Your Guide to Software Selection

ERP Requirements Checklist and Template

Enterprise resource planning, or ERP, is a flexible data management solution used to streamline business operations and automate data-based functions. ERP is designed to meet the needs of a range of industries, including the financial sector, healthcare, manufacturing and distribution, retail and many other businesses. There are dozens of ERP systems currently on the market, each with varying levels of capabilities. To best collaborate with businesses, managers and ERP providers themselves, use this list of ERP requirements to help you select the right ERP system:

Evaluating ERP solutions? Use this free interactive ERP requirements template to help the process. 

Accounting and Financials

One of ERP’s greatest strengths is its ability to automate, streamline and analyze the vast majority of accounting operations. ERP’s fast analysis and thorough accuracy reduces errors and allows organizations to properly gauge their financial health. This is important to consider because ERP automates several processes, such as payroll, invoicing and budgeting, that usually take dozens of staff hours on a monthly basis.

 Accounts Receivable
 Accounts Payable
 Bank Reconciliation
 ERP to Bank Interfaces and Reconciliation
 Cash Flow Management
 Automatic Cost Calculation
 Cost Calculation Mode Selection
 Cost Analysis
 Advanced Allocations
 Expense Management
 General Ledger
 Multiple Currencies Support
 Multiple Languages Support
 Regulatory Compliance Support

Human Capital Management

Many businesses invest in ERP due to its exceptional ability to manage and analyze human capital resources. Automated Human Capital Management is a valuable solution that manages hiring data and monitors individual productivity. By automating tasks like benefits administration and tax calculations, ERP drastically reduces the potential for human error. This results in increased efficiency and fewer financial losses due to inaccuracy.

 Benefits administration
 Enterprise Compensation Management
 Human Resource Management
 Payroll Integration
 Employee Performance Management
 Tax Administration:
 Personal Income Tax
 Employee Self Service
 Manager Self Service
 Talent Management
 Time and Labor/Attendance
 Time Card Management

Manufacturing and Distribution

ERP’s ability to manage manufacturing processes saves time and money by maximizing staff hours. It ensures accuracy, gauges organizational productivity, identifies weaknesses and automates much of the supply chain. Manufacturing and distribution process management is especially beneficial because it completes tasks such as production control, quality analysis, and distribution scheduling that often consume many hours of staff time.

 Capacity Requirements Planning
 Production Cost Analysis
 Production Control
 Process Synchronization
 Product Data Management
 Engineering Change Management
 Job Costing
 Master Production Scheduling
 Quality Assurance Management
 Quality Monitoring
 Quality Analysis
 Resource Planning and Management

Materials Management

Materials Management allows businesses to monitor stock, deliveries and orders. ERP also uses historical sales data to predict sales trends, which allows businesses to determine optimum stock levels. These functions give retailers and manufacturers the ability to meet revenue goals, maximize storage space, and eliminate unprofitable inventory.

 Availability of Materials
 Availability of Stock
 Optimum Store Inventory

Looking for the top ERP platforms? Check out this ERP software analyst report.

Sales and Inventory Management

Sales and Order Management tracks and analyzes sales data, automates transactions, monitors performance, tracks expenses and even manages order preparation and customer credit. ERP uses historical data to determine ideal price points and prime inventory numbers, saving businesses a great deal of time by removing the need to manually perform price/profit calculation. It also allows you to immediately locate any item in your warehouse, which streamlines order processing. All of these functions ultimately save businesses time and effort while increasing accuracy and efficiency throughout the organization.

 Customer Credit Management
 Sales Order Processing
 Capable to Promise Inventory
 Bill of Materials
 BOM Reporting
 Credit Card Processing
 Online Transaction Reporting
 Sales Order Management

Supply Chain Management

ERP’s supply chain capabilities are particularly valuable for retailers, manufacturers and distributors. By managing such diverse functions as procurement processes, distribution and delivery planning, and materials resource management, ERP’s supply chain management severely reduces the number of tasks businesses must perform, manages complex processes, and eliminates the risk of human error. This results in better accuracy, increased speed, and optimized productivity.

 Logistics Management
 Logistics Planning
 Packaged Integration to Back Office Applications
 Demand Planning
 Distribution Management
 Event Management
 Manufacturing Execution System
 Management of Resources
 Dispatch of Orders
 Execution of Orders
 Collection of Production Data
 Production Performance Analysis

Customer Service Management

ERP offers many valuable capabilities in regard to customer service management. Implemented by many of the largest companies in the world due to the fact that its accurate, thorough analytics improve the customer experience and help businesses retain customers. ERP’s customer relationship management also helps businesses achieve satisfied customers and robust sales. Since customer satisfaction is vital to a business’s success, businesses should seriously consider investing in ERP’s comprehensive customer service tools.

 Customer Account Management
 Customer Account Dashboard
 Contact Management
 Automated Marketing
 Marketing Resource Management
 Pricing and Tracking
 Cost Summaries
 Service Management
 B2C Commerce
 B2B Commerce
 Order Management
 Web Storefront Tool
 Email Tools
 Email Integration
 Case Management
 Customer Self Service
 Marketing Campaign
 Rental Management
 Sales Management
 Mobile Access
 Sales Force Automation

Integration Capabilities

ERP integrates seamlessly into your existing infrastructure. This allows for full implementation with minimal disruption to business operations. Once implemented, ERP offers a single, intuitive portal through which businesses can perform tasks, analyze data, generate reports and integrate new applications easily. Ultimately, ERP’s integration ensures that staff will be able to use the system quickly and effectively.

 Module Integration
 Hardware Integration
 Application and Software Integration
 Integration with Handheld Mobile Devices
 Integration with portable scanners
 Integration with fax server
 Integration with barcode generator


Ensure your ERP provider offers the kind of support that will allow you to get the most out of the system. While ERP is an intuitive solution with a surprisingly minimal learning curve, it is a complex system that may require troubleshooting, training, or even repair. Thus, it is extremely important that your ERP provider offers excellent user support.

 Helpdesk Support
 Forum/Community Support

Ultimately, procuring the right ERP solution comes down to knowing what your business needs. For help determining your organization’s ERP requirements, use SelectHub’s free ERP requirements templates and selection tool.

Get Your Free ERP Requirements Checklist Template

SelectHubERP Requirements Checklist and Template

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