ERP Integration

Enterprise Resource Planning integration covering Finance, HR, and Procurement systems.

Scope

Finance Module

• General ledger
• Accounts payable/receivable
• Revenue accounting integration
• Cost center management
• Financial reporting
• Budget management
• Treasury/cash management

Human Resources Module

• Employee master data
• Payroll processing
• Benefits administration
• Time and attendance
• Crew pay integration
• Training records
• Performance management

Procurement Module

• Vendor management
• Purchase orders
• Contract management
• Inventory management
• Parts procurement (MRO)
• Fuel procurement
• General purchasing

Research Topics

• ERP platform selection (SAP, Oracle, NetSuite, Odoo)
• Aviation-specific ERP requirements
• Integration patterns with PSS/OCC
• Crew pay calculation rules
• Revenue accounting integration
• Multi-currency handling
• Regulatory reporting requirements
• Cloud vs. on-premise considerations

Architecture Considerations

ERP Integration Architecture

┌─────────────────────────────────────────────────────────┐
│                    Operational Systems                   │
├─────────┬─────────┬─────────┬─────────┬─────────┬──────┤
│   PSS   │   DCS   │   OCC   │   MRO   │  Fuel   │ Crew │
└────┬────┴────┬────┴────┬────┴────┬────┴────┬────┴──┬───┘
     │         │         │         │         │       │
     └─────────┴─────────┴────┬────┴─────────┴───────┘
                              │
                    ┌─────────▼─────────┐
                    │  Integration Hub  │
                    │  (API/ESB)        │
                    └─────────┬─────────┘
                              │
     ┌────────────────────────┼────────────────────────┐
     │                        │                        │
┌────▼────┐            ┌──────▼──────┐          ┌─────▼─────┐
│ Finance │            │     HR      │          │Procurement│
│ Module  │            │   Module    │          │  Module   │
└─────────┘            └─────────────┘          └───────────┘
                              │
                    ┌─────────▼─────────┐
                    │    ERP Core       │
                    │ (General Ledger)  │
                    └───────────────────┘

Data Flows

Finance Integration

Revenue Flow:
PSS (Bookings) → Revenue Accounting → GL (Deferred Revenue)
DCS (Flown) → Revenue Accounting → GL (Recognized Revenue)
BSP/ARC → AR → GL

Cost Flow:
Fuel Invoices → AP → GL (Fuel Cost Center)
MRO Work Orders → AP → GL (Maintenance Cost Center)
Crew Pay → Payroll → GL (Labor Cost Center)

HR/Crew Pay Integration

Crew Management
├── Flight Hours
├── Per Diem
├── Layover Days
└── Duty Periods
        │
        ▼
Pay Calculation Engine
├── Base Salary
├── Flight Pay
├── Per Diem
├── Overtime
└── Deductions
        │
        ▼
Payroll System → Bank

Data Model

Employee
├── EmployeeID
├── PersonalInfo
├── EmploymentInfo
│   ├── Department
│   ├── Position
│   ├── HireDate
│   └── Status
├── PayInfo
│   ├── BaseSalary
│   ├── PayGrade
│   └── Currency
├── Qualifications[] (for crew)
└── TrainingRecords[]

Vendor
├── VendorID
├── Name
├── Type (Fuel, MRO, General)
├── ContactInfo
├── PaymentTerms
├── BankDetails
└── Contracts[]

PurchaseOrder
├── PONumber
├── Vendor
├── Items[]
│   ├── Description
│   ├── Quantity
│   ├── UnitPrice
│   └── CostCenter
├── ApprovalStatus
├── DeliveryDate
└── InvoiceRef

GLTransaction
├── TransactionID
├── Date
├── Account
├── CostCenter
├── Debit/Credit
├── Currency
├── Description
└── SourceDocument

Integration Points

Finance Module Details

Chart of Accounts (Airline-Specific)

Revenue:
├── 4100 - Passenger Revenue
│   ├── 4110 - Domestic
│   └── 4120 - International
├── 4200 - Ancillary Revenue
│   ├── 4210 - Baggage
│   ├── 4220 - Seat Selection
│   └── 4230 - Other
└── 4300 - Other Revenue

Operating Expenses:
├── 5100 - Fuel & Oil
├── 5200 - Labor
│   ├── 5210 - Flight Crew
│   ├── 5220 - Cabin Crew
│   └── 5230 - Ground Staff
├── 5300 - Maintenance
├── 5400 - Airport Fees
├── 5500 - Navigation Fees
├── 5600 - Aircraft Rental
├── 5700 - Distribution Costs
└── 5800 - G&A

Key Financial Reports

HR Module Details

Crew Pay Components

Integration with Crew Management

Monthly Pay Cycle:
1. Crew system exports hours/duties
2. Pay calculation engine processes
3. HR reviews and approves
4. Payroll generates payments
5. GL entries posted

Procurement Module Details

Purchasing Workflow

Requisition → Approval → PO → Receive → Invoice → Payment

Approval Matrix:
├── <$1,000: Department Manager
├── $1,000-$10,000: Director
├── $10,000-$50,000: VP
└── >$50,000: CEO

Vendor Categories

Platform Options

ERP Systems

Selection Criteria

• Aviation industry templates
• Multi-currency support
• Integration capabilities
• Scalability
• Total cost of ownership
• Implementation timeline

Recommended Approach

For a high-frequency, lean operation:

1. Start with cloud-based mid-market ERP (NetSuite/D365)
2. Strong integration layer for operational systems
3. Aviation-specific modules for crew pay
4. Phase implementation: Finance → HR → Procurement