ERP stands for enterprise resource planning and it’s geared towards one major goal of automating back office functions. However, these options have to be related to human resources, services or technology. The various facets of operations that are integrated into enterprise resource planning include sales and marketing, manufacturing, development and product planning. All these functions need to be integrated into a single application, database and same user interface. In the United States, there are many firms specializing in enterprise resource planning and related activities such as cloud hosting. One such company is a firm known as Sage Cloud Hosting. There many reasons why you should choose this firm. For instance, they will have the cloud hosting up and running in a few days. Also, the ERP software from this company will help reduce running costs for your company and at the same time reduce headaches for your IT guys. Finally, they can offer customizable ERP software that suits your needs.
More about enterprise resource planning
In a layman’s language, the role of an enterprise resource planning system is to track the way a business is using its resources. This could be production capacity, raw materials, and even cash. It’s also the responsibility of the same plan to keep track of business commitments that may comprise of payrolls, purchase orders as well as even orders. This makes it possible to share data between the various platforms meaning that it is possible to pass information from the various business functions to other stakeholders who don’t necessarily have to be insiders.
The ERP software has turned out to be a billion dollar industry in the world leave alone the United States. Despite the earlier systems focusing on large enterprises only, there are some ERP models that have been developed to support smaller businesses. The goal of the software is to eliminate errors, therefore, ensuring that efficiency prevails. For the system to work, it has to rely on a computer hardware or network configurations. Also, a database is crucial if they system is to work.
General characteristics of ERP models
A good ERP model should have one of the following features. First, it should be an integrated system. Second, it should have the capability to operate in real time. The system should also share a common database that is compatible with all the applications and interfaces connected to it. Also, the systems should allow for installation in a number of platforms. Finally, a good ERP model should provide people with a consistent look.
Functional areas covered by the ERP system
Earlier on, we mentioned that ERP systems could be used on a number of systems such as financial accounting, management accounting as well as in manufacturing and human resources. In financial accounting, it can be used in the preparation of payables, fixed assets as well as cash management financial consolidation and receivables cash application. In management accounting, it can be used for activity based costing, cost management as well as costing and budgeting. The system can also be applied in project management, order processing and supply chain management.