What Are ERP Modules?

ERP stands for Enterprise Resource Planning. As its name suggests, it is a comprehensive method of integrating the data of all departments of an organisation into a single system. This provides a database of information available at the fingertips of management. The ERP Software allows an integrated flow of information from inside the organisation to the external stakeholders of the organisation.

What Are ERP Modules?

Within the software, there are modules that correspond to each department of the organisation. Because organisations vary so much in complexity and structure, naturally some modules will not be needed by every organisation. However, the basics of every organisational structure are similar, so this article relates only to the most common modules that are used.

Accounts Payable

This module can assist your business in keeping AP records current as well as providing instant access to outstanding invoices. It displays all creditors and other information related to the business' suppliers.

Accounts Receivable

When collections become due, your ERP system will provide an alert that automates the process of sending out an alert that it is time to proceed to collections. From aged analysis reports to factoring, the module helps your business stay on track of receivables. Accounts Receivable interacts with the General Ledger and Invoicing modules, reducing costly errors.

Bank Reconciliation

One of the most important aspects of cash flow is the bank reconciliation, which tells you the difference between what cash is on the books and how much you can actually use. With the ERP Software, you do not have to worry about costly errors when performing bank reconciliations.

Currency

This module interfaces with the General Ledger and automatically analyses exchanges for gains and losses. This is one of the best ways to keep your end of the year accounting costs down by providing a record system of conversion rates for your company.

Fixed Assets

Only certain ERP Software modules come with a Fixed Asset category. This helps businesses who make purchases with a life of over one year. The depreciation expenses are automatically calculated so that you can keep your mind on your business, not your books.

General Ledger

All business must keep good accounting records. The time and money that you save while using the ERP Software's General Ledger module will be apparent over time as you will be able to construct reliable financial statements. At any given point in your business' life, you can generate a Trial Balance, Cash Flow Statements, Income Statements, and a Balance Sheet.

Job Costing

A useful module that helps a business compare the projected costs of a job against the actual job cost while it is being performed. Management can now understand where the job is during the work in process by providing a percentage of completion cost analysis.

Time Billing

When the business bills the client per hour of service rendered, this module keeps track of the paperwork.

It should be kept in mind that this is not a comprehensive list of all available modules, as ERP systems are used in many different industries. Depending on the industry, an ERP set of modules can assist the business in maintaining accurate records for tax purposes as well as increasing revenue by increasing efficiency of operations.

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