How are ERP systems used by construction companies?

An Enterprise Resource Planning system, or ERP, is the system of record that most construction companies use to manage job costing and overall company financials (general ledger, invoicing, accounts payable, etc.).  

Common ERPs in the construction industry are Sage 100/Masterbuilder, Sage 300CRE/TImberline, Acumatica Construction Edition, Viewpoint, Spectrum, and Foundation.

Most ERP systems also include a payroll module, however it puts the burden on you to manage all aspects of payroll compliance (taxes, withholdings, etc.).  For this reason, many companies choose to outsource payroll (e.g. ADP, Paychex, Ultimate).

With IDI’s integration solutions, you can outsource payroll and still get job costing details back to your ERP, eliminating the need to maintain two payrolls. IDI can also accommodate the complexities of government and union contracts, and eliminate the need to enter new project information two to three times in different systems.

For companies that invoice on a daily basis, you will still need to use the ERP system's payroll to generate daily invoices as outsourced payroll systems do not run daily payrolls to get the information back to the ERP each day.

IDI can support an outsourced payroll’s integration with an ERP and create efficiencies around job costing.

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ADDITIONAL RESOURCES:

Department of Labor

IDI Job Costing for Construction Clients Blog

IDI Construction Solutions Blogs