Data Processing Cycle dpc
Financial (general ledger and reporting system)
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CPAR-85-1ST-PREBOARDS-MAS
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- Order to cash (Revenue Cycle) Sales order entry, shipping, inventory, cash receipts, commission calculation Purchase to pay (Disbursement cycle)
- Manufacturing (Production Cycle)
- System tools
| Financial (general ledger and reporting system)
General ledger, accounts receivable ixed assets, budgeting, cash management, and preparation of managerial reports and financial statements Human resources and payroll Human resources, payroll, employee benefits, training, time and attendance, benefits, and government reporting Order to cash (Revenue Cycle) Sales order entry, shipping, inventory, cash receipts, commission calculation Purchase to pay (Disbursement cycle) Purchasing, receipt and inspection of inventory, inventory and warehouse management, and cash disbursement Manufacturing (Production Cycle) Engineering, production scheduling, bill of materials, work in process workflow management, quality control, cost management, and manufacturing processes and projects Project Management Costing, billing, time and expense, performance units, activity management Customer relationship management Sales and marketing, commission, service, customer contact, and call center Support System tools Tools for establishing Masterfile data, specifying flow of information, access controls, and so on. When a customer orders a large volume of product which is beyond the company's current production capacity, this triggers the need for additional raw material, hence the purchase to pay module is utilized. As needed, this may also trigger the need for additional workforce to complete the production process on time. This may create the need for an overtime or additional worker. With this, there is coordination of activities and business processes. This is important since one business activity affects other processes all throughout the organization. It is therefore important to create a sound and efficient ERP systems. The following are the advantages in using ERP systems: • It provides an integrated, enterprise-wide single view of the organization's data and financial situation. • Data input is captured or keyed once, rather than multiple times, as it is entered into different systems. Downloading data from one system to another is no longer needed. • Management gains greater visibility hence increased monitoring • The organization gains better access control • Procedures and reports are standardized across business units • Customer service improves because employees can quickly access orders, available inventory, shipping information, and past customer transaction details • Manufacturing plants receive new orders in real time, and the automation of manufacturing processes leads to increased productivity ERP systems also have significant disadvantages as follows: • ERP systems can be very costly • The development of ERP takes up a long amount of time since the business processes have to be evaluated on how to integrate them as efficiently and effectively as possible. The complexity of integrating different business activities and systems adds to this disadvantage • Since ERP packages are available to save development time and cost, the business processes have to adapt to the changes in order to coincide with the standardized business processes provided by the ERP package • Transitioning to ERP systems might result to employee resistance. Teaching employees another way to do a job they have been doing for a long time is quite a challenge. Moreover, employees have to be trained in using the new system.If all these impediments are to be mitigated, if not eliminated, therefore obtaining the advantages of ERP systems, most likely than not, the organization may reach its goal in implementing ERP. The success also requires conscious effort, commitment, and support of Top management. Apart from the development of the ERP systems, it is also worthy to note the importance of a sound internal controls. As it is an all-encompassing system, the data stored in it must be properly validated so as not to create errors throughout the system. As part of controls, access controls must also be implemented. It is also important to separate responsibility for custody of assets, authorization of activities that affect those assets, and recording of information about activities and the status of organizational assets. Download 21.94 Kb. Share with your friends:
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