If any organization wants an integrated view of core business processes, ERP provides that. It uses common databases, generally maintained by database management system. Things like cash, raw materials, capacity, production, etc. are tracked by ERP systems. The status of business commitments like purchase orders, orders, payroll can also be maintained and analyzed with the help of ERP systems. So, it can safely be said that ERP provides and helps the information flow between various departments and functionalities of an organization, like manufacturing, purchasing, accounting, sales, etc.
Enterprise resource planning (ERP) is typically a suite of integrated applications, that can be categorized as a business management software. It's a tool that any organization can use to store, collect, interpret and manage data, which is possible from any business activities, like:
The main function of the ERP tool is to integrate the varied organizational systems, and then facilitate error free productions and transactions. Developing an ERP system is different from the traditional kind of system development. It runs on a variety of network configurations and a variety of computer hardware, most often using the database as the central information source. ERP tolls share a common data model and process, covering the end to end processes, like those found in HR, finance, supply chain and distribution management, manufacturing and service.