An ERP requirements template is a working document that lists what you need the software to do, ranks each item by how badly you need it, and scores every vendor against that same list. Its real job is to make three different sales teams answer the same questions, so you compare their answers instead of their presentations.
The useful version is shorter than most people expect. Vendor checklists advertise 500 requirements, and one widely circulated template runs past 3,900. A list that long cannot be prioritised, and unprioritised scope is the most expensive habit in enterprise resource planning buying. In Panorama Consulting Group’s 2026 ERP Report, scope that grew after the contract was signed contributed to 51.0 percent of over budget projects and 55.3 percent of late ones, and unplanned additional technology was the single leading cause of overspend at 54.9 percent.
The short version: write each requirement as a process you need to run rather than a feature name, keep Must Have items to no more than 60 percent of the effort, and score vendors on a weighted model instead of a yes or no tick. The document structure, a filled requirement row, the scoring arithmetic and the checklist by module are all on this page.
What is the enterprise resource planning requirements template?
It is the document you write before you shortlist, and the scorecard you carry through demos. A complete one has six parts. Most templates you can download consist only of the fourth.
| Section | What goes in it | Worked example |
|---|---|---|
| 1. Business context | Industry, revenue, headcount, sites, legal entities, currencies, languages | Three sites, two legal entities, invoicing in USD and CAD |
| 2. Current systems | What you run today, what the ERP replaces, what has to survive | QuickBooks and a spreadsheet bill of materials are replaced; the CAD system stays and must integrate |
| 3. Process pain points | What goes wrong today, with a number attached | Month end close takes 11 working days; stock accuracy is 87 percent |
| 4. Functional requirements | What the software must do, by module | Allocate stock to a sales order at the point of order entry |
| 5. Non functional requirements | Deployment, access control, integration, performance, compliance, support | Field level permissions with segregation of duties enforced |
| 6. Priority and scoring | A MoSCoW priority and a weight on every row, plus the vendor score | Must Have, weight 5, Vendor A scores 3 |
The first three sections are what make the fourth specific. “Inventory management” is not a requirement, because every ERP on your shortlist will tick it. “Allocate stock to a sales order at the point of order entry, across three sites” is a requirement, because vendors genuinely differ on it and the answer is either yes or no.
Why do you need an ERP requirements template?
The ERP requirements template includes organizational structure, business processes, data and information requirements, system security and access control, SLAs and other legal requirements, technical infrastructure, and implementation considerations.
In addition, each section includes specific questions that need to be answered to properly assess the organization’s needs.
Answering these questions will help organizations identify the features and functionality they require from an enterprise resource planning solution. Additionally, the template can generate a Request for Proposal (RFP).
Top ERP requirements checklist
1. Accounting and Financial Management
ERP software can automate accounting processes, freeing staff to provide more advisory services.
- Accounts Receivable
- Accounts Payable
- Invoices
- Deposits
- Cash Flow Management
- Automatic Cost Calculation
- Cost Calculation Mode Selection
- Budgeting
- Bank Reconciliation
- Payroll
- Cost Analysis
- Advanced Allocations
- Fixed Asset Management
- Expense Management
- General Ledger
- Multiple Currencies Support
- Multiple Languages Support
- Regulatory Compliance Support
Payment and Applications Receivables of Acumatica
Account Details of BizAutomation
General Ledger of Odoo
Accounts Receivable of Brightpearl
2. Human Resource Management
HR management is one of the top ERP requirements checklists. It oversees employee training, happiness, and recruitment to maintain a healthy company.
- Employee Information Management
- Recruitment and Hiring
- onboarding
- Talent Management
- Benefits Management
- Time and Attendance
- Professional Development
- Payroll and Compensation
Employee List in HR of ERPnext
3. Manufacturing
ERP Manufacturing is a tool that helps to maximize staff hours, identify weaknesses, and automate the supply chain.
- Bill of Materials (BOM)
- Capacity Requirements Planning
- Production Cost Analysis
- Production Control
- Product Data Management
- Engineering Change Management
- Forecasting
- Job Costing
- Master Production Scheduling
- Quality Assurance Management
- Quality Monitoring
- Quality Analysis
- Resource Planning and Management
Production Orders of Acumatica
Bill of Materials of Axelor
4. Inventory Management
Inventory management enables you to keep track of inventory levels and order replenishment with real-time data.
- Product History
- Pricing management
- Inventory tracking
- Picking and packing
- Multi-Location Tracking
- Labeling
- Order Tracking
- Sales Order
- Quotations
Sales Order of Acumatica
Inventory of Oracle NetSuite
5. Sales and Marketing
Sales and marketing are essential tools for a thriving business. Many businesses provide both Internet and in-person sales.
- Inquiries
- e-commerce
- Quotes
- Invoices
- Sales Order Management
- Shipping
- Lead Management
- Visual Tracking
- Social Marketing
Leads and Projects view of Dolibarr
Recurring Invoices of Wave
Invoice view of QuickBooks
Sales page of Axelor
6. Customer Relationship Management
The CRM module is a crucial tool for businesses to manage their contacts and customer communication.
It can track everything from initial emails, phone calls, or messages on social media channels. Its analytical features help businesses improve the customer experience at each stage from start to end, with increased retention rates.
- Contact Management
- Customer Account Management
- Customer Account Dashboard
CRM of Axelor
7. Order Management and Commerce
- Pricing and Tracking
- Service Management
- B2C Commerce
- B2B Commerce
- Order Management
- Email Tools
- Email Integration
- Case Management
- Customer Self-Service
- Marketing Campaign
- Rental Management
- Sales Management
- Mobile Access
- Sales Force Automation
Order Management of Microsoft Dynamics 365
8. Supply Chain Management
SCM tools are a great way to help ensure your product gets from the supplier to the customer. There’s plenty more than just procurement and distribution.
- Procurement
- Work order
- Demand Planning
- Distribution Management
- Logistics Management
- Logistics Planning
- Shipping management
- Event Management
- Warranty management
- Manufacturing Execution System
- Management of Resources
- Scheduling
- Dispatch of Orders
- Execution of Orders
- Collection of Production Data
- Production Performance Analysis
Scheduling of E2Shop
Supply Chain Management of Oracle NetSuite
9. Business Intelligence(BI)
Business intelligence (BI) is the process of monitoring a company’s vital information, and it converts it into charts and graphs to make informed decisions.
- Data Integration
- Big Data Management
- Data Warehouses
- Data Accuracy
- Data Catalogs
- Business Analytics (BA)
- DATA Analysis
- Data management
BI Oracle NetSuite
10. Automation
ERP software automates repetitive tasks and allows for real-time data sharing between departments.
- Machine Learning(ML)
- Artificial Intelligence(AI)
- Natural Language Processing
- Robotic Processing Automation
Machine Learning of Microsoft Azure
11. Integration
ERP software is designed to integrate into your existing infrastructure with minimal disruption.
- Hardware Integration
- Application and Software Integration
- New modules integration
- Integration With devices
- Integration With Barcode Generator
External Integration of Device42
12. Reporting
The reporting module allows you to create customizable reports with your company logo and colors.
- Profit and Loss Statements
- Period Close and Trial Balance
- Bank Reconciliation Statements
- Proposals
- Statutory and Management Reporting
- Drill Down to Source Transaction
- Invoices
Report and Analysis
Invoice Report of Axelor
Some other ERP functional requirements
- Centralization – Centralized ERP modules help the user manage the tasks without moving from one application to another. All departments of the company can access and receive required information in one centralized interface.
How to prioritise: MoSCoW and the 60 percent rule
A requirements list with no priority is a wish list. The standard fix is MoSCoW, devised by Dai Clegg in 1994 and formalised in the DSDM framework, which the Agile Business Consortium maintains today. Every requirement carries one of four labels.
| Priority | What it means | An ERP example |
|---|---|---|
| Must have | No point going live on the target date without it | Statutory tax reporting for every country you invoice from |
| Should have | Painful to leave out, but there is a workaround | Automated three way match, where AP can match manually for a few months |
| Could have | Wanted, low impact if it slips | A mobile app for approving purchase orders |
| Won’t have this time | Explicitly out of scope for this phase, and recorded so it stops being re-argued | Warehouse robotics integration |
The part most buyers skip is the ceiling. DSDM guidance is that Must Have work should account for no more than 60 percent of the effort, with roughly 20 percent held as Could Haves that act as contingency. The reasoning is practical: once almost everything is mandatory, there is nothing left to trade when the project hits trouble, so the only things that can move are the date and the budget. That is the mechanism behind the failure numbers. In Panorama’s 2026 sample, 22.3 percent of projects ran late and 30.0 percent finished over budget, with organisational issues such as governance and resistance to change the leading cause of delay at 57.9 percent.
If more than 60 percent of your list is a Must Have, the list is not prioritised. It is only labelled. The discipline that makes MoSCoW work is being willing to write “Won’t have this time” next to something you genuinely want.
How to score ERP vendors against the checklist
A tick box checklist gives every requirement the same value, which is why rival vendors so often finish a point apart and the decision falls back to the demo everyone enjoyed most. Weighting fixes that. Give each requirement a weight from its priority, score each vendor on how the requirement is actually met, then multiply.
| Weight by priority | Vendor fit score |
|---|---|
| Must have = 5 | 3 = standard, out of the box |
| Should have = 3 | 2 = met by configuration |
| Could have = 1 | 1 = met only by custom development |
| Won’t have = not scored | 0 = not available |
Scoring fit rather than presence is the point. “Yes, we can do that” and “yes, that is standard” are very different answers, and the gap between them is a custom development line in year one. Here is the model filled in for two vendors on five requirements.
| Requirement | Priority | Weight | Vendor A | Vendor B | A weighted | B weighted |
|---|---|---|---|---|---|---|
| Allocate stock to a sales order at order entry | Must | 5 | 3 | 2 | 15 | 10 |
| Multi entity consolidation in a single base currency | Must | 5 | 2 | 3 | 10 | 15 |
| Three way match on supplier invoices | Should | 3 | 3 | 3 | 9 | 9 |
| Lot and serial traceability through to customer shipment | Must | 5 | 1 | 3 | 5 | 15 |
| Mobile approval of purchase orders | Could | 1 | 3 | 1 | 3 | 1 |
| Total | 19 | 42 | 50 | |||
| Percentage of maximum (57) | 73.7% | 87.7% |
The maximum is the sum of the weights multiplied by the top fit score, so 19 times 3, which is 57. On a plain tick box count these two vendors look close, and Vendor A even meets more requirements at some level. The weighting separates them because Vendor B is strong where the weight sits.
Read row four before you read the totals. Vendor A scores 1 on lot and serial traceability, which is a Must Have, and a score of 1 means it exists only if somebody writes it. Plenty of buyers would treat that single row as disqualifying whatever the total says, and they would be right to. The model is there to make the trade offs visible, not to make the decision for you.
Non functional ERP requirements
Functional requirements decide whether the software can run your process. Non functional requirements decide whether you can live with it afterwards, and they are the ones most often left off a checklist until the point where changing them is expensive.
| Area | What to ask | Why it bites later |
|---|---|---|
| Deployment | Cloud, on premise or hybrid, and who applies updates | 73.5 percent of the Panorama 2026 sample now run cloud ERP, so on premise support roadmaps are worth checking |
| Access control | Role and field level permissions, and segregation of duties | Audit findings arrive after go live, when the roles are already built |
| Integration | A documented API, supported connectors, and rate limits | Unplanned additional technology was the top cause of overspend at 54.9 percent |
| Data migration | How much history moves, in what format, and who cleans it | Data issues contributed to 36.8 percent of late projects |
| Performance | Concurrent users, peak transaction volume, reporting load | Month end is when you need the system fastest and it is slowest |
| Compliance | Statutory reporting, audit trail, data residency | Country specific rules are rarely retrofitted cheaply |
| Support | Hours, escalation path, named contact, response times | The first month end close is when the support model gets tested |
How to develop an ERP requirements checklist?
The infographic below illustrates the steps to develop an ERP business requirements template.
Define your business needs and objectives
Before investing in an ERP system, assessing your business needs and objectives is essential. To start, sit down with key stakeholders within your organization and discuss what they hope to gain from an ERP implementation.
What processes do they feel are inefficient? What problems do they encounter daily? Once you understand the pain points within your organization, you can look for an ERP system to address them.
After this, you ensure you choose the right system for your company. Otherwise, you risk ending up with expensive software that doesn’t address your specific needs.
Research and evaluate available ERP software solutions
Once you know what you’re looking for, you can narrow your options and identify a few potential ERP vendors. From there, it’s important to compare features and pricing before deciding.
By taking the time to research available ERP software solutions, you can find a solution that’s right for your business and ensure that your business operations run smoothly.
Create and refine a master checklist of all desired features and functionality
A checklist is an important tool for any software development project. It helps to ensure that all of the necessary features and functionality are included in the final product.
It is crucial to call for all stakeholders to create the checklist, as they will each have different requirements for the software.
Once the checklist is complete, review it regularly to ensure that it remains accurate and up-to-date.
Prioritize the items on the checklist according to need and importance
Not all items on a checklist are created equal. Some may be more important or urgent than others, and it can be helpful to prioritize the items on the checklist accordingly.
Send your ERP requirements to ERP vendors
After finalizing the requirements for an ERP system, you can circulate them to potential vendors like SAP, ORACLE NetSuite, or your partners.
ERP purchasing considerations
When purchasing an ERP (Enterprise Resource Planning) system, there are several key considerations you should take into account to ensure you choose the right solution for your business.
Expertise of vendor
It’s crucial to partner with a provider with expertise in your industry and an understanding of your specific needs. They should have a track record in your industry and a support model that is still staffed after go live.
Integration capabilities
The ERP system must integrate with other tools and devices you employ in managing your business. Ensure the system is easier to integrate with commercial or custom-built solutions.
Support
Vendor support is vital for successfully implementing and using the ERP system. That includes technical support, troubleshooting, and regular updates to keep the system running smoothly.
Deployment options
ERP systems offer different deployment options, including on-premise, cloud-based, or hybrid solutions. Consider which option is best suited to your business’s needs and resources.
Pricing
Understand the total cost of ownership, including upfront costs, ongoing fees, and potential costs associated with upgrades or additional modules. Don’t confuse price with value. The cheapest solution may not always fit your business.
Customization option
The ERP system must be flexible to adapt to your business’s unique needs. However, excessive customization can lead to complexity and higher costs, so striking a balance is important.
Training
Adequate training for your workforce is essential for successful ERP adoption. Ensure the vendor provides comprehensive training and support materials to facilitate a smooth transition.
Sustainability
The ERP system should be scalable and capable of growing your business. It should also be sustainable in the long run, with the vendor committed to regular updates and improvements.
Benefits of ERP requirements gathering template
Numerous benefits come along with using an ERP functional requirements template, some of which include the following:
- Less time is needed to generate requirements specifications since a lot of the information is pre-filled
- More accuracy and completeness in the requirements specifications since all essential details are included in the template.
- A reduction in errors and omissions in the requirements specifications
- Breach of contract legal disputes can be avoided as both parties would have been clear about what is required from the start.
Best practices for ERP requirements gathering
Gathering requirements for an Enterprise Resource Planning (ERP) system is crucial in ensuring the chosen solution meets your business’s needs. Here are some best practices for ERP requirements gathering:
Tie requirements to business goals
The first step in gathering ERP requirements should be to align them with your business goals. That means understanding what you want to achieve with the ERP system and how it can support your strategic objectives.
Assemble a diverse team
Assemble a team of stakeholders and the right people from different departments who use the ERP system. That ensures that all areas of the business are represented and that the system will meet the needs of all users.
Plan methodically
Create a detailed plan for the requirements-gathering process. That could involve deciding on your methods, such as interviews, focus groups, or questionnaires.
Prioritize process mapping
Understanding your business processes is key to defining your ERP requirements. Process mapping helps you identify inefficiencies and areas for improvement in your current process.
Identify pain points
Identify the challenges and pain points in your current processes that the ERP system should address.
Identify priorities
Prioritize the modules and features that you need immediately.
Document and Review ERP Requirements
Document all the requirements clearly and structured manner. Once documented, review the requirements with the key stakeholders and revise if necessary.
FAQs
What should an ERP requirements document include?
A complete ERP requirements document has six parts: business context (size, sites, entities, currencies), the systems you run today and which ones the ERP replaces, the process pain points you are trying to fix with a number attached to each, functional requirements by module, non functional requirements such as deployment, access control, integration and compliance, and a priority and weight on every row so vendors can be scored consistently.
How many requirements should be on an ERP checklist?
Fewer than most published templates suggest. What matters is not the count but the proportion that is mandatory. DSDM guidance, maintained by the Agile Business Consortium, is that Must Have items should be no more than 60 percent of the effort, with around 20 percent held as Could Haves for contingency. If almost everything on your list is a Must Have, nothing can be traded when the project runs into trouble, and only the date and the budget can move.
What is the difference between functional and non functional ERP requirements?
Functional requirements describe what the software has to do, such as allocating stock to a sales order at the point of order entry. Non functional requirements describe the conditions it has to do it under: deployment model, permissions and segregation of duties, integration and API limits, data migration, performance at peak, compliance and audit trail, and the support model. Functional requirements decide whether the system can run your process; non functional ones decide whether you can live with it afterwards.
How do you score ERP vendors against a requirements checklist?
Weight each requirement by its priority (Must have 5, Should have 3, Could have 1), then score each vendor on how the requirement is met rather than whether it is met: 3 for standard out of the box, 2 for configuration, 1 for custom development, 0 for not available. Multiply weight by score for each row and total the columns, then express each total as a percentage of the maximum. Always read the Must Have rows individually as well, because a low score on one mandatory requirement can outweigh a strong total.
Conclusion
A requirements template earns its keep twice. In the demo it forces every vendor to answer the same question, so you compare like with like. In the contract it is the record of what you actually agreed to buy, which is the document you will want when somebody says a feature was always going to be a customisation.
Get the priorities honest before you make the list long. A short checklist where the Must Haves are genuinely mandatory runs a better selection than a 500 line one where everything is critical, because the short list still has something left to trade when the schedule tightens.
Once your shortlist is set, the cost of ERP covers what actually sits inside a quote and which vendors publish prices, and ERP implementation covers the phases, the rollout strategies and the measured reasons projects slip.