The terms you will hear most often while choosing and running an ERP.
- Audit trail
- A record of who created or changed each document, and when. Auditors rely on it to trust the numbers.
- Batch number
- A code that groups items produced or received together. It lets you trace expiry dates and recalls.
- Bill of materials
- The list of materials and quantities needed to make one unit of a product. Production planning and costing are built on it.
- Chart of accounts
- The list of accounts your transactions are posted to. It shapes every financial report you will see.
- Cost centre
- A part of the business you want to measure separately, such as a branch or department. Income and costs are tagged to it.
- Credit note
- A document that reduces or cancels an invoice. It keeps the original invoice intact for audit.
- Cut-over
- The moment you stop using the old system and start using the new one. Balances are taken at this date.
- Delivery note
- The document that records goods leaving your warehouse for a customer. Stock is reduced when it is submitted.
- Item group
- A category of items, such as beverages or spare parts. Reports and price lists often work by group.
- Landed cost
- The full cost of imported goods, including freight, duty and clearing. It gives you the true margin.
- Material request
- An internal request for items to be bought or moved. It starts the purchasing process.
- Opening balance
- The balance of an account or stock item on the day you start using the system.
- Point of sale
- The till screen used to sell to walk-in customers. It records the sale, payment and stock movement at once.
- Price list
- A set of prices for a group of customers or suppliers. One item can have several.
- Purchase order
- A document sent to a supplier to buy goods or services at agreed prices.
- Reconciliation
- Matching two records that should agree, such as the bank statement and the bank account in your books.
- Reorder level
- The stock quantity at which a new order should be raised. The system can raise the request automatically.
- Sales order
- A customer’s confirmed order, before it is delivered and invoiced.
- Serial number
- A unique code for a single item, such as a laptop or a machine. It tracks warranty and ownership.
- Stock entry
- A document that moves stock between warehouses, into production or out as scrap.
- Three-way match
- Checking a supplier invoice against the purchase order and the goods received before paying it.
- Trial balance
- A list of every account with its balance. Debits must equal credits.
- Warehouse
- Any location that holds stock, such as a store, a shop or a van.
- Work order
- An instruction to produce a quantity of a product. It reserves materials and records the output.