1

d)

Core applications are also known as online transaction processing (OLTP) applications.
OLTP supports the day-to-day operational activities of the business and mission-critical tasks
through simple queries of operational databases. SAP is comprised more set of integrated
software modules than MYOB that are distributed across enterprise network servers. This
includes sales, purchasing, manufacturing, logistics, material requirement planning (MRP),
customer relationship management (CRM) and others. While MYOB consists of sales,
purchasing, inventory, banking and accounting. The sales application module of SAP and
MYOB handle order entry which include checking on product availability in a real time basis
to ensure timely delivery and verifying customer credit limits. The quantity-on-hand field in
the inventory master file is updated immediately when the goods shipped in and out. At the
time the goods are shipped, logistics function on SAP update the shipment-tracking information.
Customers can track the shipping process on real-time. The sales invoices are forwarded to
customers daily by identifying the data from logistics and sales. When the payments are
received or spent, general and subsidiary ledger are updated. CRM module of SAP facilitates
management to responds customer inquiries on a daily routine to increase customer satisfaction
and generate additional sales. For instance, management use information about customer
transaction history to suggest others products to the customers (Romney, 2012). In order to
avoid shortage of inventory, MRP module under SAP assists regularly scheduling production
to meet estimated sales. In terms of banking module of MYOB, every deposits, withdrawals,
transfers, interest paid and others are updated which allow management to keep track easily.

Online analytical processing (OLAP) is a decision support tool for management-critical

tasks via analytical investigation of complex data associations. It includes decision support,
modeling, information retrieval, ad-hoc reporting/analysis, and what-if analysis. SAP support
 2

these functions with own industry-specific modules that can be added to the core system.
However, MYOB can only performs certain functions in Excel rather than system itself. Data
warehouse is a collection of data designed to support management decision making.It refers to
the combination of different databases across an entire enterprise which include sales,
production, inventory, payroll and others. The data in the data warehouse is historical which
allow management to easily and selectively extract to prepare reports such as product
profitability, productivity, closed loop marketing and so on. For instance, in recording a sale,
SAP and MYOB collect data about the customers, products and others. These historical
informations can predict future sales of new products and analyzing which products are the
most profitable. What if the cost increase 10% will affect profit? What if giving additional
discount will generate additional sales? The extrated information can help to analyze and
answer this question effectively. Besides, an ad-hoc or customized report analysis is done in
order to fill a need and to go deeper into a regular business report to get finer details about
accounts, records or transactions. The process may be also used to get more current data for
the existing areas. OLAP dashboards facilitate ad hoc analysis by providing quick and easy
access to data from original report. Management is only requires to click to access relevant data
which help them to make decision faster (Rouse, 2016). SAP certainly allow customize report
to make decision, but MYOB only can view the report instead of customizing.

Sales forecasting is one of the business function covered by SAP and MYOB within
sales department. It is considered an analyses that attempt to predict the future sales of a product.
Sales managers are able to use a prior periods sales data generated by system to improve
forecasts accuracy. With SAP and MYOB, companies are able to take sales order efficiently.
This is because companies can perform a credit limit check on the customer before the order is
released for fulfilment. CRM module under SAP facilitates marketing department to keep track
of all the organizations current marketing campaigns and predict future customers buying
behaviours (Morley, 2016). Besides, after sales services also supported by SAP to increase
customer satisfaction. However, MYOB does not support both functions.

Similarly, SAP and MYOB supports various function within accounting and finance
department such as cost allocation and control, planning and budgeting, cash-flow management
and financial accounting of payment from customers and to suppliers. SAP and MYOB help in
managing overhead costs that are assigned to the cost centres and various products. At the end
of period, when all allocations have been made, the targeted costs are compared with the
corresponding actual cost, according to the operating rate. This indicates that SAP and MYOB
 3

provide time-saving automatic allocations which resulting strong profitability analysis and
accurate product costing. Both of the software are able to generate the ageing amount which
allow companies to remedy cash flow problems before affecting the business (Romney, 2012).
SAP and MYOB also help to summarize all the transaction data to prepare income statements
and managerial report for budgeting purpose.

Besides, SAP covers employee administration, organizational management, travel

management, compensation, recruiting, training, payroll, performance management and
benefits. Conversely, MYOB focus exclusively on payroll. SAP streamlines recruiting process
which enable management to track job vacancies and source from a qualified, global pool of
internal and external talent. With SAPs supporting, management can align individual
objectives with corporate goals by cascading the enterprise strategy; access and manage
performance via feedback and appraisals; and reward employees accordingly. SAP also
provides a flexible framework for creating and managing tailor-made benefits packages (SAP,
2010). Bodnar (2004) studied that the payroll component supported by SAP and MYOB can
calculate pay based on attendance information accumulated in the timesheets and deduction for
taxes or others made based on a variety of predefined wages types and comply with government
regulation.

Moreover, SAP supports production scheduling, purchasing and receiving goods,

logistics, manufacturing, quality management and plant maintenance. However, MYOB does
not cover certain function. MRP module under SAP reduce required inventory levels by
improving the accuracy of forecasting technique to schedule purchases to satisfy production
needs. Companies using MRP would prepare a detailed schedule specifying the quantities of
each finished product to manufacture in a specified time period. Through this schedule,
according to Jawad Akhtar (2015), companies can determine the quantities of raw materials
and other supplies needed in the production and the point in time when they will be needed.
MYOB does not support this module which focus on basic inventory management such as
indicating amount of inventory on hand or order and keeping track of items quantities. Besides,
SAP allows logistic management to see which inbound deliveries are arriving so they can
schedule the correct resources to be available at the right times, whereas MYOB doesnt
support this function.

ERP systems can integrate a companys operations by providing a company-wide

computing environment that includes a single database shared by all functions. The flat file
 4

approach to data storage computer applications maintain their own set of files. While database
approach focus data integration and data sharing which different modules can access same
central database. For example, sales department can view general ledger data. Similarly, SAP
and MYOB are using database approach.

MYOB does not comprise of manufacturing, logistic and marketing modules that
involved by SAP. When a customer place an order, sales department can access data on
purchasing or production module to check inventory availability, so customers can be informed
of the expected delivery date. Sales module also interact with accounting and finance module
on sales order stage to verify for the customers credit limit. Marketing supported by SAP
assists in determining product prices, which require information from accounting and finance
and manufacturing. Customer feedbacks from sales and marketing improve customer
satisfaction by sharing information with manufacturing and accounting.

Besides, production module covered by SAP communicates with sales and marketing
module in terms of sales forecast data. The data shared helps to identify how much raw
materials needed in production. When there is shortage of materials, information about raw
materials needs is sent to purchasing to avoid production interrupted. Accounting and finance
can access data on manufacturing to perform cost analysis by determine how much of each
resources (materials, labour, supplies, and overhead) used to complete a product (Monk &
Wagner, 2009).

Logistic which doesnt supported by MYOB integrates with marketing and sales to
share information regarding what has been produced and shipped. Marketing and sales can
notify customers afterward that their orders have been shipped. After the orders are shipped,
accounting and finance requires information from logistics identifying the items and quantities
shipped and information about prices and any special sales terms from sales to bill customers.
After receiving payments, accounting and finance updates general ledger which all the modules
can view the transactions.

Furthermore, human resources interact with sales by accessing data of the sales volume
that achieved by sales person. As such, the total commission of sales person can be determined.
All departments communicates with human resources for their hiring needs and staff
information. Accounting and finance coordinates with payroll which staffs benefits or expenses
and payroll result posted to general ledger.
 5

References
Bodnar, G., 2004. Accounting information systems, 9th edn., Pearson, Boston: Allyn and
Bacon [Accessed on 31 October 2016].
Jawad Akhtar, 2015. Use SAP MRP to effectively plan production and procurement. [online]
Available at: http://searchsap.techtarget.com/tip/Use-SAP-MRP-to-effectively-plan-
production-and-procurement [Accessed on 31 October 2016].
Monk, E. F. and Wagner, B. J., 2009. Concepts In Enterprise Resource Planning, 3rd edn.,
CENCAGE Learning, Australia [Accessed on 31 October 2016].
Morley, M., 2016. What Does SAP Stand for in Marketing? Hearst Newspapers, [online]
Available at: http://smallbusiness.chron.com/sap-stand-marketing-31618.html
[Accessed on 31 October 2016].
Romney, M. B., 2012. Accounting Information System, 12th edn., Pearson, New Jersey
[Accessed on 31 October 2016].
Rouse, M., 2016. Ad hoc analysis. [online] Available at:
http://searchbusinessanalytics.techtarget.com/definition/ad-hoc-analysis
SAP., 2010. SAP ERP Human Capital Management at the Heart of Your Organization.
[online] Available at: http://223.197.92.31/e_doc/SAP_HCM_Overview.pdf
[Accessed on 31 October 2016].