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.
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.