SAP accounting software deals with a wide range of business and company types. This makes it important for the software to provide to the specific needs of every business.
This software comprises of various modules which deal with specific areas of accounting that are a integral part of the it infrastructure services within the company. These modules are differentiated by the sections of accounting. The specific needs are generalized under the following two categories:-
1) Core factors – these modules mainly deal with transaction-related details like when a company receives money it is called accounts receivable. When bills or payments are made it is called accounts payable. The general ledger is the company’s financial accounting book. Bookkeeping is the art of keeping financial records in order. Providing invoices to clients are called billing. Stock records are records on how the company is managing their inventory. In today’s business, terms like sales order and purchase order are frequently used.
The proper management of these documents is stressful if done in the old fashioned way. But using the SAP accounting software, it is easy for both the customer and the businessman. Purchase orders are when the company places an order for inventory. The sales order is the order placed by the customer for the inventory. The reason many businesses prefer to use purchase and sales order are because the supply meets the demand perfectly. There is no wastage or excess. Especially for companies that deal with perishable or short-term lasting products.
2) Non-core factors – these modules deal with other factors that affect the company. Outstanding or overdue payments are kept track of by the company. This is also called debt collection. Sometimes, customers are provided facilities to pay in installments rather than making the entire payment at once. The accounting software provides modules that help save and update such information. Miscellaneous expenses and electronic payments are small payments made but over a period of time these payments could add up to a lot. As the balance sheet must tally, these small but crucial payments must also be taken into account.
Paying for transportation or purchase of stationery for the office is all part of these expenses. Payroll is when the company keeps a record of wages and salaries of their employees. Timesheet is necessary to keep a track of payments made to professions who may work on call or on part time basis. Taxation is also important as businesses must be aware of the various types of taxes that are to be charged or paid for.
On a general note, these are the basic modules that are to be catered to. Customization to tailor fit the needs of the business can be done once the businessman knows exactly what he is looking for in the accounting software.