Business Modules in an ERP Package

Notes

Study Notes

Detailed Functional Modules in an ERP Package

Core Functional Modules of an Enterprise ERP Package

These seven modules represent the integrated, end-to-end management of a complex organization, from cash flow to quality control.

1. Finance (FI)

The control center for all financial transactions, providing legal compliance and detailed reporting on the company's fiscal health.

  • General Ledger, Accounts Payable/Receivable.
  • Cash management and bank reconciliation.
  • Financial statement preparation (Balance Sheet, P&L).

2. Manufacturing / Production Planning (PP)

Manages the process of converting raw materials into finished goods efficiently, ensuring optimal capacity utilization.

  • Capacity planning and scheduling.
  • Bill of Materials (BOM) management.
  • Workflow management and cost control integration.

3. Human Resource (HR) / HCM

Deals with all aspects of personnel administration, employee development, and talent management within the organization.

  • Payroll processing and benefits administration.
  • Recruitment, training, and career development.
  • Time management and absence tracking.

4. Materials Management (MM)

A critical part of the supply chain, covering procurement, inventory, and material needs planning to support production.

  • Purchasing (requisitions, purchase orders, vendor evaluation).
  • Inventory control and warehouse management.
  • Goods receipt and invoice verification.

5. Sales and Distribution (SD)

Manages the entire sales cycle, from customer inquiry to order fulfillment, shipping, and billing.

  • Sales order processing and pricing.
  • Shipping, delivery, and transportation scheduling.
  • Invoicing and integration with Accounts Receivable.

6. Quality Management (QM)

Ensures that products and processes meet predetermined quality standards across the entire supply chain.

  • Quality planning, inspection, and control.
  • Managing quality certificates and documents.
  • Integration with Materials Management (for incoming inspections) and Production.

7. Plant Maintenance (PM)

Focuses on maintaining the operational availability of production assets (machinery, equipment, infrastructure) to minimize downtime.

  • Preventive and corrective maintenance planning.
  • Managing maintenance work orders and budgets.
  • Spare parts management (integration with Materials Management).

The effective integration of these modules allows an enterprise to operate with a unified database, providing real-time data for strategic decision-making.

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