What is in ERP

There is a range of functions in every ERP system which work to a greater or lesser extent the same in every ERP system. Examples are:

  • Quotation processing
  • Customer Order processing,
  • Purchase Order processing,
  • Shipping processing,
  • Invoicing processing for Sales and Purchasing,
  • Outside Services processing
  • Goods receipt processing
  • Forwarding

These functions support order processes within the ERP system where a series of related documents (read: order types) are used. 

In addition, there are a number of functions that support the external and internal flow of goods within an industrial organization, such as:

  • Receive goods in Inspection and warehouse management,
  • Goods flow management between warehouses.

Then there are series of functions in which all basic data in an ERP system is supported, such as:

  • Item Maintenance and
  • Bill of Material (BOM) Maintenance, where each material, component or raw material is assigned its “own” unique item number, but also
  • Customer Data Maintenance and
  • Supplier Data Maintenance
  • Outside Service Maintenance
  • Vendor Requests for Quotes Maintenance
  • Shop Resource & Employee Maintenance

In most ERP systems from the large software suppliers, the financial administrative functions such as Administration and Chart of Accounts with sub functions are now also fully integrated. Often a series of functions are available to support financial settings and parameters in the system like Financial Site Maintenance and related functions.

There are, however, several ERP software suppliers who have created additional groups of functionality or functional areas for specific parts of the industrial organizations using those systems. CRM or Customer Relationship Management and QM or Quality Management are examples. Those additional systems or groups of functionality try to cover areas within the industrial organization with special functions like Sales and Marketing or Product Quality Control. In most ERP using organizations these groups of functionality often interrelate with the ERP system in place. Sharing the same data and tables like customer- and product tables which are used throughout the ERP system in such an organization.