Imagine that your uncle owns and operates a construction company. The company owns a number of very expensive pieces of machinery, such as backhoes, for building houses and apartment building. Up until now, your aunt has "taken care of books" by keeping financial records by hand. However, business is picking up, and she has gotten far behind in filing taxes, paying bills, and so on. Explain to you uncle about why he needs an ERP system and how it would help with not only the burden of billing, payroll, and filling taxes, but also with keeping track of company's expensive machinery.

please consider the mentioned below

Sales and Distribution in ERP

ERP systems can minimize data entry errors and provide accurate information in real time to all users

ERP systems can track all transactions (such as invoices, packing lists, RMA numbers, and payments) involved in the sales order

SAP ERP Sales and Distribution module treats the sales order process as a cycle of events:

-Pre-sales activities

-Sales order processing

-Inventory sourcing

-Delivery

-Billing

-Payment

Pre-Sales Activities

Customers can get pricing information about the company's products:-Through an inquiry or a price quotation

Marketing activities such as tracking customer contacts, including sales calls, visits, and mailings

Company can maintain data about customers and generate mailing lists based on specific customer characteristics

Sales Order Processing

Sales order processing: series of activities that must take place to record a sales order

Sales order can start from a quotation or inquiry generated in the pre-sales step

Information collected from the customer to support the quotation is immediately included in sales order

Critical steps in sales order processing:

-Recording the items to be purchased

-Determining the selling price

-Recording the order quantities

Users can define various pricing alternatives in the SAP ERP systemSAP ERP system checks the Accounts Receivable tables in the SAP ERP database to confirm the customer's available credit

If customer has sufficient credit available-Order is completed

If customer does not have sufficient credit available-SAP ERP system prompts sales personnel to take one of the possible appropriate actions

Inventory Sourcing

Available-to-Promise (ATP) check-SAP ERP system checks company's inventory records and production planning records to see whether:

Requested material is available

Requested material can be delivered on the date the customer desires-Includes expected shipping time

System can recommend an increase in planned production if a shortfall is expected

Delivery

Delivery in SAP ERP system-Releasing the documents that the warehouse uses to pick, pack, and ship orders

Delivery process allows deliveries to be created so that the warehouse and shipping activities are carried out efficiently

Once the system has created documents for picking, packing, and shipping, documents are transferred to Materials Management module

Billing

SAP ERP system creates an invoice by copying sales order data into the invoice document

Accounting can print this document and mail it, fax it, or transmit it electronically to the customer

Accounting records are updated at this point

Payment

When the customer sends in a payment, it is automatically processed by the SAP ERP system-Debits cash and credits (reduces) customer's account

Timely recording of this transaction has an effect on the timeliness and accuracy of any subsequent credit checks for the customer