Enterprise resource planning Financial module is used to gather financial data across functional departments in an organization, and generates valuable financial reports.  To generate financial statements without ERP needs lot of paper work, apart from that it is a tedious job and one has to be discreet. Here we will discuss the following sub modules of ERP finance.

1.    Financial Accounting: We have General Ledger which looks after the daily financial transaction. Customer incoming payment, vendor outgoing payment, sales expenses, promotional expenses etc. are accounted.By simple data entry it is integrated with other modules. Than it have Account Receivable / Account Payable. This accounts for the outstanding payment which has to be collected from the customer and the credit payment which has to be given to vendor.

2.    Treasury: If any transaction is done in cash it has to be accounted in this module. Than we have Cash Budget Management where in the requirement of Cash money is budgeted for at least 5 working days, this includes planned requirement of cash for tour advance, medical re-imbursement, conveyance re-imbursement etc.,

3.   Controlling: The heart of this module, consists of different factors that control the cost. Main items under this are Cost element accounting, which calculates the cost on the basis of overheads, material cost etc., Cost Center accounts departmental expenses, like logistics is a cost center and their main item is raw material cost. Different tools like Activity Based Costing and Product Cost

Analysis are other members of these modules. Contradictory to Cost Center in this module we also have tool for Profit Center Analysis, which accounts for sales & revenue generation due to other activities like sale of assets. Last but not the least in this module we have Profitability Analysis which monitors the increase in profit on year to year basis.

4.   Budgeting: As we have financial budget for country similarly budgeting is done for a company, wherein the sales revenue is incoming for organization and overheads, fixed costs, expense on new assets and variable raw material cost are out going. Annual Sales planning is a part of incoming budgeting while planning has to be done for expense on new assets and variable raw material cost. This module accounts on above things.

A small mistake in any of the calculation can generate wrong reports, and hence problem in financial auditing and balance sheet. This ERP financial module helps to streamline commercial matters.