In addition to the concepts characteristic of an ERP, other important concepts relating to him are:
functionality, modules, parameterization, configuration, customization, localization and update versions.

The functionality is the total set of inline functions in an ERP system, their characteristics and their different possibilities of use. The composition of these functions form the transactional information system that supports business processes. More generally, the term functionality is used to represent the total set of different situations that can be contemplated and different processes can be executed on the system. An example would be a company that wanted to control the discounts practiced by their vendors, imposing limits on the monthly amount awarded. It would be necessary for the failed to take into account this particular function system (control of discounts) with this particular feature (limit based on the monthly amount) for which this was possible. In this way, such a situation should be included in the set of functionalities of the system.

 

ERP-related concepts

 

The modules are the smallest sets of functions that can be purchased and implemented separately in an ERP system. Normally, such sets of functions correspond to departmental divisions of companies (sales, finance, production, etc.). Examples of modules are: accounting, accounts payable, accounts receiving, ordering, invoicing, production planning. The accounts payable module, for example, understand the functions of control of payment commitments, issuing checks, low in commitments, and other functions necessary for the processing of activities relating to the Department of accounts payable to a company. ERP systems are divided into modules to enable an enterprise to implement only those parts of the system that are of interest to you, and even if the company wishes to implement the entire system, you can do it in steps to simplify the process. In addition, the Division ERP system conceptual modules facilitates the understanding of their operation and the Division of responsibilities between users. Although the modules normally follow the departmental Division of companies, recent developments of ERP systems, such as customer service and modules supply chain management, seem to be incorporating the concept of the Division of the company in processes.

The parameterization is the process of adaptation of the functionality of an ERP system to a particular company by setting the values of parameters already available in the system itself. Parameters are internal to the system variables that determine, according to its value, the behavior of the system. A configuration example would be, in a process of receipt of post-dated checks, the company accept post-dated cheques only above a certain value. If it exists in the system the ability to define This value, then it is possible to parameterize the system to tailor it to the company.

The customization is the modification of an ERP system to suit a particular business situation impossible to be reproduced through the existing parameters. This modification can be done by the supplier at the customer’s request, by changing the code of the default programs.

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ERP system, or by their own clients, building programs or modules that communicate with the ERP base system and that complement the functionality required. It is important to highlight that despite any type of customization can be made to adapt an ERP system to the immediate needs of the client, the greater the amount of customizations performed, plus the system used moves away from the ERP system and model most closely matches the internal application development model. The costs of maintenance grow, because often the vendors do not support for highly customized routines. Problems may arise when it is installed a new version of the system, since all customizations made in the previous version may have to be rebuilt or adapted for use in the new version.

The location is the adaptation (via settings or customizations) ERP systems developed in a particular country for use in another, considering issues such as taxes, fees, laws and trade procedures. In the case of adaptation for use in Brazil, the location is commonly referred to by the term “tropicalization”.

Finally, the update, or “upgrading”, is the process by which the supplier provides increases in functionality and bug fixes for installation issues and errors in company. In the case of complex systems such as ERP, version updates may require significant efforts of the company involved.

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