What Are the Key Features and Functions to Look for in ERP Software?

Enterprise Resource Planning (ERP) software has revolutionized the way businesses operate by integrating various departments and streamlining processes. From manufacturing and accounting to finance, HR, and beyond, ERP software offers a comprehensive suite of tools to optimize operations and enhance efficiency. However, with numerous options available in the market, selecting the right ERP software can be a daunting task.

In this article, we will explore the key ERP Software features and ERP functions to consider when evaluating ERP software for manufacturing and accounting processes. By understanding these essential elements, businesses in the manufacturing industry can make informed decisions to find a solution that aligns with their specific requirements.

ERP Functions
ERP Functions

1. Scalability and Flexibility for Manufacturing Processes

For manufacturing companies, scalability and flexibility are paramount when selecting an ERP system. Manufacturing processes often involve complex workflows, inventory management, and production planning, which require a software solution that can grow with the business. Look for ERP software features that offer robust manufacturing modules, including features such as bill of materials (BOM), production scheduling, and shop floor control.

manufacturing industries ERP System
manufacturing industries ERP System

Additionally, the software should be flexible enough to adapt to changing manufacturing processes and support various production methods, such as make-to-order (MTO), make-to-stock (MTS), or engineer-to-order (ETO). This flexibility allows businesses to customize the ERP system to their specific manufacturing needs and optimize operations accordingly.

2. Integration Capabilities with Accounting Systems

Efficient integration between ERP software and accounting systems is crucial for manufacturing companies. The seamless flow of financial data ensures accurate cost tracking, inventory valuation, and financial reporting. Look for ERP solutions that integrate seamlessly with popular accounting software, such as ERP Next.

Integration between manufacturing and accounting modules enables real-time visibility into costs, inventory levels, and financial performance. This integration facilitates accurate cost accounting, helps track profitability by product or project, and simplifies financial audits. A comprehensive ERP system should enable seamless communication between the manufacturing and accounting departments, reducing manual entry and minimizing errors.

3. Comprehensive Reporting and Analytics for Manufacturing

Manufacturers need access to accurate and timely data to make informed decisions. Look for ERP software that offers comprehensive reporting and analytics capabilities tailored to manufacturing processes. This includes features such as production performance analysis, materials consumption reports, and quality control metrics.

erp Software for manufacturing
erp Software for manufacturing

The ERP functions in the software should provide pre-built manufacturing reports, such as work order status, production yield, and production cycle times. Moreover, customizable reporting options allow manufacturers to generate insights specific to their unique needs, such as profitability analysis by product line or resource utilization reports. Advanced analytics capabilities, such as predictive maintenance or demand forecasting, can further enhance decision-making in the manufacturing environment.

4. Mobile Access and User Experience for Manufacturing Workflows

In the manufacturing industries, mobility and user experience are critical considerations. ERP software should offer mobile access, allowing shop floor employees to access real-time information and record production data on handheld devices or tablets. This mobile capability facilitates real-time inventory tracking, production status updates, and quality control data collection.

ERP Software Features and Functions
ERP Software Features and Functions

Furthermore, the user experience should be intuitive and user-friendly, particularly for employees involved in manufacturing operations. The system should provide clear navigation, easy data entry, and visual indicators to facilitate seamless adoption and efficient use on the shop floor. A well-designed user interface contributes to increased productivity, reduced training time, and improved data accuracy.

5. Security and Data Protection in Manufacturing ERP

ERP Features and Functions
ERP Features and Functions

Data security is of utmost importance, especially for manufacturing companies handling sensitive information, such as product designs, customer data, or financial records. Look for ERP software that prioritizes data protection through robust security features.

The software should offer role-based access controls, data encryption, and secure authentication mechanisms to protect critical information. Regular software updates and vendor commitment to security measures are essential considerations. Additionally, compliance with industry regulations such as ISO 27001 or ITAR (International Traffic in Arms Regulations) is crucial for manufacturing businesses operating in specific sectors, such as aerospace or defense.

6. Support and Vendor Reputation for Manufacturing ERP

Manufacturing ERP implementation and maintenance require ongoing support from the software vendor. Look for vendors with expertise in manufacturing ERP and a proven track record of successful implementations in the industry. Consider the level of support provided, including training resources, documentation, and customer service options.

Technical Support
ERP Features and Functions

Research vendor reviews, testimonials, and case studies to assess their reputation and determine if they understand the unique challenges and requirements of manufacturing businesses. A strong vendor-client relationship can contribute significantly to the success of your ERP implementation in the manufacturing environment.

7. Inventory Management and Supply Chain Integration for Manufacturing ERP

Efficient inventory management and supply chain integration are crucial features to look for in manufacturing ERP software. Manufacturers often deal with complex supply chains, multiple warehouses, and the need for real-time visibility into inventory levels. Look for ERP solutions that offer robust inventory management capabilities, including features such as demand forecasting, materials planning, and order management.

An effective manufacturing ERP system should enable seamless integration with suppliers, distributors, and logistics partners. This integration allows for streamlined procurement processes, automated order fulfillment, and real-time tracking of shipments. By integrating the supply chain within the ERP software, manufacturers can optimize inventory levels, reduce stockouts, and improve overall supply chain efficiency.

8. Production Planning and Scheduling for Manufacturing ERP

Production planning and scheduling play a critical role in manufacturing operations. Look for ERP software that offers advanced production planning functionalities, such as capacity planning, resource allocation, and production scheduling optimization. These features help manufacturers optimize their production processes, minimize idle time, and improve overall productivity.

The software should allow manufacturers to create detailed production plans, including defining the sequence of operations, assigning resources, and estimating production lead times. It should also provide tools to monitor and adjust production schedules in real time, considering factors such as machine availability, labor capacity, and material availability.

Effective production planning and scheduling within the ERP system help manufacturers meet customer demand, reduce production bottlenecks, and maximize resource utilization.

9. Quality Management and Compliance for Manufacturing ERP

Manufacturing ERP software should include robust quality management functionalities to ensure consistent product quality and adherence to industry standards. Look for features such as quality control checks, non-conformance tracking, and corrective action management.

Quality Control with ERP Software
Quality Control with ERP Software

The software should facilitate capturing quality data at various stages of the production process, such as inspections, tests, and audits. It should also enable real-time visibility into quality metrics, allowing manufacturers to identify and address quality issues promptly. Compliance management features, including traceability and regulatory compliance tracking, are essential for manufacturers operating in regulated industries.

10. Cost Accounting and Financial Management for Manufacturing ERP

Effective cost accounting and financial management capabilities are crucial for manufacturing ERP software, especially when considering accounting needs specific to the manufacturing industry. Look for features such as cost tracking by job, product, or project, as well as tools for calculating and allocating overhead costs.

Manufacturing ERP should provide accurate and timely cost information, allowing manufacturers to determine the true cost of production, analyze profitability, and make informed pricing decisions. The software should also support financial management functionalities such as general ledger, accounts payable, accounts receivable, and financial reporting.

A comprehensive financial management module within the ERP system ensures accurate financial data, facilitates financial planning, and supports compliance with accounting regulations.

11. Customization and Extensibility for Manufacturing ERP

Every manufacturing business has unique processes and requirements, so the ability to customize and extend the ERP software is essential. Look for a flexible and extensible ERP solution that allows customization of workflows, data fields, and user interfaces.

The software should provide a range of configuration options without requiring extensive coding or development skills. This customization capability enables manufacturers to tailor the ERP system to match their specific manufacturing processes and industry requirements.

Additionally, an ERP solution that must have ERP functions that supports integration with third-party applications or provides a development platform for building custom functionalities allows manufacturers to extend the system’s capabilities as their needs evolve.


Selecting the right ERP software for manufacturing and accounting processes is a critical decision for businesses in the manufacturing industry. By considering key features such as scalability, integration capabilities with accounting systems, comprehensive reporting and analytics, mobile access and user experience, security, support, inventory management and supply chain integration, production planning and scheduling, quality management, and compliance, cost accounting and financial management, and customization and extensibility, manufacturers can find an ERP solution that meets their unique needs.

Remember that implementing an ERP system is a complex undertaking that requires careful planning, stakeholder involvement, and thorough evaluation of different software options. It is crucial to prioritize the specific requirements of your manufacturing and accounting processes, involve key stakeholders throughout the selection process, and consider seeking guidance from ERP implementation experts or consultants.

By selecting and implementing the right ERP software, manufacturing businesses can streamline operations, optimize supply chain management, enhance financial control, improve product quality, and drive overall business growth and success.

For your ERP Software requirement for manufacturing business, let’s have a free consultation. VR IT Services Pro can help you automate your business at your fingertips.

What is the top 10 ERP?

  • NetSuite
  • SAP S/4HANA Cloud.
  • Sage Intacct.
  • SAP ECC.
  • Microsoft Dynamics 365 Business Central.
  • Acumatica.
  • Oracle JD Edwards EnterpriseOne.
  • SAP Business One.

What are the 3 common types of ERP?

The most common types of ERP systems include 

  1. Cloud ERP,
  2. On-premise ERP
  3. Hybrid ERP

VR IT Services Pro is capable of deploying all kinds of ERP Software solutions for your business mentioned above.

What are the 5 components of ERP?

  • Finance
  • Human resource
  • Logistics and Manufacturing
  • Supply chain management
  • Customer relationship management

What is ERP used for?

Enterprise resource planning (ERP) is a software system that helps you run and monitor your entire business, through automation and processes in finance, human resources, manufacturing, supply chain, services, procurement, and many more.

What are the advantages of ERP?

Enterprise Resource Planning (ERP) systems offer numerous advantages to businesses of all sizes and industries. These integrated ERP software solutions streamline various processes, enhancing efficiency and productivity. The benefits of an ERP system include improved data accuracy, real-time access to information, streamlined workflows, enhanced collaboration, and better decision-making. ERP software enables businesses to centralize data, providing a comprehensive view of operations, leading to informed strategic planning. Additionally, automation reduces manual tasks, saving time and resources. With ERP, organizations can optimize resource allocation, minimize costs, and adapt quickly to changing market demands, gaining a competitive edge in today’s dynamic business environment.

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