🎯 State of SAP 2024 ReportFind the State of SAP 2024 ReportCheck Report
Back to Glossary

Financial Management

Finance

Definition

Financial Management refers to the strategic planning, organizing, directing, and controlling of financial undertakings in an organization.

Detailed Description

Financial Management within ERP systems encompasses the processes and methods used to manage an organization's finances. This includes managing income, expenses, assets, and liabilities, as well as conducting analysis and reporting for decision-making. ERP systems typically offer modules to automate financial management tasks, ensuring accuracy and regulatory compliance.

Key Features

  • Accounts Payable and Receivable
  • Budgeting and Forecasting
  • Cash and Liquidity Management
  • Financial Reporting and Analysis
  • Fixed Asset Management
  • General Ledger Management

Common Modules

Accounts Payable

Manages outgoing payments to vendors and suppliers, streamlining the payment process.

Accounts Receivable

Handles incoming payments from customers, optimizing cash flow management.

Financial Reporting

Provides tools for creating various financial statements and analytical reports.

General Ledger

Central repository for accounting data from all financial modules, enabling comprehensive financial reporting.

Popular Implementations

Oracle Financials Cloud

Cloud-based solution for managing financial operations and improving business processes.

SAP Financial Management

An integrated financial management solution that covers all aspects of financial recording and reporting.