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Selection of ERP Software for Project Based Work

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When choosing ERP software, it's necessary to first determine to what extent your company works on a project basis. Once that's clear, you can decide whether a generic ERP system is sufficient or whether the project ERP software might fit better. As knowledge partner of the IT information center, Menno Schuurman van Deltek provides an explanation of the selection of project-based ERP software.

Suitable solution

If ERP software doesn't suit your organization sufficiently, it can pose a risk to profitability and productivity. If your company is project oriented, you're probably working with a matrix organization and employees with specific skills work on various projects at the same time. In that case you need project-oriented ERP software.

Generic ERP systems have difficulty with the common objectives of the project. This makes it difficult or impossible to show an accurate picture of the profitability and health of projects. When selecting an ERP software, it's important that suppliers and their solutions have a natural fit with the organization, people and dynamics. ERP suppliers often say that everything is possible, while it's in your interest to limit customization and maintain flexibility.

Properties

The characteristics of the company determine the characteristics of the ERP system. Project-based companies therefore prefer to use project-based ERP software. Components of such a system are:

- Finance. In the project world, financial tools are needed to be able to follow financial measurements at project level. And to guarantee that the money comes in, whereby the invoicing conditions can vary per project and customer request. ERP software must offer you the desired flexibility and visibility to know what is coming when.
- Time & costs. The registration of time and costs is a condition for gaining insight into the profitability of each project. With project ERP with mobile functions, project managers and consultants can register their time anywhere and at any time and adjust projects.
- Personnel management & payroll. To cherish your people. Follow employees, pay reimbursements and benefits and manage your salary administration with the ERP project.
- Compliance. Most companies must comply with generally accepted accounting principles to ensure consistency in their financial reporting. Your ERP must be configured to meet those requirements.
- Purchase. Ensure that your purchasing system is part of or directly linked to your project system. This reduces the need to enter purchase orders into separate systems and to reconcile them with the project system.

When your business information and financial project information are linked together by one system, this provides visibility and control over your company. This allows you to make decisions based on current information, instead of managing through a rear-view mirror.

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