If you’re new to business automation software, and ERP in particular, then the number of new terms you’re confronted with can be overwhelming. We’ve put together this short ERP glossary of key terms to help. If you’ve come across a phrase or term that isn’t included, get in touch, and we’ll add it to the list.
Average Landed Cost
This is the total cost of goods that have been shipped to a location. This includes any fees associated with shipping, in addition to the price of the goods.
Adjustment Reason
Adjustment reasons are used for stock adjustments, and for every stock adjustment completed, a reason can be given for reporting and auditing. The adjustment reason can then be looked at to make improvements in the future.
Assembly
The assembly is the process of putting the various components together to complete the whole product. The list of components will be described in the Bill of Materials, and are usually removed from the stock on hand, before the finished product is added to the stock on hand.
Back Order
This is an order for a product that is out of stock with the supplier. A record can be created that states the customer has not received their order. This process can be managed with our stock control software.
Bill of Materials
This is an important document that contains a list of all items that are required to build a complete product, and can be referred to during the assembly process.
Cloud Computing
This is the practice of using a network of remote servers, hosted on the internet to store, manage and process data, rather than using a local server or a computer. Our software is used entirely on the Cloud, and integrates with eBay, Amazon, Shopify, BigCommerce and WooCommerce.
Credit Note
This is a receipt given to a customer who has returned their goods, which can be offset against future purchases. As a supplier, it’s important to have a process in place for when a customer requests a refund.
CRM
This stands for Customer Relationship Management, and is a strategy for managing relationships with your customers. We do this through an integrated online CRM system, so that you can integrate customer communication into all of your processes.
Debt Management
This is the process of staying on top of your debtors, whilst ensuring that your business continues to thrive. Our accounting software enables you to identify credit risks, and easily process regular debt-chasing tasks.
Disassembly
This refers to the breaking down of a product into its individual components. This may be done for either repair or warranty purposes.
ERP Dashboard
Standing for Enterprise Resource Planning, our ERP Dashboard stops you from being tied to your desk, as you can monitor your business’ performance on the go. Our dashboard means you can access detailed figures at your fingertips, including sales orders, purchases and returns.
Magento
Magento 1 and 2 platforms enable ecommerce businesses to handle both consumer (B2C) and trade (B2B) orders via their online store, enabling them to better manage their stock and accounts.
Mark-up Price
This is the selling price minus the cost price of the product, and can either be expressed as a fixed amount, or as a percentage.
Multichannel
This refers to the number of ways in which a customer can purchase goods or services, such as online, in-store, through an app or over the phone.
Omnichannel
This goes one step further than multichannel, and provides customers with a fully integrated shopping experience. This means your website, social media and email marketing campaigns, along with the utilisation of any other digital channels, are all working together.
Purchase Order
This is a document sent from the buyer to the seller, authorising a purchase transaction. This can include information including the quantity, type and price of a product or service.
Purchase Order Costs
These are the costs related to a purchase order and can include the delivery costs, labour costs, insurance and tax.
Residual Value
When a product has been returned, and the price has changed from the initial purchase, the difference in price is referred to as the residual value.
Sage Pay
Sage Pay is our Preferred Payment Partner, who we’ve worked with for over a decade. By enabling Sage Pay integration with us, you will be able to take and authorise card payments without worrying about virtual terminals or PDQ machines.
Sales Invoice
This is the request of payment by the customer, for the products or services bought. The sales invoice includes details such as the quantity of the item(s), and can be treated as a record of the sale.
Sales Order
This is an internal document created by a business, that shows the authorisation of a sale. This is issued on receipt of a customer’s purchase order.
Sales Quote
This quote enables a potential buyer to estimate the total costs involved in purchasing a specific product or service.
Sales Shipment
This is the action of shipping the goods outlined in the sales order, to the customer.
Sell Price Tier
This enables a supplier to specify different sell prices for different types of customers.
Stock Count
By calculating the total amount of stock you have at any one time, ensures you’re aware of the accurate and current record of stock quantity.
Stock Adjustment
These are the increases or decreases made in a supplier’s inventory to account for any loss, breakages, donations etc that have resulted in less stock available.
Stock on Hand
This refers to the amount of goods that a company has available at any particular time. In addition to finished goods, this also includes any parts or materials that are required to make the goods.
Stock Revaluation
This can be used to adjust the average landed costs in bulk.
Warehouse Management
This is the support given to the supplier’s warehouse, to ensure day-to-day operations are completed effectively. Our inventory management software can help to improve your Pick Pack Despatch process.
Wastage Quantity
This is the quantity of any component wastage when assembling a product.