Reference

ERP glossary: key enterprise software terms

Plain-language definitions for common ERP, finance, inventory, manufacturing, integration and cloud terms. Use the links to explore the related SysGenPro product and service pages.

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Definitions by topic

Select a term to open the related product or service page for more detail.

A

Accounts payable (AP): Money a business owes to suppliers for goods and services already received. An ERP system typically records supplier invoices, matches them to purchase orders, and schedules payment. Finance and accounting.
Accounts receivable (AR): Money owed to a business by customers. ERP finance modules track invoices, payment terms, ageing and collections. Finance and accounting.
API (application programming interface): A defined way for two software systems to exchange data or trigger actions. ERP integrations commonly use APIs to connect commerce, CRM, banking and logistics systems. API integrations.

B

Bill of materials (BOM): A structured list of the components, quantities and sub-assemblies required to manufacture a finished product. BOMs drive material planning, costing and production orders. Manufacturing and MRP.
Batch tracking: Recording inventory by production or receipt batch so a business can trace stock through storage, sale and, where required, recall. Inventory management.

C

Chart of accounts: The organised list of ledger accounts a business uses to record transactions and produce financial statements. Finance and accounting.
Cloud ERP: ERP software hosted and operated on cloud infrastructure rather than on servers owned by the customer. Deployment can be multi-tenant, dedicated or hybrid. Cloud ERP.
CRM (customer relationship management): Software for managing leads, opportunities, sales pipelines and customer interactions across the customer lifecycle. CRM and sales.
Cutover: The planned point when a business stops using a legacy system and starts operating in the new ERP environment. Cutover planning covers data, access, training and rollback readiness. ERP implementation.

D

Data migration: Moving data from legacy systems or spreadsheets into a new ERP platform, including extraction, cleansing, mapping, validation and reconciliation. ERP migration.
Demand planning: Estimating future demand for products or services so purchasing, production and inventory can be planned against expected requirements. Supply chain planning.

E

EDI (electronic data interchange): A structured, standards-based exchange of business documents such as purchase orders and invoices between trading partners. Often integrated with ERP order and finance processes. Platform integrations.
ERP (enterprise resource planning): A connected software platform that brings core business processes — such as finance, sales, inventory, purchasing, manufacturing and HR — into one system with shared data. ERP platform overview.

F

FIFO (first in, first out): An inventory valuation and issuing method where the oldest stock is assumed to be used or sold first. Common in distribution and food-related operations. Inventory management.

G

General ledger (GL): The core accounting record containing all journal entries and account balances used to produce financial reports. Finance and accounting.
GEO (generative engine optimisation): Structuring accurate, well-organised content so it can be understood and cited by generative search and AI assistant systems. It does not guarantee inclusion in any AI answer. Digital marketing services.

I

Integration: Connecting systems so data and processes flow between them, typically through APIs, middleware, scheduled files or event-based messaging. Platform integrations.
Inventory turnover: A measure of how often inventory is sold or used over a period. It is typically calculated from cost of goods sold divided by average inventory value. Inventory management.

M

Middleware: Software that sits between applications and manages data exchange, transformation, routing or orchestration between them. API integrations.
MRP (material requirements planning): Planning logic that calculates the materials and components needed to meet production requirements, considering BOMs, stock levels and lead times. Manufacturing and MRP.
MRP II (manufacturing resource planning): An extension of MRP that also considers capacity, labour and financial implications of production plans. Manufacturing and MRP.
Multi-company: Operating multiple legal entities or business units in one ERP environment while keeping appropriate data and reporting separation. Multi-company ERP.
Multi-tenant: A cloud deployment where multiple customers share infrastructure while their data and configuration remain logically separated. Deployment options.

P

Purchase order (PO): A formal document issued to a supplier authorising a purchase at agreed quantities, prices and terms. Often matched to goods receipts and invoices. Purchasing and procurement.

R

Reorder point: The stock level at which a replenishment order should be triggered, based on expected demand and supplier lead time. Inventory management.
RFP (request for proposal): A structured document used to invite vendors to propose a solution, scope and commercial approach for a defined requirement. Resources FAQ.

S

SaaS (software as a service): Software delivered as a subscription service over the internet, with the provider operating the underlying infrastructure. Cloud ERP.
Safety stock: Extra inventory held to reduce the risk of stockouts caused by demand variability or supplier delays. Inventory management.
Serial tracking: Recording inventory by unique serial number so individual units can be traced through receipt, movement, sale and service. Inventory management.
SLA (service level agreement): A documented commitment covering service scope, availability, response or resolution expectations and related responsibilities. ERP SLA support.

T

Three-way match: A control that compares a purchase order, goods receipt and supplier invoice before payment is approved. Purchasing and procurement.

U

UAT (user acceptance testing): Structured testing where business users confirm that configured workflows meet agreed requirements before go-live. ERP testing.

W

White-label: A model where a partner delivers software under its own brand, domain and commercial terms while the platform provider operates the underlying product. White-label partner programme.
WMS (warehouse management system): Software that manages warehouse activity such as receiving, put-away, picking, packing and stock counts. Often connected to or included within an ERP inventory module. Inventory and warehouse management.
Workflow automation: Rules and approvals that move tasks and documents through a process automatically, reducing manual routing and status chasing. Workflow automation.