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19 Key ERP Features Explained

Natalie Gagliordi | Content Strategist | May 13, 2024

In This Article
 What Are ERP Features?
 19 Key Features of ERP Systems
 ERP Feature FAQs
Enterprise resource planning (ERP) software is one of the cornerstones of a company’s
enterprise technology stack, supporting critical functions for accounting, cash flow
management, financial reporting, risk management, procurement, operations, data analysis,
and other essential elements of doing business. ERP systems have typically been designed to
manage core business processes across various departments, such as finance, human
resources, supply chain, and manufacturing. The exact features included in an ERP software
suite will vary somewhat by provider, but there are general commonalities and main
capabilities that tend to exist in most versions of ERP software.

What Are ERP Features?

ERP features are the capabilities and functionalities included in an ERP software suite, such
as procurement, finance and accounting, order management, supply chain management, and
analytics and reporting. Customer relationship management and human resources are
sometimes included as part of an ERP software suite. These features are meant to help
businesses automate tasks, improve insights, lower operational costs, increase efficiency,
reduce risk, and improve workflows, among a myriad of other benefits.
Key Takeaways
 ERP software is designed to run and automate core business processes across
multiple departments, enabling more efficient operations, giving people more
timely and thorough information, and helping leaders make better-informed
decisions.
  ERP systems include features that span many areas of a business, including
finance, accounting, procurement, project management, and human resources.
 While ERP systems cover a breadth of capabilities, they often require integration
with specialized software for more advanced functionality around analytics,
marketing, sales, customer relationship management, and other important business
processes.

19 Key Features of ERP Systems

ERP features will vary from system to system, but generally, they include a wide range of
financial and operational capabilities that support the common tasks businesses need to
function. Here are some common ERP features to keep in mind when selecting the right
system for your business.

1. Financial management

Financial management is an umbrella term for all of the features that make a software
platform qualify as an ERP system. This includes all of the standard accounting features, such
as payables and expenses, receivables and cash management, revenue recognition, and
sometimes more specialized functionality including budgeting and forecasting or asset and
lease management. Combined, these features help businesses centrally manage all of their
financial processes and activities.
2. Accounting

The accounting features in an ERP system are similar to those found in standalone accounting
software with tools for general ledger, cash flows, accounts receivable and payable, and
expense and invoice management, for example. The draw of using an ERP system for
accounting processes is that it can pull data in from different source systems, synthesize it,
and then store it in a central repository where it can be used for reporting, analytics, and other
important financial functions. It makes it easier to connect finance information to operational
processes to improve decision-making.
3. Order processing

Order processing is a workflow to take orders from customers and fulfill them, letting
businesses manage the lifecycle of purchase orders, from the initial order capture through
billing, delivery, and payment. Order processing features in ERP systems make it easier to
manage information from different departments, pulling information from multiple systems
as needed, to flow into one data stream. This enables automation and helps make it easier and
more efficient to process orders.

4. Project management

ERP systems often include robust project management features that help businesses plan,
evaluate, execute, and monitor projects from conception to completion. These features can
include the ability to create detailed project plans, including tasks, milestones, and
dependencies. Other key elements of project management include functionality for budgeting
and cost control, collaboration, and risk management, as well as analytics tools for assessing
progress, identifying bottlenecks, and making data-driven decisions.

5. Embedded AI

Leading ERP systems are increasingly building artificial intelligence capabilities into the
software, so AI can be applied to automate or speed up specific finance and operations tasks.
For example, an AI-powered chatbot could guide employees through the process of
submitting an expense report via a smartphone, letting them take a photo of the receipt or text
details into a chat. Generative AI capabilities can be applied within ERP, to do things such as
creating narrative descriptions to help summarize financial reports.
6. Real-time data

Real-time data in an ERP system is a key enabler to spot changing business conditions,
reassess strategies, and make better-informed decisions to respond quickly to market needs.
When companies operate with older disparate systems, it takes a lot of manual work to pull
data out of each system and make it usable across the business. This raises concerns about
data integrity and trust, because by the time the data goes into a report, business leaders could
be making really important decisions based on out-of-date or inaccurate data. ERP systems
that support and facilitate real-time data allow businesses to have access to current
information from across the business, such as inventory levels, cash shortfalls, sales
performance, input costs, and other financial information.

7. Automation

ERP systems automate many routine business processes so they require less—or even zero—
manual effort by employees, enabling people to focus their time on more strategic, value-
adding activities. Automation may be enabled by machine learning and artificial intelligence
technologies, which are embedded into the software to help core features within the system
function with little human intervention. Commonly automated processes in an ERP system
include order fulfillment, inventory management, and financial processes, such as invoice
generation, expense tracking, and reporting. By leveraging automation in these processes,
businesses can reduce manual work, minimize human errors, improve process efficiency, and
boost overall productivity.
8. Data analytics

Many ERP systems include core reporting and analytics capabilities to collect and analyze
data on a business’s operations. The data analytics features most often associated with ERP
systems include report generation, query tools, and dashboards and visualizations that help
make data more easily digestible to support decision-making. It’s common for ERP systems
to require add-on software that enables more extensive and sophisticated analytics.
9. Business process controls

ERP systems include business process controls that are meant to optimize and automate
routine tasks and processes to improve operational efficiency, data accuracy, risk
management, and compliance within an organization. These controls can include tools for
defining and managing workflows, creating predefined approval processes, and establishing
role-based user access controls for better data security and regulatory compliance. While the
specific features will vary among different ERP vendors, the inclusion of business process
controls is a fundamental aspect of ERP software.

10. Reporting

Reporting is a broad term in the context of ERP systems, as it can apply to different functions
such as financial reporting, operational reporting, external reporting to stakeholders, and
regulatory and compliance reporting. Financial reporting is the type most commonly
associated with an ERP system, offering businesses an overview of their performance via key
indicators. Broadly, these reporting capabilities help businesses operate with more
transparency and efficiency and drive better decision-making around critical areas such as
sales, inventory, finance, and production. Any software that bills itself as an ERP system
should include some kind of reporting functionality.

11. Integrations

Integrations are used to connect one software application or data source with another. These
integrations allow business data to be shared between systems for faster insights, better
decision-making, more agile collaboration, and greater data consistency without the need for
manual data transfers. An ERP system leverages integrations to facilitate end-to-end business
processes across departments and business units. For example, in the common ERP function
of procure-to-pay, integrations allow such actions as requisitioning, purchasing, invoicing,
and paying suppliers to become an end-to-end process that happens systematically.

12. Single database

Single database ERP systems allow business data to exist in a centralized location using one
common data model. With all systems and processes operating on the same data model, the
organization's departments and business units can work within the same integrated system.
Data is available and accessible to employees across the organization without the need to
click through multiple systems or wait for data to be transferred manually between
applications, which risks human error and lost information. Another benefit of a single
database ERP is that it simplifies IT infrastructure management, reducing the complexity of
data management, backups, and system maintenance.
13. Manufacturing

The history of ERP systems can be traced back to the manufacturing industry with materials
requirement planning systems in the 1960s. Those roots are still evident in ERP software,
with features related to production, planning, and resource management now considered
standard. ERP software is designed to integrate those types of processes so that
manufacturing businesses understand how to match production with supply and demand to
manage costs while optimizing inventory levels. Materials planning, which is meant to
streamline the procurement process, continues to be a key element of an ERP system’s
manufacturing capabilities, enabling businesses to perform what-if scenarios to help make
sure that they have the right amount of materials for manufacturing products.
14. CRM
Customer relationship management (CRM) is the industry term used for software that stores
customer data, tracks customer interactions and sales leads, and manages marketing
campaigns. It’s not a common or standard feature of an ERP system, and often, businesses
will use ERP and CRM systems from different providers and link them via integration.
Leveraging CRM functionalities within ERP software can help improve lead identification,
make upselling easier and more effective, and minimize expenses associated with customer
data management. The key to making a CRM module useful within an ERP system is
enabling both systems to store and pull data from one place, which is also called operating on
a single database.
15. Sales management

Similar to CRM, sales management features are focused on helping businesses manage
customer relationships, optimize sales workflows, and improve overall sales performance.
These features could include specialized functionality for revenue operations, sales
forecasting, quoting and proposal generation, sales analytics and reporting, and sales territory
and account segmentation. While core sales management may fall more in a CRM system
than an ERP system, all of these features are designed to improve sales workflows and
ultimately drive revenue growth.

16. Marketing

It’s becoming more common to see some crossover in the functionality of ERP systems and
standalone marketing software. Some ERP systems will offer basic email marketing tools for
tracking campaigns, including metrics such as reach, engagement, and conversion rates.
Customer segmentation tools may also be included to categorize customers based on certain
criteria, allowing for more targeted marketing efforts. Depending on the business, specialized
marketing software can work with an ERP system, which may be needed to support more
comprehensive and advanced marketing requirements.
17. HR management

Human resource management is a function that’s typically handled within a dedicated HR

or human capital management (HCM) solution, but it can also be included as a module for an
ERP system. The most common HR features include tools for employee information
management, benefits administration, payroll, and workforce planning. Training and
development programs may also be included here, as well as recruitment and applicant
tracking and employee onboarding. The perk of having HR functionality closely linked with
an ERP system is the ability to drive efficiency in HR processes and tightly connect HR
planning and financial budgeting. Personnel are the largest cost in many businesses, so HR
data is a key driver to financial planning.
18. Supply chain and purchasing

Supply chain planning and purchasing capabilities help businesses optimize and align
procurement, streamlining tasks such as managing purchase orders and suppliers, performing
demand planning and forecasting, and managing inventory and logistics. For decision-
makers, having supply chain features integrated within an ERP system allows them to detect,
decide, and execute on strategic priorities and use real-time information to make the best-
informed decisions at the right time.
19. Business intelligence

Business intelligence is a long-used term in the world of information technology, and it

generally refers to the tools within software (or a standalone software suite) that can be used
for data analysis, data visualization, reporting, strategic planning, and decision-making. At its
core, business intelligence is a means for extracting insights out of data. When integrated
with an ERP system, business intelligence tools can be used to build custom reports,
dashboards, and visualizations that help businesses make more informed decisions based on
the most reliable and up-to-date data.
All the Features You Need. All in Once Place. Oracle Cloud ERP.
With such a broad feature set, ERP systems are indeed one of the stars of enterprise software.
Implementing an ERP system can significantly improve organizational efficiency and provide
a centralized platform for data management and process optimization—which can bring big
benefits to businesses in any industry. However, selecting and implementing an ERP system
requires careful consideration, with the organization’s unique needs dictating what software
ultimately fits the bill.

With tools for financial and project management, procurement, risk management, enterprise
performance management, compliance, and analytics, Oracle Fusion Cloud ERP is packed
with features that are purpose-built to help address the challenges facing today’s businesses.
Oracle Cloud ERP is a comprehensive ERP suite that fully integrates HCM, supply chain,
sales, and marketing on one common data model, enabling real-time insights to help
businesses with the most complex tasks and decision-making. The system’s built-in AI
capabilities are designed to automate manual processes and streamline and optimize everyday
work—and businesses can also opt to use Oracle Fusion ERP Analytics to supercharge the
analytics features already embedded in the system.
As a cloud-based service, Oracle Fusion Cloud ERP also helps businesses stay up to date
with the latest technology innovations, with quarterly releases that deliver new features,
functions, and best practices. Oracle Fusion Cloud ERP is part of a suite of Fusion
Applications that includes HCM, supply chain management, marketing, sales, and service.
All Oracle Fusion Cloud Applications run on Oracle Cloud Infrastructure (OCI), which
provides performance, reliability, scalability, security, and AI innovation.

ERP Feature FAQs

Which is the most significant feature of ERP?
Determining the single most significant feature of an ERP system is subjective, but the ability
to run on one unified data model and integrate business processes is one of the more essential
features, as it provides for data consistency and accuracy and enables data sharing across
different business processes.
What should an ERP solution include?
The features included in an ERP solution vary by vendor, but the core capabilities that should
be part of all ERP systems include tools for finance and accounting, project management,
procurement and supplier management, risk management and compliance, performance
management, and analytics.
What is the main benefit of ERP?
A top benefit of enterprise resource planning is the optimization of business processes, which
can help improve operational efficiency, enhance productivity, boost data accuracy and
integrity, and support data-driven decision-making.
Five ways to help improve planning across your business
See real-world examples of companies’ planning strategies around finance, marketing,
workforce, and more.
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