ERP Modules: Types, Features, Categories & Examples

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ERP Modules

Enterprise Resource Planning (ERP) is a comprehensive system that includes various functionalities needed for the smooth running of the business.

ERP modules are components of the complete system that categorize and organize related functionalities.

This post will define what ERP modules are and give you a list of ERP modules. It will discuss the different types and categories of modules and disclose examples of each module’s features and benefits of ERP modules.

Introduction to ERP System Modules

The smooth running of a given business needs different functionalities. Enterprise Resource Planning solution consists of these functionalities.

ERP module is a part of the whole system. Therefore, you can get specific and related functionalities from it. The functionalities are related to one area of business processes.

Types of ERP Modules

Types of ERP Modules

Three types of core ERP modules are

  1. Functional modules
  2. Technical modules
  3. Application suite

ERP Functional Modules

ERP Functional Modules

Below is the list of ERP modules. They are basic modules of the ERP system.

1. Finance Module in ERP

Financial modules of ERP are one of the central core ERP modules. It records transactions in the general ledger accounts. In addition, this module generates financial statements for external reporting purposes.

ERP Finance Module – 7 Types of Reports and Valuable Features

2. HR (Human Resources) Module

It facilitates employee recruiting, hiring, and training. This module also includes payroll and benefits.

ERP HR Module – 6 HRM Submodules & Features Explained

3. Production Module

It maintains production information. This module will help plan, schedule, and record production activities.

ERP Production Planning Module (Features, Types, Objectives)

4. Procurement Module in ERP

The purchase module or procurement module streamlines the procurement of required raw materials. It automates the processes of,

  • Identifying potential suppliers
  • Negotiating price
  • Awarding a purchase order to the supplier
  • Billing processes

The purchase module integrates with the inventory control and production planning modules. In addition, the purchasing module combines with supply chain management software.

ERP Purchasing Module – Features & Procurement Process Flow

5. Inventory Module

Inventory is the term for merchandise or raw materials that a company has on hand.

This module manages,

  • Acquisition of raw materials from suppliers (purchasing)
  • Handling of raw materials inventory in storage
  • Work-in-progress goods
  • Shipping of finished goods to the customer

ERP Inventory Management Software Modules (Features & Types)

6. Sales Module in ERP

It records sales orders and scheduled deliveries. Maintaining and accessing customer information is the responsibility of this module.

Customer information includes pricing, address and shipping instructions, billing details, etc.

ERP Sales Module – Features, Flowchart, and More

Apart from these 6 basic modules, we will discuss other modules also.

1. Order Management Module

The Order Management module within an ERP system handles the lifecycle of sales orders from inception to fulfillment. It consolidates order information, manages order entry, and tracks order status, ensuring smooth processing from customer inquiry to final delivery.

Features include order creation, customization, order tracking, and order fulfillment synchronization with inventory and production modules.

2. Warehouse Management Module

Warehouse Management in ERP oversees the movement and storage of goods within the warehouse. It optimizes warehouse operations by efficiently managing inventory levels, picking, packing, and shipping.

The module includes functionalities for inventory tracking, bin allocation, space utilization, and real-time visibility into stock levels and locations.

Warehouse Management System (WMS)

3. Professional Services Automation (PSA) Module

The Professional Services Automation module streamlines project management and service delivery for service-based businesses. It covers project planning, resource allocation, time tracking, billing, and invoicing.

It ensures project timelines, budgets, and resources are effectively managed, fostering better project execution and client satisfaction.

4. Workforce Management Module

Workforce Management in ERP focuses on optimizing human resource allocation and productivity. It includes features for employee scheduling, time and attendance tracking, performance management, and skill development.

This module helps businesses streamline workforce operations, manage labor costs, and enhance employee engagement.

5. E-commerce Module

The E-commerce module integrates online sales channels with the ERP system. It helps organizations to create B2B or B2C e-commerce websites. It synchronizes product information, inventory levels, and customer data between the e-commerce platform and the ERP.

This integration streamlines online transactions, ensuring accurate product listings, inventory availability, order processing, and customer data consistency across channels.

6. Marketing Automation Module

Marketing Automation within an ERP system automates marketing tasks and workflows. It manages campaigns through email, social media, and SMS, tracks customer interactions, and analyzes data to personalize marketing efforts.

This module helps in lead generation, customer segmentation, email marketing, and measuring campaign effectiveness, enhancing overall marketing efficiency.

Technical Modules of ERP

Technical Modules Of ERP

Technical modules come under application platforms. And it is like the role of the operating system for your laptop.

Technical modules integrate tightly with functional modules. They help smooth integration with different functional modules and application suites.

Examples of these are security modules and information system management.

Technical components found in ERP systems are,

Basic Components

This includes the hardware, software, databases, and networks that make up the system. In addition, the system administrator also manages user accounts, security, and data backups.

Without these essential components in place, it would be difficult for the business to use an ERP system efficiently.

Security Module

It is designed to establish robust internal security to allow or prevent access wherever needed by utilizing various tools, such as firewalls and encryption.

ERP security modules help to safeguard data and information from unauthorized access and misuse. In addition, it can also provide auditing capabilities so that organizations can track and monitor activity on their systems.

Networking and Interface

The networking and interface module ensures that data can flow freely between different parts of the system and that users have the necessary permissions to access the information they need.

In addition, the module must be compatible with the hardware and software used by the organization.

Without a well-designed networking and interface module, an ERP system will be unable to function correctly, limiting its potential benefits.

Management Information System

Management Information System (MIS) is a system that provides managers with the information they need to make informed decisions about the operation of their business. It typically includes a database, software to generate reports, and tools for data analysis.

It was used primarily by large businesses in the past, but the advent of ERP systems has made MIS available to small and medium-sized companies.

Application Programming Module

This module allows the user to create custom code to extend the functionality of the ERP system. The Application Programming module also provides a library of standard code modules that can be used to create new applications or modify existing ones.

It is a powerful tool that can tailor the ERP system to the organization’s needs.

Analytic Module

An analytic module within an ERP system can provide even more insight by performing data analysis and generating reports. This way, managers can quickly identify trends and issues and take action to resolve them.

As a result, an analytic module is a valuable tool for any business that wants to use its ERP system to its full potential.

APIs Opened for External Use

With the rise of the internet and cloud computing, many organizations now use ERPs to share data and applications with external partners. This trend is driven by the need for greater business agility and flexibility.

By opening their APIs for external use, ERP providers enable their customers to extend their systems’ functionality and better meet their business ecosystem’s needs.

Integration of ERP with the Application Suite

Integration of ERP with Application Suites

The application suite is a collection of interconnected information systems. That could be within and across different companies.

Currently, more and more organizations are utilizing ERP frameworks. The next stage is to interface these frameworks. That will support interactions that occur between and among organizations.

A few of the popular inter-company systems are,

Supply Chain Management (SCM)

SCM interfaces an organization with different organizations that supply the materials. Common SCM frameworks help organizations in planning. For example, they plan their creation necessities and improve complex transportation and materials coordination.

Supplier Relationship Management (SRM)

SRM frameworks usually deal with general associations with the materials providers. In addition, SRM frameworks help cope with quotation and contract processes.

Companies can have more intra-company systems. But, again, that is an extension of the fulfillment process of ERP systems and ERP modules.

Examples of intra-company systems are,

Customer Relationship Management (CRM)

CRM frameworks associate an organization’s ERP framework with its customers. CRM frameworks furnish organizations with the ability to oversee showcasing, deals, and client administration. These frameworks are an expansion of the satisfaction procedure of ERP frameworks.

Product Lifecycle Management (PLM)

Product lifecycle management frameworks help organizations watch the research procedures, plan, and itemize the board. They help take new item thoughts from the virtual drawing board to the manufacturing unit.

What is Enterprise Application Integration (EAI)?

Interaction of ERP Application Suite

Benefits of ERP Modules

  • ERP modules help your business attain the desired efficiency and enhance day-to-day activities by automating all business processes.
  • It keeps all the data centralized and gives clear data whenever needed.
  • It improves business reporting with the help of reporting features with real-time data.
  • It helps to eliminate the manual process and reduces errors done by manual errors. Thus, it increases the efficiency and productivity of the business.
  • It provides better communication within the department as well as between the departments. Cooperation in the workplace also increases when there is a smooth flow of information.
  • It helps the business provide good customer service by enhancing on-time delivery and order accuracy.
  • It allows the business to control who can use, share, and edit the data.
  • ERP modules analyze the real-time data.
  • Enhances profitability by avoiding extra expenses like an additional store of inventories.
  • It improves the cash flow with better invoicing.

Role of ERP Modules in Different Industries

Manufacturing and distribution industry

ERP modules allow manufacturers and distributors to effectively manage and control their inventories, purchases, sales, and accounts.

It also provides human resource management to manage and control employees. All these things help in the improvement of the business.

Health care sector

ERP module will benefit payroll, patient care, controlling instrument supplies, compliances, etc. It also helps in operational assistance.

Education sector

ERP module helps improve the management of students’ enrollment process, teaching sessions, etc.

It is also helpful in scheduling parent-teacher meetings, conducting the monthly test, etc. In addition, it helps monitor the admission fees, student attendance, staff attendance, and staff leaves.

Hospitality sector

In this sector, customer service is very, very important. So it would be best if you concentrated more on customer satisfaction.

ERP system helps to automate the workflow smoothly, reducing the waste of time and decreasing stress on management and workers.

Construction sector

Construction industries’ equipment rental cost control, inventory handling, and deadlines are critical.

Good and efficient ERP software helps the industry with automated workflow and streamlines the process.

Professional services

ERP modules help this sector maintain expenses and profits, keep accurate employee data, and control inventories. Hence billing cycle and cost decrease, and gain increases.

Food industries

The food industry contains many fruits, dairy, vegetables, beverages, chocolates, biscuits, meat, poultry, fishery, etc.

This industry has many phases in the production process. ERP modules help improve quality management in all stages of the production process.

It helps to decrease production waste and improves productivity.

Non-profit sector

An accurate reporting system is crucial for this sector. ERP systems help by providing efficient financial reports, budget control systems, and self-service payroll solutions.

SAP ERP Modules

  • Financial Accounting (FI)
    • General Ledger
    • Accounts Payable
    • Accounts Receivable
    • Contract Accounts Receivable and Payable
    • Banks
    • Fixed Assets
    • Special Purpose Ledger
    • Additional Functions
    • Lease Accounting
    • Travel Management
    • Shared Service Center
  • Controlling (CO)
    • Cost Element Accounting
    • Cost Center Accounting
    • Activity-Based-Accounting
    • Internal Orders
    • Product Cost Controlling
    • Profitability Analysis
    • Profit Center Accounting
  • Materials Management (MM)
  • Sales and Distribution (SD)
    • Sales
    • Billing or Invoice Generation
    • Bills of Material
    • Shipping and Transportation
    • Electronic Data Interchange
    • Sales Information system
    • Credit Control
  • Human Capital Management (HCM)
    • Organizational Management
    • Recruitment
    • Training and Event management
    • Wages
    • Personnel Development
    • Payroll
    • Travel Management
    • Personnel Management
    • Time Management
    • Compensation Management
    • Workforce Administration
    • Personnel Administration
  • Production Planning (PP)
  • Quality Management (QM) Planning
    • Process Inspections
    • General Functions
    • Notifications of Quality
    • Test Equipment
    • Quality Control
    • Quality certifications
  • Financial Supply Chain Management (FSCM)
    • Credit Management
    • Cash & Liquidity Management
    • Dispute Management
    • Collections Management
    • Payments
    • Treasure and Risk Management
  • Project System (PS)
    • Project Preparation
    • Project Planning
    • Project Tracking
    • Project Reporting
    • WBS Elements
    • Project Costs
  • Plant Maintenance (PM)

Oracle ERP Modules

Following are the Oracle ERP modules that are important and their functionalities,

  • Financial Management
    • Finance and Accounting
    • Billing
    • Revenue Recognition
    • Financial Planning and Reporting
    • Global Accounting
    • Governance, Risk, and Compliance
  • Human Capital Management
    • Core HR functionality
    • Payroll
    • Employee Center
    • Analytics
  • Order Management
    • Pricing and Promotions
    • Sales Order and Returns Management
  • The Production Management
  • Warehouse and Order Fulfillment
    • Inbound and outbound logistics
    • Inventory management
    • Warehouse management system
  • The Supply Chain Management
    • Planning
    • Execution
    • Collaboration
    • Support
  • Procurement
    • Source
    • Pay
    • Purchase


  1. What are ERP modules?

    ERP (Enterprise Resource Planning) modules are individual components or segments within an integrated software system designed to manage and streamline diverse business functions. These modules serve as specialized units, each focusing on a specific aspect of an organization’s operations. They function cohesively to centralize data, automate processes, and enhance efficiency across various departments.


ERP modules can streamline your business processes, improve communication, and make you more efficient.

There are many options when it comes to ERP implementation. For example, you can purchase the modules that suit your business needs right now or choose which ones will help grow with you as time goes on and require more attention in future years – all without a high upfront cost!

You can get all these benefits by selecting suitable modules for your company. If you’re unsure which ERP modules are best for your business, this blog post and related posts can help.