The ERP Requirements Checklist (Step-by-Step)

1) Business goals and success KPIs

Start with outcomes—not features.

Document:

• current pain points (manual work, errors, slow approvals, weak reporting)

• goals (reduce processing time, improve stock accuracy, close faster, better cash control)

• success KPIs (examples):

  • order-to-cash cycle time

  • inventory accuracy %

  • on-time delivery %

  • month-end close time

  • procurement lead time

  • approval turnaround time

Tip: Assign an owner for each KPI (Ops, Finance, Sales).

2) Scope: modules, departments, and MVP vs Phase 2

ERP scope must be written as phases.

Example:

• MVP (Go-live): purchasing + inventory + basic finance + approvals

• Phase 2: advanced costing, BI dashboards, HR/payroll integration, mobile app

Document:

• departments included in phase 1

• locations/sites (single site vs multi-site)

• currencies and tax rules (if applicable)

3) Users, roles, and permissions (RBAC)

A strong ERP protects sensitive actions.

Document:

• user groups (Sales, Procurement, Warehouse, Finance, Management)

• roles and approvals (who can approve what, and limits)

• segregation of duties (e.g., the same person can’t create + approve + pay)

Minimum RBAC questions:

• Who can create purchase orders?

• Who can change prices?

• Who can post accounting entries?

• Who can view payroll/salaries?

4) Process mapping: As-Is → To-Be workflows

This is where requirements become real.

For each workflow, document:

• trigger (what starts it)

• steps + owners (who does what)

• approvals and thresholds

• exceptions (edge cases)

• outputs (documents, postings, status updates)

Examples to map:

• Purchase Request → PO → Receiving → Supplier Invoice → Payment

• Sales Order → Delivery → Invoice → Collection

• Stock transfer, returns, damaged stock, adjustments

Best practice: write requirements as rules the system must enforce (acceptance criteria).

5) Data readiness and migration requirements

Data migration is usually the #1 hidden risk.

Document:

• master data: customers, suppliers, items/SKUs, warehouses, chart of accounts

• transaction data: opening balances, stock on hand, open invoices, open POs/SOs

• data rules:

  • unique IDs

  • required fields

  • validation rules

  • deduplication rules

  • mappings (old codes → new codes)

Migration plan:

• test migration cycles (not one migration)

• reconciliation method (how you verify numbers)

• cutover plan + rollback plan

6) Integrations (systems that must connect)

List every system that exchanges data with ERP.

Examples:

• e-commerce website / marketplace

• POS

• shipping providers

• payroll/HR

• bank/payment gateways

• BI tools (Power BI)

• email/SMS/WhatsApp notifications

For each integration, document:

• direction (ERP → system or system → ERP)

• frequency (real-time vs batch)

• required fields

• failure handling (what happens if sync fails)

7) Reporting and dashboards (define early)

Dashboards should reflect your KPIs.

Document:

• executive dashboards (high-level)

• operational dashboards (warehouse, purchasing, sales)

• finance reports (AR/AP aging, cashflow, P&L, balance sheet)

• “must-have reports” at go-live

Tip: define KPI formulas (so teams don’t argue later).

8) Non-functional requirements (often forgotten, very expensive later)

These are “how it must behave” requirements.

Document:

• performance expectations (e.g., search results < 2 seconds)

• uptime targets and backup policy

• audit trail requirements (who changed what, when)

• data privacy and access logging

• hosting preference (cloud/on-prem) + region constraints

9) UX, mobile, and adoption requirements

ERP success depends on daily usage.

Document:

• devices used (desktop, mobile, tablets in warehouse)

• required screens/forms for key tasks

• training and onboarding plan

• super users per department

• “definition of done” (UAT + training + SOPs)