ERP is a Powerful Weapon, only if fully loaded with Bullets
ERP is a Powerful Weapon, only if fully loaded with Bullets.
Every Large & Mid-Size corporate had spared the huge amount on buying & maintaining ERP Packages like SAP, Oracle or their customized ERP.
ERP is meant to capture the end to end process of all the financial transactions & non-financial internal controls. But no doubt for a finance leader ERP is the secret treasure, which he needs to develop systematically.
But it is a powerless weapon if do not input the data in it. Generally, within corporates, everybody has their own set of responsibilities, so we had a mindset to input the data to the extent we need it, but remember "Bro, you have to Grow".
When you work at a responsible position, you become a basket of many information, your connected departments or colleagues becomes free once they pass on the document/ information to you, so more you input your available database to ERP, your RAM space of mind is free, your table space is free & mind basket will have space for other useful information. Also, you can have a larger picture of the database through the system.
But this has to flow from “Top to Bottom". The Team leaders had to own this responsibility to make sure that our weapon is fully loaded. We had to generate a comfort over system data, also at every level, we need to insist to punch all the available records.
In my survey to various organizations, people are missing or inappropriate feeding for following important loadings to their ERP: -
a. Full Master of Vendor/ Customer along with tax credentials, contact details, branch offices etc.
b. Full Master of Fixed Assets while creation of new item master. (This is missing is almost 80% of organizations)
c. Full Employee Master along with their personal details, salary breakups, performance records etc.
d. Budget Module is used hardly in 10-15% of organizations.
e. Treasury Module is again a superpower for managing LC, BG & other finance tools but rarely used.
Above is just an example list, there would be many more areas to capture.
Not only that we do lacking in master managements but also while posting a transaction we had a lot of columns available but we generally fill only a few customized columns that create problems for us to have any inter-unit reconciliation, inter-division reconciliations, vendor or customer reconciliations.
ERP has different modules which capture all the processes of an organization generally it has the following modules:-
1. FICO (Financial Module)
2. Material Management (MM Module)
3. Vendor Management
4. Sales Management
5. Customer Management
6. Treasury Module
7. HR Module
With FICO there are sub-modules like: -
3. Fixed Assets
In short, we cannot expect juice if basic fruit is missing, alone water can give you colored drink but no nutrition would be there.
So, from today, let’s change our mindset, flow it to down & across, because today should be always better than yesterday.