site level like Payonly, Purchase only, pay and purchase etc.
Bank Entry Bank information in AP is shared by Receivables as well.
Ability to enter all basic information like Bank Name, Branch details, Accountdetails etc.
Ability to enter any number of bank branches for each bank.
Ability to have any number of bank account within a bank branch.
Capability to define internal, customer and supplier bank account. Define payment documents to make payment. It could be check or electronic.
Case Study Package Requirement ( AP)
Invoice Creation
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Invoice Creation
Ability to enter individual invoices
Ability to enter invoices in batch.
Enter credit memo, PO invoices and debit memo.
Feature to create recurring invoices.
Upload invoices through standard interface or other sources.
Ability to automatically create freight or tax line.
Feature of distribution set to automatically enter invoice distribution.
Capability of entering mixed invoice that can take both negative and positive amount.
Feature of Invoice gateway to enable importing invoices from other sources.
PO Matched Invoices
Match Payables invoices to purchase orders to ensure that you pay only for the goodsthat you have ordered.
Match to purchase order receipts to ensure that you pay only for goods that you havereceived.
Payables automatically creates invoice distributions based on the purchase orderdistributions.
Case Study Package Requirement ( AP)
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Prepayment
Ability to create temporary prepayment that can be applied to invoice or expense
reports.
Ability to create permanent prepayment that cannot be applied to invoice.
Invoice Holds, Cancellation, Validation and Approval
Hold can be applied to invoice or supplier or scheduled payment to stop furtherprocessing of invoice.
Online approval of invoice
Approval of invoice batch.
Only unpaid invoice can be cancelled.
If invoice is on hold it cannot be cancelled unless hold is removed.
Invoice can be accounted and these accounting entries can be transferred to GL.
Case Study Package Requirement ( AP)
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Payment
Manual payments can be made that are made outside oracle and recorded in the
system ex- handwritten checks, wire transfer. Quick and single payments regardless of payment terms, due date etc.
Payment batch to make payments for thousands of invoices. It can be electronictransfer or checks.
Ability to void a payment.
Ability to stop a payment.
Accounting the payments and transfer to GL.
Case Study Package Requirement ( AR)
C
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Customer Entry
Ability to enter customer details like name, address, type etc.
Define customer ship to and bill to locations.
Define customer profiles.
Define credit limits.
Define other details like payment terms, receipts, finance charges.
Case Study Package Requirement ( AR)
Transactions
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Transactions
Class
Invoice
Credit Memo
Debit Memo
Chargeback
Deposits
Guarantee
Description
Bill customers for products or services
Credit customers (On-account credits do not refer tospecific invoices.)
Bill customers for products or servicesthat were not included on the original invoice
Adjust the remaining balance of an existing debit itemto zero, and create a new debit item to bill customer forunpaid balance of original invoice.
Bill customers for contractual agreements
A contractual agreement that is referenced by invoices
(Bill customers for the items on the invoice, not theguarantee.)
Case Study Package Requirement ( AR)
Autoinvoice
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u o o ce
Import large numbers of transactions for seamless integration from Oracle ornon-Oracle systems
Calculate taxes for the imported transactions, or pass the tax through the tables
Correct errors easily online
Receipts
Select different receipt entry methods
Enter cross currency receipts Enter multiple bank accounts
Accept credit cards as payment
Remit receipts as you would a deposit ticket
Apply receipts to transactions.
Reverse receipts
Case Study Package Requirement ( AR)
Collections
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Collections
Review Customer Account
Ability to define aging buckets. Review Aging details.
Print and review Dunning history.
Case Study: Package Requirement (GL)
J l E
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Journal Entry
Online Entry
Excel upload
Interface
Ability to capture recurring Entries
Ability to verify documents before posting
Month End Provision Entries with reversals in next Period
Master Data
Ability to Share Chart of Accounts across Multiple Entities
Ability to share other master data like Operating Unit/ Departments acrossMultiple Entities
Feasibility to have primary and secondary ledgers
Maintain both Off Balance Sheet Data as well as On Balance Sheet DataWorkflow
Ability to have workflow for Journal Approvals
Case Study: Package Requirement (GL)
C l d
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Calendars
Ability to have different calendars for Budget and Actual ledgers
Option to have Holiday Calendars
Transaction Rules
Setup Transaction rules such that a Account can go only with valid departmentsor geography
Currency Details
Ability to calculate Reciprocal and Triangulate Currencies
Ensure Accurate and complete currency fluctuations for balance sheet items.
Closing
Ability to perform Interim and Year end Closing
Case Study: Package Requirement (GL)
R ti
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Reporting
Ability to have Balance Sheet and Profit and Loss at entity, Geography,
department level Track Actual against Budgets
Consolidation
Ability to Perform Consolidation and calculate minority Interest
Allocations
Perform Allocations of Shared Expenses and arrive at profitability for eachdepartment/geography
Case Study: Package Requirement (Asset Accounting)
M t D t
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Master Data
All master data should have some unique number
Grouping of related assets should be possible
Data should have some fields such as location, plant & some other freeto define criterions for further analysis.
Master data should have different characteristics for different type ofassets such as leased assts, assets under construction & nature of assets
such as different fields for land & buildings & different for Plant &machinery.
Data entry
Acquisition should be possible using
Acquisition from Vendor
Internal production Transfer from Asset under construction
Retirement should be possible using
Without revenue (scrapping)
With revenue (transfer to customer)
Case Study: Package Requirement (Asset Accounting)
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Depreciation
Various methods of depreciation should be available
There should be calculation of depreciation on the basis of
Income tax act
Companies Act (should have impact on books) Group accounting norms (Company specific)
Accounting standard specific
IFRS standard based
Difference between Income tax act & companies act (Analysis)
Special valuation
For leased assets, calculation of interest & depreciation should be possible
Re-valuation of assets should be possible
On Inflation rates (Rates can change yearly)
Manual revaluation of some specific assets
Case Study: Package Requirement (Asset Accounting)
Reporting
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Reporting
Ability to provide list of assets with their acquisition values, depreciation & net
book value at any month end. Ability to provide the difference between values in Asset accounting &
corresponding figures in General Ledger
Fi i l
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Financials
Product Overview & Process Flow
Sample Requirements
Product Comparison
Module 2 - Agenda
Package Comparison Assets
The following functionalities can be handled by all 4 ERP packages
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S.No. Particulars
1 Fixed assets can be valued as per different valuation methods
2 For low value assets depreciation can be provided in year of acquisition.
3 Accounting for Leased assets can be tackled directly in Asset Accounting.
4 Use Multi Shift Codes of Depreciation for Asset used in multiple Shifts
5 Use Assets in Joint Venture Allocation
6 Transfer Assets within entities across Departments/ Geographical Location
7 Transfer Asset across Entit ies
8 Recategorize Assets. Change Asset Category from Category say LMV to HMV
9 Depreciation Allocation
10 Mass Changes to Assets on Liquidation/ Acquisition
Package Comparison AR/AP
The following functionalities can be handled by all 4 ERP packages
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S.
No Particulars1 Reminder Letters can be sent to customer for long due items.
2 Inter company sale - purchase flows can be automated.
3FI invoice/credit note/ Debit note can also be posted directly in Fi withoutimpacting the stock.
4
Special ledger functionality can be used to record abnormal items (Normallyother than invoice, credit note & payments) separately for reporting & variousactions
5Customer / Vendor data can be maintained on company level and purchasing/ selling level. Division of fields is based on the relevance.
6
Reporting can be done the basis of open (not cleared), cleared & all line
items
7 Automatic Calculation of Due Dates and Discount Calculations
8 Set Rules for Over Due Charges in case of Late Receipts
9 Netting through offset of a AR Customer to a AP Vendor
Package Comparison GL
The following functionalities can be handled by all 4 ERP packages
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S.No Particulars
1 Each transaction is given a unique document number.
2Based on Authorization Group, the posting periods can be restricted fordifferent users.
3Recurring entries can be recorded & passed periodically such as rent, fixedroyalties etc
4 Provisioning entries for month / year end & can be reversed automatically
5 Ability to use different calendars for budgets and actual