Business, finance and operations
ERP
Short for enterprise resource planning.
- Business, finance and operations
Definition
Short for enterprise resource planning. A system that runs core business processes such as finance, purchasing, stock and orders in one place.
Example
One customer order can affect stock, dispatch and the invoice in a connected ERP.
See how it works
- Record a customer order
- Reserve or purchase stock
- Dispatch the goods
- Post the sales invoice
Check your understanding
Common mistake: An ERP does not automatically guarantee accurate data or identical business definitions.
Why distinguish orders from invoices?
Show explanation
They are recorded at different business stages and answer different questions.
For your role
Choose your role to see what this term means in your work.
Why it matters
Much of an organisation’s financial and operational data comes from its ERP.
Where it is used
Finance, supply chain and operations teams.