Advantages Of SAP ERP

INTRODUCTION:-

SAP ERP is one of the best software products of SAP AG,a german multinational software corporation.This enterprise’s software helps large organisations to manage operations and customer relations effectively. SAP ERP Financials solution consists of components like accounts payable andreceivable,risk management etc. If the software is implemented correctly in an enterprise,it is able to get the huge benefits of the application like reduction in time and inventory reduction. Other benefits are dicussed in details below:-

Advantages:-

- Highly integrated with the other modules of business which is missing in other softwares.

- Benefits on Return on Investment(ROI)

- Improve Productivity

- Automation processing to maintain asset construction and retirements

- Most Effective and low cost regulatory compliance

- Helps in improving transparency and able to provide real time financial data from single source

Detailed Information on other advantages:-

Structured Management Reporting:-

SAP asset lifecycle Accounting records the assets costs in both detailed and summary forms. The detailed form gives us the access to cost items that can explain every asset transaction in the terms of cost categories. Whereas the summary form uses a cost ledger that stores aggregated cost by asset,cost category and calendar month. Prebuilt reports give us the access to both summarized and detailed asset costs.

Effectively Compliance and a single source of truth:-

We are able to compliance streamline processes,such as those required by FERC.This also enable us to reduce compliance cost while minimizing the risk of compliance related errors.With automation and improved transparency,we can improve asset accounting,streamline compl...

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...g across all levels.

- Perfect flow of Information between the various departments such as sales,material management,production planning,finance and costing.

- Improvement in work-in-progress

- Reduced inventory costs by 40%

- Available online throughout the top level management.

Success factors:-

- Trust between partners

- Sustained management support

- Adequate training Programme

- User Involvement and Testing

CONCLUSION:-

Analysis of ERP implementation reveals the fact that not only installing the ERP softwares wil start giving benefits to the companies.But there is a need to consider certain facts such as sustained management support,user involvement,trust between implementation partners,ERP implementation strategy and proper planning etc. Lastly,it is strongly recommended that the management and the users should work together to get the maximum benefits.