The ERP System - Transactions to Reporting

In today's tech world, understanding and mastering accounting is not enough.

When you understand how transactions move in a typical ERP system, you not only become better at accounting, you become better at resolving system integrity issues.

It also makes you understand the importance of each transaction you record.

Today, I aim to show you how transactions move from module to module (aka sub-ledgers) and end up in a General Ledger. Then GL to trial balance and reporting.

Most sub-ledgers are directly connected, and some via GL.

The revenue transactions are typically generated from the Revenue Management module, and expenses from the Procurement module.

For the sake of simplicity, I have only covered the main modules in a typical ERP system.

I have covered these modules:

✅ Procurement
✅ Accounts Payable
✅ Cash Management
✅ Revenue Management
✅ Accounts Receivable
✅ Project Module
✅ General Ledger

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