Accounting and Manufacturing: Two Types of ERP Software

Enterprise resource planning (ERP) software encompasses a diverse group of applications. Most solutions are modular and allow customers to pick and choose only those modules needed for their unique business processes. Other solutions are industry specific and include only the functionality required, pre-configured to meet typical requirements, and provide powerful tools and features essential to that particular business model.

The most common ERP modules are solutions developed for the management of manufacturing and accounting functions, two major aspects of many businesses. These types of programs specialize in efficiency and creating a more streamlined business model by implementing various features and tools. These features may be industry specific and can vary from system to system. To determine the best solution for your organization, it is essential that you understand the different options available from prospective vendors.

Accounting Modules

The accounting modules offered as part of all ERP solution suites are the most frequently selected for implementation and are usually the first module implemented. Companies of all sizes require assistance with financial management. Powerful tools are able to track, place, and receive customer orders through an automated system to eliminate human error and enable faster customer response. Visibility into all financial transactions allows executives to make better and more informed decisions based on live data.

Accounting systems are powerful additions to any business model and can greatly increase productivity and profits. Compliance issues are also avoided with accounting ERP systems since they remain up to date on federal and state regulations. The ability to avoid costly overheads and fines is powerful motivation for most small companies to implement accounting ERP programs since their profits are low in comparison to large companies.

Manufacturing Modules

Manufacturing-based ERP systems focus on the efficient operation of the production process, including raw material and finished goods inventory and shipping/logistics transactions. Leading manufacturing modules place and receive orders for different components, subassemblies, and raw materials from suppliers. Advanced manufacturers required to meet just-in-time requirements from their customers use the ERP functionality to match purchase orders to customer orders and schedules shipments to arrive as needed by the production schedule.

The modules typically document and produce receipts and invoices. Tools are also available to track orders through the manufacturing process noting part numbers, machines used, lot numbers and other pertinent data. They provide a comprehensive solution that can place, fill, and ship orders automatically.

The manufacturing modules provide a number of benefits to the company. The efficiencies produced allow more time and resources to be focused on customer satisfaction and strategic initiatives. Product costs are better defined, human data entry errors are reduced, Bill of Materials are more accurate, inventory is optimized to free more cash flow for other investments, and warranty tracking improves.