While ERP software is generally thought of as an enterprise wide application, one overlooked use of this type of software is to provide a specific solution for a specific business function. In this article I will explain how SAP software (which is usually implemented enterprise wide) can be used to automate your company's accounting function.

Over the years Accounting has become more sophisticated. It's no longer a question of 'debit the receiver and credit giver'. This increase in complexity is reflected in the difficulty many companies have in automating their Accounting function. Fortunately, software packages such as SAP can assist.

For starters, SAP's intelligent user interface (UI) provides for rapid and error-free data entry. Unlike many other accounting programs where even a simple task of data entry requires multiple key and mouse movements, the SAP User Interface relies on special shortcuts to help you keep your hands on the keyboard at all times. This assists in easier and therefore quicker data entry.

SAP also offers comprehensive inventory controls. This module helps the users manage the location and quantity of goods stored. The capabilities are not just simple record-keeping, but can be used at a component level to assist manufacturers. For example, inventory parts can be grouped into categories which can then be nested. Purchase Orders can then be applied at any level within the category nest. Similarly, setting prices for items can be set at such levels and can also be discounted in many different ways. These items of them reported using SAP's Accounting modules.

Finally, SAP can effectively manage the sales and purchasing function. It is a simple matter to convert quotes into invoices which require payment. Profit margins can be reported at multiple levels by specific customer, specific store, or even specific salesman. In a similar manner, Purchase Orders are automatically converted to vendor invoices which are then forwarded to the Accounts Payable module. SAP provides for payment in many different ways including Electronic Funds Transfer (EFT) all the standard check.

So, as you can see the enterprise-wide nature of SAP, provides a useful solution to automating a company's accounting function.