SAP Accounting module

2a. Describe THOUGHTFULLY why it is important to understand the concepts of

Financial accounting process in ERP using SAP. (At least one paragraph)

Financial and Managerial Account is a part of financial accounting. Maintaining Payroll

data, processing payroll, maintaining General ledger for a company and generating

reports for external parties is part of Financial Accounting Module. Since SAP follows

centralized data management system, the data maintained by SAP for accounting and

payroll is correct and acquires data from all departments of the company. In addition

SAP system also includes the investment Management, Sales, Material Management,

Human Resource Module. Managerial Accounts are also cost centers internal orders,

profit analysis. Application of SAP is used to analyze organizational overhead cost from

where they are incurred within an organization. SAP is also used to collect and maintain

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cost incurred due to planning, collecting and setting cost to carry of internal jobs of an

organization and also assigning cost incurred within an organization due to activity units

within an organization. Application of this tool helps us evaluate profit and contribution

market segment of an organization. The Market segments are differentiated according

to product, sales, customer, or combination or business unit.

2b. Describe THOUGHTFULLY how you have understood the concept of Financial

Accounting process in ERP using SAP. Give two (2) examples of how you think

Financial Accounting Process in SAP can be used in any enterprise. (At least one

paragraph)

In an organization different employees in an organization enter and alter data and

it is not possible to restrict the job responsibilities to some specific task. But Since

ERP follows centralized data management system and updated data is been shared

across it becomes very easy to maintain and hence does