As a three letter acronym (or “TLA”), ERP stands for Enterprise Resource Planning. By definition, an ERP software solution typically revolves around a set of operational software modules that integrate to the accounting software. The key benefits derived from an ERP are usually in the form of ensuring that data is entered into the system once, then made available to other relevant parts of the business through the various operational and accounting software modules. An example of this is to enter a sales order that calls stock from a stock system, and is then process to an invoice that updates the accounting system (debtors and general ledgers), while also triggering a purchase order to procure more stock for a later sale.
Traditionally this may have involved a number of people and or systems in which data is entered into multiple times. The ERP however removes the potential errors that may occur from involving many people and systems in the processing activity.