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Enterprise resource planning

ERP

In one sentenceOne connected system that runs the whole business: sales, purchases, inventory, accounts and employees, on a shared database.

Simply put

Instead of one program for sales, an Excel sheet for inventory and another program for accounts, an ERP brings it all into one place. The invoice the cashier issues reduces inventory and creates the journal entry at the same moment.

The benefit for the accountant: figures that never need re-entering, and reports that agree across departments. When choosing one, look at how well it fits your business, whether it complies with e-invoicing, and the after-sales support.

Example

An auto parts store sells a part: in an ERP its balance in the warehouse goes down, the revenue, output VAT and cost of sales are recorded in the accounts, and it appears in the cashier sales report, without anyone re-entering anything.

Don't confuse it with

Accounting softwareAccounting software focuses on journal entries and statements, while an ERP also covers sales, inventory, purchases and employees.

in FullScreen ERP

In FullScreen ERP every invoice and voucher creates its journal entry automatically, with a multi-level chart of accounts. General accounts