Enterprise resource planning

Enterprise resource planning (ERP) is the integrated management of main business

processes, often in real time and mediated by software and technology. ERP is usually
referred to as a category of business management software—typically a suite of
integrated applications—that an organization can use to collect, store, manage and
interpret data from many business activities. ERP systems can be local based or cloud-
based. Cloud-based applications have grown in recent years due to information being
readily available from any location with Internet access. Traditional on-premises ERP
systems are now considered legacy technology.[1][2][3][4]
ERP provides an integrated and continuously updated view of core business processes
using common databases maintained by a database management system. ERP
systems track business resources—cash, raw materials, production capacity—and the
status of business commitments: orders, purchase orders, and payroll. The applications
that make up the system share data across various departments (manufacturing,
purchasing, sales, accounting, etc.) that provide the data.[5] ERP facilitates information
flow between all business functions and manages connections to outside stakeholders.[6]
The ERP system integrates varied organizational systems and facilitates error-free
transactions and production, thereby enhancing the organization's efficiency. However,
developing an ERP system differs from traditional system development.[10] ERP systems
run on a variety of computer hardware and network configurations, typically using
a database as an information repository.[11]

Characteristics[edit]
ERP systems typically include the following characteristics:

 An integrated system
 Operates in (or near) real time
 A common database that supports all the applications
 A consistent look and feel across modules
 Installation of the system with elaborate application/data integration by the
Information Technology (IT) department, provided the implementation is not done in
small steps[29]
 Deployment options include: on-premises, cloud hosted, or SaaS

Functional areas[edit]
An ERP system covers the following common functional areas. In many ERP systems,
these are called and grouped together as ERP modules:

 Financial accounting: general ledger, fixed assets, payables including vouchering,

matching and payment, receivables and collections, cash management, financial
consolidation
 Management accounting: budgeting, costing, cost management, activity based
costing
 Human resources: recruiting, training, rostering, payroll, benefits, retirement and
pension plans, diversity management, retirement, separation
 Manufacturing: engineering, bill of materials, work
orders, scheduling, capacity, workflow management, quality control, manufacturing
process, manufacturing projects, manufacturing flow, product life cycle management
 Order processing: order to cash, order entry, credit checking, pricing, available to
promise, inventory, shipping, sales analysis and reporting, sales commissioning
 Supply chain management: supply chain planning, supplier scheduling, product
configurator, order to cash, purchasing, inventory, claim
processing, warehousing (receiving, putaway, picking and packing)
 Project management: project planning, resource planning, project costing, work
breakdown structure, billing, time and expense, performance units, activity
management
 Customer relationship management (CRM): sales and marketing, commissions,
service, customer contact, call center support – CRM systems are not always
considered part of ERP systems but rather business support systems (BSS)
 Supplier relationship management (SRM): suppliers, orders, payments.
 Data services: various "self–service" interfaces for customers, suppliers and/or
employees
 Management of school and educational institutes.
Advantages[edit]
The most fundamental advantage of ERP is that the integration of a myriad of business
processes saves time and expense. Management can make decisions faster and with
fewer errors. Data becomes visible across the organization. Tasks that benefit from this
integration include

 Sales forecasting, which allows inventory optimization.

 Chronological history of every transaction through relevant data compilation in every
area of operation.
 Order tracking, from acceptance through fulfillment
 Revenue tracking, from invoice through cash receipt
 Matching purchase orders (what was ordered), inventory receipts (what arrived),
and costing (what the vendor invoiced)
ERP systems centralize business data, which:

 Eliminates the need to synchronize changes between multiple systems—

consolidation of finance, marketing, sales, human resource,
and manufacturing applications [citation needed]

 Brings legitimacy and transparency to each bit of statistical data

 Facilitates standard product naming/coding
 Provides a comprehensive enterprise view (no "islands of information"), making
real–time information available to management anywhere, anytime to make proper
decisions
 Protects sensitive data by consolidating multiple security systems into a single
structure[67]
Benefits
ERP creates a more agile company that adapts better to change. It also makes a
company more flexible and less rigidly structured so organization components operate
more cohesively, enhancing the business—internally and externally.[68]

 ERP can improve data security in a closed environment. A common control system,
such as the kind offered by ERP systems, allows organizations the ability to more
easily ensure key company data is not compromised. This changes, however, with a
more open environment, requiring further scrutiny of ERP security features and
internal company policies regarding security.[69]
 ERP provides increased opportunities for collaboration. Data takes many forms in
the modern enterprise, including documents, files, forms, audio and video,
and emails. Often, each data medium has its own mechanism for allowing
collaboration. ERP provides a collaborative platform that lets employees spend
more time collaborating on content rather than mastering the learning curve of
communicating in various formats across distributed systems.[64]
 ERP offers many benefits such as standardization of common processes, one
integrated system, standardized reporting, improved key performance indicators
(KPI), and access to common data. One of the key benefits of ERP; the concept of
integrated system, is often misinterpreted by the business. ERP is a centralized
system that provides tight integration with all major enterprise functions be it HR,
planning, procurement, sales, customer relations, finance or analytics, as well to
other connected application functions. In that sense ERP could be described as
a centralized integrated enterprise system (CIES)[70]
Disadvantages[edit]
 Customization can be problematic. Compared to the best-of-breed approach, ERP
can be seen as meeting an organization's lowest common denominator needs,
forcing the organization to find workarounds to meet unique demands.[71]
 Re-engineering business processes to fit the ERP system may damage
competitiveness or divert focus from other critical activities.
 ERP can cost more than less integrated or less comprehensive solutions.
 High ERP switching costs can increase the ERP vendor's negotiating power, which
can increase support, maintenance, and upgrade expenses.
 Overcoming resistance to sharing sensitive information between departments can
divert management attention.
 Integration of truly independent businesses can create unnecessary dependencies.
 Extensive training requirements take resources from daily operations.
 Harmonization of ERP systems can be a mammoth task (especially for big
companies) and requires a lot of time, planning, and money.[72]
 Critical challenges include disbanding the project team very quickly after
implementation, interface issues, lack of proper testing, time zone limitations, stress,
offshoring, people's resistance to change, a short hyper-care period, and data
cleansing.[73]
What is ERP?
Enterprise resource planning (ERP) is a type of software system that helps organizations
automate and manage core business processes for optimal performance. ERP software
coordinates the flow of data between a company’s business processes, providing a
single source of truth and streamlining operations across the enterprise. It’s capable of
linking a company’s financials, supply chain, operations, commerce, reporting,
manufacturing, and human resources activities on one platform.

Most companies have a finance and operational system in place, but siloed systems
can’t go beyond everyday business processes or help with future business growth. As
companies expand and their needs change, their systems should keep up with them. In
this article, you’ll learn what ERP is and why having software in place that keeps up with
your needs can help run a more agile and efficient business.

Three ERP implementation challenges for businesses

Despite all the options out there, some companies are still hesitant about implementing
ERP. There could be many reasons why, but where there’s a challenge, there’s a solution.

Choosing the right ERP solution.

You don’t have to find the perfect software solution to fix everything. ERP should be
able to take the best of the business processes you’re using now and bring them
together under one system that allows everyone in your organization to view the same
information. This is why choosing the right technology partner is important.

Affording the cost of an ERP system.

A solution doesn’t have to be an all-or-nothing implementation. Software solution

modules can be purchased separately according to your business needs. This will help
your team ease into the implementation piece of ERP, and it’ll save you from having to
invest in a major software renovation without knowing whether the functions you’re
adding will pay off.

Integrating new ERP software with existing software.

As we mentioned, any ERP solution you choose should work with what you’re using now
but also include features that can help in your future growth. For instance, if the
software you have mostly handles the financial, supply chain, and manufacturing sides
of your business, you may want to look for a solution that brings in a strong business
intelligence component

Best ERP Software of 2023

1. Oracle NetSuite.

NetSuite is an all-in-one business management suite and ERP platform

that encompasses ERP applications, financials, CRM, and ecommerce
for more than 18,000 satisfied customers.

Furthermore, it’s a reliable and world-class organization that allows

organization-wide automation in the cloud through seamless
integrations.

Check out my comparison article where I review SAP vs. Oracle head

to head.

Key Features:

 Financial Management and Planning: Helps you combine financial

information with instant business intelligence to drive quicker decision-
making. It also helps in forecasting, scheduling, capacity, and aggregate
planning decisions.
 Order Management: Combines business processes of sales, finance, and
fulfillment to take care of pricing and sales order management.
 Production Management: Allows complete control over production
schedules and processes and helps in efficient product lifecycle
management.
  Human Capital Management: Helps you make the most out of your
investment in human capital by ensuring that the right person is
assigned the right job.

User Experience:

The helpful dashboard allows you to see all the important data in one
place, and the visual elements make it easy to understand what’s
going on.
With various features and options, the software is highly customizable and
users can tailor it to their specific needs.

Pricing Plans:

The plans are quote-based and are tailor-made and personalized for
individual requirements.

Pricing depends on the integrations needed, add-ons available, etc.

The base license costs $999 per month and access cost is $99 per user
per month.

What I Like/Dislike About Oracle NetSuite:

Like:

 Offers high level of automation

 Highly flexible and customizable
 Provides excellent customer support
 Robust functionality and high scalability
 Digital, comprehensive dashboards available
 Excellent PRM (Partner relationship module)
 Efficient security protocols in place
 Supports multiple languages and multiple currencies
  This ERP software is upgraded twice a year
 Nearly 100% uptime
 Provides remote accessibility for enhanced business unit collaboration
 Suitable for all types of businesses and company size, whether it is a
small, medium, or large business
 In-built data analytics module to generate actionable insights

Dislike:

 Customer support has many complaints

 Product upgrades are a bit challenging
 Doesn’t offer an on-premise version

Product Updates:

 More efficient warehouse operations to improve productivity

 The NetSuite financial dashboard in Cash 360 lets you see your cash
situation as well as forecast near-term cash flow by using NetSuite
transactional data.

2. Microsoft Dynamics.

If your business operates in the finance, retail, manufacturing

industries, Microsoft Dynamics would be my recommended software.
One of the main reasons I recommend this software is because it
offers businesses a comprehensive view of their financial situation. The
software also has excellent support for resources, such as inventory
and production.
Microsoft Dynamics is an ERP and Customer Relationship
Management (CRM) software system that is perfect for industries like
finance, retail, manufacturing, among others. Currently, it is used by
more than 200,000 stakeholders worldwide.

Key Features:

Focus Industries: Focuses on multiple industries, including retail, service,

manufacturing, finance, and the public sector.

 Predictive Analytics: Comes with an in-built analytics module that

generates actionable insights and robust reports.
 Third-party Integrations: Widely integrated with several applications, like
Outlook, Lync, Sharepoint, Word, among others.
 Mixed Reality: The ERP software system can provide layout (lets you
design physical spaces virtually) and remote assistance (collaborate with
employees through HoloLens).
 Extensive Marketing: Through its Adobe Marketing Cloud and Dynamics
365, it forms a closed-loop marketing system that enables you to
analyze the results of your marketing campaigns.

Pricing Plans:

Microsoft Dynamics offers four pricing plans.

The ‘Customer Engagement’ is $115 per user per month, the ’Unified
Operations’ costs $190 per user per month, the ’Dynamics 365’ plan is
$210 per user per month, and the ’Applications & Offers’ plan costs
anything between $40 to $170 per user per month.

What I Like/Dislike About Microsoft Dynamics:

Like:
  Provides a highly collaborative environment (users can interact in
Yammer)
 Extensive customer support options, including phone and live chats
 Highly customizable and scalable ERP software
 Gives server-to-server authentication to enhance data security and data
management
 Compatible with numerous platforms, including iOS and Android
 Improves visibility of Key Performance Indicators (KPIs), like revenue,
turnover and underlying issues
 Extensive automation available

Dislike:

 Doesn’t provide 24/7 customer support

 Doesn’t offer a free trial period

Product Updates:

 The ability to access more data and knowledge will assist them in
predicting, comparing yearly forecasts, and more.
 Leverage the power of data and AI to enhance content creation and
delivery in marketing.

3. Sage 300.
Sage 300 is a Windows-based ERP system that runs on Microsoft SQL.
Currently, it has over 2 million global users and is perfect for small and
medium businesses.

Key Features:
  Manage Multiple Companies: This ERP software system makes it very easy
to manage multiple companies and accounts. It also makes it easier to
report results by the company and consolidated company.
 International Business Made Simple: International business can be
complicated, but Sage 300 makes it easier by maintaining an unlimited
number of currencies, exchange rates, and automation of gains or losses
from fluctuations.
 Inventory Management: Inventory management tools take care of
essential steps like shipments, returns, and adjustments. Sage 300 also
offers multi-location inventory tracking.
 Automate Finances: Your entire finance management is automated, along
with the monthly bank statement reconciliation

Pricing Plans:

The pricing is personalized and quote-based. It depends on a wide

range of factors like user count, support needs, functionalities, and
more.

What I Like/Dislike About Sage 300:

Like:

 Comes in numerous languages, including English, Spanish, French,

Italian, and more
 Provides intelligent reporting
 Displays and helps track accounts payable
 Visualizes KPI dashboards
 Offers customer support via phone and live chat
 Wide range of integrations with applications like Amazon, Magento,
Shopify, Salesforce, and more
 Enables key stakeholders to get access to instant information for more
informed decision-making
  It can provide a solution for a wide range of industries such as
construction, manufacturing, wholesale distribution, chemicals, food and
beverage, professional services, and non-profit organizations
 24/7 access to support articles, production documentation, latest
updates and more
 Provides forums to share your review, tips, and suggestions

Dislike:

 Doesn’t offer a free trial

 Comes with a hefty price tag

Product Updates:

 Change Web UI font size to improve readability for users.

 Sales Withholding Tax is a new feature that allows businesses to
withhold tax at the time of invoicing customers.

4. Odoo.

Odoo is a comprehensive, all-in-one business ERP software system

that offers a wide range of applications like CRM, project
management, ERP modules, inventory, and warehouse management.

Key Features:

 Inventory Management: Odoo has a unique, double-entry inventory

management system that tracks the entire product journey from
manufacture to sale.
  Quality Checks: The ERP software can automatically ensure quality checks
for the manufacturing department.
 Dedicated Customer Portals: The dedicated customer portals ensure
customer data is stored and accessible in a highly organized manner.
 Centralized Employee Database: The ERP software system can pool all
human resources data and the details of the entire workforce on the
same platform for instant access.
 Automatic Stock Adjustments: A feature tailor-made for ecommerce
business, stock can be maintained by automatic stock adjustments.

Pricing Plans

Initially, the ‘Odoo Enterprise’ plan offers a 15-day free trial period.
After that, the price is $24 per user per month (paid annually). You’d
have to pay extra if you require additional apps. Other than that, the
‘Odoo Community’ plan is entirely free for use.

What I Like/Dislike About Odoo:

Like:

 Offers a wide range of hosting choices, including cloud hosting, on-

premise hosting, or Odoo cloud platform
 Multi-language customer support teams (English and French)
 Email and live chat support
 Get to use your own domain name
 Offers an excellent free lifetime offer (if you don’t install extra
integrations) called Odoo community
 Option for a wide range of integrations (DHL Express, FedEx, eBay, VoIP,
and more)
 Highly customizable since it is an open-source ERP software
 Automated invoicing procedure
 Offers 15-day free trial period
Dislike:

 Customer support is available only from Monday to Friday (24/7 not

available)
 A beginner might find it challenging to operate
 Additional payment for every extra app installed (difficult for those on a
budget)

5. Infor.
Infor is a cloud-based ERP software system that caters to a wide range
of industries, such as manufacturing, healthcare, and retail. Its modern
end-to-end solutions are powered by artificial intelligence.
Furthermore, it is built on the powerful Infor Coleman AI platform.

Key Features:

 Data Analytics: With its in-built data analytics suite, it can provide
actionable insights for businesses to adopt. Moreover, it can handle a
large amount of multi-dimensional data, which can help you visualize
the results in several ways.
 Planning and Scheduling: It allows workforce planning that can help
businesses plan the production and take care of scheduling. It also
makes sure that there’s no shortage of workers, and production
requirements are met.
 Workforce Management: It optimizes the hiring process and ensures that
you hire the right talent for the right positions.
 Asset Management: It helps you maximize the reliability and performance
of assets, predict failure, carry out preventive actions, and streamline
various business processes.

Pricing Plan:
The pricing details are not available on the website. You have to get in
touch with the company for a detailed quotation.

What I Like/Dislike About Infor:

Like:

 Offers both on-premise and cloud deployment

 It is compatible with all mobile devices, including tabs, etc.
 24/7 customer support (email, phone, social media and live chats)
 Highly customizable
 It’s a multi-language platform for maximum outreach
 Allows excellent collaboration between business units
 Allows a high level of automation of workflows
 Excellent job-tracking feature (all along the funnel from manufacture to
sales)

Dislike:

 It isn’t very compatible with Excel

 Running tasks in the background can cause the ERP software to slow
down
 Can be challenging to use for a beginner
 Customer support may not be rapid
 Drill-down options are available but limited

6. Syspro.
Based out of South Africa, Syspro is an ERP software platform that
focuses on streamlining business activities like financial, warehouse,
and inventory management across the entire business supply chain
and operations.
It specializes in the manufacturing resource planning and distribution
sectors and is currently used by more than 300,000 professionals
worldwide.

Key Features:

 Business Digitalization: The ERP software system is focused on adopting

emerging, value-adding technologies, and using AI to facilitate the
integrations.
 Security Management: four-dimensional security management takes care
of access levels, controls, visual monitoring, and auditing.
 Advanced Technology Architecture: The ERP software provides a unique
combination of robust, scalable solutions that minimize risk and
maximize ROI.
 Advanced Financial Management: Syspro delivers core financial and
accounting functions and provides essential insights to minimize
financial risk.

Pros:

 Can be deployed in the cloud

 Allows highly personalized workstations
 Engaging, flexible, fast, intuitive, and user-friendly (AVANTI adaptable
interface)
 Instant business insights for immediate action
 Offers high scalability
 Offers APIs and services for improved integration
 Use of BOT agents that allow the automation of redundant steps
 Visualization of activity dashboard using graphs and charts
 Real-time predictive analytics modules
 Extremely secure servers ensuring data integrity
 Not much need for costly upgrade and additional IT support
Cons:

 Customer support could be better

 Direct supplier and transportation relationships are missing
 Brand recognition is limited

Pricing Plans:

Syspro doesn’t display the pricing plan options on the official website.
You have to contact the company to receive a personalized quote.

7. SAP Business One.

Dubbed as an ERP software system for small businesses
(SMBs), SAP provides visibility and complete control of all the aspects
of your business. Not best for mid-market businesses, it’s integrated
with the SAP HANA platform and boasts more than 100,000 users.

Key Features:

 Financial Management: Helps to improve margins, reduce errors, and

enhance profitable decision making.
 Sales and Customer Management: Enables overseeing the entire sales
process and customer lifecycle more efficiently.
 Reporting & Analysis: Design detailed reports on all aspects of sales
funnel, from forecasting to pipeline tracking.
 Customer Management: Store all your customer information in a central
repository for ready access.
 Marketing Campaign Management: Create and manage marketing
campaigns to convert prospective leads into customers.

Pros:
  In-built business analytics
 GDPR-compliant (General Data Protection Regulation)
 Multiple deployment options (cloud, on-premise, and mobile)
 Offers various extensibility options (self-services customization,
application extensions, service layer development)
 24/7 support for critical issues via phone and online support
 Reduce duplicate costs
 Compatible with Windows, Android, Linux, Mac, and iOS
 Offers a wide range of integrations, such as Hybris Cloud, Dell Boomi,
MuleSoft, and more
 Offers a free trial period

Cons:

 Can be challenging to use for first-time users

 Beginners may find the design layout a bit challenging to navigate
 One of the pricier options in the market
 Your work won’t be saved automatically after every few minutes

Pricing Plans:

The pricing can vary based on several factors like deployment,

integrations, and add-ons required. Usually, for a professional license,
the price is $94 per user per month. For a limited license, the price is
$54 per user per month. However, to get the exact quote, you’d have
to get in touch with their sales representative.

8. Workday.
Workday is an on-demand cloud-based ERP software aimed at
medium and large enterprises. Its primary focus areas are financial
management and human capital management.
The best part is that it is relatively inexpensive and quick to set up. The
entire business model of Workday involves giving subscriptions to use
various services rather than selling the tool.

Key Features:

 Business Planning: Provides comprehensive financial and workforce

planning to help businesses become adaptive and flexible.
 Financial Management: Provides holistic management like accounting,
finance, audit and internal controls, financial planning, expenses,
inventory, and much more.
 Human Capital Management: It offers a comprehensive set of functions
like talent management, workforce planning, payroll management,
people experience, recruiting, compensation, and more.
 Analytics: In-built analytics module aids in making data-driven decisions.

Pros:

 Phone, email, and online support

 Compatible with both iOS and Android mobile devices
 Comes with excellent data security protocols to ensure data integrity
 Provides an exceptional collaborative environment
 Mobile-friendly
 Offers extensive third-party integrations
 User-friendly and intuitive interface

Cons:

 Doesn’t offer a free trial period

 Cloud-based (cannot be used by businesses with specific on-premise
requirements of ERP systems)
Pricing Plans:

The pricing details aren’t available on the website. To get a

personalized quote, you need to contact one of the sales
representatives.

9. Deltek.
Deltek is an ERP system that focuses on delivering business solutions
to clients and help them automate and connect project life cycles that
fuel their business. It lets you holistically manage, develop, deliver, and
measure every aspect of your business. What makes it stand apart
from many of its counterparts is that it offers both cloud and on-
premise hosting options.

Key Features:

 Project and Portfolio Management: With features like winsight analytics,

enterprise planning, and scheduling tools, it also provides a platform
for project management with cost, reporting, and risk analysis.
 Information Management and Collaboration: It gives you access to all the
information via a single repository, which empowers teams for better
communication and speeds up approval and review procedures.
 Human Capital Management: An excellent feature that lets businesses hire
the right talent for the right position.
 Vantage Point for A&E and Consulting: A comprehensive solution for
architecture, engineering, and consulting firms to manage projects from
start to finish.

Pros:
  Highly scalable and acclaimed ERP software (provides increased ROI for
clients)
 User-friendly and intuitive interface
 Enhanced financial data and regulatory compliance
 Allows better collaboration between business units (access to real-time
information)
 Extensive automation of business processes available
 Integrated, built-in product development environment
 Supported by iOS, Windows, and Android
 Phone and online support available
 Fully integrated with Office

Cons:

 Doesn’t provide a free trial

 Timesheet corrections can be difficult

Pricing Plans:

The pricing is not available on the website. To get a detailed quote,

you have to get in touch with one of their sales representatives.

10. Epicor.
Built for manufacturing processes and growth, Epicor helps businesses
and manufacturers use data and automation to stay or increase
profitability.

Key Features:

 Comprehensive CRM: Helps businesses manage leads, customers,

contacts, and quotes.
  Planning & Scheduling: Anticipate and tackle changes in demand to
minimize downtime and disruption.
 Human Capital Management: Effective and efficient management of the
human capital, assign the right tasks to the right people and foster a
culture of collaboration.
 Enterprise Content Management: Manage, access, retrieve and store
documents and content any time on any device.
 Project Management: Helps you comprehensively plan and execute multi-
level projects.
 Sales Management: It manages your sales process throughout the sales
funnel. Helps provide accurate estimates, streamline the order-to-cash
cycle, and fulfill order processing flawlessly.

Pros:

 In-built data analytics (provides actionable business intelligence)

 Both cloud and on-premise choices are available
 Enables a highly collaborative environment
 Highly customizable and scalable
 Gives you the independence to work from any location and any device
 Compatible with Linux, Windows, Android, and iOS
 Offers excellent customer support via phone, email, live chat, and tickets
 Modular architecture allows you to opt for only the modules and
features you need
 IoT-enabled ERP software

Cons:

 Doesn’t offer a free trial

 Supports only English (no multi-language capability)

Pricing Plans:
The pricing starts from $175 per user per month. For a modular
architecture, you can pay for the specific features or modules that you
need. For a more customized and personalized plan, you can contact
the sales representatives for a quote.

11. Kronos.
Kronos is an enterprise application and comprehensive suite of
workforce management solutions, capable of handling end-to-end
functions and processes for your entire business. It boasts of some
impressive features, and more than 300,000 users globally.

Key Features:

 Payroll Processing: Streamlines the entire payroll process for added

efficiency, speed, and ease.
 Send Automated Alerts: With this ERP system, you don’t need to send out
alerts yourself. Simply create notifications and send them out at
predetermined intervals.
 Compensation Planning Tool: Using their comprehensive compensation
planning tool, create compensation cycles based on company or
business unit requirements.
 Compensation Management: Such systems offer a comprehensive solution
that eliminates the need for Excel and spreadsheets and makes the
workflow self-sufficient.
 ACA Management: It is one of the few enterprise resource planning
systems that offer comprehensive ACA (Affordable Care Act)
management.

Pros:
  In-built labor tracking and control to reduce errors (use touchscreens,
biometric terminals, telephone time tracking, and much more)
 High-customizability
 Enhances employee collaboration
 Use of in-built data analytics for actionable insights
 automated payroll processing and tax filing
 Offers a wide range of third-party integrations, such as Ready,
Dimensions, and Central from Workforce
 Phone, chat, online, and ticket-based customer support available
 Its mobile application is available
 Allows you to track ACA status of employees
 Secure handling and approval of pay rise procedures
 Cloud-based deployment (cuts down cost and increases efficiency)

Cons:

 Can be challenging to handle for a beginner

 Isn’t compatible with iOS
 Doesn’t offer a free trial
 Customer support could be improved
 On-premise deployment option isn’t available

Pricing Plans:

The price details aren’t available on their website. For a personalized

quote, contact one of their sales representatives.
What is ERP Software?
Enterprise Resource Planning (ERP) software tools are business process
management software that allows a business to organize the multiple
processes involved and manage all of them on a single platform.

These are highly powerful software systems that allow a company to

carry out all the ERP functions related to technology, services, finance,
and human resources.

A typical enterprise resource planning software consists of numerous

modules that cover the entire range of business functions. Each
module is dedicated to a business function and takes care of the entire
range of the specific function.

Here’s a list of all the modules included in a typical ERP software:

 Procurement: maximizes cost savings with the best procurement process

possible
 Production: aids in planning and optimizing production capacity
 Distribution: deals with issues like warehouse storage, supply, and
demand
 Accounting: covers comprehensive financial functions, along with
adhering to regulatory requirements
 Human resources: devoted to HR
 Corporate performance and governance
 CRM software: maintenance of customer relationships
 Sales: takes care of activities like forecasting, scheduling, order
processing and placing, and more

What Are the Benefits of ERP Software?

ERP software offers a lot of benefits. Some of these benefits when
using these systems are:

 Reduction of long-term costs (despite the high cost of set-up, efficiency

improves and saves overall cost)
 Improved accessibility to information
 Better collaboration between business units
 Generation of insightful reports and data analytics
 Facilitates making better, data-driven decisions
 Allows high-level customization
 Enhanced data security (protection to ensure smooth flow of data
between various stakeholders)
 Ease of meeting regulatory business compliance
 Scalability
 The efficiency of supply chain management is improved
 Help the business make accurate and reliable forecasts
 Reduce operational costs in the long run

Understanding the benefits of ERP as they pertain to your business is

key to deciding if such a system is needed.
ERP Accounting Module
ERP Accounting module is an app that collects data and drafts reports of
accounting operations, receivables, cash flows, payables, etc. It provides
your enterprise with the necessary tools to manage financial issues.

You can significantly increase the performance of your company by

automating tasks. Especially accounting tasks that require a high degree
of accuracy. For this, you can always rely on your ERP. It gives you access
to real-time data from any location. This implies that your database is
updated immediately when changes occur.

The ERP Accounting Module is ideal for managing your company’s

finances with an added advantage that it can be integrated with other
modules or units. There will be no mistakes in calculations and also
complete transparency. You will be able to see your company’s income
and expenses. This information is used by the management staff to make
better financial decisions and plan for projects.

Common features of every ERP accounting module

 Client database: Here, all the information about your customers is

stored. You can give your employees access to clients' data such as
credentials, financial transactions, and balance sheets. This is used
to provide better customer service.
 Accounting system: it frees your employees from tons of paperwork.
All your paperwork will become online reports and sheets that can
be accessed by your employees.

 Asset management: This tool will help you manage your assets. You
can monitor the assets through their life cycle.
  Financial analytics: It gives you the ability to monitor your
receivables, payables, etc. in real-time from the dashboard. The UI is
user-friendly and easy to understand.
 Forecasting: The accounting module gives you precise forecasts
based on the present state of your enterprise and from reports.
 Integration with different systems: The finance module should be
able to exchange data with other apps or modules.

Now, you should know what to expect when getting an ERP finance
module. This module also has its functions and subsystems — systems
that we will talk about below.

General Ledger
It is the heart of the finance module and gives you total control of data
and its integrations with the different departments in your business. It
provides a central location for accounting info needed for better decision
making. All the summarized data about your finances can be found here.
You are also able to set up Chart of Accounts used by your company.

Accounts Receivable
This subsystem takes care of the financial interactions with customers that
use your enterprise’s outputs. It gathers finance receipts and performs
tasks like tracking invoices for clients whose payments are pending. This
function also allows you to classify your accounts. It provides you with a
real-time credit management system. Your reports will have detailed
analysis, and also statements from clients that owe your company
payment. This system will also remind you about unpaid invoices.

Account Payables
This subsystem takes care of the input your enterprise provides in the
form of products or services. It gives your company the ability to quickly
register, track, and authorize incoming invoices. The form for approving
invoices is simple to use. Invoices can also be generated automatically
when needed. It can also match receipts with invoices automatically.

Asset Management
Fixed assets management is one of the main financial functions. This
section keeps the assets ledger that provides data related to asset
transactions. Assets management keeps track of your assets through their
life cycle. It manages fixed asset investment and disposal, depreciation
cost, revaluation.

Cash Management
All the data relating to the cash flow of your enterprise can be found here.
It processes and analyzes all the money and bank transactions due to the
payment of invoices. The cash management subsystem also analyzes
financial transactions within a specific period of time and provides data on
the source of income and use of funds to control liquidity. All this is
important for your company to meet payment obligations.

Benefits of using the Codejig ERP accounting module

 Decreases the cost of running your company by eliminating

unnecessary expenditure.
 The Codejig accounting module gives users the possibility to add or
remove features. Therefore, you will end up with an ERP that is
specific to your business.
 This accounting module gives you complete control over your
companies finances, thereby ensuring productivity and customer
satisfaction.
 You can manage your accounting operations from any location.
 The various departments of your company will be able to work with
the financial department to ensure better decision making.

The finance department is one of the key sections of every business.

Having good control over this department ensures that your company
succeeds in this competitive era. There is no better way to manage it than
using a good ERP system.
ERP Modules: Types, Features &
Functions
Enterprise resource planning (ERP) systems have become a critical tool for businesses
over the past several decades. An ERP solution automates critical business processes
and serves as a shared database for all financial and operational information from
across the company. It pulls this data from a number of modules built to help various
departments, from accounting to supply chain to human resources, perform their
individual functions.

An ERP solution gives all employees access to the information they need to answer
important questions about their department’s current performance and future planning,
as well as target areas for improvement. This single source of information minimizes
data accuracy and consistency issues and ensures everyone is looking at the same
numbers, no matter their role. It also drives better decision-making that leads to more
efficient processes and cost savings. Additionally, ERP can automate many tasks,
reducing errors and freeing up employees to focus on more strategic work.

Common ERP modules support back- and front-office functions like finance and
accounting, procurement, manufacturing, inventory management, order
management, warehouse management, supply chain management, customer relationship
management (CRM) procurement and workforce management. More functionally rich
solutions may also include professional services automation (service resource
management), human resources management, ecommerce and marketing automation.

What Are ERP System Modules?

Each ERP module is designed for specific business functions, providing the data and
supporting the processes that will help those employees do their jobs. Every module
plugs into the ERP system, so the system provides a single source of accurate data,
even as the business adds new modules. If the ERP system is the toolbox, the modules
are the screwdriver, wrench, hammer and other tools in the box that each have specific
uses.
How Do ERP Modules Help Businesses?
The modular design of ERP allows it to meet the shifting needs of a business and is a
big reason this software has become ubiquitous. An organization can purchase only
the modules relevant to its business model, operations and key challenges. It can then
add ERP modules to address new needs or challenges as the organization evolves.

The beauty of modular ERP software is that a company can add this functionality
while keeping the same foundation in place. There is no need to implement a new
ERP system—a lengthy process—when requirements change, as long as the company
chooses an established ERP provider with a wide selection of modules.

How Do ERP Vendors Charge for Each Module?

There is a wide variance in what is included in an ERP purchase and which modules
vendors charge extra for. Typically, the core financial functions are included with the
base package, while features like CRM and human resources management may cost
extra. Some offerings are bundled by industry so, for example, a manufacturer would
buy a package with supply chain management included or a retailer would buy a
package with commerce included. On-premises ERP vendors typically charge an
upfront per-user license, while software-as-a-service (SaaS) vendors charge on a per-
user, per-month or year basis. In some cases, there are transaction-based charges.

13 ERP Modules and Their Features

This graphic sho ws the 13 ERP modules and
how they work together.

1. Finance
The finance and accounting module is the most important ERP module because it allows
businesses to understand their current financial state and future outlook. Key features
of this module include tracking accounts payable (AP) and accounts receivable (AR) and
managing the general ledger. It also creates and stores crucial financial documents
like balance sheets, payment receipts and tax statements.

The financial management module can automate tasks related to billing, vendor
payments, cash management and account reconciliation, helping the accounting
department close the books in a timely manner and comply with current revenue
recognition standards. It also has the data that financial planning and analysis employees
need to prepare key reports, including profit and loss (P&L) statements and board
reports, and run scenario plans.

2. Procurement
The procurement module, also known as the purchasing module, helps an organization
secure the materials or products it needs to manufacture and/or sell goods. Companies
can keep a list of approved vendors in this module and tie those suppliers to certain
items, helping with supplier relationship management. The module can automate requests
for a quote, then track and analyze the quotes that come in.
Once a company accepts a quote, the procurement module helps the purchasing
department prepare and send out purchase orders. It can then track that purchase order
as the seller turns it into a sales order and ships the goods, automatically updating
inventory levels once the order arrives.

3. Manufacturing
The earliest version of ERP, material requirements planning (MRP) systems, were designed
for manufacturers, and manufacturing remains a key piece of ERP. Today, ERP
systems typically have a production management or manufacturing execution system
(MES). The manufacturing module helps manufacturers plan production and make sure
they have everything they need for planned production runs, like raw materials and
machinery capacity. During the manufacturing process, it can update the status of
goods-in-progress and help companies track actual output against forecasted
production. It also provides a real-time picture of the shop floor, capturing
information on items in progress and finished goods. It can calculate the average time
to produce an item and then compare supply with forecasted demand to plan adequate
production.

4. Inventory Management
The inventory management module enables inventory control by tracking item quantities
and location down to individual SKUs. This module offers a complete picture of not
only current but also incoming inventory, through an integration with the procurement
tool. This piece of software helps businesses manage inventory costs, making sure
they have sufficient stock without tying up too much cash in inventory. An inventory
management application can weigh sales trends against available product to helps
companies make informed decisions that boost margins and increase inventory turn (a
measure of how often inventory is sold over a certain period). It can help prevent
stockouts and delays, which enhances customer service.

Businesses that lack other supply chain management modules may also use the
inventory management application to handle purchase orders, sales orders and
shipping. Larger organizations will need a version of this solution that can track
inventory across multiple locations.

5. Order Management
An order management module tracks orders from receipt to delivery. This piece of the
ERP feeds all orders to the warehouse, distribution center or retail store after
customers place them and tracks their status as they’re prepared, fulfilled and shipped
to the customer. The order management module prevents orders from being lost and
boosts on-time delivery rates to keep customers happy and cut unnecessary expenses
for expedited shipping.

More advanced order management applications can help a company determine the
most cost-effective option for fulfilling an order—a store vs. a warehouse vs. a third-
party fulfillment partner, for example—based on available inventory and the buyer’s
location.

6. Warehouse Management
A warehouse management module can deliver a rapid return on investment for businesses
that operate their own warehouses. This application can efficiently guide warehouse
employees through all warehouse processes based on the layout of the facility, from
putaway when shipments arrive to picking to packing and shipping. It can also help
companies plan labor based on expected order volume. The warehouse management
module can support different picking strategies like batch picking, wave picking and
zone picking depending on which is most efficient for a given business, and some
modules can show employees the most efficient pick path.

When the warehouse management module is integrated with inventory management

and order management applications, employees can quickly find the right products
and get shipments out the door quickly. Faster delivery ultimately increases customer
satisfaction.

7. Supply Chain Management

A supply chain management module tracks each step in the movement of supplies and
goods throughout the supply chain, from sub-suppliers to suppliers to manufacturers
to distributors to retailers or consumers. It can also manage any materials or products
returned for refund or replacement.

As noted earlier, supply chain management can include a wide array of modules like
procurement, inventory management, manufacturing, order management and
warehouse management. However, it may have functionality beyond the core
capabilities of those modules.

8. Customer Relationship Management (CRM)

The customer relationship management (CRM) module stores all customer and prospect
information. That includes the company’s communication history with a person—the
date and time of calls and emails, for example—and their purchase history. A CRM
improves customer service because staffers can easily access all the information they
need when working with a customer.

Many businesses also use CRM to manage sales leads and opportunities. It can track
communication with prospects and suggest which customers should be targeted for
certain promotions or cross-sell opportunities. More robust CRM modules may
support customer segmentation (enabling more targeted marketing) and advanced
contact managers and reporting tools.

9. Professional Services Automation (Service Resource

Management)
A professional services automation (PSA) module, also called a service resource
management module, allows an organization to plan and manage projects. Services-
based businesses often use this module. The application tracks the status of projects,
managing human and capital resources throughout, and allows managers to approve
expenses and timesheets. It facilitates collaboration between teams by keeping all
related documents in a shared place. Additionally, the PSA module can automatically
prepare and send bills to clients based on rules around the billing cycle.

10. Workforce Management

A workforce management module is similar to a human resource management module
but is designed for companies with more hourly than salaried employees. It can
monitor workers’ attendance and hours and measure things like employee productivity
and absenteeism.

Payroll could also fall under the workforce management module. A payroll sub-
module automatically distributes paychecks to employees on a set schedule with the
appropriate taxes deducted and handles expense reimbursement. It can also provide
reports on payroll expenses, total overtime hours and similar KPIs.
11. Human Resources Management
A human resource management (HRM) or human capital management (HCM) module
usually encompasses all the features of a workforce management application and
offers additional capabilities. HRM could be viewed as CRM for employees. This
popular module has detailed records on all employees and stores documents like
performance reviews, job descriptions and offer letters. It tracks not only hours
worked but also paid time off (PTO)/sick days and benefits information.

Since the HRM module stores a vast amount of information on every employee across
the organization, it eliminates a lot of duplicate or inaccurate data that many
organizations store in various spreadsheets.

12. Ecommerce
Certain ERP vendors offer an ecommerce module for businesses that want to sell online.
This module allows companies to quickly launch a business-to-business (B2B) or
business-to-consumer (B2C) ecommerce website. Leading commerce applications
include user-friendly tools that allow employees to easily add new items, update
product content (item descriptions, titles, specs, images, etc.) and change the look and
feel of the website.

When the ecommerce application is integrated with other ERP applications, all
payment, order and inventory information feeds from the ecommerce module into the
shared database. That ensures all transactions are added to the ledger, out-of-stock
items are removed from the site and orders ship on time.

13. Marketing Automation

Like with ecommerce, certain software providers have developed a marketing
automation module. A marketing module manages marketing campaigns across digital
channels like email, web, social media and SMS. It can automate email sends based
on campaign rules and has advanced customer segmentation features, so customers
only receive relevant messages.

Marketing automation software, whether part of the ERP system or a separate

solution, can provide detailed reports on the performance of campaigns to shape
future marketing plans and spend. These applications increase leads, customer loyalty
and, over time, sales.
Choosing the Right ERP Modules for Your
Business
While the ERP modules a business should invest in will vary based on business
model, industry, current obstacles and other factors, there are a few modules that most
organizations need to run their business operations. Every company needs a finance
and accounting module to operate, monitor its financial health and ensure its bills are
paid. It’s difficult to run a business without software that can provide financial
information and execute basic accounting tasks.

Though not as critical as finance and accounting, almost every company—regardless

of industry, and whether it’s product- or services-based—depends on some type of
customer, so CRM is another module that would benefit most businesses. Similarly,
the workforce management or HRM module is a worthy investment for most
companies with more than a few employees. Employees must be paid on time, and
employers need a central place to track their information and career development.

Any products company—a category that includes almost all manufacturers,

distributors and retailers—will benefit from a supply chain management module.
Most organizations start with inventory and order management modules, since those
are crucial to daily operations, and might later add solutions for manufacturing,
warehouse management and procurement.

Services businesses like consultancies, agencies and maintenance and repair

companies could realize a fast return on investment with a project management
module. It automates complex, time-intensive billing processes and simplifies
resource planning for projects.

Commerce and marketing automation are both pieces of software that some would not
put under the ERP umbrella, though many businesses rely on them to attract and
convert customers, especially as the internet has become a primary driver of new
business. Though there are plenty of marketing automation and commerce solutions
available from non-ERP vendors, solutions from your ERP provider offer a tighter,
more reliable integration and may share a common user interface that reduces the
learning curve and increases adoption among employees.
Purchasing and implementing an ERP platform used to be intimidating, even
overwhelming, but by beginning with an ERP system that’s right for your business  allows
you to hit the ground running with the foundations and build it out as you grow. The
ideal ERP modules for your business is one that meets your need right now and is
scalable to help you meet the challenges and opportunities that growth presents.

ERP Modules FAQs

What are ERP modules?
ERP modules are applications dedicated to certain business functions and processes.
All modules are integrated with the ERP system’s central database so there’s a single
source of accurate data. This also allows different systems — like finance and
inventory management, for example — to easily exchange information and work
together to execute more complex tasks.

What is ERP and its types?

ERP stands for enterprise resource planning and is a platform many businesses rely on
to support their daily business operations. Systems that manage key processes related
to finance, supply chain, HR, customer relationship management (CRM), project
management and more are all connected to the ERP.

There are multiple delivery models for ERP, including cloud, on-premises and hybrid.
A cloud system runs on remote servers and may be managed by the software vendor,
while an on-premises system requires local, company-owned servers. A hybrid
approach blends the two, combining aspects of both on-premises and cloud ERP
platforms.

What are the mandatory modules of any ERP system?

Business requirements determine which ERP modules a company needs, but most
start with a finance module to automate accounting processes, track all financial
information and provide key reports. A CRM is another popular module, as just about
any company has customers to manage. Products-based businesses typically need
inventory management, order management and other supply chain-related modules,
while services organizations often require a professional services automation
application.