Enterprise Resource Planning software consists of many functional modules. These functional modules of ERP software mimic the functional area of the organization respectively. Some of the modules include modules for inventory control, finance, product planning, accounting, product distribution, order tracking, etc. The organizations choose the modules they want to implement according to the feasibility. ERP streamline the flow of data by integrating all these departments which is done by implementing the suitable module. Some of the functional modules of ERP software are as discussed below:
1. Finance: This is an important module since the other modules are integrated into financials. All modules require sanctioning from the finance department therefore it is integrated. The balance sheets, accounts payable, accounts receivable, budget, cash management, general ledger, etc are included in this module. This is a core module for any organization and gathers financial information from other departments to prepare the balance, general ledger and statements.
2. Production Planning: Earlier MRP software was used to take care of the manufacturing requirements of the organizations and this caused the evolution of ERP. ERP integrated the manufacturing with the other departments. The production planning module handles the optimum utilization of the man power and machines and scheduling of the production. It enables the manager to schedule the work in an ideal manner.
3. Inventory Control: Inventory Control is one of the functional modules of ERP software. It enables the process of maintaining the required stock levels in the warehouse. It helps to identify the inventory requirements, provides replenishment options, reports inventory status, monitors the usage of items, sets targets, etc. With the inventory control module being integrated with the purchase and sales modules, it can generate vigilant reports.
4. Human Resource: This module is also widely implemented as it streamline the management of human resources and human capital. It maintains an employee database consisting of the employee contact information, attendance, salary, promotion details, performance evaluation, etc. This information may be utilized to optimize the expertise of the employees.
5. Purchase: The purchase module helps to streamline the procurement ble module of the raw materials needed. The various processes involved such as negotiating price, identifying the potential suppliers, awarding purchase order and billing processes are automated. The inventory control module and the production planning module is integrated with the purchase module.
6. Sales: Another one of the functional modules of ERP software is the sales module. This implements the functions of order scheduling, placement, shipping and invoicing. It is integrated with the e-commerce websites of the organization. It is an important module for the functioning and existence of an organization.
These are the functional modules of ERP software which form the software. These modules integrate to ensure a smooth flow of data across the organization. ERP software centralizes the data into one place and eliminates the problem of synchronizing the changes. It thereby offers a top down view of the organization and no isolated data. The centralized data reduces the loss of data and permits control of business processes that cross functional boundaries.