Jargon Busting – What Does MRP Stand For In Accounting Software?
Wondering what MRP means? In this blog, we explore the term and discuss how your business could benefit from it.
Searching for accounting software? You might be wondering what MRP is, and how it can improve your business. In short, MRP stands for Materials Requirement Planning and describes a production scheduling and inventory control system used by organisations.
As well as boosting your efficiency, MRP has many features which will enhance your business and at Pastel, it’s available in all of our accounting software.
In this blog, we explore MRP in more detail and highlight how it will help your business.
An MRP system uses inventory records, bills of records and production schedules to forecast and order materials, meaning required materials are available on the correct dates, and in the correct quantity.
You can keep stock of all materials, oversee manufacturing activities and guarantee accurate deliveries. It will also collect business data for future reference allowing for better-informed decisions and optimal use of manufacturing equipment.
Prevent excess inventory and outline the quantity of materials that is needed for production and delivery, so you don’t overstock. With less cash tied up in excess inventory, you’ll be able to redirect your focus on other aspects of your company.
Instead of wasted stock, money can be spent in areas such as a new marketing campaigns or new staff to expand your current clientele. MRP gives you an overview of your predicted capacity, as well as your current one. Knowing when production of a product is going to finish will allow you to plan for better sales.
MRP systems can help boost productivity and improve efficiency in regards to your accounts. Pastel’s accounting software can accurately export invoices, bills, shipments and purchase orders. Save time by cutting out laborious tasks, and direct your time elsewhere.
You can also estimate production and purchasing activities, as well as delivery times that are anticipated for the near future. Not only will this mean that you’re organised and in full control of your business, but you’ll also have more time to focus on business growth.
MRP vs ERP
When searching for bookkeeping and accounting software, you may have also come across Enterprise Resource Planning (ERP). ERP software allows your organisation to manage and automate a number of processes, in a similar way that MRP does. Which one you choose is specific to the needs of a business.
At Pastel, we want to make sure you can conduct business as smoothly and efficiently as possible. That’s why MRP and ERP are available in all of our bookkeeping and accounting software. Whatever your business, Pastel has software for you. Plus, you’ll only ever pay for the modules that you use, meaning you won’t waste money on software that’s not for you.
Make sure you don’t miss out on this opportunity to improve your business. If you have any questions, don’t hesitate to get in touch today!
Have a read of the MRP brochure here – Xperdyte Manufacturing for Sage Pastel