ERP For Class

ERP
ERP Functions & Architecture Overview & Emerging Trends
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 appreciation of Module 2.
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
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, human resources, supply chain and customer information. [T.J. Davenport, Harvard Business Review, July Aug., 1998]
FA Marketing Treasury GL Shop Floor Sales AR AP Purchasing
Payroll HR
Partner Systems
PP
Mfg.
Plants
What is ERP? (2)
HR Supply Chain
Finance
$ $ $ $
Accounts
Manufacturing
ERP
Inventory
Warehouse
Customer
Integration Of all key Business Functions of Enterprise . But ERP Is much More than This, as Explained In next few slides
Purchasing
Quality Assurance
Marketing
What is ERP? (3)
GARTNER GROUP
ERP IS AN INTEGRATED APPLICATION SOFTWARE SUITE THAT BALANCES MANUFACTURING, DISTRIBUTION AND FINANCIAL BUSINESS FUNCTIONS.
WHEN FULLY IMPLEMENTED , ERP CAN ENABLE ENTERPRISES TO OPTIMISE THEIR BUSINESS PROCESSES ERP IS THE TECHNICAL EVOLUTION OF MRP-II THROUGH THE INTRODUCTION OF RDBMS, CASE, GUI, 4GL DEVELOPMENT TOOLS, AND Client/Server ARCHITECTURE.
Central Purchase Local Call-Offs a best practice

Local copy of central contract
Central Contract Supplier ABC Pur.Off.X
Central Contracting
Item 1234 Off. A 1000 Off. B 2000 Off. C 1250
Updates
Contract
Contract
Item 1234 Item 1234 1000 ea 1000 ea Ship-fr. X

Purchase Off. A
P.O release Schedule
Item 1234 2000 ea
Ship-fr. Y Ship-fr. Y
Purchase Off. B
Update of called/inv. qty and am.
Replic. of called / invoic qtys and amounts

Contract
Item 1234 1250 ea Supplier ABC Ship-from X Ship-fr. Z
Purchase Off. C
General Functional Model of ERP
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
WHY ERP? (2)(multi-site) Enterprise Concept
ENTERPRISE: IS EVOLVED AS A NETWORKED STRUCTURE CONSISTING OF MANY MEDIUM-SIZED ORGANIZATIONS HAVING THEIR OWN SPECIALIZATIONS and CORE COMPETENCIES WORKING IN COLLABORATION TO CREATE VALUE FOR THEIR STAKEHOLDERS
Why ERP? (3)Stakeholder expectations

SHAREHOLDER
Profits / Dividends Market Share
GOVT. / SOCIETY
Employment Generation
Corporate Image
Brand ORGANIZATION
Revenue / Exports
Environment Protection Societal Development
EMPLOYEES
Quality of Life
Compensation Challenges Work Environment Job Security
CUSTOMERS
Cost, Quality Delivery/Agility Flexibility Sales Services
SUPPLIERS
Profits Cash Flow Business Growth Relationship
Why ERP? (4)Benefits

What Benefit
Delivery, procurement, mfg. CYCLE TIME REDUCTION Cost reduction / Reduced Inventory Improved Flexibility (Changes in Prodn Volume, ProductMix, Product Configuration) Reliable information access Avoid Data and operations redundancy Easy adaptability Improved scalability Global outreach E-Commerce, e-business
How
Minimizes communication, retrieving and reporting delays. Time-savings, improved control by enterprisewide analysis of organizational decisions. Automated and fast planning changes What-If Scenario Common DBMS, consistent and accurate data, improved reports Modules access same data from the central database, avoids multiple data input and update operations. Changes in business processes easy to adapt and restructure. Structured and modular design with "add-ons". can be extended to modules such as CRM and SCM. can utilize Internet commerce, collaborative culture.
Why ERP? (5)Improving operational efficiency
Financial Management Business Decision Making Reporting and
Without ERP
With ERP
Efficiency
Financial Management
Business Decision Similarly, new reports creation can reduce the total time spent in reporting and establishing controls. Making This frees up a significant amount of time (as indicated in the top right quadrant) that can be used in increasing efficiency, thro Controlsspent on Transaction Processing. Reporting and Controls Transaction Processing Transaction Processing
Reduce time and resources spent on lower value-added activities while increasing the level of involvement in business decision making
Module 1 - Agenda
Typical ERP Modules
$ $ $ $
Sales & Distribution
Finance and Accounts
Quality Management
Manufacturing
Plant Maintenance
Material Management
Human Resources
Typical ERP Supported Functions
Financial
Accts receivable
Asset account Cash forecast Cost accounting Exec Info Sys Financial consol General ledger Profit analysis Standard costing
HR
Time accounting
Payroll Personnel plan Travel expense
Logistics
Inventory
MRP Plant Maintenance Prod planning Project Mgmt Purchasing Quality Mgmt Shipping Vendor evaluation
Sales & Mkt.

Orders
Pricing Sales Mgt Sales plan
Module 1 - Agenda
ERP- Architecture (three main parts)
Customization
Localization
Standard
ERP- Architecture (Open System)
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, SQL Server, DB2, Sybase User Interfaces: Supports various Windows platforms, Browsers
Open Communication Protocols: TCP/IP
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-process communications 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
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
n-Layer common ERP Architecture

APPLICATION LOGIC ( Mfg., Procurement, W/H..) APIs and Tools ( customize/ maintain)
Logic Layer
CLIENT V.M/C
ORACLE SQL Server

INFORMIX
UI DRIVER
DATA BASE DRIVER
Browser
Presentn Layer
VIRTUAL MACHINE OS Driver
DataBase Layer Windows Variants
Unix Variants
HARD WARES
Module 1 - Agenda
Typical ERP Integration with legacy Applications
Banks
EDI/ Gateway
Managers & Stakeholders Sales & Delivery Finance
Enterprise EAI Legacy
ERP System
Planning
Manufacturing Shared Database Back EAI SCM offic e

EAI
CRM
EAI
Front Offic e
Service HRMS
Inventory and Supply
APO
EAI
WMS
Employees
EAI
BI & Reporting Tools
Evolution of ERP & Emerging Trends

Industry Class A Industry Sector Q
Industry X EAS
ERP II
Industry Segment Z Functionality Deepens Technology Infrastructure
Extended ERP ERP MRP II MRP SIC Functionality Widens
Increasing External Connectivity
60s
70s
80s
90s
end-90s
2000s
Source: Gartner Resea
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 relationship among 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
How ERP II Evolves From ERP
ERP
Enterprise optimization Manufacturing and distribution Manufacturing, sales and distribution, and finance processes Internal, hidden Web-aware, closed, monolithic Internally generated and consumed
ERP II
Role
Value chain participation/ c-commerce enablement All sectors/segments Cross-industry, industry sector and specific industry processes Externally connected Web-based, open, componentized Internally and externally published and subscribed
Domain
Function Process Architecture Data
Source: Gartner Research
Major ERP Service Providers (Gartners Magic Quadrant)
Module 1 - Agenda
ERP vendor competitive positioning
Large enterprise
SAP mySAP Business Suite
Oracle EBS and Enterprise MBS AX MBS GP Oracle E1
Lawso n/Inte ntia
Midmarket
SSA Infor QAD IFS Unit 4 Agresso Exac t
Epicor
Small business
SAP Business One
Sage Group
MBS MBS NAV SL
NetSuite
Source: Forrester Research Inc
The Enterprise Services Battlefield

$1 billion plus $1 billion to $250 million $250 million to $50 million Under $50 million
Large CompaniesUpper Mid market

SAP
Lower mid market Small businesses
SAP Business One mySAP All-in-One Oracle E-Business Suite Special Edition
Microsoft Dynamics Product Suite* Axapta Great Plains Navision CRM
Oracle
Other mid-market players
Top 10 ERP vendors by total 2009** revenues (in $ millions) SAP Oracle Infor* Sage Group Microsoft (MBS) Lawson Unit 4 Agresso IBS Epicor IFS $1,600 $1,414 $855 $4,651 $10,536
$747
$439
$319
$289 $289 Source: Forrester Research Inc
Vendors focus on different verticals

Public sector Finance/ insurance Utilities/ telecom Business services Retail/ wholesale Manufacturing
Vendor
SAP Oracle Sage Group
Healthcare
MBS Lawson-Intentia SSA Global Infor Unit 4 Agresso IBS Epicor IFS Exact
Capability Low High
Module 1 - Agenda
ERP Market Trends (1)

The ERP landscape in 2005 was significantly altered due to the level of merger activity. 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 significant transition. Many enterprises will begin a journey to upgrade systems to new architectures and products. Choices will be many, and users will have a plethora of decisions ranging from platform to products to enhance business processes and differentiation. For smaller and niche providers that align themselves with the platform technologies of the market leaders, the market will offer opportunities through seamless integration and vertical solutions.
ERP Market Trends (2)In next few years
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.
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
Module 2 - Agenda
To focus on overall product architecture and technology 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
Module 2 - Agenda
Sales Processes
Process Flow in Order Cycle all products Sample Requirements Product Overview Product Comparison Solutions to Sample Requirements
Module 2 - Agenda
Sales Processes Process Flow in Order Cycle all products Sample Requirements
Product Overview
Product Comparison Solutions to Sample Requirements
Process Flow in Order Cycle - Oracle

QUOTES
Custom er Master
OM
Order Capture Credit Check Availability
INV
Item Master and Inventory Synch.
AR
Receivabl es Transacti ons
Reservation
Release to WHS
Ship Confirm
Invoice Interface
WMS
Process Flow in Order Cycle - SAP
Process Flow in Order Cycle - PeopleSoft
Process Flow in Order Cycle: Dynamics AX
Direct Ship
Customer
Vendor
Warehouse Update
Goods Receipt
Inventory Update
Accounts Receivable
Credit note
Blanket order Purchase Subscription, Order Trade agreements

Confirmation Quotation
Not in stock
Sales Order, Customer Balance Etc..

Return Items
Invoice
Sales Order
Reservation
Picking list
Packing slip
Module 2 - Agenda
Sales Processes
Process Flow in Order Cycle all products Sample Requirements Product Overview Product Comparison Solutions to Sample Requirements
Case Study: Package Requirement (1)
A Hi-tech Organization, with 40 offices and 1000 Customers and 15000 Employees across the world needs an evaluation of an ERP system across the Quotation, Order Entry, Order Processing, Change Orders, Shipping and Picking and Invoicing features.

Quoting
Ability to convert to quote from opportunity automatically to eliminate redundant data entry Ability to provide a complete view of the quote cycle (customer quote history, quote version history and maintain relationship between lead, opportunity, quote, contract & order) Ability to provide fully automated online approval process to enforce pricing compliance and trigger quote approvals based on changes to terms and conditions. Ensure validity of quoted product configurations, ability to apply complex pricing variables to arrive at the product price, ability to capture alternative items Ability to create quotes by a rep that can be published on the Web for immediate access by customers and others involved in the deal.
Order Entry
Ability to capture and validate orders from multiple sources (electronically via an extended repertoire of EDI transactions, from Web stores, third party entry systems and outsourced call center)
Order Entry Contd.

Ability to capture an attachment to the order/return (e.g.: Photograph of the returned product 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 UI by 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 checking available to promise through the entire supply chain
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 containers while enforcing packing constraints such as min/max fill percentages and weight and volume limits Packing Calculator to 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
A Manufacturing Organization, with 5 Legal Entities spread across the Geography needs an ERP evaluation across the Presales, Order Entry, Processing, Shipping, Billing, Inter company and Internal Order Handling functions.

Presales (Inquiry and Quoting)
Ability to store customer inquiries and quotes and the probability of these being converted to Orders (This is applicable to business scenarios) Ability to Create quotations in reference to customer Inquiries and maintain traceability between the original Inquiry and the Quotation submitted in response Ability to allow creation of Stand Alone orders or Orders in reference to Quotations Ability to allow multiple methods of Order Entry (EDI(B2BOnly), Telesales, Web Interface (Both B2B and B2C) Ability to perform Credit Check and only on clearance of Credit Check, continue further processing, ability to allow payment guarantee 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 upgraded substitutes to phased out products
Order Entry and Processing

Shipping
Ability to allow shipping some of the products directly from a third party vendor Ability to allow shipping to Customers across the border and ensuring compliance to export regulations including sanctioned party list screening Ability to over deliver / under deliver subject to tolerance limits in order to optimize shipping costs
Billing
Ability to club multiple orders of a customer into a consolidated invoice 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

Inter Company Processing
Ability to fulfill order placed on one subsidiary through stock available in another subsidiary Ability to charge selling subsidiary for product sourced from another subsidiary
Internal Orders
Ability to create Internal Orders for the organizations internal requirement
A Trading Organization, with Liaison Offices across the Geography and working through commercial agents and brokers needs an ERP evaluation across the Order Management, Promotions management, Shipping, Billing and Invoicing and System Traceability functions.
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 pricing Structures. 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 review and 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 order fulfillment life cycle flawlessly from order capture to account settlement
Order Processing
Ability to perform the Credit Check for 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 supply the goods to the customer from the nearest location. Ability to hold the delivery if the quantity is less that the Minimum Quantity or more than Maximum Quantity. Ability to hold the delivery if the rate is less than the Minimum Selling Price. Ability to allow supply of goods from Vendor directly.
Billing / Invoicing
Ability to bill customer in different currency and language. Ability to bill in installment / Consolidate billing. Ability to apply unlimited, multilevel percentage or specific amount discounts and surcharges. Ability to store bill-to, ship-to, sold-to, and service-to customer information.
Other Important requirements

Ability to track the Orders up to the final reporting level and vice-a-versa. Ability to track the receivables based on the Customer Orders (And not necessarily on the basis of the Bill generated from the system.) Easy to understand and easy to 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 and view the receivables projections. Ability to give access to users based on the roles performed in the organization. Easy to customize the system.
Module 2 - Agenda
Sales Processes
Process Flow in Order Cycle all products Sample Requirements Product Overview Product Compari`son Solutions to Sample Requirements
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 adaptive enterprise 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 market companies Industry-specific functionality to meet your industry's unique needs
Oracle Organization Structure within Sales
Oracle Organization Structure within Sales an example

Set of Books (FRANKFURT) Set of Books (LONDON)
Legal Entity (FRANKFURT)
Legal Entity (LONDON)
Operating Unit (Motorcycles)
Operating Unit (High Tech)
Operating Unit (Motorcycles)
Oracle Organization Structure within Sales
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. You assign 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 distributes products. 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 the appropriate inter company sales by posting inter company accounts payable and accounts receivable invoices. Purchase products through one legal entity and receive them in another legal entity.
SAP
The Sales and Distribution Module within mySAP ERP Central Component provides extensive functionality to support most of the common business requirements across industry verticals. It has functionality to support Inquiries/Opportunity processing, Quotation processing, Sales orders, Shipping and Logistics ,Customer Invoicing, Retroactive Rebates, 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 and subsequent transfer of requirements to Procurement / Sourcing
In addition to these, SAP also provides industry solutions that address certain requirements that are specific to industry verticals
SAP - Organization Structure within Sales
SAP Organization Structure within Sales (Sales Area)
SAP Organization Structure

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 financial reporting entity that uses a particular chart of accounts, functional currency, and accounting. Sales Organization - The sales organization is an organizational unit within logistics, that structures the company according to its sales requirements. Distribution Channel - The distribution channel represents the channel through which saleable 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. Product groups, 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 are defined using the term sales office. Sales group - The staff of a sales office may be subdivided into sales groups. For example, sales groups can be defined for individual divisions. Salespersons - You can maintain personnel master records for sales representatives in your company. In the personnel master record, you assign the salesperson to the sales office and the sales group
PeopleSoft
Oracle's PeopleSoft Enterprise Supply Chain Management (SCM) provides a cohesive yet flexible solution for the synchronized supply chain, driving efficiencies in cost savings over your entire supply chainincluding your plan-to-produce and order-to-cash business processes. Extends your supply chain in real time by connecting suppliers and customers with company business processes. Provides integrated spend management for all categories of goods and services. Delivers embedded analytics to monitor supply chain performance and adjust as conditions and business goals shift.
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.

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 or increase sales volume. Synchronize demand planning and promotional events to execute the order fulfillment life cycle flawlesslyfrom order capture to account settlement. Manage the promotion payment processfrom authorizing payment to entering claims and generating 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), and customers 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 PeopleSoft Enterprise Order Management.

Contd
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 key competitors, 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 of clicks. 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 order information is seamlessly passed to back-office order management systems. Increase revenue from agreements by automatically associating products and tracking expiration dates for renewal notification and processing. Check order status and inventory availability through integration to supply chain and fulfillment systems.
PeopleSoft Organization Structure
LEDGER
General Ledger Business Unit 1
General Ledger Business Unit 2
OM BU
PM BU
INV BU
OM BU
PM BU
INV BU
BILLING BU
AR BU
BILLING BU
AR BU
Microsoft DynamicsTM AX
Value Proposition
An integrated, adaptable and global business management solution that works like and with familiar Microsoft software and helps you drive business success.
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
MS Dynamics AX - Fully Integrated
Streamline business operations and gain efficiency Improve information management and access Enable highly productive work environments
Module 2 - Agenda
Sales Processes Process Flow in Order Cycle all products Sample Requirements Product Overview Product Comparison Solutions to Sample Requirements
Package Comparison Higlights(1)

Microsoft Axapta
Sr
Parameters
Ability to copy data from Quote/ Opportunity to Order and subsequent processes in order to reduce redundancy in data entry Existing Templates for common business processes Ability to disallow certain products for certain customers OR allow only a certain set of products to be available for certain customers - Product Exclusion based on complex criteria
Oracle
SAP
PeopleSoft
Available
Available
Available
Not Available
Available
Available
Available
Not Available
Not Available
Available
Available
Not Available
Package Comparison Higlights(2)
SR. NO
Parameters
Oracle
SAP
Microsoft Axapta
PeopleSoft
Highly configurable Order entry screen allowing different settings for each user Configurable Products Multiple mechanisms of Order entry Single invoice for multiple orders Retroactive Rebates
Available
Not Available
Available
Not Available
5 6
Available Available Not Available Not Available
Available Available
Available Available
Not Available Available
Available
Available
Not Available
Available
Not Available
Not Available
Package Comparison Details
Module 2 - Agenda
Sales Processes Process Flow in Order Cycle all products Sample Requirements Product Overview Product Comparison Solutions to Sample Requirements
Solution to Sample Requirement - 1

Proposed package to implement the first set of requirements is Oracle e-Business Suite 11i. Key Differentiators are: Powerful quoting capability through Oracle Quoting The sales application that automates and manages the entire quoting process and is a key component of the Oracle Customer Relationship Management solution. It also facilitates easy conversion of quote to orders. Oracle Order Management captures orders accurately and processes them efficiently to slash fulfillment cycle time by organizing and automating all order management processes. Provides robust mechanism to capture and validate orders coming from multiple demand channels (like field sales, call center, web store or electronically through XML or EDI ) Tailorable User Interface speeds direct entry - Quick Sales Order reduces data entry and shortens the time required to perform this task through the use of a streamlined entry window. Configurable user interface ( hide, display tabs), suggestions on cross selling and up selling being given to the user based on the ordered items being entered are a few of the features offered in Oracle that serve as key differentiators from other packages. Other features include Customer easy search feature to find and populate customer information 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 of Oracle. Ability to control changes to orders based on responsibility through the use of processing constraints

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 order probability to be captured at the quote/ opportunity stage in order to provide demand planning with the probable requirement. Ability to exclude some materials for some customers The Sales order functionality allows 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 complaint handling and order corrections Comprehensive Customer Hierarchy functionality Allows one to replicate the customers organization structure enabling easy and accurate volume based discounts etc. for various levels in the customers organization Retroactive Rebate Processing Allows an organization to provide loyalty benefits to customers periodically

Proposed package to implement the set of requirements is PeopleSoft V 8.9 Key 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 the management requirements. To view a transaction a user can drill down from the General Ledger to Receivables, Billing and there to 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 and report for the receivables based on the customer orders rather than providing the billing details to customers.
Module 2 - Agenda
To focus on overall product architecture and technology 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
Module 2 - Agenda
Financials
Product Overview & Process Flow
Sample Requirements
Product Comparison
SAP
The Finance & Controlling Module within mySAP ERP Central Component provides extensive functionality to support most of the common business requirements across industry verticals. Financial Accounting is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable and other subledger accounts with a user defined chart of accounts. As entries are made relating to sales production and payments journal entries are automatically posted. This connection means that the "books" are designed to reflect the real situation.
Controlling Controlling represents the company's flow of cost and revenue. It is a management instrument for organizational decisions. It is also automatically updated as events occur.
Assets Management Asset Management is designed to manage and supervise individual aspects of fixed assets including purchase and sale of assets, depreciation and investment management. In addition to these, SAP also provides industry solutions that address certain requirements that are specific to industry verticals
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. An example would be a company within a corporate group. Balance sheets and profit/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 create their own set of financial statements for internal purposes. The use of business areas is optional.
SAP - Accounts Payables & Receivables
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 sent to customer for long due items In case of more than one subsidiaries, inter company flows can be automated. In this case, 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 other than 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
SAP - General Ledger

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 be reversed 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 various purposes. If a company, for example, wants to use its SAP System for both test and training purposes, a client is created for each purpose. Master data G/L Accounts, Customer/Vendor Accounts, Bank Master Data & Asset Accounting Master are main master data used in Finance Document control A document is identified by the combination of document number, company code & fiscal year Posting control Setting default values, rules governing changes to documents, Tax (sales tax, withholding tax etc.), payment terms and automatic discount postings & document reversal can be customized
SAP - General Ledgercontd
Posting tips Documents can be used as reference, documents can be put on hold (if not final) & can be deleted / posted later on. Currencies Every currency which will be used has to be identified by a currency code . Most of the world's currencies are already defined in the SAP R/3-System. Each currency code can have a validity date. Taxes Tax (sales tax, withholding tax etc.) can be customized at state /country level GL account The chart of accounts (group of GL accounts) is a variant which contains the structure and the basic information about general ledger accounts. Others Day to day cash / fund flow planning, check deposit, manual bank statement entry & customization is also possible
SAP - Assets Accounting

Fixed assets can be valued as per 99 valuation methods (any no. of valuation methods 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 year depreciation 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

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 be posted 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 element Periodically
SAP - Controlling basics Profitability side

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 defined criterion) Valuation of material at different levels of production
Peoplesoft (PS) Financials

Designed to address the most complex business requirements. Provide comprehensive business and industry solutions Offer web services integration to fit seamlessly into a heterogeneous applications environment and a broad choice of technology infrastructure. Simple configuration ensures that the most unique customer requirements can be met. General Ledger It is an accounting, consolidation, management reporting, executive information, decision support, and budget system clustered into one streamlined package. Key features include: Unrestricted chart of accounts definitions, Balancing by ChartField, summary ledger processing, average daily balancing, unlimited number of accounting periods, effective dated information, summarization using graphical tree structures, multiple ledgers, multiple business units, sophisticated allocation and budgetingplus, probably the most innovative integration of spreadsheet technology and financial reporting. Accounts Payable Enables you to efficiently manage disbursements while keeping strong controls over matching, approval processes, and payments. The main activities are: Record transactions Analyze and review payables to vendors Match payments with dues Make payments to vendors and Get ageing analysis of payables
PS Financials
Receivables PeopleSoft Receivables enables you to streamline your accounts receivable processes to accelerate collections, reduce credit risk, resolve exceptions quickly, and ultimately decrease your cost of working capital. Asset Management PeopleSoft Asset Management offers a fresh approach by delivering maximum financial control and system flexibility. Leverage the value of your fixed asset inventory and minimize the cost of tracking physical assets. Use a flexible system that extends beyond adding, transferring, depreciating, and retiring. Budgets Combines 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 the status 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
PS BI BU 1
PS AR BU 1 PeopleSoft GL Business Unit
PS AM BU 1
PS BI BU 2
PS AR BU 2
PS AM BU 2
PS AP BU 1
PS AP BU 2
PS AP BU 3
Business Units and Tableset in PS

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.
Business Units
Record Groups
SetIDs
Control Tables
CANADA
FS_01
SHARE
SetID SHARE SHARE SHARE USA USA
Account 000001 000002 000003 A123 A456
USA
FS_01
USA
SetID SHARE SHARE SHARE USA USA
Dept ID AAA BBB CCC ZAB YCD
MEXICO
FS_01
SHARE
PS GL Common Business Functions

Interunit Accounting Allocations Commitment Control Consolidations Table Setup & Maintenance Journal Processing Trees
PS/GL
Year-End Close Budgeting
Multi-Currency
Reporting & Inquiry
Workflow
PS Journal Process Flow
Direct Online GL Entry
Spreadsheet Journal Entry Edit Process
Feeder Systems
Budget Check
Posting Process
Check Journal Status
PS Receivables Process Flow
PS AR Features
PS Accounts Receivables Integration

Billing General Ledger
Accounting Entries
Deduction Management
Sales Orders
Invoice & Credit Card Information
Deductions
Order Management
Place Orders on hold
Receivables
Treasury Netting Refund Processing
Treasury
Project Information
Treasury Netting
Projects
Accounts Payable
PS AP Features
PS Voucher Processing Flow

Batch processes Online Entry Enter Voucher Delete Voucher Update Voucher Edit Voucher Batch Edit Voucher Build Quick Invoice Entry Create Control group
Match Voucher Approve Voucher Pay Voucher Post Payments
Unpost
Post Voucher Generate Journals

Journal Generator
Close
PS Payment Processing Flow

Discount Alert Negative Balances Conversion Alert Withholding Alert Prepayments Withholding Netting
Payment Selection Produce Positive Payment File
Selection Exception Format Positive Payments
Draft Staging
Complete Payment Creation Payment confirmation Print Check EFT Format ACH Format Print Advice
Print Trial Register
PayCycle Approval
PS AM Features
PS Billing Features
Oracle Financials
Process Flow in FA Cycle - Oracle

Asset Invoice
FA
Asset Addition Asset Posting
Quick Addition
AP
Asset Transfer Adjustment Retirement Calculate Gain/Loss
Depreciation
Transfer to GL
GL
Process Overview in FA - Oracle
Prepare Requisition
Purchasing
Approve the requisition
Create a Purchase Order
Approve the PO
Receive Asset
Inventory Management for Assets
Inventory
Enter Receipt / Auto Create Invoice thru a receipt Accept/ Reject Return The Material
Reject
Adjust Asset
Accept Create Assets thru the Mass Additions .
Invoice Creation & Payment
Calculate Gains./ Losses
Run Depreciation
Financials
Direct Addition in FA Module . Assets WorkBench for Adjustment General Ledger Approval for Adjustment
Process Flow in AP Cycle - Oracle

PO Invoices Recurring Invoices
Invoice Creation Supplier Master
AP
Expense Invoices
PO
PO Matching Validation & Approval Create Payment Make Payment Accounting
Bank Master
FA
GL
Entering Invoices in AP - Oracle

Receive invoices Enter invoice (Optional) Match to PO or receipt
Approve invoice
View invoice
Create accounting
A/P 100,000 60,000 10,000 30,000
Pay invoice File invoice
Entering Invoices batches in AP - Oracle

Batch invoices Prepare a batch control form Enter a batch of invoices
Update the batch control form Receive invoices in the mail File invoice Review batch control reports
Matching Invoices to POs in AP - Oracle

Enter or import invoices Receive invoices electronically or in the mail Approve invoice
Optionally match to PO or receipt
View invoice
Create accounting
AP 100,000 60,000 10,000 30,000
Pay invoice
Issuing payments in AP - Oracle
Select invoices
Build payments using payment batch
Format payments
Print checks or create electronic payments
Confirm payments
Process Flow in GL Cycle - Oracle GL

Journal Import from Sub ledgers ADI
Journal Entry
Manual
Post Journal Reversals Define Budgets Post Budgets Mass Allocations Recurring Journals FSG Financial Reports
Journal Entry Process - Oracle
Identify Method of entry
Entering Journals / Importing Journals
Review /Approve Journals
Post Journals
Consolidation
Used to combine the financial results of multiple companies, even if their sets of books use different 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 journal batches:
Standardupdates standard balances without affecting average balances Averageupdates average balances without affecting standard balances
Process Flow in AR Cycle - Oracle AR

Auto Invoice from Sales Orders ADI
Invoice Entry Receipts Invoice Applications Collections Credit Review Customer Master
Manual
Lockbox
On Account
Receipts
Credit Memo
Refunds
Customer Aging Transfer to GL
GL
Transaction View in AR - Oracle

Deposit Guarantee Standard invoice Copy Print and send invoice to customer Correct invoice Underinvoice Overinvoice
Invalid transaction
Void Delete
Process and print
Enter receipt
Generate statement Interface to Oracle General Ledger
Receipts View in AR - Oracle
Enter receipt
Apply to customer account or invoice
Update customer balance Automatic Internal Process
Clear receipt
Reconcile bank statement
Collection cycle in AR - Oracle

Identify past-due items Monitor activity
Review customer account details
Adjust customer account
Resolve past-due and disputed items
Collection scenario in AR - Oracle

Partial Payment Customer remits partially
Paid in Full Customer remits in full
Not Paid Customer does not remit
Apply partial receipt Adjust account
Give back to salesperson Send to collection agency Record bad debt
Create chargeback
Organization Structure - Oracle
Organization Structure - Oracle
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. You assign 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 distributes products. Examples include (but are not limited to) manufacturing plants, warehouses, distribution centers, and sales offices
MS Axapta Financial
Balance sheet Profit & Loss Cash Flow
Reports
Fixed Assets Inventory transactions Posting profiles Accounts Payable Posting profiles Accounts Receivables
General Ledger Chart of Accounts Company details Dimensions Periods
Tax setup
Bank setup
Multiple Currencies
MS Axapta - General Ledger

Manages flexible accounting periods and uses a reliable year-end procedure including 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, is available Handles multicurrency and exchange adjustment (secondary currency is used for reporting in more than one currency) Multiple structured budgets possible Extensive, flexible tax module feature for different types of calculation and reporting available Advanced financial statement including alternative rows can be configured Dimensions enable you to slice your data different ways for more flexible analysis, while reducing the complexity of your chart of accounts Allocation based on percentages for accounts possible
MS Axapta - General Ledger

Budget reports Balances Budget models Allocations Settlement terms Correction transactions General journal Fixed Assets journals Budgets AP open AR open Ledger a/c transactions transactions requirements Liquidity requirement General Ledger Post Balance sheet Profit & Loss Adjustment entries Audit trail Transactions Year end closing Back ups Create New year Transfer Balances
Voucher
Validation/ Approval Sales journals
Purchase journals
Inventory journals
MS Axapta Accounts Receivables
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

Free text Invoices Customer payment Payment journal Customer Accounts Receivables
Electronic payment Checks Payment settlement Invoice lines
Bank Deposits Reconciliation Tax reports Sales tax Tax settlement
Invoice Credit notes

Debit notes Collection letters Interest notes
voucher
General Ledger Customer reports Sales reports AR balances due Customer Inventory
MS Axapta Accounts Payable
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 unapproved invoices, and matching invoices to physical deliveries Payment journal with payment proposal features
MS Axapta - Accounts Payable

Non purchase transactions Approval journal Invoice journal Payment journal Invoice lines Payment settlement
Invoice pool Invoice register Payment due dates Payment discounts Vendor Invoice Credit notes
Checks issue Electronic payment
Bank
Reconciliation
Accounts Payable
voucher
General Ledger Vendor Vendor reports Purchase reports AP balances due Inventory
Debit notes
MS Axapta BANK
Bank account reconciliation, including electronic bank account statement import (for selected 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
Manage the full life cycle from acquisition to depreciation and disposition Projects can be transferred as fixed assets for capitalization and depreciation purposes Maintain asset status information Improve control over fixed assets to drive accuracy and timeliness in your accounting results Multiple depreciation models Forecasts using fixed-asset budgets Integrated to purchasing and inventory functionality Barcode handling
MS Axapta - Cost Accounting
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
Module 2 - Agenda
Product Comparison
Financials
Product Overview & Process Flow
Sample Requirements
Case Study Package Requirement( AP)

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 different address and contacts Ability to define and restrict various functions at each supplier site level like Pay only, 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, Account details 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 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 goods that you have ordered. Match to purchase order receipts to ensure that you pay only for goods that you have received. Payables automatically creates invoice distributions based on the purchase order distributions.

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 further processing 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.

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 electronic transfer or checks. Ability to void a payment. Ability to stop a payment. Accounting the payments and transfer to GL.
Case Study Package Requirement ( AR)

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
Class Invoice Credit Memo Debit Memo Description Bill customers for products or services Credit customers (On-account credits do not refer to specific invoices.) Bill customers for products or services that were not included on the original invoice Adjust the remaining balance of an existing debit item to zero, and create a new debit item to bill customer for unpaid 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 the guarantee.)
Chargeback
Deposits Guarantee

Autoinvoice Import large numbers of transactions for seamless integration from Oracle or non-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 Review Customer Account Ability to define aging buckets. Review Aging details. Print and review Dunning history.
Case Study: Package Requirement (GL)

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 across Multiple Entities Feasibility to have primary and secondary ledgers Maintain both Off Balance Sheet Data as well as On Balance Sheet Data Workflow Ability to have workflow for Journal Approvals

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 departments or 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

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 each department/geography
Case Study: Package Requirement (Asset Accounting)

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 free to define criterions for further analysis. Master data should have different characteristics for different type of assets 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)
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 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
Module 2 - Agenda
Sample Requirements
Financials
Product Overview & Process Flow Product Comparison
Package Comparison Assets

The following functionalities can be handled by all 4 ERP packages
S.No. 1 2 3 4 5 6 7 8 9 10 Particulars Fixed assets can be valued as per different valuation methods For low value assets depreciation can be provided in year of acquisition. Accounting for Leased assets can be tackled directly in Asset Accounting. Use Multi Shift Codes of Depreciation for Asset used in multiple Shifts Use Assets in Joint Venture Allocation Transfer Assets within entities across Departments/ Geographical Location Transfer Asset across Entities Recategorize Assets. Change Asset Category from Category say LMV to HMV Depreciation Allocation Mass Changes to Assets on Liquidation/ Acquisition
Package Comparison AR/AP

S. No Particulars
1 Reminder Letters can be sent to customer for long due items.

2 Inter company sale - purchase flows can be automated. FI invoice/credit note/ Debit note can also be posted directly in Fi without 3 impacting the stock. Special ledger functionality can be used to record abnormal items (Normally other than invoice, credit note & payments) separately for reporting & various 4 actions Customer / Vendor data can be maintained on company level and purchasing 5 / selling level. Division of fields is based on the relevance. Reporting can be done the basis of open (not cleared), cleared & all line 6 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
S. No Particulars
1 Each transaction is given a unique document number. Based on Authorization Group, the posting periods can be restricted for 2 different users. Recurring entries can be recorded & passed periodically such as rent, fixed 3 royalties etc 4 Provisioning entries for month / year end & can be reversed automatically 5 Ability to use different calendars for budgets and actuals 6 Predefined Integration with Third Party Applications 7 Perform Year End Closing to roll forward balances
8 Tracking actual spends against the budgets

Profitability Analysis - Based on business / geographical / any other criterion 9 is possible.
Perform Consolidation and evaluate consolidated BS/ P & L along with 10 Minority Interest
Package Comparison Details
Module 2 - Summary
This module focused on overall product comparison, Sales & Distribution and Financials in ERP space: Product Trends & ERP survey Sales & Distribution Financials
Thank You

ERP For Class

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ERP

ERP Functions & Architecture Overview & Emerging Trends

What is Enterprise Resource Planning (ERP)? (1)

FA Marketing Treasury GL Shop Floor Sales AR AP Purchasing

What is ERP? (2)

What is ERP? (3)

Central Purchase Local Call-Offs a best practice

Item 1234 Off. A 1000 Off. B 2000 Off. C 1250

Item 1234 Item 1234 1000 ea 1000 ea Ship-fr. X

Item 1234 2000 ea

Update of called/inv. qty and am.

Replic. of called / invoic qtys and amounts

Item 1234 1250 ea Supplier ABC Ship-from X Ship-fr. Z

General Functional Model of ERP

WHY ERP? (1)The 3C Crisis

WHY ERP? (2)(multi-site) Enterprise Concept

Why ERP? (3)Stakeholder expectations

Why ERP? (4)Benefits

Why ERP? (5)Improving operational efficiency

Financial Management Business Decision Making Reporting and

Typical ERP Modules

Sales & Distribution

Finance and Accounts

Typical ERP Supported Functions

Sales & Mkt.

ERP- Architecture (three main parts)

ERP- Architecture (Open System)

Independent of OS, Hardware

Independent of Database and UI Interfaces:

Open Communication Protocols: TCP/IP

Typical REQUIREMENTS with ERP Architecture

Typical REQUIREMENTS with ERP Architecture

n-Layer common ERP Architecture

ORACLE SQL Server

DATA BASE DRIVER

VIRTUAL MACHINE OS Driver

DataBase Layer Windows Variants

Typical ERP Integration with legacy Applications

Managers & Stakeholders Sales & Delivery Finance

Enterprise EAI Legacy

Manufacturing Shared Database Back EAI SCM offic e

Inventory and Supply

BI & Reporting Tools

Evolution of ERP & Emerging Trends

Extended ERP ERP MRP II MRP SIC Functionality Widens

Increasing External Connectivity

Source: Gartner Resea

How ERP II Evolves From ERP

Source: Gartner Research

Major ERP Service Providers (Gartners Magic Quadrant)

ERP vendor competitive positioning

SAP mySAP Business Suite

Oracle EBS and Enterprise MBS AX MBS GP Oracle E1

Lawso n/Inte ntia

SSA Infor QAD IFS Unit 4 Agresso Exac t

SAP Business One

MBS MBS NAV SL

Source: Forrester Research Inc

The Enterprise Services Battlefield

Large CompaniesUpper Mid market

Lower mid market Small businesses

Other mid-market players