Glossary
ERP terms explained simply
ERP basics
- Enterprise Resource Planning (ERP)
- A software framework that integrates a company's core business processes (finance, logistics, sales, human resources) into a single system to improve efficiency, transparency, and control.
- On-premises ERP
- ERP software installed locally on a company's servers and infrastructure. It offers extensive customization options but requires in-house maintenance.
- Cloud ERP
- Cloud-hosted ERP systems accessible over the internet. They offer flexible scalability, automatic updates, and lower upfront costs.
- Hybrid ERP
- A combination of on-premises and cloud ERP components when a full cloud migration is not possible or desired.
- Modular ERP structure
- ERP systems consist of independent but interoperable modules, each covering a specific business function such as finance or inventory.
- ERP implementation
- The structured process of implementing ERP systems, typically including planning, customization, migration, testing, training, and go-live.
- ERP migration
- The transfer of data and processes from a legacy system to a new ERP environment.
- ERP integration
- Connecting an ERP system to third-party tools or platforms to ensure smooth data flow between systems.
- ERP customization
- Adapting or extending ERP functions to meet specific business requirements beyond the standard configuration.
Software tools
- Microsoft Dynamics 365 Business Central
- A cloud-based ERP solution for small and midsize businesses. It integrates financial management, supply chain, sales, project tracking, and operations in a centralized system with real-time data and customizable workflows.
- Continia
- An add-on for Microsoft Dynamics 365 Business Central that streamlines document-based processes such as invoice automation, expense management, and document approval. It extracts data from documents and uses predefined workflows to reduce manual data entry.
- SwissSalary
- A payroll and HR solution fully integrated with Business Central, designed to comply with Swiss legislation, tax, and social insurance requirements. It automates payroll, reporting, and employee administration while maintaining data consistency.
- Tinx Shopware Connector
- A Business Central add-on for seamless integration of Shopware stores. It synchronizes items, inventory levels, prices, customers, and orders bidirectionally between the ERP and the online store, enabling an end-to-end e-commerce process without manual double entry.
Microsoft tools
- Dynamics 365 Sales
- CRM solution for managing leads, opportunities, and automating the sales process with integrated customer information and forecasting tools.
- Dynamics 365 Marketing
- Marketing automation application for campaign management, segmentation, email marketing, and lead nurturing, fully integrated with Dynamics 365 Sales.
- Dynamics 365 Customer Service
- Customer support solution for managing service requests, knowledge bases, and communication channels to improve customer satisfaction.
- Dynamics 365 Field Service
- Solution for managing field service operations such as scheduling, technician deployment, asset tracking, and mobile access.
- Dynamics 365 Project Operations
- Combines project management, resource planning, time tracking, and billing—designed for project-based services companies.
- Power BI
- A business intelligence tool for connecting, modeling, and visualizing data from various sources through interactive dashboards and reports.
- Power Automate
- A service for automating workflows between different applications and services without manual intervention.
- Power Apps
- A low-code platform for building custom applications that connect to Business Central and other Microsoft or third-party services.
- Azure
- Microsoft's cloud computing platform with infrastructure, storage, and services for hosting, integrating, and scaling enterprise applications.
Finance & accounting in ERP
- General ledger (G/L)
- The central ledger where all posting transactions are recorded and categorized for financial reporting.
- Accounts payable (AP)
- Module for managing liabilities to suppliers, including invoice capture, approvals, and payment processing.
- Accounts receivable (AR)
- Module for managing customer invoices, payment terms, and overdue accounts, often integrated with collections.
- Bank reconciliation
- Matching internal company records with bank statements to control cash flow and detect discrepancies.
- Fixed asset accounting
- Managing the lifecycle of assets such as buildings, machinery, or vehicles, including acquisition, depreciation, and disposal.
- Cost accounting
- Captures, analyzes, and controls operating costs to improve financial decision-making.
- Multicurrency accounting
- Enables postings in different currencies with automatic conversion and revaluation.
- VAT management
- Automated posting, settlement, and refund of value-added tax in accordance with national law (e.g., Swiss MWST).
- Financial reporting
- Creating reports such as the balance sheet, income statement, and cash flow statement based on ERP data.
Supply chain & operations
- Inventory management
- Managing stock levels, movements, reorders, and storage locations in real time.
- Warehouse management
- Detailed control of warehouse processes such as picking, goods receipt, and put-away.
- Procurement
- Process for acquiring goods and services from external suppliers, controlled through ERP workflows.
- Sales order processing
- Managing the entire order process from quote to invoice, including pricing, discounts, inventory allocation, and delivery.
- Advanced warehouse management
- Supports complex warehouse processes such as barcode scanning, bin management, cross-docking, and shipping integration.
- Production planning
- Coordinates material availability, work orders, and machine utilization to ensure smooth manufacturing operations.
- Serial and lot tracking
- End-to-end traceability of items via serial or lot numbers, supporting quality and compliance requirements.
Project management & services
- Project accounting
- Records all project-related transactions such as time, expenses, billing, and budget, integrated with financial accounting.
- Resource planning
- Assigning and monitoring available human and material resources across tasks and timelines.
- Project costing
- Determining the cost of a project based on time, materials, and overhead.
- Service management
- Organizing after-sales service, from service contracts to technician assignment.
- Time tracking
- Recording work hours against specific projects or tasks in the ERP system.
- Capacity planning
- Assessing available resources and workloads to effectively plan future activities.
- Job queues
- ERP feature for automating background processes such as data updates or report generation.
HR & payroll
- Human resource management
- ERP function for managing employee data, roles, training, contracts, and onboarding processes.
- Absence and time tracking
- Automated recording of vacation, sick leave, and working time.
- Employee master data
- Central storage of employee information for HR and payroll functions.
- Social insurance contributions
- Mandatory contributions by employers and employees (e.g., AHV, ALV, BVG) in the Swiss payroll system.
Automation & document management
- Business process automation (BPA)
- Automates recurring processes such as invoice approvals or order confirmations to reduce manual work.
- OCR (optical character recognition)
- Technology for automated data capture from documents (e.g., invoices).
- Expense management
- Digital tools for simplified capture, approval, and reimbursement of employee expenses.
- Electronic invoicing (e-invoicing)
- Creating, transmitting, and receiving structured invoices (e.g., XML or PDF/A) integrated in the ERP.
- Electronic archiving
- Digital retention of documents in accordance with legal retention requirements.
Technology & system administration
- User roles and permissions
- Defining access rights and responsibilities per user in the ERP system.
- Extensions (apps)
- Additional functions to extend standard ERP systems, available for example via AppSource.
- API integration
- Connecting ERP systems to external applications via application programming interfaces.
- Sandbox environment
- Test environment for trying out changes and configurations without risk.
- System upgrade
- Updating the ERP platform with new security, feature, or design improvements.
Security, governance & compliance
- General Data Protection Regulation (GDPR) / Swiss data protection
- Rules for protecting personal data processed in ERP systems.
- Data protection compliance
- Ensuring compliance with legal requirements such as the GDPR or the Swiss Data Protection Act (DSG).
- VAT reporting
- Creating and submitting value-added tax returns based on ERP data.
- E-invoicing
- Electronic exchange of invoice documents between companies, supported by many ERP systems.
- Audit trail
- Automatic logging of all system changes and user actions to ensure traceability.
- Role-based access control (RBAC)
- Access rights based on user roles to maintain data protection and operational security.
- Document archiving
- Digital storage of legally relevant documents for audits or tax inspections.