What is an ERP system?

ERP system, MicroPartner

ERP stands for Enterprise Resource Planning and is a financial management system or a business system.

By Usman Idris, Business Consultant, MicroPartner

What is an ERP system used for?

ERP systems help companies manage their finances, inventory, production, bookkeeping, including invoicing of their customers, etc.

In other words, ERP systems combinds the company’s activities in one system and creates an overview.

Typically, ERP systems are used to manage corporate:

  • Finance and accounting
  • Accounting
  • Invoicing
  • Reporting
  • Orders
  • Purchases
  • Stock
  • Production
  • Projects
  • Customers (CRM)
  • Employees (HR)
  • E-commerce

There are many benefits to ERP systems

One of the benefits of an ERP system is that it can gather all the company’s processes in one system. This saves time because employees do not have to work in several different programs. In fact, it can be said that an ERP system increases productivity and strengthens competitiveness – and ultimately helps to provide a better bottom line.

Other benefits:

  • The customer information is the same for all departments, regardless of whether it is accessed by Sales, Support or Accounting.

  • The stock can be updated automatically when a product is sold

  • Employees can register time in the system, which can be used to make pay.

  • Management can create reports on various key figures, e.g., sales figures for use in statistics, budget, and planning.

ERP is the backbone of a business

One could argue that an ERP system is the backbone of a business. The ERP system can be scaled up as needed, so that it can grow with the company.

A sole proprietorship will primarily use the ERP system for invoicing and bookkeeping, while a manufacturing company will also use it for customer orders, inventory, and production. A project company will also use ERP for project planning, and to see if projects stays on budget.

Customer data remain the same – even as the company develops.

ERP with Business Central

At MicroPartner, we focus exclusively on ERP solution with Business Central, which is one of Microsoft’s ERP systems. Business Central is designed for small and medium-sized businesses. Business Central is developed in Denmark and is the latest version of Dynamics NAV (Navision).

Integration with other systems

The ERP system Business Central can easily be integrated with other external systems such as Dynamics 365 CRM, as well as various third-party add-ons such as Payment Management, payroll systems, etc.

Want to know more about ERP and Business Central, including pricing? Read more here.

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