What are the basic functions of an ERP for businesses?

Understanding the functions of an ERP is an essential aspect to know the scope and potential of this type of software solution. With an ERP program, you can carry out the different processes that your company has been doing until now manually, with Excel, or with different programs that do not share data with each other and do not allow integrated management.

An ERP is today undoubtedly a very important software for the digitization of the company. Discover the basic ERP functionalities that you need to know to be able to extract the full potential of the different modules of a management software.

What are the functions of an ERP?

When we talk about an ERP and its functionalities, everything depends on the scope and flexibility of the program. We are not simply referring to an invoicing software, but to a tool that allows to integrate the processes of all the departments of the company, from the financial and accounting management to the management of the Human Resources or the activity of the Commercial Department.

If you are clear that the objective of implementing an ERP system is to ensure that all areas of your company can work in a coordinated way and guarantee good communication, the next step is to know the functions in which an ERP can help you within each area of the company.

Accounting management

Accounting management is perhaps one of the most valued functionalities of an ERP, because every company needs to manage accounting to be able to prepare its annual accounts, draw up the balance sheet, make the bank reconciliation, and manage the treasury.

What this type of tool allows you to do is to manage in an integrated way all the accounting processes of the company. Every time a sales invoice is generated, in any sales channel, it will be automatically in your accounting area, so you don't have to type it manually. It is done automatically, saving you work.

Human resources management

Another of the functions of an ERP that should not be forgotten is the management of Human Resources. You need a tool that allows you to plan and organize work shifts, control employee time records, manage vacations and absences and, in short, all HR processes.

Human Resources management can sometimes be extremely complex, especially in large or medium-sized companies. A good ERP allows integration with HR management software, so that you can have more extensive functionality to manage large workforces.

Customer relationship management

ERP is not only for administrative management. It is also a decisive tool for the company's sales management operations. Your sales department can effectively track customers through a CRM solution integrated with the ERP, i.e. a customer relationship management software that allows you to organize interactions with leads and buyers in order to implement measures to improve the customer experience.

There are companies today that have an invoicing software on the one hand, and a CRM on the other. These tools should work together in an integrated way, otherwise the processes become much more complex. The sales team frequently needs to consult data from the ERP, and when closing sales, the corresponding invoice must be generated. The same applies when preparing quotations and converting quotations into invoices.

Management and automation of internal processes

We have seen how ERP helps commercial management, financial and accounting management, and also human resources management. But it is also the backbone of the organization, integrating the management of the different processes that have a direct relationship with each other. The commercial area, the warehouse, production, invoicing and accounting require the generation of documents and the development of processes that are all interrelated.

How is your company currently managing these processes? Typically, it is manual. The team shares information via email, or even in the worst case, phone calls are made to give notice of a shipping order to a customer. This is not viable for a company that wants to have efficient processes; you need automation to avoid errors and facilitate team coordination.

Shift management

Another aspect in which an ERP helps you is the management of work shifts. This is an essential element in the day-to-day operations of your staff. If there is no efficient planning, your company will feel the consequences and your customers may feel dissatisfied with the service.

The administrative, commercial, financial and accounting tasks of a company must be coordinated in an efficient, professional and automated manner. To this end, it is essential to assign tasks to each person involved in the different processes.

Configurable functionalities in an ERP

Now that you are clear about the ERP system and its functions, there is another very important aspect you need to address. Each ERP module can support multiple configurations, depending on the specific needs of your company. There are tools that are very rigid and do not easily adapt to your business processes. This is the No. 1 problem for many companies when trying to implement a new ERP.

You need a flexible ERP, which facilitates the configuration of the different areas so that it can bring the maximum competitive advantages to your business. ERP software solutions from Zucchetti Spain, a leading ERP manufacturer, help you to have the most flexible and customizable solution on the market.

We are talking about open source software, which you can adapt to your specific needs, so that it brings maximum value to your business. You can carry out both the necessary developments and the parameterization of each area of the software so that it adapts to your company's strategy. In addition, you have both a generalist, flexible and customizable version, as well as specific solutions for multiple sectors, from ERP for service companies to ERP solutions for industry, which can help your business to achieve the competitive advantages it is looking for at a lower cost and less implementation time than if you were to carry out custom developments.

Discover Zucchetti Spain's ERP software solutions, and start taking advantage of all the software's functionalities to boost your company's success.