ERP Modules

There are several modules that generally make up an ERP (Enterprise Resource Planning) solution.  However, there is often confusion around these modules particularly when it comes to the functionality each module provides.  In the remainder of this article we are going to discuss the most common ERP modules and the general functionality provided by each.

The Finance module may also be called an Accounting module.  This ERP module may have robust capabilities to suit large organizations or basic capabilities to suit smaller organizations.  Generally, a Financial ERP module is the core of an ERP software solution.  Its job is to consolidate financial data across the organization and generate financial reports.  These financial reports might include a balance sheet, a quarterly financial statement, and so on.

The next common ERP module is the Human Resources module.  This module goes by a couple of different names.  It might be called HCM (Human Capital Management), HRMS (Human Resources Management Solution), or just HR (Human Resources).  Its job is to consolidate employee data, which might include salary information, attendance information, contact information, performance information, evaluation information, and the like.

Another common ERP module is the Purchasing module.  This module’s job is to streamline procurement of raw materials, automate supplier processes, and perform billing processes.  The Purchasing module may also be called Procurement.  It is common for the Purchasing module to be implemented along with a Supply Chain Management module.
A Production module may also be called MRP (Materials Resource Planning) or MRP (Manufacturing Resource Planning) or PP (Production Planning).  Production planning enables you to manufacture your products to full capacity while streamlining the entire production process.

The next ERP module is the Inventory module.  This module enables you to maintain optimum levels of inventory.  This module generally has functionality to set inventory targets, identify inventory related requirements, monitor usage of items, and report inventory status.  This module is generally implemented along with a Finance module.

The last common Enterprise Resource Planning module is the Sales and Marketing module.  The Sales and Marketing module enables order invoicing, shipping, placement, and scheduling.  An online store may be part of a Sales module.  The Marketing module may have functionality to generate leads, create a campaign, and perform other marketing tasks.

Not all ERP solutions will have the modules just listed.  Some ERP solutions may offer one or two of the modules listed along with some other less common modules.  What an ERP solution offers and doesn’t offer depends on the ERP provider and the type of customer they market to.

Written by :

kristine H