Whether you’re creating a program or you’re the business owner who’s looking for a software solution; sometimes ERP (Enterprise Resource Planning) jargons can be quite confusing.

Remember, your ERP solution will be the foundation of your business structure and understanding its terminologies will save you in choosing the right ERP for you.

Here are some of the most common terms used:

Accounts Payable – any unpaid balances that your company owes to vendors.

Accounts Receivable – any outstanding balance that your customers owe to your company.

Actual Cost – the actual amount of money either paid for material/charged as labor, material, or overhead to a work order.

Business To Business (B2B) – when the vendor & consumer are both businesses, not end consumers.

Business Intelligence (BI) – refers to the set of tools that facilitate the senior management to make better decisions by providing a wide range of data & information.

Cloud Computing – a process whereby users are connected to their ERP software via the internet rather than to computer equipment at their location thus eliminating the cost & need to have the hardware infrastructure located & maintained at their site.

Customer Relationship Management (CRM) – it refers to the methodology or process involved in acquiring new customers and managing existing customer.

Enterprise Resource Planning – is the business process management software that allows business to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources.

Fixed Assets – assets that are necessary for production, but that are not going to generate cash within a year.

Forecasting – is a process that uses historical data to predict future outcomes.

Implementation – the process of installing and configuring ERP software. This process involves installing, configuring, testing and preparing an organization for the update.

Integrated Software – two or more software functions within the overall ERP application that share data & combine functions, such as order processing & inventory control, invoicing and accounts system.

Inventory Management – is the supervision of non-capitalized assets (inventory) and stock items. It is also a component of supply chain management, inventory management that supervises the flow of products, manufacturers and facilities to point of sale.

Job Order Management – is an automated inventory system that optimizes real-time updates, tracking, monitoring and forecasting.

Key Performance Indicator – an approach for helping a business achieve its goals through the development of agreed upon critical performance targets and measurements of progress towards those targets.

Mobile Data Collection – a suite of mobile transactions designed for mobile device. This allow users to selectively deploy bar-code enabled and mobile devices.

Network Administrator – the person who is responsible for managing the business’ network including security and performance.

Order Management – the process of fulfilling and tracking customer orders.

Procurement – the process of agreeing findings, agreeing terms and agreeing goods, services

Point-of-sale (POS) – is the time and place that a sale’s transaction took place. In ERP applications, this is normally the ability to handle retail / counter sales.

Purchase Order Management- is  a user-friendly system that provides real-time control and processing of sales and purchase transactions.

Return of Investment (ROI) – a financial measurement that access how profitable investment are. This is calculated by dividing the external return (profit) by the financial outlay.

Software License –  a way of granting multiple people to access to the same shared software application. An ERP buyer pays a one-time fee for each name.

Upgrade (Software) – the replacement of a software product with a new improved version.

User Interface (UI) – is the way in which a software user is able to interact with a system.

To learn more how ERP works, visit our website www.hilsoftinc.com.

Leave a Reply

Your email address will not be published. Required fields are marked *