Enterprise resource planning (ERP) is a category of business-management software. ERP provides associate integrated read of core business processes, typically in period, mistreatment common databases maintained by a direction system. ERP systems track business resources-cash, raw materials, production capability and therefore the standing of business commitments: orders, purchase orders, and payroll. The applications that frame the system share knowledge across numerous departments (manufacturing, purchasing, sales, accounting, etc.) that give the info. ERP facilitates info flow between all business functions, and manages connections to outside stakeholders.
Enterprise system computer code could be a multibillion-dollar trade that produces elements that support a spread of business functions. IT investments became the biggest class of cost in United States-based businesses over the past[which?] decade. tho' early ERP systems targeted on giant enterprises, smaller enterprises more and more use ERP systems.
The ERP system is taken into account a significant structure tool[by whom?] as a result of it integrates varied structure systems and facilitates error-free transactions and production. However, developing associate ERP system differs from ancient system development. ERP systems run on a spread of constituent and network configurations, usually employing a information as associate info repository.
Functional areas of ERP
- Financial accounting: General ledger, fixed asset, payables including vouchering, matching and payment, receivables cash application and collections, cash management, financial consolidation
- Management accounting: Budgeting, costing, cost management, activity based costing
- Human resources: Recruiting, training, rostering, payroll, benefits, 401K, diversity management, retirement, separation
- Manufacturing: Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, manufacturing process, manufacturing projects, manufacturing flow, product life cycle management
- Order Processing: Order to cash, order entry, credit checking, pricing, available to promise, inventory, shipping, sales analysis and reporting, sales commissioning.
- Supply chain management: Supply chain planning, supplier scheduling, product configurator, order to cash, purchasing, inventory, claim processing, warehousing (receiving, putaway, picking and packing).
- Project management: Project planning, resource planning, project costing, work breakdown structure, billing, time and expense, performance units, activity management
- Customer relationship management: Sales and marketing, commissions, service, customer contact, call center support - CRM systems are not always considered part of ERP systems but rather Business Support systems (BSS).
- Data services : Various "self-service" interfaces for customers, suppliers and/or employees
