ERP Requirements Template and Checklist


It’s very common for software buyers to spend too little time gathering their ERP requirements. Understandably, many buyers focus more on how their current processes will transfer over into the new system. However, selecting ERP software is a more complex task than a replacement for pen and paper. It’s quite transformative when properly executed, but the only way to do that is to think about that transformation from the beginning, with effective requirements gathering practices and our helpful ERP requirements template.

To accomplish this, it’s important to think about everything an ERP offers. To help you get started, we’ve created an extensive checklist of the most popular ERP requirements and features.

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ERP Requirements

Questions to Think About

Determining your ERP requirements involves more than determining which features and tools your business needs. In order to revolutionize your operations, you need to think about your goals and how your vendor will meet them.

What Will My Business Look Like in the Future?

As we stated above, it’s a common mistake for ERP buyers to not spend enough time putting together their ERP system requirements checklist. When shopping for an ERP, you need to think about how you currently do business but also how you will likely do business in the future. An ERP is a major investment and with any luck, the next system you choose will be the one you work with for many years. Make sure your next system can handle added users when your business grows and you hire more staff. Moreover, check to see if your vendor offers modules you don’t need now, but might later on.

What Will My Vendor Look Like in the Future?

In addition to your own future, think about your vendor’s next moves. Do a little research into their past products and strategy. Check to see if they continue to invest in their products or if they are quick to sell. In addition to the long-term, think about your vendor’s role during implementation. It might even be helpful to create an ERP implementation checklist. Include what kind of support your team will need and the budget available. If they don’t offer the help you need at a price you can manage, it’s best to keep looking.

Who Will Use the System Most Often?

While an ERP is a large investment, a successful implementation ensures more efficient processes, centralized data, and reduced errors and costs. But none of this can happen if your workforce doesn’t adopt the system. The best way to encourage high adoption rates is to get your employee’s input before you buy. Understand their workflows and how a new system could help or hinder them. This information is also handy as you create your ERP documentation.

Which Requirements Are Most Important to My Business?

In a perfect world, you’d be able to find an ERP vendor that can cater to all your requirements for just the right price. But in the real world, you’re more likely to make some sacrifices. Deciding early on which ERP software requirements are more important will help you keep an objective mind as you shortlist ERP products.

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Top ERP Requirements Checklist

Accounting and Financials

One of ERP’s greatest strengths is its ability to automate, streamline and analyze the vast majority of accounting operations. Without a software system in place, your team can spend dozens of hours each month on tedious tasks like payroll, invoicing and budgeting. But when these processes are automated, you enable your staff to shift to a more advisory role.

ERP aids in this adjustment further by providing analytical tools. The system’s quick yet accurate analysis reduces errors and allows organizations to properly gauge their financial health across all departments.

  • Payroll
  • Accounts Receivable
  • Accounts Payable
  • Invoices
  • Deposits
  • Budgeting
  • 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
  • Invoicing/Billing
  • 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 (HCM) 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

ERPs have the ability to manage manufacturing processes; this 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.

Sage Manufacturing

  • Capacity Requirements Planning
  • Production Cost Analysis
  • Production Control
  • Process Synchronization
  • Product Data Management
  • Engineering Change Management
  • Forecasting
  • 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. ERPs also use 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.

  • MRO
  • Availability of Materials
  • Availability of Stock
  • Optimum Store Inventory
  • Planning

Sales and Inventory Management

Sales and inventory management tracks and analyzes sales data, automates transactions, monitors performance, tracks expenses and even manages order preparation and customer credit. An 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
  • Pricing
  • Picking
  • Quotations
  • Sales Order Processing
  • Capable to Promise Inventory
  • Bill of Materials (BOM)
  • BOM Reporting
  • Credit Card Processing
  • Online Transaction Reporting
  • Sales Order Management

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Supply Chain Management

Supply chain management (SCM) tools facilitate the operations involved in getting a product from a supplier to a consumer. SCM suites manage functions related to procurement, distribution and resource management. Consequently, those who tend to find SCM suites particularly valuable are often retailers, manufacturers and distributors. You can read more about the role of ERP in SCM here.

A major benefit of SCM software is its ability to automate the tedious tasks necessary to the supply chain. This feature enables businesses to spend less time on repetitive work, which results in higher productivity levels and increased speed of operations. Additionally, automation reduces the risk of human error by decreasing the amount of user intervention needed to complete an order. This increases accuracy and eliminates error-induced costs.

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

Customer Relationship Management

An ERP offers many valuable capabilities in regard to customer relationship management (CRM). First, many systems offer automated marketing tools that allow users to plan and carry out campaigns through their entire lifecycles. These include robust analytical tools that help businesses improve the customer experience from start to end and increase retention rates. Sales tools enable users to manage sales orders across all channels.

CRM Customer Query

This includes supporting procurement activities as well as distribution practices. Customer relationship management also incorporates features to manage customer accounts. Centralizing all your customer data in one place can be very helpful, especially for businesses that want to get an in-depth understanding of their clients.

  • 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

An ERP integrates seamlessly into your existing infrastructure. This allows for full implementation with minimal disruption to business operations. Once implemented, an 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 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


Even though many ERP vendors offer both on-premise and cloud deployment, you should still give this aspect some thought. On-premise systems offer a greater level of control and customization over your ERP system. However, it comes at a steep price. On-premise solutions typically are more expensive to set up, take longer to implement and are difficult to update. But for businesses with strict security compliance requirements or little access to the internet, they can be a good alternative to cloud computing.

Cloud-based systems are quick and easy to implement, don’t require a ton of maintenance staff and are cheaper upfront. But these solutions don’t offer as much customization and may raise questions over data ownership. However, each business is different. What works for one company might not work for yours.

  • On-Premise
  • Cloud-Based
  • Hybrid


Ensure your ERP vendor offers the kind of customer support that allows 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.

  • Training
  • Maintenance
  • Phone
  • Email
  • Chat/IM
  • Helpdesk Support
  • Forum/Community Support

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Final Thoughts

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 template and selection tool.

What did you think of our template for creating your ERP requirements list? Did we hit all the requirements you’ll be considering? Let us know what we might have missed by leaving a comment down below!

Madeline ReinboltERP Requirements Template and Checklist


Join the conversation
  • Quickmove - February 19, 2018 reply

    Awesome and unique research about the ERP checklist in the different industry. Most of the customers are not aware of the ERP checklist and they will search for efficient ERP software for their business. First, we want to know how ERP will help our business and what are all the checklist the software should have. This post will help the B2B and B2C companies to know about the ERP checklist.

  • Vishakha - October 9, 2018 reply

    It is really helpful.

  • Michael Langendorf - January 8, 2019 reply

    The checklist doesn’t load!

    Kim O'Shaughnessy - January 8, 2019 reply

    Hi Michael,

    Is the checklist from the article not loading or is the template you requested not loading? Please let us know so we can help you get the information you need!

  • Diana Popescu - March 8, 2019 reply

    The best way to increase your ROI is by implementing a proper ERP system. There are so many things you could do better as a company…you cannot imagine. Good checklist, well done.

  • Khaled - April 2, 2019 reply

    its an a amazing template but i didn’t receive the checklist

    Lindsey Jenkins

    Lindsey Jenkins - April 2, 2019 reply

    Hi Khaled,

    Thanks for reading. We are sorry you are having difficulty accessing the checklist. Please try checking if the email that you used when filling out the form is the correct address. If the issue persists, please feel free to give us a call at 877-692-2896 and we can investigate further.


  • Khaled - September 22, 2019 reply

    This the second time I made a request to receive the template but I didn’t receive anything.

    Kim O'Shaughnessy - September 23, 2019 reply

    Hi Khaled,

    We’re sorry you didn’t receive the asset you were looking for. I’m looking internally to see if there’s any issue with your email in the system. But feel free to call us directly at 877.692.2896 so we can sort it out for you. Also, make sure when you fill out our forms that you use a correct and active email address, as that’s the method we use to deliver the asset. Please do not hesitate to reach out with any other questions or concerns!


  • Graham - November 9, 2019 reply

    I’ve tried three times and not received the report either

    Lindsey Jenkins

    Lindsey Jenkins - November 18, 2019 reply

    Hi Graham,

    We are sorry you are having difficulty accessing the report. Could you please double-check if the email that you used when filling out the form is the correct address? If it is, please give us a call at 877-692-2896 and we’ll investigate further.


  • Upplady.Com - March 19, 2020 reply

    You can use this sample ERP requirements checklist to get an idea of what businesses like yours look for and what the ERP research process looks like.  

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