Enterprise Resource Planning Systems is a computer system that integrates application programs in ac

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Chapter 14. Enterprise Resource Planning (ERP)

• Enterprise Resource Planning Systems is a
  computer system that integrates application
  programs in accounting, sales, manufacturing, and
  other functions in the firm
• This integration is accomplished through a
  database shared by all the application programs

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SAP AGS R/3

• SAP AG, A German firm, is a world leader in ERP
  software.

-Designed to operate in a three-tier
client/server configuration -Applications are
fully integrated so that data are shared between
all applications
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R/3 System Functional Components
R/3 System
Functional Components
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Financial Accounting

• Financials
• Controlling
• Asset management

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Human Resources

• Payroll
• Benefits administration
• Applicant data administration
• Personnel development planning
• Workforce planning
• Schedule shift planning
• Time management
• Travel expense accounting

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Manufacturing and Logistics

• Materials management
• Plant maintenance
• Quality management
• Production planning control
• Project management system

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Sales and Distribution

• Prospect customer management
• Sales order management
• Configuration management
• Distribution
• Export controls
• Shipping and transportation management
• Billing, invoicing, and rebate processing

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Reasons for Implementing SAP R/3

• Desire to standardize and improve processes
• To improve the level of systems integration
• To improve information quality