Enterprise Resource Planning Software
Published November 02nd, 2016 by

Simplify Success by Maximizing ERP Software’s Functions

Simplify Success by Maximizing ERP Software’s Functions

What is ERP Software Development?

The most complicated software development is the ERP because it covers from end to end of the business process of an organization. It covers every process from product planning, development, manufacturing, purchasing, and marketing. ERP is also considered as an enterprise software application. It is usually designed to support a larger business that is accompanied by a dedicated team.

ERP is the acronym of enterprise resource planning and it allows every organization to use a system of combined applications. These applications are thoroughly planned and created by a set of in-house software experts. It manages the business and automates back office functions related to different fields such technology, services, and human resources. ERP software is principally the foundation of every business, from the smallest organization up to the largest organization.

Enterprise Resource Planning application is being used by the larger organization and its design requires customization and analysis of data. Hence, it also handles upgrades and deployment to maintain the application at its best function. On the other hand, small organizations are also using ERP software. Unlike the enterprise application, ERP application of smaller business requires the light weight of tasks. This application is often customized for the business industry you work in.

ERP software is comprised of different ERP modules and functions. It is sold individually, based on what fits the needs of an organization. The technical capabilities of the organization are the typical basis of what ERP module to purchase. Every module focuses on one specific area of business.

ERP is the solution to manage real-time back-office activities such as management of process and supply chain, prices, knowledge-based services, and configurations. It also includes the improvement of financial data accuracy, better project planning facilitation, employee life-cycle automation, procedures of business with critical standards and business needs assessment, and financial and accounting applications. The depreciating cost, human resources management and payroll and reduction of redundant tasks are also regarded.

The ultimate goal of the ERP software is to collate and store all the data. Afterward, it  shares them to various ERP facets that will improve the flow of data across the organization. ERP applications have been transformed over the years to fit the emerging new breed of business in the market. It helps the process of every transaction within the organization to become faster and more accurate. This is far from the traditional way of managing and disseminating the data.

Why to Implement ERP Software?

You might be thinking what ERP software can bring when it is implemented to one’s organization. There are a lot of benefits when using ERP software or application to your organization. Some of the top benefits are the following:

  1. Eliminates paper works and manual process

Enterprise Resource Planning Application helps every employee inside the organization to process and distribute faster than a manual process. Thus, it makes them more productive as they spend lesser time in collecting and disseminating data across the organization. They can focus more on their major task and generate a quality output of their work. In addition, the ERP application contributes to increasing the profit of the company. It also creates convenient and comfortable working environment to everyone.

  1. Eliminates unwanted process and systems

Another benefit of implementing Enterprise Resource Planning Application to your organization is the accuracy and efficiency of the generated information. Those unwanted process, information, and system have taken care of by the ERP software to save the time of every personnel. Hence, the results of eliminating those unwanted processes and systems do create better decision among workers. It contributes to the key decision making of every people within the company which sustains the business in the competition.

  1. Breaks the barrier of every personnel

The ERP application also enables every people inside the company to work holistically. It breaks every barrier in a different organization department such as information barrier. For instance, there are unfamiliar data that cannot be understood by a person in a different department. This creates barrier among other departments.

  1. Reduce Business Cost

The manual process of accomplishing task especially those back-office works requires manpower. But the ERP application helps you save money as this software does the job to manage the data efficiently. Even without sacrificing the accuracy of every generated report. Thus, it saves you as well from those unnecessary errors and inaccurate information.

  1. Improve data security

This is a common control system offered by Enterprise Resource Planning software. It allows the organization to have the ability to ensure that the key data of the company is not compromised. It protects every sensitive data in a single structure through the multiple security systems.

Types and Functions of Enterprise Resource Planning Modules

It is important to maximize the functions of the ERP software to make sure that you are getting what you are paying for. Every organization is composed of different departments. In every department, there are corresponding enterprise applications that will fit them. Big companies have an in-house team to operate and maintain every ERP application. It is important to have a dedicated team who has intensive knowledge in software for a long time. Thus, the team should have a full grasp of the business process of the organization.

One of the big benefits of developing ERP in-house is the copyright or the ownership rights that stay  in the company. Some of the basic departments in an organization are manufacturing department and finance department. Also, the inventory department, sale department and purchase department are included. Each department requires distinctive ERP modules and functions.

  1. Finance Module

The finance department of the organization uses the finance module. It plays a tool to consolidate all the financial activities in one interface. These interface screens are grouped into a single menu option. These options are what it’s called the finance module. There are several instances when to use finance module, especially in recording data. However, it is normally used on a day to day basis. Some of the typical examples are:

  1. Customer Account – Creating a customer’s account, especially your potential business partners, is one of the major functions of finance module.
  2. Vender Account – This module is used when a new vendor that will supply certain materials or products to your business has been identified.
  3. Bank Account – Finance module is used as well in creating a newly-opened bank account.
  4. General Ledger Account – It is used when a new type of transaction has been recorded.
  5. Enhancing Chart Account – Finance module is also used when major changes happen for the preparation of financial statement.
  1. Manufacturing Module

This is related to manufacturing department of the organization. Its role is to record all the transactions in manufacturing a specific product. Generally, data are put in this module as a record, or simply called ‘creation of a bill of materials’.  Work orders (WO) and work in progress (WIP) are under manufacturing module. These transactions are created to record completed work orders.

  1. Sales and Marketing Module

This module is popular to every sales people as it is related to every sales department of the organization. Sales order, picking, orders shipping, sales invoice and sales returns are the processes recorded in this module.

  1. Purchase Module

Procurement processes of raw materials are recorded in this module. ERP purchasing module identifies potential suppliers automatically. Negotiating price, awarding the contract to suppliers and billing processes are also identified. It is incorporated with the inventory control and production planning module. The purchasing module is usually accompanied by supply chain management software.

  1. Inventory Management Module

This module facilitates data recording in the inventory department of the organization. The activities are receipt of goods, delivery of goods, maintenance of materials and classifying all materials. It also enables you to issue materials to the manufacturing department. Rejections are also recorded with full details from the suppliers.

How Enterprise Resource Planning Helps Decision Makers?

The cost of enterprise resource planning usually ranges from $150,000 to $750,000. These amounts are only applicable to small to mid-size businesses. This is a big investment but with the right software especially to those small businesses, it will pay for itself quickly. ERP is a key player in every decision that will be made by the organization. Management is relying on every data showed by the ERP. Since the performance of every department within the organization will be recorded in ERP modules. Decision makers within the organization can easily understand and see how the business is doing financially.

Poor decision makings are often results of inaccurate data and timely access from the key information. These issues are not a problem anymore with the use of enterprise resource planning software. Instead, it will help you to access every data that you need with 100% accuracy rate. Thus, this is useful to the management who mostly plays the part of decision making. You can now deliver an effective and wise decision through the help of ERP software.

You can check the reviews at about the best Enterprise Resource Planning software that will improve decision making of your organization.

Keith Moore

Keith Moore has worked with several leading Android development agencies to build customized mobile apps enabling businesses to extend the use of their services to smart phones and mobile devices.

Our rankings are completely independent, transparent, and community driven; they are based on user reviews and client sentiment. These enterprise resource planning software companies had to earn their way up and didn't just pay their way up.

View Rankings of Best Enterprise Resource Planning Software Companies