Cash Management With ERP

CASH MANAGEMENT IN ERP --  Any organization manages the monetary flows which take place in the development of its activity. Cash management is a fundamental application that allows you to manage your accounts. It includes banks, savings institutions and charge cards. All the appropriate functions are conveniently centralized in one location. The application provides facilities for accounting staff to receive payments, make deposits, print checks, record manual checks, record funds transfer and card charges, pay off charges and reconcile your cash accounts.


Management Accounting in a broad sense, as an information system that must supply relevant information to the business managers. Cash Management would be included in this definition, since it represents a properly constituted management activity that looks after monetary flows. Likewise, Management Accounting is not an independent department in the organization with strictly defined limits and a role independent of the ones developed by other functions, but it extends through all the organization, impacting on different organizational levels and areas, and supplies with them information for their planning and control tasks.


Cash management with ERP offers two options for making payments. First, the quick check feature allows you to print a check for a vendor immediately, but not against a specific bill, which is comparable to the bill centric payment cycle found in accounts payable.


With a growing number of installations and new power to perform cash management tasks, ERP vendors are arguing that workstations are redundant attachments that dilute integration and increase maintenance costs.

Bankers are generally neutral in this debate. Some companies are willing to accept less functionality if they gain easier installation; they manage cash within their ERP systems. Others prefer to sacrifice integration for additional functionality, so they stick with a workstation. But banks do not care, as they make the same information available in whatever format - or over whatever network - their customers need. The transaction data is the same. This is true whether the information is flowing from the bank to the company, or from the company to the bank. (#exforsys).