ERP Module Landscape & Integration Flashcards

Which scenario best describes an ERP 'two-tier' strategy at a multinational company?

Answer: Running a core ERP at headquarters while subsidiaries use lighter local ERP systems integrated with the core

A two-tier ERP strategy runs a robust core ERP (e.g., SAP or Oracle) at HQ while subsidiaries use simpler, cost-effective ERP systems that integrate back to the central platform.

In ERP project delivery, a 'fit-gap analysis' identifies:

Answer: Where standard ERP functionality meets business requirements and where gaps require customization

A fit-gap analysis compares standard ERP functionality against business requirements to identify areas where the system fits as-is and where gaps exist that require configuration or custom development.

Which ERP module integration underpins the Order-to-Cash (O2C) cycle when a customer's credit limit is checked before approving a sales order?

Answer: Sales & Distribution integrates with Accounts Receivable / Credit Management

During O2C, the Sales & Distribution module integrates with Accounts Receivable/Credit Management to check whether a customer's outstanding balance is within their approved credit limit before the order is confirmed.

Which data migration challenge is UNIQUE to ERP implementations compared to standard software rollouts?

Answer: Migrating very large volumes of structured transactional and master data with strict referential integrity across multiple interconnected modules

ERP data migration requires moving large, interrelated datasets (customers, vendors, open orders, inventory balances) while maintaining referential integrity across all modules simultaneously.

The ERP Plant Maintenance (PM) module's primary integration partner for tracking maintenance costs is:

Answer: Financial Accounting / Controlling (FI/CO)

Plant Maintenance integrates with Financial Accounting and Controlling to capture labor, material, and overhead costs for maintenance orders and post them to the correct cost centers.

In ERP, 'role-based access control' (RBAC) in the context of module integration means:

Answer: Each user is granted permissions based on their job role, limiting module access to what they need

RBAC in ERP assigns permissions based on job roles, ensuring that, for example, an AP clerk can post invoices but cannot approve purchase orders—enforcing segregation of duties across modules.

Which integration mechanism is MOST appropriate when an ERP needs to exchange high volumes of transactional data with an external e-commerce platform in real-time?

Answer: RESTful API or event-streaming integration for real-time bidirectional data exchange

High-volume, real-time integration between ERP and e-commerce platforms is best handled via RESTful APIs or event streaming (e.g., webhooks, Kafka), enabling immediate order, inventory, and customer data synchronization.