As a rule, ERP is a modular system. Each module is responsible for a specific sector or industry. Modules can be installed and removed. The areas of responsibility of the modules can overlap, intertwine, and complement each other. At the same time, the entire structure uses the same database, which allows for much more efficient management of the enterprise in both daily routine work and strategic planning.
The most widely used ERP modules include:
Finance
In addition to managing the general ledger and automating key financial tasks, it helps businesses track accounts payable and receivable, efficiently close the books, create financial reports, comply with revenue recognition standards, reduce financial risks, and more.
Human Resources
The HR management module provides core capabilities such as time tracking, attendance, payroll, workforce analysis, and employee experience management.
Purchasing
The purchase module helps businesses acquire the materials and services needed to produce goods or the goods they want to resell. The module centralizes and automates procurement, including requests for quotes, contract creation, and approvals.
Sales
Tracks communication with prospects and customers and helps representatives use data-driven information to increase sales and target prospects with the right promotions and upselling opportunities. It includes order-to-cash process capabilities, including order management, contracts, billing, sales performance management, and sales department support.
Manufacturing
The module typically includes functionality for material requirements planning, production planning, production execution, quality management, and more.
Inventory
Another key component of an ERP system is the supply chain module, which tracks the movement of goods and supplies throughout the organization's supply chain. The module provides tools for real-time inventory management, warehouse operations, transportation, and logistics.
These are just the main, most frequently used areas. Modern ERP systems can be customized to meet the needs of virtually any industry.