Introduction to ERP

ERP is the abbreviation of Enterprise Resources Planning. It means the system which helps in utilization of every available resources of any enterprise (business) in most effective way.

Basically, ERP is a word in IT (information technology) in context to Financial/Material/Production & Planning/ Plant/ Logistic/ HR etc. management of any company. For more detail about ERP, visit Wikipedia.org :

The idea behind ERP is that companies could see a cost reduction and better efficiency in the way they operate with their business partners (customers, suppliers, banks, authorities etc) and also in the way their users could access and process the informatio. From that concept, there were already several solutions in the market during the period 1980-1990. The adaption of ERP software revolutionised the way companies conduct their traditional business.

There are many ERP software available in the market. They are as follows :

  • SAP
  • Oracle Finance
  • BaaN
  • PeopleSoft
  • Microsoft Dynamics
  • J D Edwards
  • And Many others ERP available in the market

But, in my knowledge, SAP is the market leader.

Due to my passion of technology, I have dedicated my website to spread the know-how to the eager people like me. It help me to upgrade my knowledge from time to time as well as get the satisfaction that I am spreading my knowledge to the society from where I have been learning it.

In this website, I have mostly discussed on ERP in general and SAP in particular

May GOD bless all of us!!!!

Jai Ho!!

Introduction to SAP R/3 and it's Advantages

SAP is the world's number one ERP application. 'SAP' which is pronounced as 'S.A.P' stands for Systems Applications and Products in Data Processing. In 1970, 5 IBM engineers developed this software for Business Enterprises, initially, it was intended for Mainframes. , but later on developed in client server model, and now it is web-based, all transaction can be entered from webpages.

The Advantages of SAP

SAP has a number of advantages over other existing ERP in the world. They are as follows :

  • Platform is independent SAP, i.e. it runs on all operating system.
  • International Applicability : For SAP, this means not only having the softwre available in different langages but also having the capacity to cover the different aspects of each country: currency,taxes, legal practices etc ;
  • Functionality : Highly configurable as per the requirement of the companies
  • Covers almost all acvities of any business;
  • Integration : All work processes within a company or group of companies are linked through data and functions using the R/3 System
  • User Friendliness: The R/3 System has a uniform graphical user interface for all applicationareas
  • Individual Solutions: System-controlled customizing procedures allow you to create solutionsfrom a wide variety of prepared application variants to satisfy individual requirements.
  • Realitme, i.e. you can go to the lowest piece of information;
  • Highly secured data handling;
  • Stability and data consistency; Mission -Critical Business Processes: SAP has more than 20 years of experience designingsophisticated application software for backbone and mission critical business processes. Nine of the top ten Fortune 500 companies use SAP software.
  • High Scalability : It means, can be added more hardware/modules to the exisitng one.;
  • SAP gives the IT power to functional professionals;
  • A lot of standard report available in SAP;
  • Customised reports can be easily developed using ABAP/4 or java programming language;
  • Now, a lot of available trained professional in SAP;
  • SAP is available for almost all businesses;
  • SAP (the company) invest 20% of the total revenue on R & D which ensures to adapt the current laws of the land quickly as well as to adapt the latest technology;
  • 90% of fortune 500 companies have implemented SAP;

These are some of the advantages.. and still more you will learn through the learning processes

Introduction to SAP R/3 FICO

As I have already explained that SAP covers each and every aspects of business like, MM, PP, HR, FI,CO, SD, PM, QM etc. but, here I will write more on FI, CO or even some tricks & tips on ABAP/4 !!!

FI/CO is the heart of the SAP's functional architecture. It gives customers the many accounting functions with extensive report facilities to allow fast decision making support. The financial FI/CO modules comes with the following sub-modules :

Pls. note that the technical people (not the end-users) should start the configuration of SAP with Enterprise structure

FI : Finance - This module is basically like book keeping of financial transactions and generating reports as per the rule of the land (country).

  • General ledger accounting
  • Account Payable
  • Account Receivable
  • Asset Accounting
  • Bank Accounting
  • Cash Management
  • New General Ledger Accounting (in ECC 6.0)

CO : Controlling - In the context of business data processing and business management, this module is the process of planning the values flows in an organisation and then recording the actual value for the purpose of comparision with the plan. The controlling tasks are such as : planning, monitoring, reporting, advising and informing. These tasks address any activities that affect or could affect the profitability of the enterprise. Therefore, the controlling functionality must include duties like Cost Control, Profitability Analysis, Financial Control, Investment Control etc. The sub-module of the Controlling Modules are as follows :

  • Cost element accounting
  • Cost Center Accounting
  • Internal orders
  • Profit centre accounting
  • Product Costing
  • Profitablity Analisys