7 Standard Modules in ERP Software

You've comprehended what an ERP system is, its types of development, and uses. The explanation of ERP modules is typically outlined in ERP literature, providing a company's initial grasp of ERP software. Now, it's essential to understand the typical modules found in a general ERP system.

1. Accounting

   An automated accounting system functions to manage incoming and outgoing cash flows within a company. This ERP module also assists companies in handling various accounting transactions such as expenses, balance sheets, general ledger, bank reconciliation, budgeting, tax management, and others. With this ERP module, company financial reports can be generated with just a few clicks.

2. Customer Relationship Management (CRM)

   The ERP CRM module helps enhance sales performance through improved customer service and fostering healthy relationships with customers. This module also aids companies in managing and tracking prospect and customer information, including communication history, calls, meetings, transaction data, contract duration, and more.

3. Human Resources (HR)

   The HRM (Human Resource Management) module enhances the efficiency of the HR department within the company. This ERP module assists in managing employee information such as performance appraisals, job descriptions, skills, attendance, and leave. Payroll Management, a crucial sub-module, manages salaries, travel expenses, and cost refunds.

4. Sales

   This ERP module functions to handle sales workflows such as sales reports, offer proposals (RFP & RFQ), sales orders, and invoices. When integrated with CRM, accounting, and inventory systems, the sales system ensures more accurate forecasted sales data, crucial for companies in trade or retail.

5. Inventory

   The inventory module is helpful for tracking and managing stock in the company, including monitoring inventory levels, scheduling replenishment, forecasting, and creating inventory reports. A robust ERP system allows integration of the Inventory module with barcode or SKU scanners and is more effective when integrated with the purchasing module.

6. Purchasing

   This module manages processes involved in goods procurement, including supplier lists, demand and supply analysis, Purchase Orders, Goods Receipt Notes, and stock updates. Integration with the inventory module optimizes stock procurement management, improving purchasing management by procuring goods proactively.

7. Manufacturing

   This module improves efficiency in the manufacturing process, covering product planning, material routing, daily production monitoring, and Bill of Materials generation. A sound ERP system integrates manufacturing modules with barcodes or RFID scanners, offering flexibility for customization and addition of various modules like purchasing, accounting, human resource management, supply chain management, and more.

This way, measuring overall equipment effectiveness becomes easier through real-time reporting tools.