Typical misconceptions on Enterprise Resource Planning (ERP) among practitioners and researchers are reviewed. Companies can make, buy, or rent ERP solutions, but typically, ERP is conceived as ready-made, off the shelf application software package. The benefits of ERP adoption are frequently generalized without proper clarification of the requisite conditions. The specific outcomes of ERP adoption are not adequately differentiated from those of general computerization. To avoid the side-effects caused by those misconceptions, we 1) clarify the concept of ERP and the methods of sourcing it, 2) specify the requisite conditions for the benefits from packaged ERP solutions, and 3) explain the generic characteristics of ERP, direct effects and resultant possible outcomes of the adoption of ERP.