ENTERPRISE

RESOURCE PLANNING
CONTENTS
ERP
Types of ERP
Modules of ERP
Process flow of Procurement
Process flow of Sales
Process flow of Production and Inventory
Process flow chart
 ERP
Enterprise resource planning (ERP) is a software system that helps you run your entire business,
supporting automation and processes in finance, human resources, manufacturing, supply chain, services,
procurement, and more.

an ERP software system provides the automation, integration, and intelligence that is essential to
efficiently run all day-to-day business operations.

Types Of ERP:

There are three main types of ERP systems that function with different deployment model options. The
most common types of ERP systems include

• Cloud ERP

• On-premise ERP

• Hybrid ERP.
CLOUD ERP:
Cloud ERP refers to a type of business management software that is hosted on remote servers and
accessed through the internet.Cloud ERP systems enable users to access and use the software over
the internet.This approach offers advantages such as flexibility,scalability,and reduced
infrastructure costs for businesses implementing ERP solutions.
On-Premise ERP:
On-premise ERP refers to a type of business management software that is installed and operated
from a company's in-house servers.In this model,the ERP software is typically hosted locally on
the organization's hardware, and users access it within the company's network.On-premise ERP
systems tend to be more expensive upfront compared to cloud-based alternatives.
Hybrid ERP:
Hybrid ERP refers to the integration of on-premises and cloud-based enterprise resource planning
solutions.it allows businesses to leverage the benefits of both environments,combining the
flexibility of the cloud with the control of on-premise systems.This approach is often adopted to
accommodate specific business needs,data security concerns,or regulatory requirements.
MODULES OF ERP:

MODULES OF ERP
1)FINANCE

2)PROCUREMENT

3)MANUFACTURING

4)INVENTORY MANAGEMENT

5)ORDER MANAGEMENT

6)WAREHOUSE MANAGEMENT

7)SUPPLY CHAIN MANAGEMENT

8)CUSTOMER RELATIONSHIP
MANAGEMENT

9)PROJECT SERVICE RESOURCE

MANAGEMENT

10)WORKFORCE MANAGEMENT

11)HUMAN RESOURCE MANAGEMENT

12)ECOMMERCE

13)MARKETING AUTOMATION
Finance:

The Finance 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.

Procurement:

The Procurement Module, also known as the purchasing module, Companies can keep a list of approved
vendors in this module and tie those suppliers to certain items,.This module typically includes features such
as:

 Managing relationships with suppliers

 Initiating and managing requests for purchases

 Creating and tracking purchase orders for goods and services.

Manufacturing:

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.

Inventory Management:

The Inventory Management Module in ERP system is designed to manage and control an organization's
inventory or stock.It plays a crucial role in optimizing stock levels,tracking items,and ensuring efficient
handling of goods.

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.
Warehouse Management:

A Warehouse Management Module is designing for efficiently managing and optimizing the physical
aspects of warehouse operations.This module helps in assigning specific locations within the warehouse for
different items to optimize storage space and it also helps in coordinating the packaging of goods and
preparing them for shipment.

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.

Customer Relationship Management (CRM):

The Customer Relationship Management Module stores all customers and their prospect information
including contact details,purchase history,preferences and communication records.
Project Service Resource Management:

A Project Service Resource Management, also called a service resource management module, allows an
organization to plan and manage projects. Services-based businesses often use this module.

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.

Human Resources Management:

A human resource management (HRM) module usually encompasses all the features of a workforce
management application and offers additional capabilities.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.
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.

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.
Process flow of Procurement:

Purchase Requisition: Employees submit purchase requisitions for needed goods or services.

Request for Quotation: A RFQ is a formal document used to invite suppliers to submit quotes for the
supply of goods or services.

Quotation from Supplier: A quotation from a supplier is a formal document that specifies the prices,terms
and conditions under which a supplier is willing to provide goods or services to a potential buyer.

Purchase Order: A PO is a commercial document issued by a buyer to a seller,indicating the type, quantity
and agreed-upon price for goods or services.

Goods Receipt: The buyer receives and inspects the goods or services to ensure they meet the specified
requirements.

Invoice Approval:Upon satisfactory receipt,the buyer approves the supplier's invoice for payment.

Supplier Return: A Supplier Return involves sending back goods to supplier due to issues like defects or
incorrect quantity.
Process Flow Of Production and Inventory:

Goods Receipt: Goods receipt in inventory is the formal process of acknowledging and recording the arrival
of goods or products into a company's inventory system.

Material Requisition: The Production department generates a material requisition specifying the raw
materials needed for a particular manufacturing process.

Inventory Check: The inventory team checks the current stock levels to ensure there ia an adequate supply
of the required raw materials.

Transfer Order: A transfer order is created in the ERP system to transfer the specified quantity of raw
materials from inventory to production area.

Production: The goal is to Efficently use the transferred materials to produce finished goods.
Process flow of Sales:

Sales Order: A sales order is a document issued to confirm a customer's request for the purchase of goods or
services. It outlines the details of the products,quantities,and other terms agreed upon between the customer
and seller.

Delivery Note: A Delivery note itemizes the products included in the delivery, their quantities and often
includes other relevant details such as product descriptions,weights and any special instructions.The delivery
note serving as a record of what has been delivered.

Delivery Invoice: The purpose of a delivery invoice is to formally request payment from the customer for
the provided good or services. It serves as a billing statement.

Sales Return: A sales return refers to the process where a customer resturns previously purchased goods to
the seller. This could be due to defective goods or dissatisfaction with the product.In a sales return, the
customer requests a refund,replacement or credit for the returned items. The seller will issue credit notes or
refunds and adjusting inventory records.
Process Flow Chart:
Direct Sales

Sales Production Delivery Note

No Yes
Inventory Delivery
Invoice
Purchase
Transfer request(production)
requisition
Sales Return
quotation with Transfer out(Inventory)
Supplier
Transfer in(Production) Credit Note
Purchase Order

Goods Receipt
Note(goods added to Supplier return
inventory)
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