erp for class

8/2/2019 ERP for Class

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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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What is ERP? Why ERP? Typical ERP Modules, ERP supported

functions ERP Architecture & integration with legacy

applications



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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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applications



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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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applications



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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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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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applications



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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 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 Processes


Sample Requirements

Product Overview

Product Comparison


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 Processes

Process Flow in Order Cycle all products Sample Requirements

Product Overview

Product Comparison


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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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



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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.



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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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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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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.


C St d P k R i t (3)


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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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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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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 Processes

Process Flow in Order Cycle all products Sample Requirements

Product Overview

Product Compari`son


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)



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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 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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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.



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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.



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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 Processes


Sample Requirements

Product Overview

Product Comparison


Module 2 - Agenda

Package Comparison Higlights(1)


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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



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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 Processes


Sample Requirements

Product Overview

Product Comparison


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



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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



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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


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



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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

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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

MS Axapta - Accounts Payable


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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


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.



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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.



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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.


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.)


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


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


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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


R ti


158/168

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


159/168

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)



160/168

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


Reporting


161/168

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


162/168

Financials


Sample Requirements

Product Comparison

Module 2 - Agenda

Package Comparison Assets

The following functionalities can be handled by all 4 ERP packages


163/168

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



164/168

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



165/168

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