Find the Right ERP Modules for Your Company

Most Enterprise Resource Planning (ERP) solutions are modular – the organization selects and implements only the modules it requires. If its needs change at a later date, other modules can be added as needed the meet the new requirements. The leading ERP solutions offer dozens of modules from which to choose that can generally be grouped into four categories, manufacturing, financial control, human resources, and sales and distribution. In order to find the right modules for a company, it is important to understand the different modules and what they can add to a business.

Manufacturing Modules

ERP modules based around manufacturing increase the productivity of the manufacturing process. Better organized data and real time updates enable a more efficient production process and lower costs. Manufacturing functionality found in most ERP solutions include these modules:

  • Bill of Materials – provides detailed bill structures, component specifications, and historical production data.
  • Inventory Management – track raw materials from receipt to the shop floor and finished goods from the shop floor to the warehouse and out the shipping dock.
  • Material Requirements Planning – enable more effective planning of purchasing and production processes.
  • Purchase Order Reconciliation – maintain accurate purchasing records by tracking requisitions, due dates, and shipments.
  • Work Order Tracking – provides real time visibility into work-in-process.

Financial Modules

The ability to manage the finances of an organization is crucial. Financial modules protect profits and mitigate financial losses due to poor record keeping, while providing the tools to automatically produce compliance and tax reporting. Standard financial modules include:

  • General Ledger – the foundation of any accounting system that serves as the core information source for analysis of your business’ financial health.
  • Accounts Payable - manage cash flow, vendor invoices, cash disbursement, and reconciliation of checks issued.
  • Accounts Receivable – monitor and track customer account balances, apply payments to invoices, create recurring charges, and produce bank reconciliations.
  • Multi-Currency – execute financial transactions in the local currency and then convert balances to the preferred currency.
  • National Accounts Management – in conjunction with Accounts Receivable, apply payments from a parent company to the appropriate subsidiary account.

Human Resource Modules

These ERP modules maintain employee records and manage payroll functions that are critical for large companies with many employees. Performance, attendance, and monetary records for each employee can be easily updated for access and review by management. The most common human resource modules include:

  • Resource Management – functionality includes benefits administration, payroll, flexible spending accounts, and compensation management.
  • Workforce Management – lets HR departments manage resource scheduling, time and attendance, absence/vacation documentation, and performance support.
  • Talent Management – includes workforce recruitment, training, certifications and competency management, and succession planning.

Sales and Distribution Modules