Page 99 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 5: ERP Modules

5.2 finance module notes

The accounting and finance module is divided into four main parts.

1. General Ledger
2. Accounts Receivable
3. Accounts Payable
4. Asset Accounting

general Ledger

The central task of G/L accounting is to provide a comprehensive picture of external accounting
and accounts. Recording all business transactions (primary postings as well as settlements from
internal accounting) in a software system that is fully integrated with all the other operational
areas of a company ensures that the accounting data is always complete and accurate.
The ERP FI General Ledger has the following features:
1. Free choice of level: corporate group or company
2. Automatic and simultaneous posting of all sub-ledger items in the appropriate general
ledger accounts (reconciliation accounts)
3. Simultaneous updating of general ledger and cost accounting areas
4. Real-time evaluation of and reporting on current accounting data, in the form of account
displays, financial statements with different balance sheet versions and additional
analyses.
Essentially, the general ledger serves as a complete record of all business transactions. It is the
centralized, up-to-date reference for the rendering of accounts. Actual individual transactions
can be checked at any time in real-time processing by displaying the original documents, line
items and monthly debits and credits at various levels such as:
1. Account
2. Journals
3. Summary of monthly debits and credits (balances)
4. Balance sheet/profit and loss evaluations

accounts payable

Records and administers accounting data for all vendors. It is also an integral part of purchasing,
where deliveries and invoices are recorded based on each vendor. The system automatically
makes postings to the FI component in response to these transactions. In the same way, the
system supplies the Cash Management application component with figures from invoices in
order to optimize liquidity planning.
Outstanding payables are settled by the payment program, which supports all standard payment
methods (checks, transfers, and so on), in printed form as well as in electronic form (data medium
exchange on diskette and electronic data interchange). Payment methods specific to different
countries are also covered by this program. If necessary, you can create dunning notices for
outstanding receivables (for example, to receive payment for credit memos). This function is
supported by the dunning program.
Postings made in Accounts Payable are simultaneously recorded in the General Ledger where
different G/L accounts are updated based on the transaction involved (payables, down payments
and so on). To help you keep track of open items, there are due date forecasts and other standard
reports that you can carry out.

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