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ERPThe Concept

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What is an ERP ?

ERP stands for Enterprise Resource Planning

It is a Business Solution concept which integrates all the divisions of

an enterprise across various locations using a Software

Its aimed at increasing Internal Efficiency of an organization

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ERP Process

Data is transferred to all concern departments and users as soon as itsentered by any user at any location within the organization

Reports/Financial statements can be generated as soon as transaction datais entered (Real-Time)

All data which affect Financial position of the organization are transferred toAccount Department

Example:

As soon as Sales or Purchase invoice is Created/Posted in the system theReceivable / Payable is updated in the GL(A/C).

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Why ERP ?

Efficiency It makes the organization more efficient as data flow is real time

Cost reduction

It has been experienced that ERP reduces the operation costs by 30-40% in longrun

Improves Sales The improved process helps in managing customers better which results in

better sales

Better Planning/Strategy The control on Data / Figures helps in making better strategy and tackling the

competition.

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Major ERP Players

SAP

Oracle PeopleSoft

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Why SAP ?

SAP is the Largest ERP Software Solution Company

Its products are very efficient, flexible and user friendly

Its products can be customized to cater to all types of businesseson the earth

It has all the modules fully integrated SAP has a very high rate of Successful Implementation

It provides option to integrate with External Parties, such as Banks,Govt. , Customers, Vendors and non SAP systems

SAP has a wide range of High Level Business Solution such as

CRM, SRM, SCM and Solution specific to Select Industries.

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About SAP

SAP stands for Systems, Application and products.

This was founded in Germany in year 1972.

SAP products:

ERP

CRM SRM

SCM

Analytics

Business Suits and

Industry specific Solutions for SMEs.

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SAP Modules

FI / CO - Financial Accounting & Controlling

SD - Sales & Distribution

MM - Material Management

PP - Production Planning HR - Human Resource Management

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020406080100

1stQtr 2ndQtr 3rdQtr 4thQtr

EastWestNorth

HR

MMPP

FI/CO

SDSAP Data Flow

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SAP Consultants

Functional

FI/CO, SD, MM, PP & HR

Technical

ABAPers

Basis

BW

PLC

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Role of Consultants

Functional Business Analysis

Blueprint Development

Configuration Maintenance & Support

Module Test

End User Training

End User

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Role of Consultants (Cont.)

Technical ABAP(ers)

Creating Forms & Reports specific to users requirements

Helping Functional teams generating proper results

Developing Technical Specifications

Basis Managing Installation, Data migration, Network, creating

user-ids, data transports etc.

BW Managing Historical Data

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Financial Modules

FI-Financial Accounting This is used for External Reporting Purpose

GL-General Ledger

AR-Accounts Receivables

AP-Accounts Payables FA-Fixed Assets Accounting

TR-Treasury

TE-Travel Expenses

CO- Controlling This module is mainly used for Internal Reporting

Cost Element, Cost Center, Internal order, Profit CenterAccounting, Profitability analysis.

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FI/CO Functional Consultant

Roles

1. Configuration

Enterprise structure, Country, Currency

GL, AR, AP, TR & FA

Taxes-Input/Output (VAT), Withholding Tax (TDS) Banks, Checks, Bill of Exchanges

Reports-BS, P&L, Customers, Vendors & Assets

Validation & Substitution

Cost Element, Cost Center, Internal order, Profit center

2. End User Processing Day-to-day transaction on SAP system

Maintenance, Support & Training to Users

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ERP Market

ERP Industry is still in a nascent stage, so there is ahuge market to be tapped

So far less than 0.5 % company have implemented ERPamong those who can afford it

Now Business organizations as well as non profitorganizations have started understanding its long termbenefits

Being the Market Leader SAP has the biggestAdvantage

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SAP-Future

Being the most flexible ERP solution, it is theFirst choice of Top organizations

SAP new product for SMEs have opened the

door for a large number of Small and mediumsized company

This has created a demand for a large numberof SAP consultants which are presently short ofsupply