ERP- Key Modules to Look at for a Non Manufacturing Company in India

Whether your growth plans include buying and selling in the global marketplace, adding more talent to your team, or expanding your services, Your ERP software, should have the tools and the flexibility to successfully accelerate your business expansion. Supporting different languages and multicurrency transactions the ERP should have the ability to scale up to requirements, must have flexible deployment options and should be modular in nature so you can start with the modules you need and more as you and your organization grows.

Some of the important modules you should consider while evaluating an ERP are:

Core Financial

The financial modules of accounts receivable, accounts payable, the general ledger, are powerful tools to help you confidently manage your business’ complex finances. Once integrated with full multicurrency capability, powerful bank reconciliation and tax reporting features, flexible transaction processing options, and informative dashboards for analytical reporting, The Financials of your ERP will help you to manage your finances accurately. 

Core Operational

The core operational modules of  inventory control, order entry, purchase orders, and project and job costing streamline the order fulfillment process so your business delivers every time. The order entry and purchase orders modules should be fully integrated with project and job costing, offering the most flexibility in the way transactions can be processed, while the inventory control module allows you to manage thousands of items and create flexible price lists. You even have the option of determining how and when inventory costing is performed, offering you ultimate freedom in managing your business your way.

Customer Relationship Management

With a CRM, you can automate your business processes to synchronize sales, marketing, and customer care activities across your organization, giving you complete business and customer perspectives, anytime, anywhere. Regardless of how, when, or where your customers, partners, and prospects choose to interact with your company, CRM solution once integrated with ERP the whole solution delivers comprehensive, easy-to-use tools to help you confidently manage these relationships.

Business Intelligence

A business intelligence tool is an enterprise-wide reporting, budgeting, and consolidations application that is ideal for employees in remote offices and disparate departments who need to manage, distribute, and collaborate information from a single source. It allows users to quickly capture and process information into meaningful reports and to securely distribute them across the entire enterprise on demand.

Project Job Costing

The Project Job Costing module provides an effective solution for project managers in construction, job service, and other professional industries who require a time-and-material system. It delivers the tools necessary to manage the simplest to most complex contract or job. It makes the estimating, tracking, costing, and billing of projects easy and manageable – simplifying cost control and planning. The Project Job Costing connects project activities with company financials, provides extensive inquiry and reporting capabilities and helps ensure accurate and timely accounting and billing processes throughout the life of a project.

With the powerful features you get in Project and Job Costing, you can identify potential issues and determine success factors for any project. The automated billing features in this job cost accounting software streamline customer invoicing and reduce the time spend managing this process.

Which ERP suits your organization?
There are various ERP packages available from various companies. Most importantly we need to see the size, budget and processes while determining the ERP vendor. Companies like Sage India are most suited for SME and SMB. To know more about their ERP you can visit at http://www.sagesoftware.co.in

Financial Management- The heart of an ERP application

The Financial management module in an ERP software is the core module around which other modules of the system revolves. Any change in the modules of Inventory, Operations, Projects or Manufacturing ultimately effects the finance module therefore it becomes important that finance module of ERP is robust and is integrated tightly with other modules.

Key elements of the finance module of an ERP system are:

General Ledger The General Ledger module is the foundation of your accounting system, with flexibility that meets the current and future financial management requirements of organizations of all types and sizes. It provides a robust feature set designed to handle your most demanding budgeting and processing needs. General Ledger fully integrates with all modules and is the key to maximizing the efficiency and accuracy of your financial data.

Accounts Payable– The Accounts Payable module provides robust accounting features to streamline your entire cash flow process and help you save money. Accounts Payable has a powerful library of accounting and reporting features that facilitate rapid entry of vendor invoices, flexible cash disbursement and full check reconciliation using Bank Services. With this comprehensive financial management tool, you can prioritize payments, negotiate terms, reduce bad debts,—all in a timely manner. With its powerful accounting and reporting features, Accounts Payable makes it easy to manage the detailed information your company requires.

Accounts Receivable– With the Accounts Receivable module, you can manage your customers and fine-tune customer relations by keeping track of important sales information and outstanding balances. Accounts Receivable allows you to easily apply cash to outstanding invoices and create recurring charges for quick invoicing of monthly charges. Accounts Receivable is also fully integrated with Bank Services, for complete bank reconciliation.

Multi-Currency– The Multi-Currency module delivers powerful and comprehensive multi-currency accounting functions. Sophisticated multi-currency accounting management and the ability to process transactions in any number of currencies give your business the global competitive edge required in today’s business world. This multi-currency accounting software empowers your business to effectively manage currency balances, execute accounting transactions, create reports, and much more.

Intercompany Transactions– The Intercompany Transactions module lets you enter General Ledger and Accounts Payable transactions that affect more than one company by automatically distributing transactions across two or more companies. In addition, its built-in flexibility automatically generates intercompany loan account entries according to user-defined relationship tables called routes. Intercompany Transactions simplifies and significantly reduces the amount of work required for intercompany accounting.

Companies like Sage India has various financial modules in their ERP solutions. To know more you can visit http://www.sagesoftware.co.in

 

Engineering Services and Project Consulting companies keep their projects ‘on track’ with Project Costing based ERP Software

Engineering Services and Project Consulting companies across disciplines, namely, electrical, mechanical, electronics, construction, architectural and those addressing infrastructure execute projects wherein tracking Project Budget and Actuals for material, labor, revenue and other expenses is essential. These companies execute a wide range of projects across industry verticals which make it important for them to adopt best practices.

In order to deliver on milestones within budget you need to have effective co-ordination and communication between the various departments involved, coupled with accurate tracking of materials, expenses and revenues. In other words, you require a strong project management and job costing mechanism built into a robust accounting system.

Business Challenge

For every project, post analysis and requirement scoping, a detailed design and component selection is undertaken. A Bill of materials is then created which goes to the purchase department wherein it has to be logged in against the specific project. In such a complex scenario there is a major challenge in material management, tracking and planning. Also since there are various costs that have to be incorporated into the project billing, such as material cost, time cost of man hours spent by personnel from multiple departments, you require a system that could ensure accurate time and materials costing while providing estimates to its clients. The billing process is also quite complex as invoices need to be raised at any phase of the project, hence it is essential for project cost visibility at all times in the project cycle.

Apart from needing a project job costing solution, there is also a requirement for accounting software that could meet your financial requirements, ranging from Indian tax compliance and payment, accounts receivable and accounts payable, bank reconciliation and general ledger.

All small and mid-sized companies are concerned about the impact that growth would have on its technological investments and would want a modular, scalable solution that would adapt to its unique workings and keep pace with the organization’s growth.

Solution

An ERP system having a strong project job costing module that integrates with the financial modules and purchase order addresses these rigorous requirements. A sophisticated, robust operating and accounting system, The Project Job Costing module makes the estimating, tracking, costing, and billing of projects easy and manageable, thus simplifying the cost control and planning. Project Job Costing connects project activities with company financials, provides extensive inquiry and reporting capabilities and helps ensure accurate and timely accounting and billing processes throughout the life of a project. The powerful features incorporated in

Project and Job Costing help in identifying potential issues, tracking costs, ensuring profitability and determining success factors for any project. The automated billing features in this job cost accounting software streamline customer invoicing and reduce the time spent managing this process.

Benefits

The project and job costing module in an ERP enables you to place orders, receive materials, track materials and assign manpower against specific projects. Since it automatically tracks the project cost throughout its life cycle, it allows the managers to keep track of project profitability at all times.

The strong reporting feature avoids delays in the project work flow due to communication lapses, prevents misallocation of materials and ensures effective utilization of manpower and resources to guarantee profitability.

By providing a greater understanding of the profitability and multi-level costing of projects, the ERP also helps you to estimate better. Since it helps in tracking arrival and dispatch of materials at all times, it also facilitates supply chain management.

Companies like Sage India has their ERP solutions which are project based ERP helping SME and SMB’s. You can know more by visiting http://www.sagesoftware.co.in