Enterprise Resource Planning Systems

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This research paper focuses on offering a thorough examination of how the various ERP system modules assist in making sure that all facets of corporate administration are covered. The cross-functional computer program known as Enterprise Resource Planning (ERP), which is a Systems, Applications, and Products (SAP) creation, is made to assist organizations in managing all of their resources and supporting all of their internal business processes (Vinck, et al. 2015). The ERP system provides to the enterprises a centralized application that assists them in the management of various business processes taking place in different functional units and departments within those organizations by integrating this broad range of functions into one unified database.

Types of ERP Systems

Vendors sell various types of Enterprise Resource Planning software to their customers depending on the nature of their companies. To start with is the premises-based ERP software which is architected in such a way that it is a complex, large and a homogenous system and it can only be acquired from large legacy vendors to be used in large business enterprises. Deployment of premises-based ERP software requires retraining of the employees, re-engineering of the business processes, data analytics, back-end booster for database integration and ad hoc reporting. The second one is the cloud-based ERP software whose existence has been facilitated by the increased need for the companies to store their data in the cloud (Hedman & Borell, 2013). The other common type of ERP software is the multi-tiered ERP which is run under one environment due to issues such as different systems being run by various divisions, geographic variations in the firm and company mergers which result to different systems being brought together.

Enterprise Resource Planning System Modules

The decision regarding the kind of ERP software that an organization intends to use depends on the nature of the business that is whether it provides services or products to its customers and the specific business processes it targets on improving. Each of the ERP software has different modules that help in defining the various functionalities for each unit or department. Below is a detailed analysis of the ERP System modules that are essential for most of the organizations (Justesen, 2010).

Human Resource Module

This module is designed in such a way that it assists the team working in the human resource department in ensuring efficient management of the employees in the firm. It facilitates various functions such as proper tracking of the employee records, attendance tracking, job descriptions, management of employee information, the delegation of duties and evaluation of skill matrix (Justesen, 2010). An excellent example of the sub human resource module is the payroll system which assists in the efficient management of payment reports and workers' salaries.

Inventory Module

It comprises of functionalities such as master units, inventory control, and stock utilization reporting. The inventory module is designed in such a way that unique serial numbers are developed and used to identify and track the various items existing in the firm. By using these unique numbers, one can easily trace the current location of every stock in the organization and find out whether it is being put into the right use or not (Hedman & Borell, 2013).

Sales Module

The sales module helps in the management of the various sales transactions and processes such as inquiry analysis, handling, drafting of the quotation notes and preparing the various sales invoices that are properly taxed soon after the sales orders are accepted (Justesen, 2010). Other functions include facilitating the distribution of the services and products sold and identifying any order that may still be pending.

Purchase Module

The purchase module is architected in a manner that it facilitates the procurement of all the raw materials and items that are needed for the proper running of the various business processes. It entails functionalities such as supplier and item linking, listing of the vendors, sending quotation notes to the concerned suppliers, receiving and analyzing quotations, making the necessary arrangements to purchase the orders, tracking the purchased items during their shipment and updating the stock list and any other appropriate document (Hedman & Borell, 2013).

Finance and Accounting Module

It helps in the management of capital inflow and outflow in the firm by keeping track of all financial transactions of the company such as those related to account ledgers, expenditures, budgeting, balance sheet, payment receipts, bank statements and tax management (Justesen, 2010). This module ensures the availability of credible financial data that relates to the given company hence ensuring reliable financial reporting of the entity.

Customers Relationship Management Module

It is aimed at establishing a healthy relationship with the customers and the company by providing better customer service (Vinck, et al. 2015). It stores all the details that relate to the various customers of the enterprise such as purchases made by a certain client, meetings held, communication history and contract duration hence facilitating proper management of such data.

Production Module

It comprises of functionalities such as machine scheduling, production planning, usage of raw materials, tracking production progress and production reporting (Hedman & Borell, 2013).

Pricing and Other Relevant Data

Various vendors such as sage and Microsoft Dynamics sell the ERP software at different prices depending on the requirements of the clients. Most of the prizes range from $75,000 to $750,000 (Vinck, et al. 2015). The complexity regarding technicality and functionality of the ERP system calls for proper training of the users for its successful implementation in the firm.


Organizations should choose the ERP system modules depending on their requirements. The ERP system allows its users to update the system on the various business activities taking place on different functional units for accountability and decision making purposes. Successful implementation of this program into a business enables it to improve its performance as it allows organization of data collected from the various levels and helps in connecting business activities across all the existing departments.



Hedman, J., & Borell, A. (2013). The Impact of Enterprise Resource Planning Systems on Organizational Effectiveness. Enterprise Resource Planning. doi:10.4018/9781931777063.ch005

Justesen, R. (2010). Enterprise Resource Planning Software: the Future or Past of Business Technology?

Vinck, D., Rivera-Gonzales, I., & Penz, B. (2015). Enterprise Resource Planning (ERP) Embedding. Business Information Systems, 1303-1323. doi:10.4018/978-1-61520-969-9.ch081

March 02, 2023

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