As we know that every company has different ways of managing its finances. There are various methods used to make financial statements work as easily as possible, in less time, and the most important are to showcase the company’s financial reporting data in detail and accurately. Most Company today have implemented computerization which means doing financial records with the electronic system either programmed or semi-computerized, one of them is by using SAP software.
What is SAP software?
For those of you who do not know what it is the SAP or know only limited to ever heard of his name, so is a brief review of SAP. The sap is short for System Application and Product in Data Processing. This SAP software is an ERP or Enterprise Resources Planning or a management and IT tool to support the company in planning and realizing its or national activities more effectively, especially with regard to financing. To date, SAP has used more than 12 million users and 121,000 installations. This software has been installed by 40 thousands of companies and government agencies in 120 countries. Read also testing services.
This software consists of several application modules that have the ability to support all transactions made by the company and with each application work in an integrated with the other. Thus the entire SAP application module works with each other. The SAP modules are:
- Sales and Distribution; This module supports the effectiveness of the company’s operational activities related to customer order management process such as sales process, billing, and shipping.
- Materials Management; This application supports the activity of purchasing or procurement process and inventory control.
- Production Planning; In production or manufacturing activities, this application will support the planning and control process.
- Financial Accounting; Included in the authority of this application are treasury or standard accounting cash management, payable account, general ledger, consolidation, and account receivable. All this works to create a company’s financial statements.
- COntrolling; This application includes cost accounting that starts from cost element accounting, cost center accounting, and profitability analysis.
By applying SAP software to a company or organization there will be an integrated system and the effect is that changes implemented in a module will automatically modify or update other modules when an information entered is associated with the module. As soon as the user enters a data into the system, the data will change direction or what is called real-time processing. This can only happen if all firms use the same data source, for product data, vendor data, and client data. In addition, data transparency will also be possible because all users who have access to the system will be able to see all the actual information at any time even if the information has been inputted by another user.