What is ERP Software?
ERP Software Definitions Explained
The Acumatica Cloud ERP Glossary is your go-to guide for understanding ERP. In this Q&A resource, we explain essential terms—like APIs, BOMs, landed cost, and traceability—in plain language. Whether you’re a manufacturer, distributor, or growing business in Canada, this glossary helps you cut through ERP jargon and see how Acumatica supports real-world operations and smarter decisions.
Clear Explanations That Make ERP Easy to Understand
Plain‑language answers to the most‑asked ERP questions, written for Canadian manufacturers and distributors. Use the A–Z jump list to find a term fast.
Quick Jump: A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
AI in ERP
Q: What is AI in ERP?
A: AI adds automation and pattern‑finding to routine work (classifying expenses, forecasting demand, summarizing notes). In Acumatica, new AI features accelerate data entry and decision-making.
AP (Accounts Payable)
Q: What does Accounts Payable mean?
A: AP tracks what your business owes suppliers—bills, due dates, cash requirements—so you can control payments and take discounts.
API
Q: What is an API in ERP?
A: An API (Application Programming Interface) lets your ERP securely exchange data with other systems (e.g., eCommerce, PLM, shipping). It’s how Acumatica connects apps without manual file uploads.
AR (Accounts Receivable)
Q: What does Accounts Receivable mean?
A: AR tracks customer invoices, collections, and credit so you get paid faster and keep cash flowing.
Audit Trail
Q: What is an ERP audit trail?
A: A tamper‑evident log of who changed what and when—key for compliance and troubleshooting.
BI (Business Intelligence)
Q: What is BI in ERP?
A: Dashboards and analytics that turn ERP data into KPIs and reports for better decisions.
Bill of Materials (BOM)
Q: What is a BOM?
A: The recipe for a product—parts, quantities, and structure. Acumatica links BOMs to routings for planning and cost control.
Cloud ERP
Q: What is Cloud ERP?
A: ERP is delivered over the internet instead of on local servers. It updates faster, scales easily, and supports remote teams.
CPQ
Q: What is CPQ?
A: Configure‑Price‑Quote software that guides sales to build valid products, price accurately, and generate quotes.
CRM
Q: What is CRM in ERP?
A: Customer Relationship Management—tracks leads, opportunities, and activities so sales and service stay aligned with operations.
Costing Methods (FIFO/LIFO/Avg)
Q: What are ERP costing methods?
A: Rules for valuing inventory and COGS. Common methods are FIFO, LIFO, and Moving Average. Acumatica supports multiple methods per item/class.
Customization vs Configuration
Q: What’s the difference between ERP customization and configuration?
A: Configuration adapts ERP using built‑in settings (like workflows or user roles), while customization involves modifying code or building new features.
Data Migration
Q: What is data migration in an ERP project?
A: Moving clean, mapped data (items, customers, vendors, history) from old systems into the new ERP before go‑live.
Dashboards
Q: What are ERP dashboards?
A: Dashboards are role‑based views that display KPIs, reports, and tasks in real time, helping leaders make faster decisions.
Demand Forecasting
Q: What is demand forecasting?
A: Predicting future demand so MRP and purchasing plan the right materials and capacity.
eCommerce Integration
Q: How does ERP connect to eCommerce?
A: Via APIs or connectors to sync products, pricing, inventory, orders, and shipments in near real time.
EDI
Q: What is EDI?
A: Electronic Data Interchange—standard file formats that automate B2B documents like POs, ASNs, and invoices.
ERP (Enterprise Resource Planning)
Q: What is ERP?
A: ERP stands for Enterprise Resource Planning—software that connects finance, operations, inventory, sales, and more into one system. Acumatica Cloud ERP helps businesses streamline processes and gain real‑time visibility.
ERP Implementation Phases
Q: What are the phases of an ERP implementation?
A: Common phases include discovery, design, build, testing, training, go‑live, and post‑go‑live support.
ERP Integration
Q: What is ERP integration?
A: ERP integration connects your ERP with other systems (eCommerce, CRM, payroll, shipping) to keep data synced automatically.
ERP Reporting
Q: What is ERP reporting?
A: ERP reporting creates financial, operational, and compliance reports using centralized system data.
ERP Workflow Automation
Q: What is ERP workflow automation?
A: Rules and processes that automatically route approvals, generate alerts, or trigger actions—reducing manual effort and errors.
Field Service
Q: What is Field Service in ERP?
A: Scheduling, dispatch, mobile work orders, and billing for technicians who install or repair equipment.
FP&A
Q: What is FP&A?
A: Financial Planning & Analysis—budgeting, forecasting, and scenario modeling tied to your ERP actuals.
GL (General Ledger)
Q: What is the General Ledger?
A: The master record of accounts and financial transactions used to produce financial statements.
GST/PST/HST (Canada)
Q: How does ERP handle Canadian sales taxes?
A: By calculating GST, PST, and HST rules by province, tracking exemptions, and preparing returns.
HS Code
Q: What is an HS Code?
A: A harmonized tariff code used for cross‑border trade and landed cost calculations.
Implementation
Q: What is an ERP implementation?
A: A phased project—discovery, design, build, testing, training, go‑live, and support—guided by change management.
Inventory Allocation
Q: What is inventory allocation?
A: Reserving stock for orders, projects, or production so critical demand is covered.
Integration Platform
Q: What is an integration platform?
A: Middleware that connects ERP with many apps using prebuilt connectors and mapping.
Job Costing
Q: What is job costing?
A: Tracking labour, materials, and overhead by job or project to measure true profitability.
KPI
Q: What is a KPI in ERP?
A: A key metric (e.g., on‑time delivery, inventory turns) shown on dashboards to monitor performance.
MRP
Q: What is MRP?
A: Material Requirements Planning—calculates what to buy and make, and when, based on demand and supply.
MES
Q: What is MES?
A: Manufacturing Execution System—shop‑floor data collection for labour, machines, and WIP.
Modules
Q: What are ERP modules?
A: Modules are functional areas within an ERP system—like Finance, Distribution, Manufacturing, CRM, and Project Accounting—that can be used together or added as your business grows.
Multi‑Entity & Multi‑Currency
Q: What does multi‑entity/currency mean?
A: Running multiple companies or branches with different currencies and consolidated reporting.
Nonconformance (NCR)
Q: What is a nonconformance in ERP?
A: A nonconformance (NCR) records when a product, material, or process doesn’t meet quality standards. In Acumatica, NCRs can be tracked as part of quality management for audits and corrective actions.
Number Series
Q: What is a number series in ERP?
A: Predefined numbering rules that automatically assign unique IDs to documents like invoices, POs, or shipments—keeping records consistent and audit-ready.
Order Management
Q: What is order management in ERP?
A: The process of entering, tracking, fulfilling, and invoicing customer orders. Acumatica’s Order Management automates pricing, discounts, inventory allocation, and shipping.
Order-to-Cash (O2C)
Q: What is the order-to-cash process?
A: The full workflow from receiving a sales order through fulfillment, invoicing, and payment collection. Acumatica tracks every step in real time for visibility and faster cash flow.
Operational Efficiency
Q: What does operational efficiency mean in ERP?
A: Using ERP to streamline processes, reduce manual work, and improve productivity across finance, operations, and supply chain.
On‑Prem vs SaaS
Q: What’s the difference between On‑Prem and SaaS ERP?
A: On‑Prem runs on your servers; SaaS runs in the cloud and is managed/updated by the vendor.
PLM
Q: What is PLM?
A: Product Lifecycle Management—controls product data, revisions, and engineering changes.
Project Accounting
Q: What is project accounting?
A: Managing budgets, costs, billing, and profitability by project or contract.
Procure-to-Pay (P2P)
Q: What is the procure-to-pay process?
A: The workflow from requisitioning and purchasing goods through receiving, invoicing, and vendor payment. Acumatica automates P2P to control costs and improve supplier relationships.
Production Scheduling
Q: What is production scheduling in ERP?
A: Planning and sequencing manufacturing orders to maximize efficiency and meet demand. Acumatica uses routings and work center data to schedule production.
Project Management
Q: What is project management in ERP?
A: Tools for budgeting, resource allocation, time tracking, and profitability analysis by project. Acumatica’s Project Accounting module supports various industries, including construction, services, and manufacturing.
Purchase Order (PO)
Q: What is a purchase order in ERP?
A: A document created to request goods or services from a supplier. Acumatica automates POs with approvals, inventory updates, and landed cost allocations.
Quality Management
Q: What is quality management in ERP?
A: Inspections, NCR/CAPA tracking, and specs to maintain consistent product quality.
Reporting
Q: What is ERP reporting?
A: ERP reporting creates financial, operational, and compliance reports using centralized system data.
Routing
Q: What is a routing?
A: The step‑by‑step operations, work centers, and times used to build a product.
RMA
Q: What is an RMA?
A: Return Merchandise Authorization—controls returns for repair, replacement, or credit.
SaaS (Software as a Service)
Q: What is SaaS ERP?
A: SaaS ERP is software delivered via the cloud on a subscription basis. The vendor manages updates, security, and infrastructure so you don’t have to.
Sandbox
Q: What is an ERP sandbox?
A: A safe test copy of your system for training and trying changes before go‑live.
SKU
Q: What is a SKU?
A: A stock keeping unit—a unique item identifier used for inventory and sales.
Supply Chain
Q: What is a supply chain in ERP terms?
A: The flow of materials from suppliers to customers—managed through purchasing, inventory, production, and logistics.
TCO & ROI
Q: What are TCO and ROI for ERP?
A: TCO is total cost of ownership (licenses, services, training, support). ROI is the payback from efficiency and growth.
Traceability
Q: What is traceability?
A: The ability to track materials from supplier to finished goods to customer for compliance and recalls.
UAT
Q: What is UAT?
A: User Acceptance Testing—business users validate that the system works as intended before go‑live.
Vendor Portal
Q: What is a vendor portal?
A: A self‑service website where suppliers get POs, confirm shipments, and update info without emails.
WIP
Q: What is WIP?
A: Work‑in‑Process—the value of partially completed goods on the shop floor.
WMS
Q: What is WMS?
A: Warehouse Management System—bin/lot control, barcode scanning, and picking to increase accuracy.
XML (Extensible Markup Language)
Q: What is XML in ERP?
A: XML is a standardized data format often used to exchange information between ERP systems and other applications. Acumatica supports XML imports/exports and APIs for integration with third-party systems.
Yield
Q: What is yield?
A: The percentage of good output vs. total produced; used to measure scrap and efficiency.
Zero‑Touch Automation
Q: What is zero‑touch automation?
A: Workflows that run without manual clicks (e.g., OCR bills auto‑routed for approval), reducing delays and errors.
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