The logical architecture of an ERP system

The ERP database handles each of these data classes, and is therefore fundamental to the first characteristic of ERP: data integration.

The third element of the logical architecture of an ERP system, the business logic, makes sure that business processes are properly supported by the ERP system. This element consists of a large number of best practices that are either programmed in the system or can be configured.

The execution of a best practice by an ERP proceeds in the following way. First, the required data for the execution of the best practice are gathered, either from the ERP database or by the interaction. Then, the data are processed, calculations are made, and data are combined, transformed or sorted. Finally, the results are stored in the ERP database or presented via interaction. Examples of best practices are the recalculation of a production schedule using the Available to Promise method after new orders have been placed, or closing a financial year and creating a balance sheet and an income statement according to French accounting rules.

The ERP business logic realizes the second important characteristic of ERP systems: the support for business processes through best practices.