Every business has various departments. This departments exchange and shares lots of informations with each other. This process takes so much time to communicate with each other to satisfy the customers and reach their demands on time.This is called Enterprise Resource Planning, or ERP. Normally ERP systems use the same database throughout an entire company to store various types of data for different computerized functions. When first developed, ERP systems were used only for large manufacturing companies.
ERP integrates all business processes like finance, HR, manufacturing, supply chain, services, procurement, and others into a single system.
ERP provide visibility, analytics, and efficiency across every aspect of a business. Using the latest technologies, ERP systems facilitate the flow of real-time information across departments, so businesses can make data-driven decisions and manage performance – live.
ERP systems perform financial and business planning functions, which might formerly have been carried out by many smaller standalone applications.
Components of an ERP Solution:
ERP software integrates many business applications and activities which enables the system to cater to most of the processes and department if not all.
The vital functional modules of ERP software:
Accounting and Finance
- General Ledger
- Accounts Payable
- Accounts Receivable
- General Journals
- Trial Balance and Financial Reporting
- Bank Reconciliation
- Cash Management and Forecasting
Manufacturing and Distribution
- Purchasing, Tracking & Sales Shipments of Inventory Items
- Track by Lot and Serial numbers
- Track Quality Tests
- Warehouse Management functions
- Conversion Tracking
- Tracking Labor, Overhead and Other manufacturing costs
- Provide the total cost of production
- Sales order creation
- Sales order processing
- Purchase order processing
- Online sales
- Track and monitor post-sales service to products in the field
- Service Contracts
- Product Lifetime Costing has become standard functionality in current ERP solutions.
ERP is highly competitive in present days, which makes imperative for such businesses to have an integrated idea that can enhance efficiency, diminish costs and increase in sales and to be profitability but most importantly, enable the organization to make accurate, informed and strategic decisions. An enterprise resource planning (ERP) system might be the answer to all these requirements. ERP technology integrates all aspects of business (resources, operations, monitoring, reporting, sales, accounting and finance, etc.) and empowers businesses to function smoothly by maintaining a single database