A ERP system is an integrated system/software/application which covers all functional areas of the logistics, production, finance, accounting and human resources management.
It is comprised of one application, one database, one information management system which reveals the information of optimum utilization of resources.
The main problem with ERP information system is that it is not capable to manage the different functional areas of the organization.
The ERP system is comprising of the enterprise system factors like - vendor, customer and manufacturers. Each and every transaction is processed by the ERP system one by one.