Accounting technology / Glossary / ERP implementation

What is an ERP implementation?

Definition

An ERP implementation is the project of putting a new ERP into use: agreeing how processes will work, configuring the system, designing the chart of accounts, migrating data, connecting other applications, testing, training staff and going live. It is usually run with the vendor or an implementation partner and takes from a few months to over a year.

Also calledERP rolloutERP deploymentERP go-live

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Main stages: Design, build, migrate, test, go live
Run by: Company with vendor or partner
Category: ERP and general ledger

The stages of an ERP implementation

Most projects follow the same stages. Discovery documents current processes and requirements and decides what will change. Design sets the chart of accounts, entities, dimensions, approval rules and reports. Build configures the system, sets up integrations with banking, payroll, CRM and billing, and prepares data migration: opening balances, open invoices and often a period of transaction history. Testing runs real scenarios end to end, including a full close, before user acceptance. Go-live is usually timed for the start of a month, quarter or year, with the old system kept read-only and a period of extra support afterwards. Projects overrun most often from changing scope, poor data and too little time from the finance staff who know the processes. NetSuite, Sage Intacct and Business Central are usually implemented by partners; newer ERPs such as Rillet and DualEntry run shorter, vendor-led implementations.

Common questions

How long does an ERP implementation take?+

From a few months for a single-entity company with simple processes to more than a year for multi-country groups with inventory or manufacturing. Data quality and decision-making speed affect timing as much as the software.

What is an implementation partner?+

A consulting firm certified by the ERP vendor to configure and deploy its system. Partners bring templates and experience; the company still has to provide decisions, data and testers.

Why do ERP implementations fail?+

Common causes are unclear requirements, scope added during the project, poor-quality data, too little time from key staff, and too much customisation of the software instead of adapting processes.