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Marketing The Development of Enterprise Resource Planning Systems
and Sales
29

Central data Supply Chain
Accounting Management
and Finance

Human
Resources

Source Line: Course Technology/Cengage Learning.
FIGURE 2-4 Data flow within an integrated information system

Perhaps most importantly, an ERP system allows data to be entered once, and then used
throughout the organization. In information systems, errors most frequently occur where
human beings interact with the system. ERP systems ensure that data are entered only once,
where they are most likely to be accurate. For example, with access to real-time stock data, a
salesperson taking an order can confirm the availability of the desired material. When the
salesperson enters the sales order into the system, the order data are immediately available to
Supply Chain Management, so Manufacturing can update production plans, and Materials
Management can plan the delivery of the order. If the sales order data are entered correctly
by the salesperson, then Supply Chain Management personnel are working with the same,
correct data. The same sales data are also available to Accounting for invoice preparation.
Earlier in this chapter, you learned how software modules work. Figure 2-5 shows the
major functional modules in the current SAP ERP system, also known as SAP ECC 6.0
(Enterprise Central Component 6.0), and depicts how the modules provide integration.
The basic functions of each of the modules are as follows:
• The Sales and Distribution (SD) module records sales orders and scheduled
deliveries. Information about the customer (pricing, address and shipping
instructions, billing details, and so on) is maintained and accessed from this
module.
• The Materials Management (MM) module manages the acquisition of raw
materials from suppliers (purchasing) and the subsequent handling of raw
materials inventory, from storage to work-in-progress goods to shipping of
finished goods to the customer.
• The Production Planning (PP) module maintains production information.
Here production is planned and scheduled, and actual production activities are
recorded.

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