ERP Features and Functionality

ERP Diagram

An Enterprise Resource Planning (“ERP”) system typically includes the following:

Sales Order Processing (“SOP”) which handles creation of sales (customer) orders, delivery, sales invoicing, and customer account management, and may include a ‘web shop’ (e-commerce);

Stock Control which keeps track of stock receipts and issues;

Purchase Order Processing (“POP”) which handles creation of purchase (supplier) orders, goods received, purchase invoicing, and supplier account management;

Material Requirements Planning (“MRP”) which aims to calculate what purchases and production are necessary to meet known (sales orders) and/ or projected (sales forecast) demand;

Capacity Planning/ Scheduling also previously called Manufacturing Resource Planning (“MRPII”) which aims to calculate what capacity is required to meet demand.

Many ERP systems include an accounting and payroll function, some provide ‘links’ to popular accounting packages. Those which include accounting and payroll have the advantage of real time updates of customer/ supplier accounting information and greater potential of tracking payroll hours against orders/ projects to identify areas of inefficiency.

You can see an online demo of the Central Accounting ERP system to give you some ideas on how ERP might be used in a number of different business situations to help plan, control, and report on the business operation.

 

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