ERP Modules – Types, Categories, Features, Examples

Details on ERP Modules

An ERP system typically includes modules for accounting, customer relationship management (CRM), human resources (HR), and procurement.

This blog post will discuss the different types of ERP modules, their categories, and examples of each type. We will also discuss the features of typical ERP modules, modules in SAP and Oracle ERP solutions.

Types 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.

What are ERP Modules?

ERP Modules are the software that helps the business or organization to unify data from all departments on one centralized platform. It also streamlines and automates the day-to-day activity of the business process and increases productivity & efficiency.

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

Finance modules 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.

HR(Human Resources) Module

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

Production Module

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

Purchase module in ERP

The purchase 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.

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

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.

Technical modules

ERP Technical modules

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
  • ERP Security module
  • Networking and interface
  • Management Information System
  • Application Programming module
  • Analytic module
  • APIs opened for external use

Integration of ERP with the application suite

ERP application suite

The application suite is the collection of inter-connected information systems. That could be within and across different companies.

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

Few of the popular inter-company systems are,

  • Supply chain management (SCM): SCM interfaces an organization to different organizations that supply the materials. Common SCM frameworks help organizations in planning. For example, they are planning for their creation necessities and improving complex transportation and materials coordination.
  • Supplier relationship management (SRM): SRM frameworks usually deal with general associations with the materials providers. 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 life-cycle management (PLM): PLM frameworks help organizations watch the research procedures, plan, and item the board. They help take new item thoughts from the virtual drawing board to the manufacturing unit.

What is Enterprise Application Integration (EAI)?

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 in a centralized place and gives clear data whenever you need it.
  • 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 the 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. When there is a smooth flow of information, cooperation in the workplace also increases.
  • 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.

What are industries need ERP modules?

Industries such as manufacturing, distribution, healthcare, education, hospitality, non-profit organizations, construction, food industry, and professional service need ERP modules.

Manufacturing and distribution industry

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

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 enrolling 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 so that it reduces the waste of time and decreases stress on management and workers.

Construction sector

Equipment rental cost control, inventory handling, and deadlines are critical aspects of construction industries.

A 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 the 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)
    • Inventory Management
    • Purchasing
    • Material Planning
    • Material Requirement Planning
    • Invoice Verification
    • Vendor Valuation
    • Warehouse Management
  • 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)
    • Project Maintenance
    • Maintenance planning
    • Predictive Maintenance
    • Preventive Planning
    • Service Management

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


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

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