6 Top ERP Modules and What They Do

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6 Top ERP Modules and What They Do

June 20, 2024

What are some of the top ERP modules and what do they do?

  1. Financial management
  2. Sales and distribution
  3. Purchasing and inventory management
  4. Human capital management
  5. Customer relationship management
  6. Analytics and Reporting


  • ERP has experienced steady growth due to its ability to leverage technology for businesses to stay competitive in the evolving market landscape.
  • The top modules are financial management, sales and distribution, purchasing and inventory management, human capital management, customer relationship management, and analytics and reporting.
  • Leveraging these modules can help your business improve efficiency, reduce costs, enhance customer satisfaction, and drive growth.

Enterprise Resource Planning (ERP) software has become widely popular with a market growth of 9% every year since 2019 because of its ability to leverage the latest technology and help businesses become more competitive and remain afloat in this ever-evolving and growing business landscape. Behind their power are their modules—but what do they actually do?

In this article, we will explore the top ERP modules and what they do, and how you can leverage them to streamline your business operations and gain a competitive edge among your competitors.

Financial Management

In a survey, 89% of the companies all agreed and identified accounting as the most critical ERP function—it’s like the central nervous system of a company’s financial health. One of its main functions is core accounting, where you can manage your general ledger, your accounts payable and receivable, fixed asset management, and chart of accounts. It also streamlines tasks like recording transactions, managing invoices, and tracking assets.

All these are because financial management modules within ERP software integrate various financial processes and data into one unified platform. This provides a holistic view of everything from cash flow to profitability.

Sales and Distribution

The sales and distribution module is the engine that keeps your sales orders flowing and products delivered efficiently. It even automates and streamlines the entire sales lifecycle, from the initial customer inquiry to final invoicing—giving you better control of your sales operations and inventory.

You can also track interactions, generate quotes, ensure efficient order fulfillment, and automate billing. This module essentially turns your sales operation into a well-oiled machine, boosting efficiency, improving customer service, and giving you better control over your inventory.

Additionally, this module integrates seamlessly with other modules, such as financial management and inventory management, so your sales operation is more comprehensive and effective.

Purchasing and Inventory Management

Purchasing and Inventory Management

The purchasing and inventory management module streamlines the entire purchasing process, from vendor selection to material receipt and payment, while also managing inventory control and warehouse operations.

This module can also help your company reduce inventory costs by optimizing purchasing and inventory levels, ensuring that you have the right products in stock at the right time. For instance, it can forecast demand and alert your manages when it’s time to reorder certain products, reducing the risk of stockouts and overstocking.

According to a study, effective inventory management can reduce costs by up to 20% and improve cash flow by up to 15%. By leveraging this module, your company can improve your operational efficiency, reduce waste, and enhance customer satisfaction. This purchasing and inventory control solution can help you make more informed purchasing decisions by providing real-time inventory and purchasing information, reducing the risk of double ordering or over-ordering.

Human Capital Management

The human capital management module is a critical component of ERP systems that manages the entire employee lifecycle, from recruitment to retirement. It has functions like talent management, performance management, payroll, benefits administration, and compliance management.

This module is designed to streamline HR processes, reduce manual errors, and improve compliance. This will help your organization manage your workforce more effectively, and improve employee experiences.

Aside from that, it also provides real-time insights into your workforce data, enabling you to make informed decisions about your employees and improve your overall business performance.

Customer Relationship Management

The customer relationship management (CRM) module provides a centralized platform for managing customer data, including contacts, companies, leads, opportunities, and campaigns. It also helps organizations reduce sales cycles by 30% and improve customer retention by 27%.

Moreover, it has features like lead and opportunity management, contact management, marketing management, case management, and mobile CRM. This enables your organization to manage customer relationships more effectively, improve sales forecasting, and enhance customer retention.

Analytics and Reporting

Analytics and Reporting

With how data-driven the world is right now, analytics and reporting for business have become more than just an option—they are essential. That’s why by leveraging this module, you can make informed decisions based on real-time data, track key performance indicators, identify trends, and measure the success of your strategies.

For instance, a study found that companies that use analytics and reporting tools see a significant improvement in their ability to anticipate customer behavior, identify potential risks, and make data-driven decisions about the future.

Additionally, with this module, you can easily create customizable reports and dashboards to visualize your data clearly and concisely. This will enable you to communicate insights effectively with stakeholders and drive business growth.

Key Takeaway

The top ERP modules and what they do are the backbone of any business, providing the necessary tools and functionalities to manage and streamline various aspects of an organization. By leveraging these modules, businesses can improve efficiency, reduce costs, and enhance customer satisfaction.

When it comes to efficiency and driving growth in your company, nothing beats SAP Business One—a comprehensive ERP solution designed specifically for small and medium-sized businesses.

As a SAP Gold Partner, we at DynamIQ can help you implement and customize SAP B1 to meet your specific business needs. Whether you are looking to streamline your financial operations, improve customer relationships, or enhance your supply chain management, we are here to help you achieve your goals. Contact us today to learn more!

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