What are the different module of ERP System and how to consider

Different Modules of ERP System

If we know – What is ERP,? Why to Implement ERP,? How to Select an ERP?  then what left? I think nothing. It is always advisable  before analyzing the scope of work  we must understand how to define scope of work? 

Now the thing comes – what are the different ERP modules and how I can define these ERP modules for my organization. This selection of ERP Modules further leads the scope of work, budget and future road map. 

For defining the scope of work, we normally discuss with all HODs and process owners about their activities and reporting system. This is perfectly fine but again how to search a potential vendor who can give us a good solution that may cater our requirements. For this we must understand how any ERP is defined?  How it maintain multiple records at some common place.

Based on functionality, any large ERP is also broken and managed in many different modules. At large any ERP can be defined in two large segments

1. Commercial Modules

2. Non-commercial Modules

1. What are different Commercial ERP Modules

Areas of any business which directly impact financial health of the organization are managed here. This is also the area of interest for any management. After all they are running the business not for social cause but for money.

It is quite essential while defining scope of work and selection of vendor, thoroughly research and do a good homework. Modules which fall under this category are:

  • Finance and Accounts (F & A)
  • Sales
  • Purchase
  • Machine spares and General Item
  • Raw Material
  • Inventory
  • Machine Spares and General Item
  • Raw Material (RM) Stock
  • Finished Goods (FG) Stock
  • Import and Export
  • Job work
  • HR and Payroll
  • Statutory Compliance
  • Utility Management
  • Transport Management

2. What are different Non-Commercial ERP Modules

Areas of the business which though impact the finance but the impact are not direct but do it through a route which directly impacts the finance. Normally the followed route is through Purchase and Inventory. Modules which fall under this category are:

  • Operation Planning and Production
  • Plant and Maintenance
  • Gate In and Out
  • Quality Control
  • Research and Development
  • Complaint and Feedback
  • MIS and Analytics
  • Reports and Dashboards
  • Roles and Rights
  • Project Management

Now apart from above core modules now a day’s few more modules are popular. Basically, these are strategic modules which are used to support commercial modules directly or indirectly. Though they do not directly does any commercial or financial transactions that can directly impact financial health of the organization but based on data generated by them, a good strategic decisions can be taken to boost sale and control procurement.

  1. CRM (Customer Relation Management)
  2. SRM (Supplier Relationship Management)
  3. SCM (Supply Chain Management)
  4. Logistic 

Analysis and Defining Scope of ERP Modules going to implement

Now it is very much clear about what are different ERP modules and how to define the scope of ERP. Also get some inputs about how to select the ERP vendor. Finally It is completely the organization’s call how to define ERP Software implementation phases or to go only for which modules.

For the organizations which are in the phase of ERP implementation, It will be good suggestion if they start their implementation with Commercial modules. Specifically Purchase and Sales parallelly. When they get desired output with accuracy then only       step ahead for implementing Finance and Accounts module.

Finance and Account more or less receive its data from Purchase, Inventory and Sales hence if these modules are passing correct information to F & A then 60% success of this module has already been achieved. For rest 40% other financial transactions like bank, Cash, Received and Payment and others can be managed easily because these transactions do not have complex business logics to incorporate.Different module of ERP System

What BOM contains

Conclusion - How to Define Modules of ERP System

For the organizations which have budget constraint, they should go for some or all from Commercial modules and leave Non-commercial modules.

In market many ERP solutions are available with low costing that do not have inbuilt Finance and Accounts module but has expertise in linking their system with any Financial application like Tally. So this can also be a good option.

In this situation it has also be seen these players have only one way communication with these third party applications. They can transfer data from their system to third party financial application but do not have feature to track any change made in this third party application to reflect in their system. So it will be a constraint and may become difficult to track them in future

Thank you very much for sparing your precious time for reading

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