What is ERP software ?
ERP software means Enterprise Resource Planning systems. ERP systems are large computer systems that integrate application programs in accounting (i.e., accounts receivable), sales (i.e., order booking), manufacturing (i.e., product shipping) and the other functions in the firm. This integration is accomplished with through a database shared by all the application programs.
When you first see an ERP program, the application programs are similar to those with which you are already familiar. So the production scheduling, billing a customer, processing a payroll and other tasks are done in ways that should be pretty familiar to those of you who have worked with these applications over the years. So what is the big deal? Integration! ERP systems tie these, usually separate, applications together. When a customer service representative takes a sales order it is entered in the common database and in the other applications where it is needed, for example, in the manufacturing backlog, the credit system and the shipping schedule. No more carrying little pieces of paper back and forth. Or writing translation programs to get the information from one function to another. Sounds great, right? Read on!
