Resources
ERP glossary
The words people use around ERP, explained in plain language, with an example and a note on where each one shows up in the software.
Why does an ERP glossary matter?
ERP projects bring together owners, accountants, production staff and software people, who often use the same words differently. These 30 definitions give everyone one meaning to work from, and show how each idea turns into screens, records and reports in an ERP.
B
Batch traceability
Batch traceability is the ability to follow a batch of material forward to the products and customers it reached, and back to the inputs it came from.
Bill of materials
A bill of materials is the list of raw materials, parts and sub-assemblies, with quantities, needed to make one unit of a product.
E
E-invoice
An e-invoice under GST is a B2B invoice reported to the government's Invoice Registration Portal, which returns an Invoice Reference Number and a signed QR code.
E-way bill
An e-way bill is an electronic document under GST required for moving goods worth more than ₹50,000 in a consignment, generated before the movement starts.
M
Make to order
Make to order is a production approach where items are manufactured only after a customer order is received.
Make to stock
Make to stock is a production approach where items are manufactured in advance, based on forecasts, and sold from finished stock.
Material requirements planning
Material requirements planning is the calculation of what materials to buy or make, how much and by when, from orders, stock and bills of material.
R
Receivables ageing
A receivables ageing report lists money owed by customers, grouped by how long each amount has been outstanding.
Reorder level
A reorder level is the stock quantity at which a new purchase or production order should be placed to avoid running out.
Request for quotation
A request for quotation is a document sent to suppliers asking them to quote price, delivery and terms for stated items and quantities.
Routing
A routing is the ordered list of operations, work centres and standard times needed to make an item.
W
Work in progress
Work in progress is material that has entered production but is not yet a finished product, valued at the material and processing cost added so far.
Work order
A work order is an instruction to the shop floor to make a stated quantity of an item by a stated date, using a given bill of materials and routing.
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