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What is the role of the ERP accounting system for companies and institutions?

What is the role of the ERP accounting system for companies and institutions?

What is the role of the ERP accounting system for companies and institutions?
Published By Omar Safwat 11 December 2019
What is the role of the ERP accounting system for companies and institutions?

The great growth in the business world in its various fields and activities in the recent period needs to manage these gigantic resources so that companies continue to grow, but what we see from the collapse of many large companies and the closure and lack of continuity of many small and medium companies if something needs more research and analysis on the reasons that It led to the collapse of these companies and the lack of continuity of others, and perhaps one of the main reasons that was discovered is the absence of proper management methods And not applying erp accounting system in companies.

In recent years the term "enterprise resource management planning" known as ERP has become popular Most of the large companies have tended to use this system in managing the accounting programs that they work on to organize work with less errors, more accuracy and in less time, And this is what is known as artificial intelligence, which simulate human mental abilities and their way of thinking and doing them, like fast learning, conclusions, spontaneous reactions, And what the ERP accounting system does in the accounting programs that operate in this system. It is on the same pattern as if certain data is entered in one program, the effect of this data appears on the other program according to the nature of its work.


Companies use the ERP accounting system to manage their business operations as the system integrates programs if they are on one database and from here it is easy to make decisions and this is because all data on one base does not differ the result according to the different program What differs only is the nature and form of the result How is it In every program.


اهمية نظام erp للشركات


(Corporate resource management planning) Enterprise Resource Planning .. ERP system


The problem and the treatment


With the expansion of companies, the need arose for the necessity of the availability of information necessary for control, planning and decision-making work, given the difficulty in implementing these operations, of course, using the paper system.

It was necessary to use a computer system that makes all the departments of the company in one section, which is the ERP accounting system (company resource management planning) It is concerned with all the basic operations in institutions such as selling, financial and accounting operations, warehouse management, asset management, project management, as well as managing the maximum utilization of human resources and production management ... etc. so that it makes all these departments appear to management As if it was a single system (one system) that facilitates its management and control, and then the ease and speed of decision-making in the interest of the establishment, and thus managing the establishment's resources in the best and most appropriate way possible, in order to lead to the continuity and expansion of large companies and growth and non-collapse of small and medium companies.


تعرف على نظام ERP وأهم فوائده للشركه


Misunderstanding of ERP Accounting System

It is just a computer program that will transform the establishment to ERP that comes to the minds of many that the ERP system is from a random company that does not apply the basics of management to a model company that achieves all its aspiration for growth and prosperity. Perhaps this misconception needs a major correction. The ERP system in its inception was in the thirties of the century In the past, the computer was not known at the time, but due to the expansion of the business, an urgent need for a system appeared to help in the management of the establishment, It is basically a “set of regulations and laws governing all operations within the company” placed in the form of templates ready for implementation and entering the computer. This led to the formulation of these systems in the form of a program “as one unit” that facilitates the establishments resources management by developing the company unless the employees and senior management understand the necessity of applying systems and law. The financial ERP system will not function properly before starting its implementation.


Obstacles of implementing ERP accounting system

The most important of these obstacles lies in the ERP accounting system, as I mentioned previously, in the misconception of the system, one of the most important obstacles is the resistance of management stuff for this change, fearing of losing some of their jobs.  
 As well as the wrong diagnostic of the company's needs, and perhaps one of the most important methods to overcome this problem is to consult the software company assigned to implement the ERP financial system. As well as the wrong diagnostic of the company's needs one of the most important methods to overcome this problem is to consult the software company assigned to implement the ERP financial system as an expert who provides solutions to the problems facing the company and not a software systems supplier because it is more familiar with management systems. Also, he has experience in dealing with many similar companies, to which he provided treatment for their weaknesses.


Another obstacle is the absence of sufficient training for the company's staff on the ERP Financial System, which leads to its failure to perform it correctly. And won't give the desired results


Thus the company decides to use another system, and this vicious circle continues, ultimately wasting more time and effort and wasting the company's resources in vain or achieving any of the company's objectives


This is mainly due to customize erp as one of the implementation obstacles in the frequent change to the wrong diagnosis by the company of the problems it faces in management and planning, and then wrong treatment. In some cases, ready-made templates for administrative, financial and other models are the best ways to complete the control and organization of the company.


This is mainly due to customize erp as one of the implementation obstacles in the frequent change to the wrong diagnosis by the company of the problems it faces in management and planning, and then wrong treatment. In some cases, ready-made templates for administrative, financial and other models are the best ways to complete the control and organization of the company


How does the ERP accounting system work?

The ERP accounting system is the best software solution for companies. That is why the Accflex_ERP system accounting software works with it to organize the work and management of all areas such as inventory management in the warehouse management program, accounting management in the general accounts program, storage and banking systems management in the cash management program and personnel management Their salaries in the personnel affairs program And the best part about ERP accounting systems is that it can be linked between programs and mobile applications, for example the POS application for sales representatives is linked to the warehouse management program and the employee self-service application is linked to the personnel program, and the link between them here is when entering the main data of the program The operations can be completed through the application, and when these movements are saved, we find that they were performed in the program, as if the movement was made from the program.


Whatever the field of work and its nature, it is necessary to manage and organize the relationship with customers and this process is known as CRM, which is an abbreviation of the word Customer Relationship Management, meaning customer relationship management, which is represented in the management of sales that take place with them and also the management of marketing operations and this section serves The sales and marketing department within any company, regardless of its size, and this is because it has a huge database of customer data, and therefore can communicate with them with flexibility through e-mails, chat messages and social media. Each of the previous jobs and departments may be considered an independent entity and an accounts program Separate from one another, but his financial ERP system the ability to assemble them into a single database.


What are the advantages of the ERP accounting system in the ERP software from Accflex?

- Easy to use among all departments in a simple way. 

- Extraction of reports in overall and detailed manner.

- The ERP software of the Accflex ERP system uses the Automate Process characteristic. 

- Determine the cause of errors in any process and the extent of their impact on other  ERP programs for using artificial intelligence technology.

- The merging of accounting systems and the effect of the results of each system on  the other, such as the system: (sales and purchases system - cash system - employees system and others as mentioned previously)

- The ERP system supports Dashboard and Auto-mail within ERP programs from the Accflex system  

- Ability to export reports to Text, EXL, PDF….. 

- ERP programs work in Arabic and English, and this is what the ERP financial system supports.

- Improving the company's work efficiency to follow up all departments simultaneously 

- Decrease in the costs of operating administrations of companies

ما هي مميزات نظام  ERP المحاسبي في برامج ERP من أكفليكس 


  ERP application features.

The use of the enormous technology of the world of computers and networks in the ERP system has led to many advantages at the corporate level and we can divide these advantages to the features at the level of sections and features at the company level totality, and it can be mentioned as follows:


ERP financial system of financial management


before, the financial statements system was applied, the financial data was entered manually by more than one employee, then it was transferred to the general professor and an assistant professor worked for each account, which needed many employees, as well as the difficulty of extracting financial information; Imagine that the company has many branches, so how can financial information be extracted if we assume that the company has its main branch in Cairo and the Tanta branch, for example


And the financial manager wanted to disburse a payment to one of the suppliers from the Cairo branch to review the account of this resource. It is difficult with one click. The ERP system can call the accountant from the Tanta branch to review the supplier’s balance, but with the financial manager to review the balance.


Likewise, if the general manager wants to review one of the financial statements to make a decision to enter a new tender from nothing, he can easily review the report (the financial statements) and get to know that greatly contributed to saving time and effort in entering the financial statements, i.e. from the financial ERP system.


Of control systems, as well as the speed of reviewing financial reports, and certainly what the ERP system provides in order to avoid the occurrence of accounting errors, which increased confidence in the efficiency and accuracy of the information issued from it.


ERP financial system of financial management

System application

From the concept of human resources management to companies in the presence of a fingerprint system and linking it to the ERP system systems, which led to increased discipline of employees and workers, and then contributed significantly to increasing productivity, which led to rewarding, benefiting from and promoting competent employees, as well as developing models for performance evaluation and integrating them into the system; as well as greatly assisting the company in Putting every employee in the place they deserve and excel in it as it saves time and effort and reduces the chances of wasting time during work


For example, if one of the employees of the Suez branch, for example, wants to review his salary or leave balance, or even submit a leave request for a certain circumstance, he does not need to come to the administration in Cairo to submit the request and obtain approval for it. To stop or disrupt the work as well, the application of the new systems of Total Quality Management.


Time management methods and other systems that improve the company's resources and enable the facility to manage (the human element) and take advantage of capabilities that cannot be exploited and utilized except with the presence of an ERP system, and thus has made a qualitative leap in the field of human resource management.

نظام erp المالي للإدارة المالية

ERP Financial System for Human Resources Management

Application System


In business administration, control and speed of decision-making in the management of warehouses and points of sale in productive activity, we find that there are many stores (store raw materials - Parts Store - manufactured materials store - stock full production etc.) and management. This quantity of stores needs many trained employee for the provisions of management and control over these stores, and the decision will not be to re-order or production planning at the required speed, but with the presence of an ERP system, we can record all exchange and addition permissions immediately and easily and provide this number of employees, As well as any administration wish to know the balance of the store can find it out the immediately


. We can also make a continuous inventory and identify the shortage of items in a momentary manner, which leads to a speedy re-ordering, non-stopping of the production process, the provisions of control over warehouse items and a reduction in the percentage of human error, in addition to the accuracy of production planning for the speed and accuracy of the availability of information in a way that reduces the chances of wastage and stagnation of the inventory items.


Concerning to the commercial activity, when you enter a supermarket and buy a lot of items, you fill in the shopping cart; Imagine the absence of an ERP financial system, it would have been very difficult and complex, and the hypermarket is full. The customer can be held accountable not only for that, but for long periods, but by implementing an ERP system that enables the cashier easily


 From here more than one section is affected at the same time (as soon as the cashier of the product is placed on the scanner), the system has made a permission to disbursement for the product in the warehouse books, and the financial management is also affected by the exchange of the goods, as the cost of the goods sold increases, Also ,the sales and costs increased and production affected, so he re-ordered some products in willing for buying them so that the store did not decrease from them all in just a moment without interference from the human element and without any doubt in the presence of human errors and this is one of the most important features of the ERP system that it makes the facility work as if it were one program ( One unit)


نظام erp المالى لإدارة الموارد البشرية


ERP financial system for warehouse management

System application


Production in production planning and engineering mainly needs the historical cost of the product so that the factory can give an idea of the best production volume that achieves the maximum possible profit with the least losses and the least possible waste; In order for this to happen, there must be consistency between cost management and budgets and linked to production management. Therefore, there was a unified financial ERP system that provides the production department with the information and reports needed to plan the production process in a way that contributes to reaching the maximum possible achievement of the planning budget as well as a very accurate calculation of costs in all their fixed and variable forms. And indirectly, which ultimately leads to the exclusion of useless costs and proper planning of production


نظام erp المالى لإدارة المخازن 

 ERP Financial System for Production Management


The application of the rental system contributes considerably to know the costs of these assets and the extent of their feasibility, as well as knowing all the expenses incurred by these assets and uploading them to its cost center, Which contributes to the accuracy of directing costs in terms of (cost centers) and greatly assisting the administration in making the necessary decisions to purchase or exclude assets, own or better lease them. This contributes to accurate cost guidance in terms of (cost centers) and greatly assists management in making the necessary decisions to purchase or exclude assets, which it owns or is better to rent.

نظام erp المالى لإدارة الإنتاج 


  ERP Financial System to manage the assets owned by the company   

System application


The ERP financial system led to a boom in the sales and marketing system, both in the availability of customer information and its recording on the system, which contributed greatly to maintaining a giant database of customers

And then targeting customers in a way that contributes to the company obtaining a larger market share, as well as in the management system of sales representatives through the ERP system, which contributed to knowing the competent salesman through the reports received from the system; As well as sales reports, the administration helped determine which place needs to expand in sales and which places are weak in terms of product marketing, that there is a giant base of customer data and knowledge of customer data and the volume of their purchases

It is not only beneficial to the financial management, warehouse management, or production only, but the existence of an integrated unit for the facility is interconnected

The parties provide each other with data and reports that greatly benefit the sound inputs of any management, and then sound reports, and in the end, increase the share of sales and improve the quality of a product, and consequently, the acquisition of a greater market share


 ERP Financial System for Sales and Marketing Management


Application of a large system to provide different departments with what the customer requests, customer service is one of the most important departments in any company because the customer’s opinion. And after-sales service is the surest way to market the product, the more the customer is satisfied with the product and the faster his service, the more that leads to the continuity of the company and increases its market share until that happens. The customer’s suggestions must be transferred to other departments in order to improve the product in line with the customer’s desire to have a huge database in which all departments can view their data and reports in a noticeable manner that contributes to achieving this, as well as an electronic system for customer service that contributes to the speed of response to the customer and the removal of any negative view About the product.


نظام erp المالى لإدارة المبيعات والتسويق 


ERP accounting system for customer service management

 We already mentioned his role in the application of ERP

It makes the company work with the latest methods of development and improvement at the level of departments and because the ERP system

نظام erp المحاسبي لإدارة خدمة العملاء 

One unit (as one program) as achieved at the level of departments will necessarily be reflected at the level of the company as a whole, and this achieves the following:


Features of erp accounting application at the corporate entirety level in companies

he changes the company totally

1- The speed, ease and accuracy of data entry, whether (financial – administrative- engineering).

2- The speed, ease and accuracy of obtaining outputs (reports)

3-The speed, ease and accuracy of decision-making by high management to serve the company

 4-Achieving significant cost savings by avoiding the wrong costs and useless expenses. The cost of the ERP program is very much less than what the company loses due to mismanagement.

5-Preserving, maintaining and maintaining the assets of the facilities

6- Achieving justice among the company's employees (preference for the competent) and excluding the employees who may hinder the company or not contribute to its progress.  

7-Increase the company's market share, expansion and continuity.


The advantages are various that we can't be counted, but we must realize something very important

 مميزات تطبيق نظام erp المحاسبي على مستوى الشركات ككل 


Summarizing the importance of ERP financial system for companies

A computer program does not mean that the company will change, but any company that wants to buy an ERP system must prepare the concept of an ERP system to change and apply typical management standards in order to facilitate the implementation of the ERP system in Egyptian small and medium companies. Only for large companies but small and medium companies will make the task easier.


And then realizing its advantages and benefiting from its tremendous capabilities with the ERP system by adopting modern management systems before choosing to develop companies and improve the business environment, and then expand for small and medium companies and the continuity of large companies.


When would you decide that your company needs to run an ERP system?

There are 3 indicators that determine whether your company needs to fundamentally change the programs you are working on into an ERP system or not, and they are:


1- If the field of your industry is developing on a daily basis and you are trying to keep pace with the labor market and you need speed and accuracy in working with no errors.

2- If you have more than one department and you want to follow all of them at the same time, therefore the ERP system not only allows you to follow up, but also to integrate all departments.

3 - Continuous follow-up of customers and respond to all customer messages and responses automatically and at the same time, and this part of customer management (CRM), which works with the ERP accounting system.


How is the link between ERP accounting system and mobile applications?

Since ERP programs have the ability to merge together and this is the function of the ERP system as well, these programs can be linked if they are running on Desktop or Web devices with their own applications and therefore any movement that takes place through the application appears as soon as it occurs in the program and vice versa


. This can be explained through the application on ERP programs from the Accflex system, and if we take, for example, the application (Sales Representatives), this application is linked to the warehouse management program and this is because the application needs to access the stores and items inside it and create users for the application, sales representatives through the program, , It also needs to be linked with the point of sale (P.O.S) program to transfer the diaries and invoices that have been completed, and therefore the main user can view all the invoices that have been made and each invoice in any sales representative that has been completed, and if we talked about another application, which is the application of (employee self-service), and this is for workers in any establishment, And how can they rely on themselves when making a leave or advance request or even to know their salary, discounts and increases that have taken place, as well as attendance and departure for each employee, and this is with complete confidentiality for each employee because there is a private email and password for each employee, and this is any data that is entered or Approval or even rejection of this employee from the program, a special email is sent to him, and this is all running on the ERP System


Therefore, the best way to link programs and their applications on a single database is for the programs to be on one integrated system structure, such as an ERP system.


Is it possible to link between programs and more than one database?

Yes, it is possible to create more than one database and activate all programs in the ERP system if these databases are on the same network.

Do you think now that the ERP System is the best fit to work with and turn all your accounting software into it?

If so, then I guarantee that you are taking your company in the right direction.

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