Are you looking for a comprehensive resource on Enterprise Resource Planning (ERP) modules?

On this page, you will find an easy to follow introduction on each of the components of ERP system.

ERP modules

Texts and images in this article will help you in getting more clarity about the concepts.

What you’ll find?

In this post, you will get clarity on all available modules in the ERP system. You will also know what the functionalities of each of the modules are. You will get to know the following things,

  • What are the ERP modules?
  • Types of modules.
  • List of modules in each of the types.
  • Description and details about each of the modules.
  • Modules in popular ERP solutions like Oracle and SAP

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. Each module provides specific and related functionalities. The functionalities related to one area of business processes.

3 Types of core ERP modules

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

Functional modules of ERP software

ERP Functional modules

Finance module in ERP

It records transactions in the general ledger accounts. 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 in doing the planning, scheduling, and recording 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 is tightly integrated with the inventory control and production planning modules. The purchasing module is often integrated 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, and so on.

Technical modules

Technical Modules in ERP

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

Technical modules are tightly coupled with functional modules. They help smooth integration with different functional modules and application suite.

Examples of these are security module and information system management.

Technical components found in ERP systems are,

  • Basis 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 and 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. Regular SCM frameworks help organizations in planning. Planning for their creation necessities and improve complex transportation and co-ordinations for materials.
  • Supplier relationship management (SRM): SRM frameworks normally deal with general associations with the materials providers. SRM frameworks contain usefulness in dealing with quotation and contract processes.

Companies can have more intra-company systems. 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 those of its customers. CRM frameworks furnish organizations with abilities 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 to watch the procedures of research, plan, and item the board. They help to take new item thoughts from the virtual drawing board all the way to the manufacturing unit.
Application suite interactions

SAP ERP modules

Following is the SAP modules list that is important,

  • 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)
    • Demand Management
    • Sales and Production Planning
    • Capacity Requirement Planning
    • Material Requirement Planning
    • Bills of material
    • Shop floor control
    • Production Orders
    • Routing
    • Work Center
  • 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 is the Netsuite 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
    • Product data management
    • Work order management
    • Planning and scheduling
    • Quality assurance
    • MES
  • 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


With the business landscape changing, it’s imperative to keep an eye on the developments in ERP space. Keep getting updated about new ERP modules and sub-modules.

If you’ve overlooked the importance of ERP in the past, remember this. About 80% of the big and medium businesses run with ERP solutions.

Learn about one of these core modules of ERP at a time. It is certain that it’ll help you take another step towards reaching your business and career goals.


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