Top ERP Features You Will Need in 2022
There are many ERP systems available on the market. Choosing one may seem confusing, but it’s better when you know what to look out for. It’s important to pay attention to the detail of what differentiates the leading systems from the rest. In this guide, we discuss the top ERP features you will need in 2022.
Platform & Tools
Every ERP system has multiple levels of security and some capability to customize screens. Most systems provide user-defined fields (UDF). UDF functionality varies widely between applications. Import and export utilities are common for data management. Most ERP vendors restrict access or charge fees for source code. All ERP applications provide reporting and inquiry tools. Mobile applications are critical for service companies. Help files are available for all major ERP applications. Some systems offer customizable help and built-in wikis. Support for multiple languages and international localization varies widely.
Accounting
Every service ERP system provides a general ledger, accounts payable, accounts receivable, and bank management (also known as cash management or bank reconciliation). However, functionality varies widely in these core financial modules. Multi-company and multi-currency support are other standard features. Not all ERP systems support inter-company features, recurring revenue, deferred revenue, contracts, national accounts, or budgeting. Nor do all systems provide tools for allocations or financial consolidations. Fixed assets, bank feeds, and payroll is provided natively or through third-party applications.
Sales
Most service ERP applications provide sales orders. Some applications also support drop-shipments, returns and exchanges, sales commissions, quotes, and CRM. Pricing includes customer pricing and volume pricing with special discounts and promotions. Other standard sales features include shipping, backorder management, sales commissions, and labeling.
Inventory and Warehouse Management System
Standard inventory functionality includes stock and non-stock item management with unit of measure definitions, pricing, and packaging. Standard inventory management features include replenishment, ABC Codes, movement classes, and calendar-dependent physical inventory cycle counting. Some provide country of origin and advanced replenishment based on safety stock, lead times, reorder points, economic order quantities, or min/max stock definitions. Kitting, barcoding, labeling, and warehouse transfers are also common. Lot and serial tracking, expiration dates, and inventory allocation for orders are less common. Most systems support average and standard inventory valuation. Some also support FIFO, LIFO, and actual or specific (lot-based) valuation methods. Ensure that the application provides embedded barcoding and mobile warehouse management to automate pick, pack, ship, and other inventory transactions.
Commerce & Point of Sale (POS)
Service companies offer many different products through commerce storefronts and many service companies operate retail stores with complementary products and supplies. Modern ERP systems provide customers with multiple commerce storefront options such as BigCommerce and Shopify to support varied business-to-business and business-to-consumer experiences. Integration is bidirectional between the commerce application and the ERP system allowing you to synchronize item information, stock availability, and orders between systems. Ensure that the ERP system you choose connects to retail point of sale software with integrated hardware for cash registers, barcode scanners, receipt printers, and credit card terminals. Confirm that the ERP supports omnichannel sales where customers can buy in-store and return online and vice versa.
Purchasing
Purchasing includes blanket orders, receipt of goods processing, and put-away features. Other common features include landed costs, FOB definitions, vendor returns, and bar code scanning. Few systems like Acumatica natively support purchase order requisitions with approvals workflows. Those that do support requisitions may provide vendor requests for quotes (RFQ) and online vendor bidding.
These were some of the top ERP features you will need in 2022. There is a massive advantage in using industry-specific ERP features. Need guidance in choosing the ideal system for your unique business requirements? Drop us a line on 011 792 8521 or contact us via email.