Enterprise Resource Planning (ERP) systems are usually very expensive for any organization to implement and maintain. Implementation of an ERP system is a major investment and commitment for any organization. Small and medium size companies cannot afford the cost of purchasing, implementing, and hiring ERP consultant and domain experts and cannot provide the required resources and infrastructure to support ERP system. Till now it is assumed that only big businesses can afford such systems. For such small and medium size companies, cloud based ERP may be the best option to avail the capabilities of ERP system without investing huge amount on various resources used and infrastructure to set up.