Most businesses operate across four core operational pillars:
- Procurement (Purchase)
- Inventory (Warehouse & Stock)
- Production (Manufacturing / Operations)
- Accounts (Finance & Compliance)
When these departments work in silos, businesses face:
- Delayed purchase decisions
- Stockouts during production
- Excess inventory & high working capital
- Duplicate or incorrect bills
- Delivery delays
- Confusion between teams
- Inventory vs accounts mismatch
- Inaccurate costing
A modern ERP like 100xERP connects all four functions into one unified, automated workflow — where data flows seamlessly from demand to delivery to accounting.
This guide explains the complete end-to-end ERP workflow, step by step.
STEP 1 — Requirement Identification (MRP or Manual Request)
The ERP workflow begins with a demand signal, triggered by:
✔ MRP (Material Requirement Planning)
✔ Production work orders
✔ Low stock alerts
✔ Sales orders
✔ Store-level or department requests
ERP automatically calculates:
- What material is required
- Required quantity
- Required date
📌 No guesswork. No over-ordering.
STEP 2 — Purchase Request (PR) Creation
Based on demand, ERP or users generate a Purchase Request (PR).
PR includes:
- Material name
- Required quantity
- Required date
- Purpose
- Requesting department
ERP routes the PR for approval automatically.
STEP 3 — Approval Workflow
PR approvals follow predefined company rules, such as:
- Line manager approval
- Purchase manager approval
- Finance approval
- Director / owner approval
ERP ensures:
✔ No unauthorized purchases
✔ No duplicate PRs
✔ Complete audit trail & transparency
STEP 4 — Vendor Selection / RFQ Process
Purchase team sends RFQs to multiple vendors.
ERP compares vendor quotes based on:
- Price
- GST
- Lead time
- Quality rating
- Past delivery & rejection history
ERP highlights the best vendor automatically.
STEP 5 — Purchase Order (PO) Issued
Once vendor is finalized, ERP generates the Purchase Order (PO).
PO includes:
- Item rates
- Delivery timeline
- Payment terms
- Taxes
- Quality requirements
- Commercial conditions
PO is automatically mapped to the PR & RFQ.
STEP 6 — Material Receipt (GRN)
When material arrives at the warehouse, ERP generates a Goods Receipt Note (GRN).
GRN captures:
- Actual vs PO quantity
- Damage condition
- Batch / lot number
- Expiry date (if applicable)
- QC status
GRN automatically updates:
✔ Inventory
✔ Purchase tracking
✔ Accounts
STEP 7 — Quality Inspection (Incoming QC)
If QC is mandatory:
- Material is placed on QC Hold
- Inspector performs quality checks
- Passed → moves to usable stock
- Failed → rejection note generated
Rejected material can be:
- Returned to vendor (RTV)
- Scrapped
- Sent for rework
STEP 8 — Raw Material Available in Inventory
After QC approval:
- Stock quantity updates
- Bin / location assigned
- Material becomes available for production
Inventory dashboard shows real-time, accurate stock.
STEP 9 — Production Planning Begins
Based on:
- Sales orders
- Production schedule
- Current stock levels
- Machine availability
ERP creates:
- BOM-based material requirements
- Work Orders (WO)
- Routing plans
- Material issue lists
STEP 10 — Material Issue to Production
Stores issue materials using:
- Barcode scanning
- Pick lists
- Batch / lot selection
ERP updates:
- Raw material consumption
- WIP (Work in Progress)
- Remaining inventory
STEP 11 — Production Execution (Shop Floor)
During production, ERP captures:
- Operation progress
- Machine usage
- Labour hours
- Rework & scrap
- WIP movement
Management gets real-time production visibility.
STEP 12 — Production Completion & Costing
Once production finishes:
- Finished goods move to FG warehouse
- Batch / serial numbers assigned
- Final QC (FQC) performed
ERP calculates actual production cost, including:
- Raw material cost
- Labour cost
- Machine hours
- Overheads
STEP 13 — Finished Goods Inventory Updated
ERP updates FG stock:
- Available quantity
- Reserved quantity
- Ready-to-dispatch status
Sales team receives instant availability updates.
STEP 14 — Vendor Bill Booking (3-Way Matching)
Vendor invoice is booked after validating:
- PO quantity
- GRN quantity
- Invoice quantity
This 3-way matching prevents:
❌ Overbilling
❌ Duplicate invoices
❌ Fraud
STEP 15 — Customer Invoice & GST Posting
After dispatch:
ERP generates:
- Tax invoice
- E-invoice
- E-way bill
Accounts module auto-updates:
- Debtors
- GST ledgers
- Revenue accounts
- Inventory reduction
STEP 16 — Payment Tracking & Reconciliation
ERP tracks:
- Vendor payment due dates
- Customer outstanding balances
- Credit limits
- TDS deductions
- Bank reconciliation
Automated alerts & reminders reduce follow-ups.
STEP 17 — Financial Statements Updated Automatically
Every transaction flows into finance:
- Ledgers
- Profit & Loss
- Balance Sheet
- Cash Flow
- Cost centre reports
📌 Zero manual accounting entries.
Key Benefits of Full ERP Workflow Integration
1. Zero Stockouts
MRP + automated purchasing ensure material availability.
2. Faster Production
No waiting for raw materials.
3. Accurate Inventory
Real-time movement tracking eliminates mismatch.
4. Lower Working Capital
Avoids excess purchasing & dead stock.
5. Seamless Department Coordination
Procurement → Stores → Production → Accounts work as one.
6. Complete Traceability
Track every batch, order, and financial entry.
7. Reduced Errors & Fraud
System-controlled approvals & validations.
8. Real-Time Financial Visibility
Management sees live P&L and cash position.
Industry Use Cases
Manufacturing
Stable production through end-to-end automation.
Trading & Distribution
Real-time inventory with intelligent purchase planning.
Food & Beverage
Batch, expiry & FEFO compliance.
Pharma
Strict QC, traceability & documentation.
Engineering
BOM-driven production with accurate costing.
Automotive
Vendor rating, QC & serial tracking.
Chemicals
Lot management & multi-stage QC.
Why Choose 100xERP for Complete Workflow Automation?
100xERP provides:
- AI-based demand planning
- Automatic PR & PO generation
- QC, batch & barcode tracking
- Real-time inventory visibility
- Production planning & routing
- Automated purchase planning
- Integrated accounting & GST
- Mobile apps for stores & production
- Fully configurable approval workflows
✔ Ideal for SMEs, manufacturers, distributors & multi-branch businesses.
FAQs – Full ERP Workflow
Q1. Does ERP eliminate manual entries?
Yes. More than 80% of transactions become automated.
Q2. How long does it take to adopt this workflow?
Typically 2–8 weeks, depending on business size.
Q3. Can this workflow be customized?
Yes. 100xERP supports full workflow customization.
Q4. Does ERP reduce operational cost?
Yes. Businesses typically save 15–30% annually.