Cost Estimate and Accounting in ERP
February 12, 2025
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Like any other project, ERP implementation goes through various interconnected phases. These phases may be sequential but at occasions overlap. Normally, every phase has entry criteria, which needs to be fulfilled before the commencement of the phase. A phase is deemed to have completed when pre-determined deliverables are achieved.
Various phases of ERP implementation, for a typical ERP project, are mentioned below:
Project Establishment will comprise of the following activities:
For a successful implementation, several types of skills are required. To ensure that the requisite expertises are available to the project, different teams are formed, consisting of members from the organization and vendor.
In this phase, key users and competence center team map the existing functional processes with the functions available in the vanilla ERP application, in conjunction with the vendor team. The following activities will occur in an iterative manner.
This phase includes program development for all modules using the Customization Design Specification Document, unit testing and system testing of all modules. The individual programs will be unit tested, based on test plans developed by the vendor. This phase may be carried out at offshore.
Next, the developed and unit tested application software will be system tested during this phase. The system testing will be based on the acceptance test plan and test data provided by the organization. Thereafter it will be installed on the Designated Computed System.
Entry CriteriaCustomized unit and system tested application software.
The focus of user acceptance testing is to exhibit that the system works. From the user’s point of view, acceptance testing is the final quality control procedure to determine whether the software product is performing as expected.
Entry CriteriaAvailability of customized unit and system tested application.
DeliverablesAll identified end users will be trained in the specific functions they are required to work. The training will be conducted by vendor.
Entry CriteriaThis phase deals on the simulation of the actual business environment. The following activities will occur iteratively during this phase:
As the team reviews the data model, the business model that is prepared in the Procedure Development stage may undergo some changes.
Entry CriteriaThis is the migration phase where data from existing manual/legacy operations are transferred to System’s database using interface programs or utilities available within the ERP package. The following activities will occur:
Once the Final Business Model is ready and database is loaded, the system is ready to go live. This phase will allow users to work on the application software with real time data.
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