Technology in Practice

An enterprise resource planning (ERP) system is the key to integrating different business functions across an organization. The widespread growth of ERP system adoption illustrates the importance of ERP to successful businesses. Why have ERP systems gained such popularity? Because a shared database of information for employees and decision-makers is a direct path to peak levels of business performance. ERP Market Statistics ERP is a core system for businesses, driven by market characteristics such as widespread digital adoption, thriving global trade and vast amounts of data that need to be tracked, maintained and analyzed. ERP market statistics show the move towards increased usage and global demand. The ERP market remains in a phase of rapid expansion, with total market size expected to exceed $49.5 billion by 2024. In 2019, the global ERP software market grew by 9%, resulting in a worldwide value of approximately $39 billion in total software revenue. Revenue growth occurred for ERP in all areas in 2019, with strong growth for administrative ERP with financial management software (FMS) growth at 7% and human capital management (HCM) growth at 10%. The ERP market size in North America is worth over $10 billion. Asia-Pacific is an emerging ERP market expected to achieve a CAGR of 13.2% through 2026. Global market growth is expected to increase at a CAGR of over 8.1% over the next five years. In a survey of IT decision-makers, 53% said ERP was an investment priority, in addition to CRM. 50% of companiesare soon acquiring, upgrading or planning to update ERP systems soon. The global ERP software market is expected to reach $78.4 billion by 2026. ERP Implementation Statistics To execute a successful ERP implementation, companies must have a clear vision of new system requirements to create alignment throughout the organization. Choosing the right vendor and assigning an internal implementation team increases the chance of project success. Although ERP implementations can be challenging, data and statistics show many companies exceeding and even surpassing implementation efficiency expectations. In a 2019 surveyof distributors and manufacturers, 67% described their implementations as successful or very successful. Companies that had very successful ERP implementations noted internal organizational elements like support from management, good change management programs and due diligence as primary reasons for success. When asked what went wrong during implementation, only 12% of respondents noted poor quality of software. The top two problems noted during implementationwere inadequate testing and inadequate business process reengineering. After ERP implementation, 49% of companies said they improved all business processes. Only 5% of business said they did not improve business processes. In a survey on ERP implementation, midsize companies with $100 million to $250 million in revenue had the fastest implementations at 6.6 months. Very large companies, over $25 billion in revenue, took the longest at 12.35 months. Regarding implementation, minor customization was needed by 10% of respondents, some customization was needed by 33% and significant customization was needed by 37%. For a group of companies that underwent ERP implementation, nearly half (49%), went live in the allocated time– 13% went live sooner than expected, 27% were a little late and 11% failed to go live in the time allotted. Expansion of the initial project scope was the primary reason companies went over budgetduring implementation. ERP ROI Statistics Organizations use ERP to become more efficient and save costs. Statistics on ERP return on investment (ROI) highlight the benefits of the technology. ERP implementation led to business process improvement for 95% of businesses. In a study of companies implementing ERP, 85% had a projected timeline for ROI. Of that group, 82% achieved ROI in their expected time. The top three benefitsbusinesses said they gained from an ERP system are reduced process time, increased collaboration and a centralized data system. An average for ROI timein a group of companies that implemented ERP was just over 2.5 years. The top three business goalscited for implementation are achieving cost savings (46%), improving performance metrics (46%) and improved efficiencies in business transactions (40%). When asked to select areas where ERP produced ROI, the top three answers were reduced IT costs (40%), reduced inventory levels (38%) and reduced cycle time (35%). For midsize companies—revenue under $1 billion—the cost of owning an ERP system is approximately 3-5% of annual revenue. For large companies—revenue over $1 billion—the cost of owning an ERP system is 2-3% of annual revenue. ERP Usage Statistics ERP adoption by industry varies, and organizations often use ERP systems for different reasons. Recent ERP usage statistics provide some insight into current usage trends. Manufacturing companies are the No. 1 user of ERP software. In a surveyof 255 companies looking to purchase ERP software, 89% identified accounting as the most critical ERP function. Other responses included inventory and distribution (67%), CRM, sales (33%) and technology (21%). Manufacturers represented the largest portion at 47%of companies looking to purchase ERP software, followed by distribution (18%) and services (12%). Eighty-four percent of ERP users had an expected ERP spend of less than 2% of annual income. Forty percent of companiesidentified better functionality as their primary reason for implementing an ERP system. The biggest influencers in purchasing ERP softwarewere employees from finance and accounting (23%) and IT department employees (23%). In a survey of small businesses with 50–99 employees, 57.5% strongly agreed on investing in cloudand hosted solutions. Cloud Technology Statistics Adoption of cloud technology continues to increase worldwide as businesses move from on-premises technology to achieve business efficiencies, on-demand service, network elasticity and expanded network access. Statistics on the increase of cloud technology show the dramatic growth of cloud applications as they relate to the ERP market. Forrester estimates that 2020 cloud subscriptions for business applications will account for $170 billion in revenue. Cloud-based ERP systems had a 20.7% enterprise application growth ratein the public cloud in 2018. By 2022, global cloud app spending will reach $226.9 billionand cloud platform services will reach $70 billion. An international survey of ERP users indicated 64% of companies using SaaS, 21% using cloud ERP and only 15% using on-premises. Cloud deployments account for 44%of all implementation for survey respondents in manufacturing and distribution. ERP Trends As business needs become more complex, ERP software is advancing to meet the demand for more customizable features and broader social integrations. Current ERP trends illustrate a shift towards greater cloud adoption and intelligent systems that streamline and automate processes. By 2022, Gartner predicts that artificial intelligence (AI) will be integrated into ERP systems by 65% of CIOs. 53% of UK CIO’sare looking for more intelligent ERP systems that include technology like machine learning, AI and automation. CIO’s listed predictive analytics and deep learningas the most critical ERP technologies to gain a competitive advantage. Fifteen percent of organizationsplan to increase their Internet of Things (IoT) budget. A broader move to more personalization across ERP systems leads 82% of UK CIO’sto choose ERP systems with some customization or use UI overlays. ERP Challenges Common ERP challenges include poor project management, inability to manage implementation costs and duration, internal resistance to new systems, software integration issues and poor data quality. These problems stem from unclear ERP implementation goals, choosing the wrong ERP vendor and purchasing software that’s not right for your company. An ERP system can supercharge your business, but you must choose the right platform and implementation team to avoid becoming another unfortunate ERP statistic. Data collected over the years on ERP implementations states that 50% failthe first time around. Most implementations cost three to four timeswhat was initially budgeted. Implementation can take 30% longer than anticipated. Fifty-one percent of companies experience operational disruptionwhen they go live. System modifications needed to improve usability can cause overspending 65% of the time. The top three places ERP systems fall shortfor users is data accuracy, user experience and analytics. How to Succeed with ERP/Choosing the Right ERP Partner The best ERP partners will offer a suite of services that cover enterprise basics like accounting and human resources—but they also offer applications spanning CRM (customer relationship management), human capital management (HCM), product lifecycle management (PLM), supply chain management (SCM), warehouse management systems (WMS), and more. Cloud-native ERP systems with advanced technologies suit forward-thinking organizations who want access to ERP benefits such as increased efficiencies, cost savings and quick deployment times. Cloud deployment has opened the door for fast-growing organizations of all sizes, making ERP software available for big and small companies. Article Attribution: This article was originally posted on the on NetSuite.com and was written by Justin Biel | Trends Editor, Grow Wire.

What Is Tail Spend? Is your company familiar with the concept of tail spend? Even if you’re not familiar with it, you have it. Simply put, “tail spend” refers to approximately 20% of non-core procurement transactions that are largely left unmanaged, usually due to a high volume of suppliers and limited in-house resources. The best way to illustrate tail spend is through the Pareto Principle, wherein 80% of an organization’s spend is strategically managed with 20% of the suppliers. This 80% spend typically includes the cost of goods, tooling, and other capital expenditures, insurance, occupancy, and utilities. Conversely, 20% of the spend, or “tail spend,” is with 80% of the suppliers. Included in this 20% segment are thousands of operating consumables SKU’s (MRO, PPE, packaging, shipping and warehouse supplies, janitorial and sanitation supplies, industrial gases), logistics by multiple modes, telecom circuits and services, and other services such as waste, uniforms and payroll processing. Consider, too, that the cost of processing and paying invoices for these purchases often exceeds the value of the goods or services received. This spend segment is not only challenging to manage effectively but also to realize industry-best pricing with suppliers that most closely align with your requirements. For example, a recent manufacturing client with $56M in spend revealed the following: This $9.4M tail spend is comprised of MRO, packaging, insurance, information technology, logistics, telecom, uniform and waste services, office supplies, marketing, education, regulatory, etc. Savings of 10-40% or more are typically available in certain expense categories. These potential savings are often overlooked due to a low expectation of return, lack of visibility and internal resources, and benchmark data. Executives and procurement leaders must change the way they look at tail spend. Executives might reason that tail spend is too costly to manage from a process point of view, but that’s the reason they should not ignore it, as it’s too costly from a business point of view. Read the full whitepaper from our partner Expense Reduction Analysts or contact us for more information.

The rationale behind them is simple: rebates help drive interest in a manufacturer’s products and, if handled properly, can build brand loyalty. However, most rebate programs are structured in such a way that can take months for rebates to be processed and checks sent. It’s little wonder that the frustrating lag between submitting a rebate form and getting a check in the mail limits their effectiveness as drivers of brand loyalty. An efficient rebate platform that can properly track, trace and manage a variety of programs has the potential to drive a revolution in rebate marketing – enabling manufacturers to sell more products and increase brand loyalty. Types of Rebate Programs Rebates come in a variety of forms: volume rebates, growth rebates, retention rebates, and mix rebates. Retention Rebates reward continued business, or customer loyalty. Retention rebates can be rebates of any form, volume, mix, growth, but are usually end of year or “cliff” rebates, paid upon realization of a condition. Volume rebates are the simplest rebate and are designed to limit customer gaming and over-promising. Instead of quoting a price driven largely by the customer’s ‘intended’, or ‘promised’ volume, the seller responds with tiered pricing where the invoice price is fixed, but the actual price varies with volume. Growth rebates are volume rebates based on incremental volume vs. total volume. Mix Rebates drive sales of a mix of products to select end-user segments. Rebate Management: Components of a Best-in-Class Solution An automated rebate management solution enables you to easily create and roll out effective rebate programs leveraging the following core functionality: Automation to minimize manual processes Integration with existing software platforms The ability to run multiple promotions ¬– Manufacturers and distributors often have different strategic initiatives for different products, different regions, and different members of their channel. Being able to structure multiple promotions is essential for B2B rebate management software. The ability to quickly change award parameters and payout structure. Tools to segment your audience and assign participant types. Verification tools. Channel communication tools. Mobile optimization. Flexible billing options. To reiterate, rebates can drive sales and, if handled properly, increase brand loyalty. But they increase the complexity of pricing processes, adding administrative costs and complexities. In a follow-up post, we will show you how Net at Work’s Rebate Management & Tracking software solution based on Sage X3, provides the ability to set up rebate agreements and calculate and report rebates on sales transactions. In addition, it enables you to generate claims that book the financial impact, giving you control and a holistic view of the process.

Do you know that you can do more with Acumatica Import Scenarios than just imports? With Import Scenarios, you can execute many menu commands. Below is an Import Scenario that deletes a Sales Order with execution. Contact us if you have any questions or would like more information about Acumatica features and enhancements.

ERP selection can be overwhelming, with so many options to consider around features, functionality, pricing, and hosting. To ensure the best outcome, consider these basic tenets during an ERP evaluation. DUE DILIGENCE All ERP vendors are not created equal. Some cater specifically to the needs of midsized companies, and some are more experienced in certain industries. Ideally, you want a provider that checks both boxes. For example, distributors should seek an ERP platform that supports flexible inventory management, including the ability to prevent stockouts or surplus, identify underand over-forecasting items, and orchestrate centralized warehouse consolidation. Manufacturers should seek an ERP platform that provides visibility into the entire production process, including the ability to track costs in real time, identify and remove production bottlenecks, optimize inventory to reduce excess and eliminate stockouts, and drive customer satisfaction through accurate status updates. Eric Kimberling, CEO and founder of Third Stage Consulting Group, recommends that you examine each vendor’s product roadmap and how much they’re spending on R&D. These factors are particularly important for vendors offering cloud solutions that aren’t fully optimized for verticals such as manufacturing or distribution. KPIs Identify the key performance indicators (KPIs) for your business and then map those goals to the capabilities of the software you’re evaluating. KPIs, of course, will be specific to every company. If inventory optimization is a key objective, steer toward an ERP platform with robust inventory management capabilities; if boosting production quality or reducing materials cost is a goal, make sure the platform has integrated tools for centralizing production processes; if you’ve recently acquired a business, look for functionality to help consolidate financials. “If you’ve identified the big friction points in your existing operations, your KPIs should dovetail with that,” says Laurie McCabe, cofounder and partner at SMB Group, a market research and analyst firm focused on technology adoption by small and midsized companies. “For instance, if it takes people some ungodly amount of time to get things done, start by looking at how a new solution can help you to get these jobs done more efficiently.” Another way to establish KPIs: “Think about what’s best for your customers and what’s best for your employees—those two usually translate to what’s best for the business,” says McCabe. “That trickles down to the systems you require to accomplish that.” Aligning on business priorities can be a tough conversation to have, but it’s critical to defining the right technology path. “Those strategic priorities around what’s important to the business are important in determining how you serve your customers or build your products,” says Kimberling. “If you get alignment there first, then the requirements discussions around ERP tend to fall into place easier.” OPEN PLATFORM Every company is different, so a one-size-fits-all ERP platform can be more trouble than it’s worth. Look for a solution that offers flexibility for customization and supports an open architecture. An open environment enables seamless integration with other core systems like CRM, inventory management and optimization, production planning, and productivity applications like Microsoft Office. In addition, the platform should be able to tap into a thirdparty developer community offering complementary tools that extend core ERP functionality. In that way, companies can create a single source of data that can be leveraged across departments and business processes. BUY-IN The technology piece of the ERP puzzle is far easier to address than the organizational challenges that can arise when you bring on a new mission-critical system. ERP is all about redefining and optimizing core processes. To succeed, you want a vendor that will work with all key stakeholders—the controller/CFO, production manager, heads of operations, purchasing, order entry, and sales—to identify their pain points, understand their needs, and map those against your KPIs. Involving them in the process early on will increase the chances of buy-in across the business. “Success is about truly listening to what they want, understanding their current processes, and then sharing how a new platform can improve processes and make things flow better,” says Joe Jenders, Founder and President of Vrakas/Blum Computer Consulting. “When you show them that you have a vision, that’s what builds consensus.” Ready to unleash the power of your business? Contact us to determine which ERP system is best for your organization.

There are various accounting standards that provide guidelines on how to handle everyday accounting interactions. One in particular – accounting standard codification 606 (ASC 606) – specifies how companies should recognize revenue from contracts with customers and provides a standard framework for how to report the nature, timing, and uncertainty of the revenue. Of course, revenue can extend beyond contracts with customers. With the PJM module activated and the latest v12 patch, Sage X3 makes compliance with this standard and other revenue recognition seamless. After configuration, users can successfully record revenue in minutes. CONFIGURATION 1. Navigate to Setup > General parameters > Sequence number definition > Structures to create the following sequence numbers: RRV for revenue recognition creation REVRC for validation and posting 2. Navigate to Common data > G/L accounting tables > General > Journal codes to create the journal code RRC, which will be used for posting 3. Navigate to Setup > Financials > Document types and define the document type REVRC 4. Navigate to Setup > Financials > Accounting interface > Automatic journals and create the automatic journal REVRC, which will allow for revenue recognition posting 5. Navigate to Setup > General parameters > Parameter values and create the parameter REVJOU under the REV group to define the automatic journal to use 6. Navigate to Setup > Financials > Accounting forms > Revenue recognition rules to define revenue recognition codes by company Fill in required fields Revenue recognition code, Description, and Company. The company selected must be a legal company with the PJTMGT set to Yes Define the data that will be used to calculate the recognized revenue in the Definition grid 7. To assign revenue recognition rules to a project, navigate to Projects > Projects > Project management. Select the project you would like to assign it to. In the Project tab in the Financials section, select the rule at the Revenue recognition rule field REVENUE RECOGNITION PROCESS Begin by gathering the most up-to-date project information. 1. Navigate to Projects > Projects > Project Management and select the project from the left list 2. Select Financial snapshot from the right list 3. Create the financial snapshot if this is the first time it is being generated for this project: Select the New button from the right list Enter the Project number Select the Revenue recognition checkbox Select the Create button from the right list   4. Select the Snapshot extraction button in the upper right-hand corner 5. Select OK and view the log reading Run the Revenue recognition function. 1. Navigate to Financials > Closing processings > Revenue recognition > Revenue recognition 2. Select New and enter the revenue recognition code 3. Select the project code 4. Enter the period and end date 5. Navigate to the Posting section, enter the Entry type and Debit/ Credit accounts to be used during the posting process The debit account will be deferred revenue The credit account will be the actual revenue account 6. Select the Create button to create the record 7. Click Calculation to generate the amounts A pop-up message may appear that adjusted percentage has not been entered   Select Yes to calculate the amounts Select No to enter an adjusted percentage before calculating Verify the amounts and make any adjustments as needed 1. Use the Adjusted amount column to modify amounts for the following: Estimated cost at completion Adjusted percentage Adjusted net recognized revenue Adjusted net recognized cost 2. Select Validate in the upper-right hand corner Note: Once amounts are validated, changes or adjustments can no longer be made. Validation can be canceled before these amounts are posted by selecting Cancel validation. This will reset to Awaiting validation status. Post the recognized revenue 1. Select the Post button in the upper-right hand corner to post the adjusted net recognized revenue to the selected debit and credit accounts 2. In the right list, select Accounting document to review the generated journal entry Note: Use Accounting cancellation to delete the journal entry and return to Validated status. This functionality is available depending on the company’s setup. Optional: If you need to calculate, validate, and post multiple entries, consider using Revenue recognition validation 1. Navigate to Financials > Closing processings > Revenue recognition > Revenue recognition validation 2. Select the Revenue recognition code 3. Select the From and To projects 4. A date will be suggested in the current month, but this can be changed as needed 5. Enter the Entry type and Status 6. Select Search in the upper-right hand corner and see the results populate in the grid 7. Select the entries for which you would like to recognize revenue for 8. Select the Calculate, Validate, and Post buttons in the upper right-hand corner to repeat the revenue recognition process For more information on revenue recognition in Sage X3, please contact us.

No business wants to stagnate. But treat your IT infrastructure like an afterthought and you could be severely limiting your company’s potential. Let aging systems continue operating as is, and they could quickly turn into a business liability. Yet there are real barriers that prevent businesses from investing in their IT infrastructure, including: time, lack of know-how, resistance to change and cost to name a few. But despite these challenges, most businesses recognize the need to stay on the cutting edge. Is your current infrastructure scalable, flexible and agile enough to keep you competitive? These six issues signal an IT infrastructure update is definitely on the horizon. 1. Sub-optimal workflows and processes Outdated IT often means you’re working within the constraints of the platform, rather than best practice. It also means you likely aren’t performing at your industry benchmark and missing out on new opportunities for growth. 2. Missed opportunities Cloud and big data offer huge opportunities to businesses, and organizations capitalizing on them have an advantage over their competitors. As you forgo these advancements, what results is segregated systems and departments 3. Siloed systems and departments Legacy systems are ill-equipped to facilitate collaboration. Lack of communication results quickly in falling productivity 4. Flatlining productivity Falling short of deadlines? Projects running late? You might be spending more time fixing software and developing workarounds than actually working which also compromises your ability to respond to change in real time. 5. Inability to respond in real-time Change is the only constant, and legacy systems restrict how quickly you and your business can adapt. If you’re unable to meet market trends, you’ll quickly see plummeting sales figures. 6. Nonexistent or actively falling sales If your business doesn’t look like it’s meeting the same need as your competitors, their bottom line will benefit. Just like your employees, your IT infrastructure is a growing, changing system, one that must be actively assessed again and again. As your network traffic increases, user needs change, data volumes grow, or stakeholder expectations shift, your IT systems must follow suit. If you’re still having a hard time justifying the cost of updating your IT infrastructure, remember there’s often even bigger costs – and substantial risk – associated with preserving the status quo. Concentrate on the updates that help your business expand, and you can easily justify the initial expense, no matter how many zeros there are on the invoice.

In this video we cover how to set up reports definitions in Acumatica Cloud ERP. This will allow you to modify report such as profit and loss, balance sheet, and more. Contact us if you have any questions or would like more information about Acumatica features and enhancements. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }

In this video we cover how to configure user security in Acumatica Cloud ERP by looking into security preferences, Roles, Access History and much more. These setting allow you to choose how often an employee has to change their password to deciding which data an employee can see and much more! Contact us if you have any questions or would like more information about Acumatica features and enhancements. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }