---
title: What Layer of Functionality Do I Need in My ERP System?
description: How to determine the proper ERP functionality manufacturers need to support current and future operations.
---

[Advisory & Consulting Blog | Meaden & Moore ](https://www.meadenmoore.com/blog/consulting)

# [What Layer of Functionality Do I Need in My ERP System?](https://www.meadenmoore.com/blog/consulting/what-layer-of-functionality-do-i-need-in-my-erp-system)

 Written by [Scott A. Holter](https://www.meadenmoore.com/blog/consulting/author/scott-a-holter) | May 10, 2016 12:29:43 PM

When manufacturers are looking at evaluating their current [ERP systems](https://www.meadenmoore.com/content/erp-strategy-and-planning) by considering potential options for replacement, they first need to look at what layer of functionality they may need to support their current and future operations.The following describes three layers of functionality that can help a firm determine what type of system they may need, based on the types of transactions and operations they run. Each level adds more functionality and complexity for decision making in a more integrated environment. This important decision alone can also save your firm thousands of dollars in both acquisition, implementation and on-going maintenance costs.

ERP systems can generally be characterized as having 3 layers that are (can be) used by small businesses. For our purposes, I’m assuming small manufacturers.

## Level 1

 Level 1 (base foundation) would be the Transaction Processing layer. This layer used to be referred to as “Accounting Software” although that term is passe. It includes support for:

Level 1 in my judgment is mandatory for most/all manufacturing entities. This can be done in systems as small and inexpensive as QuickBooks or as large as SAP.

## Level 2

 Level 2 is the Decision Support layer. This is where Accounting Software becomes ERP software.

## Level 3

 Level 3 is the Advanced Transaction layer – beyond basic “accounting transactions”, additional transactions are now processed and shared among companies' employees providing added visibility

We hope this gives you a quick guide to help you to focus in on the applications that are truly designed to support your particular manufacturing and business model. In the end it will make it a much easier transition to adapt to your new ERP system. 

[View full post](https://www.meadenmoore.com/blog/consulting/what-layer-of-functionality-do-i-need-in-my-erp-system)

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