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CONCEPTS

IN

ENTERPRISE RESOURCE PLANNING
Third Edition

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CONCEPTS

IN

ENTERPRISE RESOURCE PLANNING
Third Edition

Ellen F. Monk University of Delaware Bret J. Wagner Western Michigan University

Australia •Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

Concepts in Enterprise Resource Planning, Third Edition by Ellen F. Monk and Bret J. Wagner VP/Editorial Director: Jack W. Calhoun Editor-in-Chief: Alex von Rosenberg Senior Acquisitions Editor: Charles McCormick, Jr. Product Manager: Tricia Coia, Kate Hennessy Development Editor: Amanda Brodkin Content ProjectManager: Aimee Poirier Manufacturing Coordinator: Justin Palmeiro Marketing Manager: Bryant Chrzan Editorial Assistant: Bryn Lathrop Cover Designer: Laura Rickenbach Cover Photo® 2007 Jupiterimages Corporation Compositor: GEX Publishing Services

® 2009 Course Technology Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced, transmitted,stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. For productinformation and technology assistance, contact us at Cengage Learning Academic Resource Center, 1-800-423-0563 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permission questions can be emailed to permissionrequest@cengage.com ISBN-13: 978-1-4239-0179-2 ISBN-10: 1-4239-0179-7 Course Technology Cengage Learning 25 ThomsonPlace Boston, Massachusetts, 02210 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your lifelong learning solutions, visit course.cengage.com Visit our corporate website at www.cengage.com SAP is a registered trademark.

Printed in the United States of America 1 2 3 4 5 6 7 8 9 TW 12 11 10 09 08

In memory of our colleague Majdi Najm. His support andfriendship are sorely missed.

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BRIEF CONTENTS z zz
Preface Chapter 1 Business Functions and Business Processes Chapter 2 The Development of Enterprise Resource Planning Systems Chapter 3 Marketing Information Systems and the Sales Order Process Chapter 4 Production and Supply Chain Management Information Systems Chapter 5 Accounting in ERP Systems Chapter 6Human Resources Processes with ERP Chapter 7 Process Modeling, Process Improvement, and ERP Implementation Chapter 8 ERP and Electronic Commerce Glossary Index 211 237 245 179 157 117 77 47 17 1 xiii

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TABLE OF CONTENTS

Preface Chapter 1 Business Functions and Business Processes

xiii 1
2 2 3 6 6 7 7 8 8 8 9 11 13 15 15 15 16

Functional Areas and...
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