How ERP Improves General Ledger Capacity
Flexibility, quickness, and efficiency are the pillars and needs of the modern organization. In order to fulfill all the requirements that the market imposes, ERP has become an useful utility. The general ledger tasks are nowadays one of the most important activities on the daily basis reports, and this system is the most effective in helping to provide a solid structure where the cost of sales, profit centre accounting and general ledger are unified.
Many enterprises find it difficult to combine the reporting applications, and some companies spend considerable amounts of money to ensure the effectiveness of their external and internal reporting. The records could be disorganized due to their slow execution. In this instance, ERP becomes the best tool to reorganize this function by increasing the data quality, combining the fields included in the different databases of one program.
In regards to specific regulations and requirements related to the financial reporting, ERP is able to provide an updated solution to maintain your activities in order, because it has the ability to represent the parallel financial reporting in several ledgers.
With the implementation of the system, compliance and transparency are guaranteed, and it also makes it easier to gather and report the valuation bases needed to settle more than one account. Through this unified reporting program the accounting is a simpler task to complete faster.
Benefits for Control
The general ledger capabilities are benefited by the use of ERP in many ways. An important challenge that modern companies face are the slow processes of closing. When the system interferes in this activity, the data is all concentrated in one single source, and it is easier to assign transparency for auditing. By this way, the closing can be made faster and save time for other relevant issues.
Another advantage that the program offers is the ease of use. Although training would be needed, any expert in integrated systems would be capable of using it. The accounting and financial departments together with the controller will be unified.
The reports will also be integrated with the ability to create reports in compliance with several requirements that include the different regulations for each country or industry. Of course the main attractive of ERP for the direction board is related to the profits. Through the general ledger it is possible to reduce all the costs of ownership.
The system supports a great variety of functions, with recurrent entries, reversion entries, statistical entries, different currencies, staff and assignation entries. All the data registered is validated online during the process of entry. All the combinations of accounts, income and outcome totals are verified immediately.
The online validation allows the users to quickly correct the information without executing the process separately. This benefit increases the productivity and efficiency of the staff members since it avoids the repeated cycles of correction of common data to the system that validates the data during the lot processing.
The processing options are a great tool for capturing transactions with efficiency and control. All the entries of journals are automated and it is possible to group journals to run in parallel or in a special order when some journal depends on the results of another. Likewise, the organization could be improved since the system provides the users with the ability to schedule the journals to be generated or posted based on your needs automatically.
Since the companies are worried about producing additional value with less resources, this system helps to satisfy this need by running processes across multiple ledgers easily. Unlimited ledgers could be settled and at the same time run openings, closings, balances and reports.
Another option appreciated by the enterprises is the control that helps to set up the information related to accounting. All the legal entities could be defined as well as the addresses and reporting requirements, and also add ledgers or reporting currencies at any time to make the implementation quicker with an improved visualization.
Characteristics of General Ledger
- Integral vision of the status of projects in real time: It is possible to see the status of each project with the data included in the budget, both the real ones and the execution ones. It is useful to access at every moment for the origin and details of each entry.
- Automatic Imputation of costs to each project or client: The project-vision allows to impute each expense to the corresponding project registered in an accountant book.
- Resource Management: Entry of parts or work with imputation of the costs of the resources to the projects. It also integrates an automatic distributor of global parts of work between a group of tasks previously defined.
- Control of projects through certifications: Information regarding the status of the projects, providing in real time the percentage of the work done, the percentage of certified work and the date planned for the ending of each phase. This function is integrated with the invoicing (automatic generation of invoices and treasury assets).
This potent reporting and registering tool covers all the formal accounting and management requirements for making external auditing easier. Through the structure of account plans defined by the user, the control of imputation of accounts by sector, administration of multiple sights and dimensions, definition of typical entries, manual and automatic entries, automatic pro rata calculation and the administration of multiple exercises simultaneously, Enterprise Resource Planning will make a revolution in the company.
Management Reports & Budgetary Control
ERP offers to the direction and control management the possibility of generating multiple reports orientated to the analysis of the information for the decision making. The structure of the reports are defined by the users, and the information of all the modules can be integrated.
The administration of the information is done by lots, and the analysis of the information on payroll can de done with drill down. The administration of sights is done by the users and also has an intelligent filter administration.
In regards to the budgetary control, ERP is an efficient tool for analysing the budget for the different sectors. It is useful to analyse in detail the detour between the real accounting and the budgeted. The information, saved from the transactional modules is joint into groups according to the structure of the budgetary control defined structure.
The budgeting and budgetary control are in units and amounts, and the entry of budget can be done by sectors and the analysis of the detours is through payrolls.
The analytical accounting provides the possibility of control through the incoming and outcoming of the enterprise and to have multiple journals for analytical management. Another opportunity that makes the system fundamental is that it is able to generate entities and sections by establishing a fixed or variable percentage of application, and to modify the analytical assignment at the moment of the accounting transaction.
Through special accounts it is possible to combine with other options and visualize and get direct access to the entries and related information. The use of predefined analytical prints makes the personalized control easier.
Some complimentary tools are the multiple lists designed to recover the information in a personalized way: printing receipts, printing of promissory notes, balances, among others. Likewise, it offers the possibility of using prints designed by the user to have multiple additional processes for improving the accounting activity.
This includes remuneration of entries, copies of accounting plan, recalculation of balances, closing of exercises, localization of disorganized entries, deletion of entries and backward invoicing. Some other interesting tools that are included are the creation of parameter balances by users, designing the structure and the levels of groups depending on their own criteria, and to map the options that allows you to visualize the formal structure of the application and to understand the relationships established between the different elements.