What is an ERP system

ERP system is software – a tool for keeping records of goods, sales and customers.


Modern ERP systems with a little exaggeration follow the 3000-year-old method of recording crops. These records are preserved on clay plates from Egypt and Mesopotamia.

ERP stands for Enterprice Resource Planning. Since ERP is primarily used for records and not planning, the abbreviation is very inaccurate. And what resources are we talking about in ERP? About material, stocks, warehousing, finance, intangible financial assets such as assets and liabilities, and other sources that can become investments. Of course also about the human capacity that ERP can quantify quite well and convert into money.

At present, ERP systems keep track of deliveries of goods and services, payments from customers, keep track of who did not pay by due date, etc. ERP helps entrepreneurs, keeps an eye on whether customers have received payments, who did not pay by due date, etc. One area in that ERP systems still need to improve is to work with human capabilities and capital.

TIP: Introducing ERP ABRA Gen.