What are the features of ERP systems?

ERP systems keep track of your business resources, cash flow, product inventory, raw materials, production capacity with a transparent and accurate of your business finance i.e. your sales orders book, purchase orders, and staff payroll. ERP system allows the organization to share data across various functions and departments (i.e. production, service operations, purchasing, human resource, finance and account, sales and marketing etc.) that allows information flow between all business functions seamlessly that made it more transparent and assessable for the management and shareholders to have a clear overview of the business performance and make strategize decision to scale or downsize the different business entity.

ERP Accounting Modules

The finance or accounting module of the ERP system provides financial information, analysis reports for ledgers, trial balance data, overall balance sheets and periodic financial statements.

The main objective of this module is to provide better control over the finances of the company where confidential financial data is secured and centralized stored in the cloud or local server. If the company have branches overseas you are able to keep track on your financial accounting data within an international framework of multiple companies, languages, currencies and charts of accounts where it improves in the efficiency, communications and collaboration between all areas of your business.

General Ledger in ERP Accounting System

General Ledger is the main frame of the accounting system where it contains information on financial and no-financial data of your organization. It contains essential on the recording of transactions relating to a company’s assets, liabilities, owners’ equity, revenue and expenses which is then supported by sub-modules like accounts payable, accounts receivable, fixed assets accounting, cash flow management and legal consolidation.

Account Payable in ERP Accounting System

Accounts Payable Module (AP) provides recorded information in the Account Payable sub-ledger during the time an invoice approved for payment. It enables assigned user to enter, maintain, monitor and process invoices for payment and credit notes received from vendors.

Account Receivables in ERP Accounting System

Accounts Receivable Module (AR) track the invoices that is due for payment, outstanding advances, deposit, and process the payment from the customers on the sale of products or services on credit. Any outstanding in the payment can be presented in the Debtors Book.

Asset Accounting in ERP Accounting System

Asset Accounting (AA) module is used in the management and monitoring of fixed assets. It serves as a subsidiary ledger to the general ledger in providing more detailed information on transactions involving the fixed asset like acquisition, depreciation, retirement etc

Legal Consolidation in ERP Accounting System

Legal consolidation module is designed to implement legal and management consolidation scope with customized input templates for ease of data entry and integration with the GL system for the breakdown of movement and reporting of assets, financial position and income of a group as a single enterprise

Benefits of ERP Accounting System

• Increased productivity, cost savings and eliminate resource inefficiencies
• Improved customer satisfaction level, flexibility and versatile
• Eliminate errors, increase accuracy and gain better control of business processes

How do I know what type of ERP system is suitable for my business?

Every ERP system has its own unique accounting and business solution. The accounting module is just the mainframe that integrated with the individual module to form a complete ERP system. Some vendors provide a one-stop solution where the software is fully integrated with Inventory Management System (IMS), Customer Relationship Management (CRM), Human Resource Management System (HRM) and Procurement Management System (PMS) but there are some that let you have the flexibility to opt out on the module that you do not require and add on as and when you need it.

ERP system Selection Criteria

• Type of Industry – this will decide what modules are needed for the organisation. For example, Warehousing ERP System is required for a distribution company and POS ERP system will normally be used in the retail shop.
• Size of Company – has your business outgrown your current accounting system? How to improve your business processes and improve efficiency. Can the ERP system meet your needs? Any customisation needed?
• No of subsidiary – Do you need an ERP system to have multi-entities and multi-currency and consolidated function?
• Overseas Branch and subsidiary – Is the ERP system has local support for language and tax compliant?
• Customisation – Can the ERP Software provides all the required module and the extent of customisation required.
• ERP Software Company – is the software company reliable and provide good support?
• IRAS Approved Software – this will help to provide IRAS reports.

If you are not sure how to choose the right ERP system? Please speak to our professional consultant for a free review on the ERP system that suits your business need. We have a wide range of ERP system for companies of all sizes. Contact us to find out the ERP software that is entitled up to 50% of grants for qualified SMEs.