ERP Customization vs ERP Configuration

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Clients frequently require updates to their software. After all, each manufacturing and distribution company is unique. However, contrary to common belief, these alterations do not always take the form of customizations. In fact, our ERP professionals advise you to choose as minimal ERP customization as possible in order to save time and money. Most of the time, organizations can make critical changes to their software by configuring it.

What exactly is ERP customization?

ERP system customization refers to changes made to the software solution’s original code. This execution happens to add functionality along with features to the program that your company requires.

The program may be customizable without affecting the original functioning in any way. As it should be noted, however, that modifying ERP software might lead to issues. There is a chance of failure.

Because the program is already up to perform optimally, there is a risk that it will malfunction if you modify it. Of course, you may correct any flaws in the solution and ensure that it is compatible with your needs.

And What is ERP Configuration?

Whatever ERP solution you pick, it will most certainly include a plethora of choices and settings. These must now be in proper configuration and deployment. Also, ensure that your organization gets the most out of them. The system must be in configuration thoroughly, with all aspects in mind. This is due to the fact that many ERP system configuration options cannot be modified once they have been configured.

Even though they might not appear to be in connection at first glance. Particularly, a number of configurations interact with one another. When you set up your ERP system, you define transaction defaults that may limit the number of transactions you may do.

ERP Customization vs ERP Configuration

ERP customization and configuration work together to improve the efficiency of the system, but there are distinctions between the two phrases. Customization, in general, refers to customizing software settings to match the unique demands of a firm, whereas configuration refers to optimizing system components to satisfy specific business needs.

ERP Customization

The following are some definitions of customization:

  • A software feature’s modification or expansion.
  • A custom code is required.
  • To interface with the existing ERP system, a custom code must be built.
  • Enhances the present ERP system’s capabilities and functionality.
  • Allows you to incorporate task management methods according to the needs of your firm
  • Allows for the addition of third-party software features.

ERP Customization Improves System Performance

The ERP customization process can be as complex as the firm requires. While the ERP system must be up before usage, ERP customization is optional. Although it significantly improves the usefulness of your ERP system, transforming it from a sophisticated piece of software to an essential element of your business processes.

Customization can include company-specific work management methods, third-party software integration, and more. If you’re looking for an experienced ERP customization and setup provider, talk to a Clarity expert about how we may help your business.

ERP Configuration

Configuration is the process of modifying the components of your ERP system so that they work effectively in your environment and business conditions. Furthermore, the setting allows you to select choices for basic or standard apps, such as email programs or business productivity, to ensure that they perform properly.

Examples of configurable tools and features include:

  • Templates for emails
  • Page layouts that vary
  • Labels and jobs in security
  • Forms for the portal
  • Types of Membership
  • Roles in Security
  • Schedules for revenue recognition
  • Fields and items that are unique to you
  • Revenue requirements
  • Geographical divisions

ERP Configuration is necessary

One of the most significant aspects of the process is configuring your ERP system. This entails adjusting the settings to match your company’s financial, linguistic, shipping, and customer-facing requirements.

You may also set up your ERP configuration system to recognize revenue based on a specified set of criteria, such as a geographical unit or product line. The majority of setups survive software changes, however certain adjustments may not.

Examples of ERP Customization and Configuration

Here are some specific ERP implementation activities and how they relate to configuration and customization.

Configuration is the most common kind of personalization.

  • Using internal nomenclature, change field labels.
  • Organizational positions must be created.
  • Creation of organization-specific business intelligence

Tailoring is mostly concerned with configuration.

  • Existing reports must be modified to match business requirements.
  • Enhancement of current interfaces to meet business requirements, such as field hiding and changes in field entry flow that do not affect business logic.
  • Addition of business-specific fields or tables for the collection of critical business information that does not affect transaction or calculation processes

Automation entails some configuration and customization.

  • Workflow creation or business process automation (BPM)
  • Modification of the solution process to remove or add phases based on business needs
  • The addition of fields or tables to be used in computations or process automation.

Integration requires some configuration and customization.

  • Creating integration points for data import
  • Data export development

Increasing – Primarily Customization

  • Creating additional functionality within existing modules
  • Development of new solution features to meet particular business needs that are not met by existing components


You do so with the purpose of making an ERP system your own when you integrate it into your business infrastructure. When the setting of your ERP system is complete, you may still require extra customization to provide the tools and features that match your company objectives and help you flourish.

A change of some kind is frequently necessary to boost particular business processes, even with a system as sophisticated as Elate ERP. When deciding whether to go with customization or configuration, assess the advantages and drawbacks and always focus on what is best for your business.

Collaborate with Penieltech to achieve ERP success. It is a one-stop shop for corporate software; in addition, we can advise CRM, eCommerce, and integration projects. We’ll do whatever it takes to get your program running to meet your needs, whether it’s a minor tweak or a complete overhaul.

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