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ERP Terms for Beginners
Confused by acronyms and jargon? Explore our one-stop glossary to quickly master core ERP terms—no tech background needed.
Glossary
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Module

Module

What is a Module?

A module in ERP or information systems is a self-contained functional unit designed to handle specific business process. Examples include purchasing, accounting, or inventory modules. Each module focuses on one operational area but can also connect with other modules to share data and support end-to-end workflows. This modular structure allows organizations to build systems that match their needs instead of relying on one single, rigid setup.

Module Uses

Modules make complex systems easier to manage because they break large systems into manageable components, allow businesses to implement only the features and functions they need, enable gradual system expansion, and reduce risk when updating or modifying functionality.

In short, modules make software more flexible and scalable.

Examples of Modules

Common modules found in ERP and business systems include:

  • Accounting Module— Manages financial transactions and reporting
  • Inventory Module— Tracks stock levels and movement
  • Sales Module— Handles orders, customers, and invoices
  • Purchasing Module— Manages suppliers and purchase orders
  • HR Module— Stores employee data, tracks leaves, and keeps payroll records
  • Each module performs its own function but can work together with other modules. For example, a sales module can automatically update inventory and accounting modules after an order is paid or shipped out.

    Modular Systems vs Fixed (Rigid) Systems

    While modular systems allow businesses to adapt or add modules as they expand, fixed systems are built as one single unit, which means users get the system's complete functionality all at once. Because of this, fixed systems are more rigid and less flexible compared to modular systems, where companies can implement modules based on their needs. Modular systems are also generally easier to modify, expand, and scale than fixed ones.

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