ERP software can include capabilities for procurement, supply chain management, inventory, manufacturing, maintenance, order management, project management, logistics, product lifecycle management, risk management, enterprise performance management (EPM), human resources/human capital management, and customer relationship management (CRM).
While financials handles one area of the business, ERP encompasses a wide range of business processes-including financials. The person who is ultimately responsible for financials is the CFO. For these types of financial reports, a narrative reporting tool is used. For public organizations, financials software has to be able to produce periodic financial statements for governing regulators, such as the US Securities and Exchange Commission ( SEC) (with reports such as quarterly 10-Q and annual 10-K), European Securities and Markets Authority ( ESMA), and others. Financials software uses reporting and analytical capabilities to comply with the reporting requirements of governing bodies, such as the International Financial Reporting Standards Foundation ( IFRS), Financial Accounting Standards Board ( FASB) for Generally Accepted Accounting Principles in the United States (GAAP), as well as for other countries (HGB in Germany and PCG in France, for example).
Financials refers to a subset of modules within ERP.įinancials are the business functions relating to the finance department of an organization and includes modules for financial accounting, subledger accounting, accounting hub, payables and receivables, revenue management, billing, grants, expense management, project management, asset management, joint venture accounting, and collections. What’s the difference between ERP and financials?Īlthough the term “financials” is often used when describing ERP software, financials and ERP are not the same thing.
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