ENTERPRISE achieving with the implementation of the software.

ENTERPRISE RESOURCE PLANNING TERMPROJECT                                                                                                   ERP SYSTEM AT  ENGRO FERTILIZER(FI MODULE)                                                                                                   AYESHA KHAN 17191

Introduction
of the Company

                                                                                                                                 Engro Fertilizer’s Limited ,which  is a subsidiary of Engro Corporation 
produces leading fertilizer brands  which
are optimized for local cultivation needs.  According to Pakinvestors guide ,Engro is a
renowned name in Pakistan Fertilizer Industry 
and it holds a vast, nationwide production and marketing infrastructure.
According to Universal Hunt, It is also a leading   seller
 and importer of Phosphate products.
These   products   are marketed extensively across Pakistan as
phospatic  fertilizers.  As stated on Engro Fertilizer webpage ,the
Vision of Engro Fertilizer is to improve productivity and lifestyle for
thousands of farmers across Pakistan.    
                                                                                                                                                    Objective                                                                                                                                                      The objective of this research is to
study the implementation, automation and  challenges behind ERP processes. The intention
backed for this research is to study how the  Accounting and Finance  department in companies are using ERP to
software to integrate system, and what they are achieving with the
implementation of the software.                                                                                    Methodology                                                                                                               The team member
underwent detailed interview with the  Finance
head in Engro Fertilizer so as to get insight of the running SAP processes,
what challenges they face and how they are integrating their processes using
SAP ERP solutions.                                                                                               

Benefits
 that the 
Accounting and Finance Department gets with the implementation of ERP
System

                              .

                                                          
                                                                                                        As stated in Udemy Blog ,Financial Accounting (FI) is the core module which
manages all financial transactions, for internal as well as external auditing
purposes in Engro Fertilizer Limited. With the help of this module, Engro
Fertilizer was able to track financial accounting data within a framework of
multiple  languages and currencies. According to Opensource ERP,Financial
accounting  Module helped to gather
financial data from various functional departments of Engro, and it  generates valuable financial reports such as
general ledger, trail balance,  balance
sheet and quarterly financial statements as stated in NeoinvenSys.According to ERP
guide blogspot,Financial accounting module of an ERP helps to provides company
wide control ,and integration of 
financial information.                                                                                                                                                                                                                                                                                                        As stated in Udemy Blog ,before the
implementation of this module at Engro,business and financial accounting
processes  used to consume a lot of time
and resources in preparing statements, reports, forecasts, charts and other
important data on a day-to-day basis. The SAP ERP software has redefined the
way businesses are conducted at Engro, making them highly efficient and
profitable.  According to Sssbi Article, SAP FI Module is
integrated with many parallel modules such as Material Management (MM), Sales & Distribution (SD), Human Resources (HR), Production  Planning (PP),
Controlling (CO),  that enabled Engro to
unify processes that may have needed the utilization of many software packages(my
erp guide blogspot)

 

                                                                                                      
                                                                According toERP technicals and tutorialspoint,Financial
Accounting module Of  Sap mainly deals
with the following financial components which are as follows:
• Fixed asset
• Accrual
• Cash journal
• Accounts receivable and payable
• Inventory
• Tax accounting
• General ledger
• Fast close functions
• Financial statements
• Parallel valuations
• Master data governance        

                                                                                                                                                                                According to the
article SAP Financials and SAP Accounting Modules, Sap Fi Module comprises of the folllowing submodules                                                                                                                                                                                                 

·        
General Ledger

·        
Accounts Payable

·        
Accounts
Receivable

·        
Bank Accounting

·        
Asset Accounting

·        
Funds Management

·        
Travel Management                                                                                                                                                                                   SAP General Ledger:  The major aim of general ledger accounting is to provide a
system for managing all external accounts of Engro Fertilizer limited. It
records all the business transactions along with various other operation areas
and It also provides real-time assessment of cost accounting areas.

SAP Accounts Payable and Receivable:  SAP accounts payable  helps
to records all the components and data for vendors .SAP account receivable
records all the components and data for customers. Balance sheets and account
statements are created using these modules.

SAP
Bank Accounting: As
stated in Simplilearn,this module handles all bank accounting transactions.
From managing bank master data, cash balance management to processing incoming
and outgoing payments; everything is managed using this module                                                                                                                                             Asset Accounting: This module is
designed to manage and supervise fixed assets along with providing detailed
information and reporting data.

SAP Funds Management: This SAP
accounting module supports all the related tasks in creating and managing
budgets.

SAP Travel Management: According to
simplilearn ,this SAP module accounts all the transactions related to corporate
trips organized by Engro.Approvals, bookings, settlement and diverse travel
expenditures are recorded and managed with the help of this module 

As stated in
Sssbi article the Implementation of Financial accounting Module at Engro
Fertilzer  simplified processes such as
scheduling, financial consolidation, reporting and allowed better management of
cash-flow, receivables and payables, credit management, collections, finance
and treasury functions etc. FI module
store large amounts of financial data to generate helpful reports and maintain
a highly reliable financial system at Engro Fertilizer Limited

The inclusion of ERP in the
Financial Area gives support to decision making since it guarantees reliability
and total security on the accounting information

According to exforsys ,another
advantage provided by ERP is the great operational flexibility it is a very
useful tool for multinational companies and corporate bodies like Engro
Fertilizer since it permits them to execute the fiscal closing.                                                                                   
                            

As stated in Exforsys,ERP also
offers better access and more safety. All the components of the financial
department are able to access the chain of flow management

                                                                                             
Evaluation Rubric

References                                                                                                                                            Wang,Y.(2013).Effects of implementation of SAP
on Management Accounting.Retrieved fromhttp://www.theseus.fi/bitstream/handle/10024/58320/Wang%20_Yingyu.pdf?sequence  .                                                                                                                          Riccio,E.L.(n.d).Erp Systems –Study about the
effects of ERP in the Accountants  function.Retrieved from http://www.tecsi.fea.usp.br/disciplinas/5846/textos/pdf/effects.erp.systems.accounting.orga