Process, or system testing, involves testing subprocesses and processes. In this phase, typically all major processes are tested with system configuration and master data. Depending on the implementation scope and requirements, the testing team will test processes such as record to report, order to cash, procure to pay, and plan to produce. The objective of this testing cycle is to identify the correct configuration of parameters, missing master or reference data, and any additional bugs or potential gaps.

For a simple business process example, consider the testing of the order-to-cash, process beginning with a single order transacted through its entire cycle. The process starts with the creation of a sales order, picking and shipping the product, and then invoicing the order. Along the way, the system updates the inventory and accounting. Finally, payment is collected from the customer, the payments are applied, and the customer balance is updated within the accounts receivable module.

As you can see, the complete cycle for a major business process may include many steps and touch various modules. During this testing, you will discover missing configurations and setups, as well as code issues.