When companies are in the initial phase, tracking or managing assets is not a disadvantage. Employees sometimes have sufficient manual handling. However, at a time when purchasing, production, sales and other quantitative data increase with the growing range of business, a basic asset management system or manual appearance is not enough. It may cause a slow production process and cause death flaws in accounting. While ERP software tools are equipped with device management modules, most companies feel too early to deploy device management software. They do not realize that an enterprise asset management module integrated into ERP is a technology delegated system for organizing and tracking assets at different departments or levels in the production cycle.
Here's a brief explanation, Management is one of the most important elements of ERP software
# 1 Avoid Errors or Overlaps
Effective ERP software will undoubtedly simplify and devices are as easy to handle as ever. If there are separate systems for entering numbers or manual entry to track incoming and outgoing devices, most of the time, multiple entries or misleading information may occur. ERP (Enterprise Asset Management) automates all tasks of data entry in ERP as the devices are reported at any point in the production chain and thus eliminates the likelihood of duplication or improper estimation
# 2 Specifies the current value for devices
A specific asset management system helps businesses evaluate the value of their assets and differentiates them according to their needs, such as plants, machinery, vehicles, property and land. In addition, the Advanced EAM module can create targeted financial reporting based on asset valuation to help finance ministers provide valuable insights into tax estimation, asset allocation and future asset acquisition
# 3 Financial Information
On the one hand, an EAM module provides an accurate picture of the life cycle of the devices, which increases the predictability of their return. On the other hand, it helps entrepreneurs understand how asset management deals with the financial situation.
# 4 Better Estimate of Depreciation Value
Undoubtedly, Investments. Thus, misstatement of accounted accountable values in the Financial Statements may be significant or may lead to non-compliance with statutory requirements. Thus, organizations need to abandon their manual calculation of depreciation values and seek the help of EAM to obtain accurate data.
# 5 Improves the running time
is tracking devices, is commonly lost. Most often it occurs when there are too many facilities for production and different locations. The EAM system helps businesses monitor closely their inventory to be able to handle all sales calls, respond to sales fluctuations, repair and maintain all equipment for proper operation. The unexpected breakdown of production cycles will result in a lot of business costs, and EAM will surely stop it.
These clear facts suggest why ERP software is not complete with EAM. Although business is always a difficult and difficult task to handle all kinds of powerful tools, EAM makes it simpler and smoother.
Source by Rob Stephen