Dictionary
Learn the terms commonly used by business software users so you can understand what customers are talking about
The world of ERP and business management software is full of 3 letter abbreviations and jargon that can be confusing and intimidating. This Dictionary is designed to simplify these terms so you can be confident communicating with seasoned users and customers
Profit and loss
A profit and loss statement (P&L) is like a report card that shows if a business made money or lost money during a certain time. Here’s a simpler explanation:
Money In, Money Out: It adds up all the money the business earned (income) and subtracts all the money it spent (expenses).
Result: If the total income is more than expenses, it’s a profit. If expenses are more than income, it’s a loss.
Time Frame: It covers a specific period, like a month, quarter, or year, to show how the business is doing financially.
Usefulness: Helps business owners see if they’re making enough money to cover costs and grow.
In short, a profit and loss statement tells if a business is making a profit or facing a loss by comparing how much money came in with how much went out during a set time.
Accounting
Net profit
Net profit, simply put, is the amount of money a business has left after subtracting all its expenses from its total revenue. Here’s a straightforward explanation:
Total Earnings: It’s what remains after deducting all costs, including operating expenses, taxes, and interest.
Final Result: Shows how much profit the business actually makes after paying all its bills.
Calculation: Calculated by subtracting all expenses from total revenue (sales).
Key Metric: Helps determine the overall profitability of the business.
In essence, net profit is the bottom line—what’s left over as profit after all expenses have been taken out from the total income earned by the business.
Accounting
Gross profit
Gross profit is the money a business earns from sales after subtracting the direct costs of producing those goods or services. Here’s a simple explanation:
Income minus Costs: It’s what’s left after taking away the cost of making or delivering a product or service.
Basic Measure: Shows how much money a business makes from its core operations before other expenses like rent or taxes.
Calculation: Calculated by subtracting the cost of goods sold (COGS) from total revenue (sales).
Indicator: Helps businesses see how efficiently they’re making money from their products or services.
In short, gross profit is the money a business earns from sales after covering the direct costs of making or providing what it sells
Accounting
Debtors
These are customers or clients who owe money to the business for goods sold or services rendered. They have received products or services but haven't paid for them yet.
Accounting
Actual costing
Actual costing is a method used to determine the cost of products or services based on their actual expenses incurred during production or delivery. Here’s a simple explanation:
Real Expenses: Actual costing calculates costs using the exact expenses, such as materials, labor, and overhead, that were used to produce or deliver goods or services.
Accurate Reflection: It provides a precise and detailed view of the cost per unit based on what was actually spent.
Varied Costs: Costs can fluctuate based on changes in material prices, labor rates, or overhead expenses.
Decision Making: Helps businesses make informed decisions about pricing, profitability, and cost control strategies.
In short, actual costing ensures that the costs assigned to products or services accurately reflect the real expenses incurred in their production or delivery, supporting effective financial management and decision-making
Accounting
GL Accounts
General ledger accounts are like folders where a business keeps track of all its financial transactions. Here’s a simple explanation:
Financial Records: Each account in the general ledger records transactions related to specific aspects of the business, such as cash, sales, expenses, and assets.
Organization: Accounts are organized to show money coming in (credits) and going out (debits), keeping track of where funds are allocated.
Summary: They summarize financial activities, helping businesses track income, expenses, and overall financial health.
Reporting: Used to create financial statements like the balance sheet and income statement, providing a snapshot of the business's financial status.
In essence, general ledger accounts are essential for organizing and tracking a company's financial transactions, ensuring accurate record-keeping and financial reporting.
Accounting
project codes
Project codes in accounting are special identifiers used to track and manage the financial activities of specific projects. Here’s a simple explanation:
Unique Identifiers: Each project is given a unique code.
Tracking Expenses and Income: All costs and revenues related to a project are recorded using its specific code.
Detailed Reporting: Helps in generating reports to see how much money is spent and earned on each project.
Budget Management: Makes it easier to manage budgets and ensure projects stay on track financially.
In short, project codes help businesses organize and monitor the financial details of individual projects separately from other activities
Accounting
FIFO valuation
FIFO (First-In, First-Out) stock valuation is a method used to assign costs to inventory items based on the order in which they were purchased or produced. Here’s a simple explanation:
Order of Acquisition: Under FIFO, the earliest acquired or produced goods are the first to be sold or used.
Cost Assignment: Costs of goods sold (COGS) are based on the oldest inventory costs, reflecting the most recent purchase prices for ending inventory.
Financial Reporting: FIFO provides a clearer picture of current inventory costs, especially in times of price changes.
Compliance: It aligns with Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
In short, FIFO stock valuation assumes that the oldest inventory items are sold first, ensuring that the cost of goods sold (COGS) reflects the most recent purchase prices, which can be important for financial reporting and tax purposes. Enterpryze does not cater for FIFO
Accounting
Last Purchase Price
The "last purchase price" refers to the most recent cost paid by a business for acquiring inventory items. This cost is often used in calculating the cost of goods sold (COGS) and, subsequently, in determining gross profit. Here’s a simple explanation of how it is used:
Cost Calculation: The last purchase price is used to determine the cost basis of goods sold during a specific period.
Gross Profit Calculation: Gross profit is calculated by subtracting the COGS (which is based on the last purchase price) from the revenue generated from sales.
Accuracy: Using the last purchase price provides a more current and accurate reflection of inventory costs compared to other methods like FIFO or weighted average.
Financial Reporting: It helps in assessing profitability and making informed decisions about pricing and inventory management.
In essence, the last purchase price is critical in determining the direct costs associated with sales, which is foundational for calculating gross profit and evaluating the financial performance of a business
Accounting
Creditors
Creditors are people or companies that have given goods, services, or money to someone else with the expectation of being paid back later
Accounting
cashflow
Cash flow refers to the movement of money into and out of a business over a period of time. Here’s a simple explanation:
Money In and Out: Cash flow is the flow of money coming into and going out of a business.
Income and Expenses: It tracks how much money the business receives (income) and spends (expenses).
Financial Health: Positive cash flow means more money is coming in than going out.
Importance: Cash flow is crucial for paying bills, buying inventory, and managing day-to-day operations.
In short, cash flow shows how well a business manages its money, ensuring it has enough to cover expenses and grow effectively
Accounting
Moving Average valuation
Moving average stock valuation is a method used to calculate the average cost of inventory items based on the average price of goods purchased over time. Here’s a simple explanation:
Average Cost: It calculates the average cost of inventory items by averaging the prices of all purchases made for those items.
Constant Update: As new purchases are made, the average cost is updated to reflect the most recent transactions.
Smooths Price Fluctuations: Helps smooth out fluctuations in purchase prices over time.
Inventory Valuation: Used to value inventory on the balance sheet, providing a more stable cost basis.
In essence, moving average stock valuation provides a consistent and updated average cost of inventory items, ensuring accurate financial reporting and inventory management
Accounting
Balance sheet
A balance sheet is like a snapshot that shows what a business owns and owes at a specific point in time. Here's a simpler explanation:
Assets: It lists everything the business owns that has value, like cash, inventory, and equipment.
Liabilities: It shows everything the business owes, such as loans, bills, and payments due.
Equity: The difference between assets and liabilities shows the business's net worth, or what’s left over for the owners if everything was sold and debts were paid off.
In essence, a balance sheet gives a quick view of a business's financial health by listing what it owns, what it owes, and what's left over. It helps owners and investors understand the business's financial position at a specific moment in time.
Accounting
Journal
In accounting, a journal is like a diary where all financial activities of a business are written down in the order they happen. It's where every transaction—like sales, purchases, or expenses—is first recorded with all the important details, such as dates and amounts. This helps keep track of what money is coming in and going out of the business, making sure everything is properly documented.
Accounting
Multi Currency
Multi-currency transactions are when a business deals with more than one currency in its financial activities. Here's a simple explanation:
Different Currencies: Involves buying, selling, or trading in various currencies, like dollars, euros, or yen.
Exchange Rates: The value of the currencies can change, so the business has to convert amounts using exchange rates.
International Business: Useful for companies that do business in different countries.
Accounting: Requires special handling in accounting to keep track of gains or losses from currency changes.
In short, multi-currency transactions mean a business handles money in various currencies, which involves converting between them based on current exchange rates
Accounting
Exchange Rates
Currency exchange rates refer to the value at which one currency can be exchanged for another currency. Here’s a simple explanation:
Value Comparison: Exchange rates show how much one currency is worth in terms of another currency.
Fluctuation: Rates change based on supply and demand in the foreign exchange market.
International Transactions: Used when buying goods or services from another country or investing in foreign assets.
Impact: Exchange rates affect the cost of imports and exports, travel expenses, and international business profitability.
Accounting
Cost Centres
In accounting, cost centres are parts of a business where costs are tracked separately. Here’s a simple explanation:
Departments or Units: Cost centres are specific departments or sections within a company, like marketing or production.
Cost Tracking: They track all the expenses that come from running that part of the business.
No Revenue: Unlike profit centres, cost centres don’t directly generate revenue; they only incur costs.
Budget Control: Helps businesses manage and control expenses by understanding where the money is being spent.
In short, cost centres help a business keep track of where its money is being spent within different parts of the organization
Accounting
Chart of accounts
A chart of accounts is a list that categorizes all the money-related activities of a business, like sales, expenses, and assets. Each category has a number or code for easy tracking. It helps businesses organize their finances and understand where their money is going and coming from.
Accounting
Trial balance
A trial balance is like a checklist that accountants use to make sure all the numbers in a company's financial records add up correctly. It lists all the accounts and their balances to see if everything matches up—like making sure all the money going in equals all the money going out. If it doesn't match, they know there might be a mistake that needs fixing before making official financial reports
Accounting
Month End
Month end in accounting refers to the conclusion of the financial reporting period for a specific month within a business’s fiscal year. Here’s a simple explanation:
Monthly Close: Month end marks the end of a specific calendar month or fiscal month for accounting purposes.
Financial Reporting: Businesses compile and review financial transactions and activities for the month.
Reconciliations: Account reconciliations are performed to ensure all transactions are accurately recorded.
Reporting and Analysis: Financial reports, such as profit and loss statements and balance sheets, are prepared to assess monthly performance.
In essence, month end in accounting is a regular process where businesses finalize financial records for the month, ensuring accurate reporting and providing insights into financial performance on a monthly basis.
Accounting
Year End
Year end in accounting refers to the completion of the financial reporting period for a business, typically spanning 12 months. Here’s a simple explanation:
Financial Period Close: Year end marks the conclusion of the accounting period, usually on December 31st for calendar year-based businesses.
Financial Statements: At year end, businesses prepare financial statements like the income statement, balance sheet, and cash flow statement.
Audit and Compliance: It involves auditing financial records to ensure accuracy and compliance with regulations.
Planning and Analysis: Businesses analyze year-end financial data to assess performance, plan for the future, and make strategic decisions.
In short, year end in accounting is a crucial time when businesses finalize financial records, assess their financial health, and prepare for the upcoming fiscal year.
Accounting
Cost centre dimensions
Cost center dimensions refer to the various aspects or categories used to classify and analyze costs within an organization. Here’s a simple explanation:
Cost Classification: Dimensions categorize costs based on different criteria, such as departments, projects, locations, or activities.
Analytical Tool: They help break down and understand where costs are incurred within the organization.
Budgeting and Planning: Used for budget allocation, monitoring expenses, and evaluating cost efficiency in specific areas.
Decision Making: Enables managers to make informed decisions by analyzing costs related to different dimensions.
In short, cost center dimensions are ways to categorize and analyze costs by different criteria, providing insights into how expenses are distributed across various parts of the organization.
Accounting
Bank Reconciliation
Bank reconciliation is the process of comparing and matching the balances in a company's accounting records (such as the general ledger) with the balances shown on its bank statement. Here’s a simple explanation:
Matching Records: Bank reconciliation ensures that the transactions recorded in a company's books match the transactions processed by the bank.
Identifying Differences: It involves checking and comparing items such as deposits, withdrawals, checks, and bank fees between the bank statement and accounting records.
Adjustments: Any discrepancies or differences found during reconciliation are noted and adjusted in the company's records.
Accuracy: Helps ensure the accuracy of financial statements and identifies errors or fraudulent activities.
In short, bank reconciliation is a critical process that helps businesses verify the accuracy of their financial records by reconciling differences between their own accounting records and those of their bank.
Banking
System and bank Balance
The difference between system balance and bank balance is straightforward:
System Balance:
Definition: System balance refers to the total amount of money or funds shown in a company's internal accounting or financial system.
Source: It reflects transactions recorded within the company, including sales, purchases, expenses, and other financial activities.
Management: Managed and controlled by the company's accounting department or financial software.
Bank Balance:
Definition: Bank balance refers to the total amount of money or funds shown in the company's bank account(s) according to the bank's records.
Source: It reflects transactions processed by the bank, including deposits, withdrawals, checks cleared, and bank fees.
Management: Controlled by the bank and accessed through bank statements or online banking platforms.
In essence, the system balance represents the financial position as per the company's internal records, while the bank balance represents the actual amount of funds available in the company's bank account(s) based on the bank's records. Reconciling these balances ensures that the company's financial records are accurate and up-to-date.
Banking
Settlement Discount
A settlement discount is a reduction in the amount owed by a customer if they pay their invoice within a specified timeframe. Here’s a simple explanation:
Discount Offer: A settlement discount is a discount offered by a seller to encourage prompt payment of invoices by customers.
Terms: It typically specifies that if the invoice is paid within a certain number of days (e.g., 10 days), the customer can deduct a percentage (e.g., 2%) from the total amount owed.
Purpose: Encourages quicker payment, improves cash flow, and reduces the risk of bad debts for the seller.
Conditions: The discount and payment terms are agreed upon in advance and stated on the invoice.
In short, a settlement discount incentivizes customers to pay invoices early by offering a percentage reduction in the amount owed, benefiting both the seller and the customer in terms of improved cash flow and financial management.
Banking
CRM
CRM stands for Customer Relationship Management. Here's a simple explanation:
Customer Information: CRM software stores all customer details in one place.
Communication: It helps businesses keep track of interactions with customers.
Sales and Service: CRM tools help manage sales, support, and service processes.
Improvement: It helps businesses understand customer needs and improve relationships.
In short, CRM software helps businesses manage and improve their interactions with customers
CRM
Prospects
In business, prospects are potential customers who are likely to be interested in your products or services. Here's a simple explanation:
Potential Customers: Prospects are people or businesses that might buy your products or services.
Interested Leads: They have shown some interest or have the characteristics of someone who would need what you’re selling.
Sales Focus: Sales teams target prospects to turn them into actual customers.
Sales Pipeline: Prospects are usually at the early stage of the sales process.
In short, prospects are people or businesses that could become customers because they are likely to be interested in what you offer.
CRM
Pipeline
A CRM (Customer Relationship Management) pipeline is a visual tool used by businesses to manage and track potential sales opportunities. Here’s a simple explanation:
Stages: It shows different stages of the sales process, like lead generation, contact, negotiation, and closing.
Tracking: Helps track where each potential customer is in the sales process.
Management: Allows sales teams to manage and prioritize their leads and deals.
Forecasting: Helps predict future sales by showing how many deals are in each stage.
In short, a CRM pipeline helps businesses keep track of and manage their sales opportunities from start to finish
CRM
Quotes
In business, a quote (or quotation) is a document that shows the price for goods or services a company offers to a potential customer. Here's a simple explanation:
Price Estimate: A quote provides an estimated price for specific goods or services.
Details: It includes details like quantities, item descriptions, and terms of sale.
Validity: Quotes are usually valid for a certain period, giving customers time to decide.
Formal Offer: It's a formal offer to do business at the specified price.
In short, a quote is a document that tells a customer how much they will need to pay for certain products or services
CRM
Future Commitment
In the context of future liabilities, a future commitment on a customer's account refers to an obligation that a business expects to fulfill in the future due to a current agreement with a customer. Here’s a simple explanation:
Obligation to Deliver: The business has promised to provide goods or services to the customer at a future date.
Recorded as Liability: This promise is recorded as a future liability on the business's financial statements.
Planning for Costs: Helps the business plan for the costs associated with fulfilling this future obligation.
Not Yet Delivered: The goods or services have not yet been delivered, but the business is committed to doing so.
In short, in the context of future liabilities, a future commitment on a customer's account is a promise by the business to provide something to the customer in the future, which is recorded as a liability
Companies
Catagories
expense categories organize and classify spending into groups, making it easier for businesses to understand and manage their expenses.
Expense
Paid By
Expenses are either paid b y the company or paid by the employee. When paid by the company they are usually paid s company credit card. when paid by employee they are paid by the employee themselves and have to be re-imbursed at a later time. When selecting one or the other the expense will be allocated to 2 different creditor accounts
Expense
ERR
ERR (Employer's Relevant Taxable Income) in Ireland refers to a specific calculation used for employee expenses that are reimbursed or paid for by the employer. Here’s a simplified explanation:
Taxable Income: ERR is the portion of an employee's income that includes reimbursed expenses paid by the employer.
Calculation: It involves adding up the reimbursed expenses to the employee’s salary to determine taxable income.
Tax Treatment: Reimbursed expenses included in ERR are subject to income tax and PRSI (Pay Related Social Insurance).
Compliance: Employers must report ERR accurately to ensure tax compliance with Revenue Ireland.
In essence, ERR in expense reimbursement in Ireland ensures that employees and employers correctly account for and pay taxes on reimbursed business expenses as part of taxable income
Expenses
Expenses
Claiming expenses in a company refers to employees or individuals requesting reimbursement for money spent on business-related costs. Here’s a simple explanation:
Spending on Behalf: Employees spend their own money on work-related items like travel, meals, or supplies.
Expense Report: They submit a detailed report or form to the company accounting department.
Approval Process: The company reviews and approves the expenses based on policy and receipts provided.
Reimbursement: Once approved, the employee is reimbursed for the expenses they incurred.
In short, claiming expenses involves employees asking the company to pay them back for money spent on business-related activities, following company guidelines and procedures
Expenses
BMP
BMP in the context of business management software typically stands for Business Management Software or platform,. Here's a simple explanation:
Workflow Automation: BMP software helps automate and streamline business tasks and processes.
Efficiency: It makes business operations more efficient by organizing and optimizing workflows like Lead to cash or order to pay
Monitoring: BMP software tracks the progress of different tasks and processes in real-time.
Improvement: It helps identify and improve inefficient processes.
In short, BMP software helps businesses run more smoothly by automating tasks, tracking progress, and improving workflows
General
ERP
ERP stands for Enterprise Resource Planning. It's software that helps businesses run smoothly by managing different parts of the company in one place. Here's a super simple breakdown:
All-in-One: Combines different business functions (like sales, finance, and HR) into one system.
Automation: Reduces manual work by automating tasks.
Data Insights: Provides reports and insights to help make better decisions.
Scalable: Grows with the business, adding new features and users as needed.
Real-Time Info: Offers up-to-date information for quick decision-making.
Shared Data: Everyone in the company uses the same, accurate information.
General
BSM
BSM stands for Business Spend Management. Here’s a simple explanation:
Expense Tracking: BSM software helps businesses keep track of all their expenses.
Budget Control: It helps manage and control budgets to avoid overspending.
Purchasing Efficiency: BSM streamlines the process of buying goods and services.
Cost Savings: It helps find ways to save money by optimizing spending.
In short, BSM software helps businesses manage and control their spending to save money and stay within budget.
General
API
An API (Application Programming Interface) is like a messenger that allows different software applications to communicate and interact with each other. Here’s a straightforward explanation:
Communication Channel: An API specifies how software components should interact.
Functions: It provides a set of rules and protocols that define how applications can request and exchange data.
Integration: APIs enable different apps to work together seamlessly, sharing information and functionality.
Examples: They are used in mobile apps to access location data, in e-commerce for payment processing, and in social media for sharing content.
In short, APIs make it possible for different software programs to talk to each other, helping developers build new apps and integrate existing ones more easily
General
localisation
Localization in ERP software refers to adapting the software to meet the specific language, currency, legal, and regulatory requirements of a particular country or region. Here’s a simplified explanation:
Customization for Region: ERP software is adjusted to fit the specific needs and practices of a local area or country.
Language and Currency: It supports local languages and currencies for ease of use and financial transactions.
Compliance: Ensures the ERP complies with local laws, regulations, and tax requirements.
User Experience: Improves usability by aligning with local business practices and preferences.
In essence, localization in ERP software tailors the system to operate effectively within a specific geographic region, enhancing usability and compliance with local standards.
General
SFTP
SFTP stands for Secure File Transfer Protocol. It's a secure way to transfer files between computers over a network. Here’s a simple explanation:
Secure Transfer: SFTP encrypts data during transmission, ensuring it is protected from unauthorized access.
Authentication: Requires users to authenticate themselves before accessing files, adding an extra layer of security.
File Management: Allows users to upload, download, and manage files securely over the internet or a network.
Usage: Commonly used for transferring sensitive data, such as financial information or confidential documents.
In essence, SFTP is a secure method for exchanging files between computers, providing encryption and authentication to safeguard data during transmission.
General
SAP
SAP (Systeme, Anwendungen und Produkte in der Datenverarbeitung) is a German multinational software corporation that makes enterprise software to manage business operations and customer relations. Here’s a simple explanation:
Software Company: SAP develops software solutions for businesses to manage various aspects like finance, HR, supply chain, and more.
Global Presence: It's one of the largest enterprise software companies globally, serving businesses of all sizes and industries.
Products: SAP offers a range of products, including ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and analytics solutions.
History: Founded in 1972, SAP has grown to become a leader in enterprise software, helping organizations streamline operations and improve efficiency.
In essence, SAP provides software that helps businesses run more effectively by integrating and managing their key operations and processes
General
Port
In IT, a port refers to a virtual endpoint or connection point where data is sent or received between devices, networks, or software applications. Here’s a simple explanation:
Data Transfer: A port is like a gate or door that allows information to enter or exit a device or network.
Addressing: It is identified by a number, called a port number, which helps direct data to the correct destination.
Types: Ports can be physical (like on a computer or router) or virtual (used in software applications).
Communication: Different types of data use different ports to ensure they reach the right destination efficiently.
In short, a port in IT acts as a designated entry or exit point for data, enabling communication and data transfer between devices and networks effectively.
General
Available stock
available stock indicates the amount of inventory ready for immediate use or sale, crucial for maintaining smooth operations and satisfying customer needs promptly. This is the stock you have access to less the stock already committed to customers
Itemns
Unit of measure UoM
Unit of measure (UoM) refers to the standard unit used to quantify or measure goods or services. Here’s a simple explanation:
Measurement Standard: UoM defines how quantities of products or services are counted, such as kilograms, liters, or pieces.
Consistency: Ensures everyone uses the same unit for clarity and accuracy in transactions and inventory management.
Versatility: Different UoMs can be used for various items based on their size, weight, or volume.
Precision: Helps in pricing, ordering, and tracking inventory effectively.
In short, unit of measure (UoM) is the standardized way to quantify items, making it easier to communicate quantities consistently in business operations.
Items
Warehouses
Warehouses play a crucial role in stock management by providing organized storage for goods and facilitating efficient inventory control. Here’s a simplified explanation of how warehouses help manage stock effectively:
Storage and Organization: Warehouses provide ample space and shelving systems to store a wide range of products. Goods are organized by type, size, or demand, making it easier to locate and access items when needed.
Inventory Tracking: Each item in the warehouse is typically labeled with barcodes or tags. This allows for accurate tracking of inventory levels—knowing how much stock is available, where it’s located within the warehouse, and when it needs to be replenished.
Optimized Operations: Warehouses streamline stock management processes. They facilitate efficient receiving of goods from suppliers, accurate picking of items for orders, and timely shipping to customers or other locations.
Security and Safety: Warehouses are designed to protect inventory from damage, theft, or deterioration. They often have security measures in place and maintain suitable environmental conditions (like temperature control) for storing sensitive goods.
Logistics Hub: Warehouses serve as distribution centers, allowing businesses to manage stock for multiple locations or stores efficiently. They consolidate inventory, enabling bulk purchases and reducing overall logistics costs.
Data Insights: Modern warehouses often use inventory management software. This software provides real-time data on stock levels, movement patterns, and demand trends. This information helps businesses make informed decisions about purchasing, stocking, and pricing strategies.
In summary, warehouses are essential in stock management as they provide structured storage, efficient inventory tracking, and logistical support. They help businesses maintain adequate stock levels, improve operational efficiency, and enhance customer satisfaction through timely and accurate order fulfillment.
Items
serial numbers
Serial tracking involves tracking individual items or products throughout their entire lifecycle using unique serial numbers. Here’s a simple explanation:
Unique Identification: Each item is assigned a distinct serial number that distinguishes it from other items.
Tracking: It allows businesses to monitor each item's movements, location, and history from production through to sale and beyond.
Accuracy: Ensures precise inventory control and visibility, making it easier to manage warranties, recalls, and repairs.
Compliance: Often required in industries like electronics and healthcare to meet regulatory standards and ensure product safety.
In essence, serial tracking uses unique identifiers to follow individual items, providing detailed visibility and control over their journey from production to consumption
Items
Item Groups
item groups refer to categories or classifications used to organize similar types of items for reporting and analysis purposes.
Classification: Item groups categorize similar items together based on common characteristics.
Organizational Tool: They help organize transactions or items in financial records. In Enterpryze you can use groups to dictate how transactions are posted to the general ledger
Reporting: Item groups simplify reporting by grouping related items under one category.
Examples: Examples include grouping expenses by department (like marketing or operations), categorizing sales by product type, or classifying assets by location.
In short, item groups in accounting are used to classify and organize transactions or items to facilitate easier analysis, reporting, and management of financial information.
Items
Stock Items
Stock items, in simple terms, refer to products or goods that a business holds in inventory for sale or use in its operations. Here's a straightforward explanation:
Inventory: Stock items are goods that a business keeps in its inventory.
Ready for Sale: They are ready to be sold to customers or used in the business's operations.
Tracking: Businesses track stock items to know how much they have on hand.
Examples: Examples include products on store shelves, spare parts in a warehouse, or office supplies.
In essence, stock items are the goods a business owns and manages to meet customer demand or internal needs
Items
Warehouse examples
Here are examples of different types of warehouses used for various purposes:
Distribution Center: These warehouses are used by retailers and wholesalers to store products before distribution to stores or customers. Examples include Amazon fulfillment centers or Walmart distribution centers.
Cold Storage Warehouse: These warehouses maintain low temperatures to store perishable goods such as food and pharmaceuticals. Companies like Americold or Lineage Logistics specialize in cold storage.
Manufacturing Warehouse: Often located near factories, these warehouses store raw materials, components, and finished goods used in manufacturing processes.
Third-Party Logistics (3PL) Warehouse: These warehouses provide storage and distribution services for multiple businesses. Companies like DHL Supply Chain or XPO Logistics operate 3PL warehouses.
Retail Warehouse: Some large retailers maintain warehouses to manage inventory for their stores. For example, IKEA has distribution centers where furniture is stored before being shipped to retail locations.
E-commerce Fulfillment Center: These warehouses are specifically designed to handle the picking, packing, and shipping of online orders. Examples include Shopify's fulfillment network or the warehouses of companies like Zappos.
Bulk Storage Warehouse: These warehouses are used to store large quantities of non-perishable goods, often in bulk. They are common in industries like agriculture (grain storage) or construction materials (cement storage).
These examples illustrate the diversity of warehouses based on their function and the industries they serve, each playing a vital role in supply chain management and stock management for businesses.
Items
Customer price lists
Customer price lists in business refer to customized lists that outline specific prices offered to different customers or customer groups. Here's a straightforward explanation:
Customized Prices: Customer price lists show unique prices for products or services tailored to individual customers or groups.
Variation: They may vary based on factors like volume discounts, loyalty programs, or special agreements.
Management Tool: Businesses use these lists to manage and maintain pricing consistency across different customer segments.
Accuracy: Ensures customers see accurate and relevant pricing information for their needs.
In summary, customer price lists are used to personalize pricing for different customers, ensuring transparency and meeting specific customer requirements effectively.
Items
Bin Locations
Bin locations in a warehouse are specific spots where items are stored. Here's a simple explanation:
Storage Spots: Bin locations are like designated shelves or areas in a warehouse where goods are stored.
Organization: They help organize inventory so items can be easily found and accessed.
Efficiency: Bin locations reduce search time and make picking and storing items faster.
Tracking: They're often labeled or numbered to keep track of inventory levels and locations.
In short, bin locations in a warehouse are designated spots where items are stored to keep things organized and easy to manage
Items
Warehouse Management solution
A warehouse management solution (WMS) is software designed to streamline and optimize operations within a warehouse or distribution center. Here’s a simple explanation:
Organizing Inventory: Helps manage where products are stored in a warehouse.
Efficient Operations: Tracks inventory movement, reducing time spent finding items.
Order Fulfillment: Assists in picking, packing, and shipping orders accurately and quickly.
Inventory Control: Monitors stock levels, ensuring enough products are available without overstocking.
In short, a warehouse management solution improves the efficiency of storing, tracking, and shipping goods in a warehouse, ensuring smooth operations and customer satisfaction
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Perpetual inventory
Perpetual inventory is a system that continuously tracks and updates inventory levels in real-time. Here’s a simple explanation:
Real-Time Tracking: Perpetual inventory keeps constant track of inventory quantities, showing current stock levels after each transaction.
Automatic Updates: Inventory levels are automatically adjusted whenever goods are bought, sold, or returned.
Accuracy: Provides accurate and up-to-date information about stock on hand, reducing the chances of stockouts or overstocking.
Efficiency: Helps businesses manage inventory more efficiently by optimizing ordering and reducing carrying costs.
In essence, perpetual inventory is a system that maintains a live, ongoing record of inventory levels, offering businesses immediate visibility into their stock at any given time
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Stock Adjustments
Stock adjustments are changes made to the recorded inventory levels of a business to reflect accurate stock quantities. Here’s a simple explanation:
Correcting Inventory: Stock adjustments are made when there are discrepancies between the recorded inventory and the actual physical count.
Reasons: They can occur due to errors in counting, damaged or lost items, or changes in stock due to theft or spoilage.
Recording: Adjustments are recorded in the inventory system to ensure accurate stock levels going forward.
Importance: Helps businesses maintain accurate financial records and inventory management.
In short, stock adjustments are corrections made to ensure the recorded inventory matches the actual quantity of items on hand, improving accuracy in inventory management and financial reporting
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Committed Stock
The stock provided for delivery to customers
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Sub Assemblies
A sub-assemblies BOM is a detailed list that focuses on parts of a product that are themselves assembled from smaller components. Here's a simple explanation:
Components of Parts: It lists the parts and materials needed to build each sub-assembly.
Nested Structure: Shows how sub-assemblies fit into the main product.
Detailed Breakdown: Provides details for each sub-assembly separately.
Step-by-Step: Helps understand the assembly process of each component part.
In short, a sub-assemblies BOM is a detailed list of parts and materials for sections of a product, showing how these smaller sections are built before they are combined into the final product.
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Multi unit of measure
Multi-unit of measure (Multi-UoM) refers to the ability to use different units of measurement for the same item depending on the context or need. Here’s a simple explanation:
Flexibility: Allows businesses to measure and track items using different units, such as kilograms, grams, or liters, depending on how they are bought, sold, or used.
Adaptability: Useful for managing inventory and pricing more accurately based on varying unit sizes or quantities.
Precision: Ensures that transactions and inventory records are clear and consistent, regardless of the unit used.
Efficiency: Helps streamline operations by accommodating different measurement needs within the same system.
In essence, multi-unit of measure (Multi-UoM) provides businesses with flexibility and accuracy in managing and tracking inventory using various measurement units as required
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Stock posting report
A stock posting report is a document that provides a summary of changes in inventory levels over a specific period. Here’s a simple explanation:
Inventory Changes: It shows how inventory quantities have been adjusted, such as through purchases, sales, returns, or adjustments.
Detailed Summary: Provides a breakdown of quantities added or removed from stock, often categorized by product or location.
Tracking Transactions: Helps businesses monitor and reconcile changes in inventory to maintain accurate records.
Decision Making: Used for decision-making purposes, such as reordering stock or analyzing sales trends.
In short, a stock posting report gives businesses a clear overview of how their inventory has been adjusted, providing insights into stock movements and aiding in effective inventory management.
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BOGOF
BOGOF stands for "Buy One, Get One Free." It's a promotional offer where customers buy one item and get another item of the same kind for free.
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Stock Take
ChatGPT
A stock take, simply put, is the process of counting and recording all the items or products a business has in its inventory. Here’s a straightforward explanation:
Inventory Count: It involves physically counting all items in stock, such as goods for sale or materials for production.
Accuracy Check: Ensures the recorded inventory matches the actual physical count to identify any discrepancies.
Regular Procedure: Typically done periodically (monthly, quarterly) to maintain accurate inventory records.
Inventory Management: Helps businesses track stock levels, prevent shortages or overstocking, and manage financial reporting accurately.
In essence, a stock take is about physically counting and verifying the items a business holds in inventory to maintain accurate records and efficient inventory management
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Non Stock / service Item
A service item is a type of offering provided by a business that does not involve physical goods but rather intangible actions or tasks performed for customers. Here's a simple explanation:
Intangible Service: It refers to a service offered by a business instead of a physical product.
Actions or Tasks: Service items involve performing tasks or actions to fulfill customer needs.
Examples: Services like consulting, repairs, training, or maintenance are common examples.
Customer Interaction: Businesses provide service items directly to customers based on their specific requirements.
In essence, a service item represents the delivery of a service rather than a tangible product, meeting customer needs through actions or expertise rather than physical goods.
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BOM
BOM stands for Bill of Materials. Here’s a simple explanation:
List of Parts: A BOM is a detailed list of all the parts and materials needed to make a product.
Components: It includes everything from raw materials to sub-assemblies.
Quantities: Specifies the quantity of each item required.
Instructions: Often includes instructions or steps for assembling the product.
In short, a BOM is a comprehensive list of all the components and materials needed to build a product, along with their quantities and assembly instructions
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Stock on Hand
Stock on hand refers to the quantity of products or goods that a business currently has available in its inventory for sale or use
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Vat and Tax on items
VAT (Value Added Tax) or tax on items is an additional charge added to the price of goods or services. Here’s a simple explanation:
Extra Charge: VAT or tax is a percentage of the item’s price that the government adds.
Government Revenue: It's collected by businesses on behalf of the government.
Consumer Cost: Customers pay this tax when they buy goods or services.
Regulation: VAT rates can vary by country or region and may apply differently to different types of products or services.
In short, VAT or tax on items is an additional cost added to purchases to generate revenue for the government and is included in the total price customers pay
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Multi currency price lists
Multi-currency price lists allow businesses to set and manage prices for their products or services in different currencies. Here’s a simplified explanation:
Currency Options: Businesses can list prices in various currencies, such as dollars, euros, or yen.
Global Sales: This feature supports sales in different countries where currencies vary.
Exchange Rates: Prices automatically adjust based on current exchange rates, ensuring accuracy.
Customer Preferences: It accommodates international customers by displaying prices in their local currency.
In essence, multi-currency price lists in an ERP system enable businesses to sell products globally, manage currency fluctuations, and cater to customers worldwide by showing prices in their preferred currency
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Barcode
Barcodes are like product IDs made of lines and spaces. They help track items quickly by scanning them with a barcode rfeader. This makes it easier to manage how many items are in stock and when to reorder more. it also helps with moving stock around, picking it and putting it away
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Multi Level BOM
A multi-level BOM (Bill of Materials) is a detailed way to show all the parts and sub-assemblies needed to make a product, broken down into different levels. Here's a simple explanation:
Hierarchy: It lists parts and sub-assemblies in a nested, hierarchical structure.
Main Product: The top level is the final product.
Sub-Assemblies: Each level below includes sub-assemblies and their components.
Detailed Breakdown: Shows how each sub-assembly is made up of smaller parts.
In short, a multi-level BOM breaks down a product into its smaller parts and sub-assemblies, showing how everything fits together in a detailed, organized way
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MRP
MRP (Material Requirements Planning) for stock re-ordering helps businesses manage inventory effectively by determining when and how much to reorder. Here’s a simple description and its benefits:
Inventory Management: MRP calculates how much stock is needed based on current inventory levels, and lead times for replenishment.
Automated Ordering: It generates purchase orders automatically when stock levels fall below a certain threshold, ensuring items are available for sale without excess inventory.
Cost Efficiency: By avoiding stockouts (items being out of stock) and reducing excess inventory, MRP helps minimize costs associated with storage and carrying too much stock.
Improved Planning: Businesses can plan production schedules more efficiently, aligning with demand forecasts and ensuring timely delivery to customers.
In essence, MRP for stock re-ordering streamlines inventory management, reduces costs, and improves overall operational efficiency by ensuring the right amount of stock is available at the right time
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Stock on Order
The stock currently on order from suppliers
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Landed Costs
Landed costs refer to the total expenses incurred to get a product from the supplier's location to the buyer's designated location. Here’s a simple explanation:
Total Cost: Landed costs include all expenses associated with importing or shipping goods, such as transportation, customs duties, insurance, and handling fees.
Added to Product Cost: These costs are added to the purchase price of goods to determine the total cost of acquiring them.
Accurate Pricing: Helps businesses calculate the true cost of inventory, ensuring accurate pricing and profitability analysis.
Importance: Landed costs are crucial for international trade and accurately assessing the cost of goods sold (COGS).
In essence, landed costs represent the comprehensive expenses incurred in getting products to their final destination, enabling businesses to determine the true cost of imported goods for effective financial management and decision-making
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batch traceability
Batch traceability is the ability to track and trace a group of products, known as a batch or lot, throughout its entire lifecycle. Here’s a simplified explanation:
Group Tracking: Batch traceability means keeping track of a specific group of products that were made together or at the same time.
Lifecycle Monitoring: It involves recording where the batch came from, how it was made, and where it went.
Safety and Quality: Helps ensure product safety and quality by quickly identifying and addressing issues if they arise.
Regulatory Compliance: Often required by regulations to trace products back to their origin in case of recalls or quality concerns.
In summary, batch traceability is about knowing where a group of products came from and where they’re going, ensuring safety, quality, and compliance with regulations
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Allocated stock
Allocated stock refers to inventory that has been reserved or set aside for specific purposes or customers. Here’s a simple explanation:
Reserved Inventory: Allocated stock is goods that are earmarked or allocated for a particular use or customer order.
Purposeful Allocation: It ensures that specific quantities of products are set aside to fulfill customer orders or meet specific needs.
Inventory Management: Helps in planning and ensuring that enough stock is available to fulfill commitments without overselling.
Tracking: Businesses monitor allocated stock to ensure it's used as intended and adjust inventory levels accordingly.
In short, allocated stock is inventory that has been designated for a specific purpose, such as fulfilling customer orders, ensuring efficient inventory management and customer satisfaction.
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GRNI
GRNI (Goods Received Not Invoiced) journals are used in accounting to record the receipt of goods from suppliers for which invoices have not yet been received. Here's a simplified explanation:
Receipt of Goods: GRNI journals record when goods are received from suppliers but invoices for those goods have not yet arrived.
Temporary Holding: The journal temporarily holds the cost of received goods until the supplier's invoice is processed.
Accurate Accounting: Ensures that the business’s financial records reflect the goods received, even if the invoice hasn’t been received yet.
Control and Tracking: Helps in tracking pending invoices and managing cash flow by accurately reflecting liabilities.
In essence, GRNI journals help businesses keep track of goods received from suppliers before invoices arrive, ensuring accurate accounting and financial transparency.
Purchasing
Purchase Orders
A purchase order is a simple document that a buyer sends to a seller to request goods or services. Here’s a straightforward explanation:
Request for Products: It’s a formal request from a buyer to a seller for products or services they want to purchase.
Details: Includes specifics like quantity, price, and delivery date agreed upon by both parties.
Contract: Once accepted by the seller, it becomes a contract outlining the terms of the transaction.
Tracking: Helps track and manage orders and ensures both parties agree on what’s being bought and sold.
In short, a purchase order is a buyer's official request to a seller for products or services, detailing what’s needed and when it’s expected to be delivered
Purchasing
Resource Planning
Resource planning in ERP (Enterprise Resource Planning) involves managing and optimizing the use of a business's resources, such as materials, manpower, and equipment. Here’s a simple explanation:
Managing Resources: Helps businesses allocate and use resources efficiently across different departments.
Optimization: Ensures resources are used effectively to meet production and service goals.
Coordination: Coordinates activities like production scheduling, inventory management, and staffing.
Cost Reduction: Reduces waste and improves productivity, leading to lower operational costs
Resources
Reserve Invoice
A sales reserve invoice, in simple terms, is a document that a business creates to set aside or reserve sales revenue for a specific purpose. Here's a straightforward explanation:
Reserved Funds: It designates a portion of the sales income to be kept separate for future use or to cover potential costs. for example selling online and the product hasnt been delivered yet.
Purpose: Typically used to account for sales where the product hasn't been despatched. for example selling online and taking the payment before sending the goods
Accounting Entry: Creates a record in the business's financial records to ensure the reserved amount is properly accounted for.
In essence, a sales reserve invoice is a way for businesses to set aside money from sales to cover potential future liabilities or expenses related to those sales
Sales
Returns and Credits
Returns and credit notes are both related to products that customers want to send back, but they serve different purposes:
Returns: When customers send back products they bought because they’re defective or not what they expected. They haven't been invoiced yet
Credit Notes: These are like vouchers given to customers when they return products. They can use them to buy something else or get a refund later. There has been an invoice generated already.
In short, returns are the products coming back, and credit notes are like a promise to pay the customer back for what they returned
Sales
Sales Channels
Sales channels refer to the different ways through which businesses sell their products or services to customers. Here’s a simple explanation:
Distribution Routes: Sales channels are the various methods or paths a business uses to reach and sell to customers.
Examples: They can include online stores, physical retail locations, wholesale distributors, or direct sales teams.
Target Audience: Different channels may target different customer segments or markets.
Diversification: Businesses often use multiple sales channels to reach a broader audience and increase sales opportunities.
In essence, sales channels are the avenues through which businesses make their products or services available for purchase, catering to diverse customer needs and preferences.
Sales
Service
Service management involves overseeing and improving the delivery of services to customers. Here’s a simple explanation:
Customer Service: It focuses on making sure customers receive high-quality services.
Efficiency: Manages resources like time and staff to ensure services are delivered effectively.
Problem Solving: Handles customer issues and ensures their satisfaction with the service provided.
Continuous Improvement: Looks for ways to make services better based on customer feedback and industry standards.
In short, service management is about delivering excellent customer service efficiently, solving problems, and always striving to improve how services are delivered
Service
OCR
OCR (Optical Character Recognition) is technology that converts different types of documents, like scanned paper documents or images of text, into editable and searchable data. Here's a simple explanation:
Image to Text: OCR takes a picture of text and turns it into actual text you can edit on a computer.
Digitizing Documents: It’s used to digitize printed or handwritten documents, making them easier to store and search.
Efficiency: Saves time by automatically recognizing and converting text instead of typing it out manually.
Uses: Commonly used in scanning books, receipts, invoices, and forms to make them searchable and editable.
In short, OCR helps convert images of text into digital text that you can edit and search on a computer