ERP DICTIONARY
ERP Terms in Simpler Language.
A practical ERP glossary for the language that shows up in demos, implementation plans, integration conversations, and day-to-day operations. The goal is simple: understand what the term means, what decision sits behind it, and where it matters in the business.
A–Z
Terms worth knowing before you sign anything.
API
A defined way for one system to exchange information with another. In ERP work, APIs are often used to connect ecommerce, WMS, CRM, shipping, and other applications.
BOM (Bill of Materials)
The structured list of components and quantities required to make a product. In discrete manufacturing, the BOM is a core input to planning, production, and costing.
Cloud ERP
What is cloud ERP? An ERP system accessed through a web browser or internet-connected application rather than relying only on software installed and managed on local infrastructure. Hosting, update, security, and deployment models still vary by platform.
Cutover
The controlled move from the old system to the new one. It can include the final data load, open transaction handling, user access changes, and the point when teams begin working in the new ERP.
EDI (Electronic Data Interchange)
What is EDI? A structured way for businesses to exchange documents such as purchase orders, acknowledgements, advance ship notices, and invoices with trading partners.
General Ledger
The central accounting record where financial transactions ultimately post. It supports financial statements, period close, and the accounting structure behind the ERP.
Hypercare
The focused support period immediately after go-live, when teams watch the new environment closely, resolve early issues, and help users settle into new processes.
Landed Cost
The cost of bringing inventory into the business beyond the supplier price. Depending on the transaction, landed cost can include freight, duty, brokerage, insurance, handling, and other acquisition costs.
MRP (Material Requirements Planning)
A planning process that calculates what materials are needed, in what quantity, and when, based on demand, supply, inventory, BOMs, and production requirements.
Multi-Entity
The ability to manage more than one legal entity or company in the ERP while supporting separate books, intercompany activity, and consolidated reporting where needed.
Omnichannel Inventory
A shared view of inventory used across sales channels such as ecommerce, marketplaces, B2B, and direct sales so availability and fulfillment decisions are based on the same picture.
Production Routing
The ordered sequence of operations or work steps used to make a product. Routings help define where work happens, how long it takes, and how production is scheduled and costed.
Reorder Point
The inventory position at which replenishment should be triggered. A reorder point is typically influenced by expected demand during lead time plus the safety stock needed to protect the desired service level.
Three-Way Match
The check that compares a purchase order, the receipt of goods or services, and the supplier invoice before payment is approved.
WMS (Warehouse Management System)
What is a WMS? Software used to manage warehouse activity such as receiving, putaway, inventory movement, picking, packing, and shipping. It may be part of the ERP or connected as a separate system.
Still Sorting Through ERP Language?
Send us the term, requirement, or proposal language that is unclear. We’ll explain what it means in practice, what decision sits behind it, and where it matters in the business.