Glossary

What is ERP?

Enterprise Resource Planning

Definition

ERP — enterprise resource planning — is business software that runs a company’s core processes, such as sales, finance, inventory, manufacturing and HR, on one shared database so each piece of data is entered once and everyone works from the same numbers.

ERP in plain terms

Without an ERP, each department has its own tool: sales in one place, accounting in another, the warehouse in a separate spreadsheet. An ERP connects those islands — an order entered by sales reserves stock and creates its accounting entry without anyone re-typing it.

Typical ERP modules

  • Finance and accounting: ledgers, receivables, payables and financial statements
  • Sales and CRM: customers, quotations and orders
  • Supply chain: purchasing and inventory
  • Manufacturing: bills of materials, MRP and work orders
  • HR: employee records, attendance and payroll

Example

When a distributor confirms an order in its ERP, the system reserves stock, proposes a purchase if stock is short and, after shipping, issues the invoice and journal entry. Managers always see one shared figure for sales and stock.

ERP in Fidar

Fidar is a modular cloud ERP. CRM, Contacts, reporting and access control are available today; other modules follow the roadmap. For a longer introduction, read what is cloud ERP.

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From definition to practice

See how these concepts work on real company data in Fidar.