ERP Glossary: Key Terms and Definitions

Let’s Talk ERP Terminology

Whether you’re just stepping into the world of ERP (Enterprise Resource Planning) or you’ve been navigating it for years, the ever-evolving terminology can still catch you off guard. Acronyms, buzzwords, and industry-specific phrases are everywhere—so how do you keep track?

We’ve got you covered. This ERP glossary breaks down the most common terms into clear, simple definitions to help you cut through the jargon and understand what’s what—fast.

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

A

ABC Analysis – It is an inventory categorization technique. Inventory with higher costs and/or that is frequently used is considered ‘A’ items. Similarly, inventory at the other end of the spectrum, i.e., the lowest costs and/or lowest frequency of usage, is classified as ‘C’ items. ‘B’ items refer to inventory that lies between “A” and “C”.

Accounting Automation – Refers to the process of turning tasks that once had to be performed manually into processes that are done instantly. Usually, the software takes care of handling automated accounting tasks

Accounting Depreciation – Accumulated depreciation refers to the total depreciation expense that has been recorded over the useful life of a tangible asset since its acquisition.

Accounts Payable – Refers to the obligations or debts your company has due. Generally, accounts payable means the invoices your company receives and needs to pay to vendors. Monitoring your company’s accounts payable is essential for your organization’s ongoing financial health and stability.

Accounting Period – A time span that contains all the financial transactions for an entity. Generally, it consists of 12 months.

Accounts Receivable – The inverse of accounts payable; it’s the money clients or customers owe your company. Properly managing your company’s accounts receivable allows for better control over cash flow. The quicker customers pay, the better off your company will be.

Accrual Accounting – Is a method your accounting team might use. Under accrual accounting, expenses or revenue is recorded when the transaction occurs, not necessarily when your company pays or get paid. Accrual accounting follows the matching principle, which dictates that expenses and revenue should be recognized in the period when they occur.

Actual Cost – Is the true expense that you incur to complete a task. Typically includes raw material, cost of labor, or overhead.

Accounting Software – A computer program that is designed and based on standard accounting methodology to help end-users maintain consistency, transparency and efficiency during the accounting process.

Ad Hoc Query – Is a query posed to an information system. In ERP, it refers to the ERP system’s ability to allow end-users to ask questions and efficiently receive accurate answers.

Advanced Planning and Scheduling (APS) – This approach aims to optimize a company’s capacity and materials to create an effective manufacturing schedule.

Advanced Product Quality Planning (APQP) – Originally developed for the automotive industry, the APQP framework serves as a guide to the product development process and is typically included in an ERP quality management suite.

Aged Receivables – This refers to current assets that are at risk. For example, if a customer owes money and their payments are long overdue, it implies a risk that the customer’s account may default.

Aging – Is when a group of assets are organized according to the length of their existence.

Agile Accounting – Uses agile principles when managing the accounting process. Key to agile accounting is the ability to be flexible and adapt as needed. A focus on is also crucial simplicity.

Allocation – Refers to reserving materials for specific job orders or customers.

Application Process Review (APR) – Is a systematic evaluation of the processes and procedures used within an organization to manage applications, whether for software, services, or systems. This review focuses on assessing the efficiency, effectiveness, and compliance of the application processes, identifying areas for improvement, and ensuring that the application aligns with business objectives. In the context of ERP systems, an APR may involve reviewing the steps involved in software implementation, data integration, user training, and post-launch support. The goal of an APR is to optimize application workflows, minimize inefficiencies, and ensure the solution meets the organization’s operational and strategic needs.

Application Programming Interface (API) –  Is a set of rules and protocols that allows different software applications to communicate with each other. It defines the methods and data formats that applications can use to request and exchange information, enabling them to work together seamlessly. In the context of an ERP system, APIs allow third-party applications, services, or external systems to integrate with the ERP platform, extending its functionality and enabling real-time data exchange. APIs facilitate processes like automating workflows, synchronizing data across systems, and enhancing overall business efficiency.

Approval Entries– Are records or entries made to document the authorization given by the appropriate people for specific transactions or actions.

Approval User Setup– This is the process of granting specific individuals the authority to approve or deny particular actions or requests within a software system.

Assisted Setup– Refers to a process in a software application that assists users with the initial configuration or setup stages.

Assemble-to-Order (ATO) – Assemble-to-Order (ATO) – A production strategy where products are built from in-stock components only after a customer places an order. This allows for product customization while reducing lead times. ATO works best when assembly is quick, but sourcing or producing components takes time. Accurate inventory visibility is key for efficient and timely fulfillment.

Available-to-Promise (ATP) – The date a product will be available for shipment, based on material and capacity availability.

B

Backflush – Is the automatic issuing of raw material from inventory to a work order.

Backorder – Is when there is insufficient stock in inventory to fulfil a customer order, but it will be filled once there is sufficient stock.

Balance-on-Hand (BOH) – The available stock in inventory.

Balance Sheet – A company’s net value of assets.

Bank Account Reconciliation –  The process of checking and matching your personal or business financial records with your bank statement to ensure they align accurately.

Best–of–Breed – Refers to the top-performing solution within a functional area.

Best Practices – The most common business processes and ERP system configuration within the industry.

Bill of Lading (BOL) – Is provided to the carrier and is a detailed listing of what is being shipped. The shipper, transporter, and receiver must sign the Bill of Lading (BOL).

Bottleneck – Usually a production resource that many items flow through, but due to limited capacity, it leads to production process delays, impacting the entire process.

Breakeven Point – Where revenue equals cost.

Build–to–Stock (BTS) – A strategic production approach involves creating items in advance, based on assumptions derived from historical demand or sales forecasts. It is typically implemented when the lead time for the customer is shorter than the lead time needed to build the product.

Burden – In a business or accounting context, burden refers to the additional costs or overhead associated with a particular process, activity, or resource. It typically includes indirect expenses such as labor costs, administrative expenses, utilities, or other operating costs that are not directly tied to the production of goods or services. In the context of ERP systems, burden may refer to the allocation of overhead costs to specific departments, products, or projects in order to provide a more accurate picture of overall costs and profitability. Understanding burden is essential for businesses to accurately price their products, manage resources, and maintain financial control.

Business Processes – All activities or tasks in a business that help produce a service or product for a customer. A proper ERP system setup should facilitate all business processes smoothly.

Business Intelligence (BI) – Business Intelligence (BI) encompasses the technologies, processes, and tools that organizations use to collect, analyze, and visualize data, enabling informed decision-making. It involves transforming raw data into actionable insights through techniques such as data mining, reporting, and analytics, ultimately helping businesses optimize operations and drive strategic growth.

Business-to-Business (B2B) – A business model where the goods or services are sold to another business, not a consumer.

Business-to-Consumer (B2C) – A business model where the final end-users of the goods and services are consumers.

D

Dashboards – user interfaces that integrate and display business information in visually pleasing formats for faster decision-making. They can often be customized and readily available in modern ERP systems.

Data Cleansing – The process of ensuring all data is accurate and consistent leads to clean data, which means more precise reports, easier management, and helps avoid any errors with customers.

Data Visualization – Creates charts, graphs and other images to help you better see how your business data. Visualized data tends to be more useful for companies than raw data, as it lets you see changes and trends over time.

Demand Planning – Allows organizations to be in a more informed position to plan production and inventory levels by examining external sales trends over a period of time and utilizing these trends to predict future demand.

Demo – A live presentation of software can showcase its features, implementation, tips, and tricks, allowing one to see what it can do. Effective demos will follow a discovery phase and will address the specific needs of your company directly.

Depreciation – Is the way businesses gradually account for and spread the cost of an asset, like equipment or a vehicle, over its useful lifespan.

Detailed Trial Balance –A detailed trial balance is a thorough report that breaks down every financial transaction in a company’s accounts, providing a close-up view to ensure accuracy and catch any errors.

Discovery – The first step in an ERP implementation, the discovery allows your consultant to understand your organization, business drivers, and the processes used throughout the company. They will use this information to determine the best platform for you and can even play a role in the configuration stage. 

Discrete Manufacturing –Refers to the production of distinct, individual items that can be easily counted, touched, and inventoried, such as machinery, electronics, or automobiles. Unlike process manufacturing, which produces goods in bulk, discrete manufacturing involves assembling individual parts or components into finished products, typically using a bill of materials (BOM) and following specific production processes.

Distribution Center – A warehouse that caters to a specific region.

Drill Down – Access the details behind the data you are viewing.

Drop Ship (Purchased Items) – Is when a company purchases items and then directly shipped to another customer or supplier.

Drop Ship (Sold Items) – Is when items are bought by a customer, but shipped directly to another party.

E

E-Commerce – This is the process by which a transaction occurs online through a virtual store. Platforms like Shopify support e-commerce for many small to medium-sized businesses.

Electronic Data Interchange (EDI) – Electronic exchange/transfer of data from one computer to another, in a standardized format, without human interference.

Electronic Fund Transfer (EFT) – Electronic transfer of money from one bank system to another without human intervention.

Engineer to Order (ETO) – Is a production method where components are only designed, engineered and built after an order is received.

Enterprise Resource Planning (ERP) – ERP is a type of software that allows you to monitor various aspects of your business. It offers a comprehensive view of your company’s performance. Additionally, it streamlines your company’s operations by automating tasks.

ERP Module – ERP software generally consists of multiple modules or sections. Examples of ERP modules include accounting, asset and inventory management, and budgeting and forecasting. The modules you use may vary depending on your business’s needs and industry.

Estimate – Is an approximate calculation or projection of the cost, time, or resources required to complete a task, project, or process. Estimates are typically based on available data, historical information, or expert judgment, and they help businesses plan and allocate resources effectively. In the context of ERP systems, estimates can be used to forecast project costs, production timelines, or inventory needs. While estimates are not always precise, they provide a valuable starting point for decision-making, budgeting, and scheduling, helping organizations set realistic expectations and manage operations efficiently.

Evaluation – Is the systematic process of assessing the performance, effectiveness, or value of a product, service, system, or process. In a business context, evaluation involves gathering data, analyzing results, and comparing outcomes against set criteria or objectives to determine whether goals are being met. In ERP systems, evaluations are often conducted to assess the efficiency of workflows, system performance, user adoption, and overall ROI. The purpose of an evaluation is to identify strengths, weaknesses, and areas for improvement, enabling organizations to make informed decisions and optimize their operations.

F

Financial Statements – A record of a company’s financial activities and position.

Finished Goods – Fully produced goods that are ready to be shipped.

First-In First-Out (FIFO) – This is an inventory approach where older inventory should be consumed first, helping to reduce shelf life risks (expirations).

Fiscal Year – A period of time that an organization defines as their accounting year. (It does not have to align with the calendar).

Fixed Asset – Are the long-term, essential items a business owns, like buildings and machinery, that are vital for operations and not quickly turned into cash.

Fixed Asset Management – Refers to the process that your business uses to track its physical assets, such as vehicles, equipment, and furniture. With fixed asset management, you can record when assets are purchased, rendered inactive, sold, or reported stolen.

Fixed Costs – A fixed cost is a cost that remains constant over time. Examples of fixed costs include salaries, depreciation, rent and interest.

Forecast – Predicting what the future demand may be.

Forecast Error – The difference between the forecasted value and the actual value.

Free on Board (FOB) – Is a shipping term that defines when ownership and responsibility for goods transfer from the seller to the buyer. Under FOB terms, the seller is responsible for delivering the goods to a specified location, such as a port, and the buyer assumes responsibility once the goods are loaded onto the transport vessel. FOB can be specified as either “FOB Origin” (buyer assumes responsibility at the seller’s location) or “FOB Destination” (seller retains responsibility until the goods reach the buyer’s location).

G

GAAP – Stands for “generally accepted accounting principles.” They are standards that cover the legalities and details of business accounting. GAAP serves as the foundation for the accounting practices and methods approved by the Financial Accounting Standards Board.

General Ledger (GL) – Your company’s general ledger (GL) is a comprehensive record of all its financial transactions. The GL organizes transaction data according to type and account. Categories typically found on the GL include equity, assets, liabilities, expenses, and revenue.

General Ledger (G/L) Account Category – Similar to a labelled folder in the financial filing system, grouping similar types of transactions in the General Ledger.

General Ledger (G/L) Budget- Is a detailed money plan for a business, outlining expected earnings and expenses across different categories in its General Ledger.

Gross Profit – How much your company makes once it subtracts manufacturing costs or service costs from its revenue. It’s sometimes called sales profit or gross income.

H

Hardware – A term used to describe the physical components that comprise a computer network (e.g., computers, servers, routers, etc.).

Human Capital Management (HCM) – Human Capital Management (HCM) refers to the strategic approach to managing an organization’s workforce, focusing on recruiting, developing, retaining, and optimizing the performance of employees. It involves a range of practices, including talent acquisition, performance management, learning and development, compensation and benefits, and workforce planning. HCM aims to maximize the value of human resources to drive organizational success.

Human Resource Management (HRM) – Is typically an ERP software module that manages payroll, benefits, scheduling, etc. As a standalone software, it can cover larger areas like training and retention.

HIPAA – HIPAA stands for the Health Insurance Portability and Accountability Act of 1996. This law establishes standards for the transmission of sensitive health information. The aim of HIPAA is to protect private health data from falling into the wrong hands. Software utilized by healthcare organizations must be HIPAA compliant.

I

Implementation – Is the process of configuring an ERP software, developing new processes to utilize the ERP and training employees.

Income Statement – Summarizes revenue and expenses, indicating the company’s profit or loss over a given period of time.

Installation – Typically the first step in an ERP implementation process.

Interfaced Software – Multiple applications that pass data in one or two directions.

Integrated Software – A software that combines multiple functionalities into one application.

Inventory – Refers to the goods and materials a business holds for the purpose of resale, manufacturing, or use in its operations. It includes raw materials, work-in-progress items, and finished goods that are stored in warehouses, stores, or distribution centers. In an ERP system, inventory management involves tracking stock levels, monitoring product movement, managing reordering, and ensuring accurate inventory records. Effective inventory management is crucial for maintaining optimal stock levels, reducing costs, improving cash flow, and meeting customer demand in a timely manner. It helps businesses prevent stockouts, overstocking, and inventory shrinkage.

Inventory Adjustment – Refers to the process of updating or correcting the recorded quantity or value of items in inventory. Adjustments are made when discrepancies occur between the physical count of inventory and the recorded amounts in the system, often due to reasons such as shrinkage, damage, theft, misplacement, or clerical errors. In an ERP system, inventory adjustments help ensure the accuracy of stock levels, financial reporting, and operational planning. These adjustments can be either positive (increasing stock) or negative (decreasing stock) and are crucial for maintaining accurate inventory records and supporting efficient supply chain management.

Inventory Control – Is a method of determining an organization’s inventory limits and taking the steps to adjust inflow and outflow.

Inventory Picks – In a warehouse context, workers select specific items from shelves to either fulfill orders or restock inventory, adhering to established procedures for efficiency and accuracy.

Invoice – A list of goods and services, and the expected money owed by the customer in exchange.

Item – Refers to any product, part, or material that is tracked, managed, or sold by a business. Items can include raw materials, components, finished goods, or services, and they are typically cataloged in an ERP system with a unique identifier such as a SKU or item number. In the context of inventory and supply chain management, items represent the individual units or assets that a company tracks throughout its operations, from procurement to sale or usage. Proper item management in an ERP system helps businesses maintain accurate stock levels, ensure correct order fulfillment, and streamline production or purchasing processes.

Item Charges– These are additional costs associated with the sale or purchase of an item. They can either be added to the item’s price or charged separately. Item charges may cover various costs, including shipping, handling, taxes, and insurance. 

Item Tracing– Tracking involves following the movement of an item from its origin to its destination. This process can be used to monitor various items, including products, materials, and equipment. Item tracing serves multiple purposes, such as compliance, quality control, inventory management, and customer service.  

J

Job Costing – An approach where a project’s costs are recorded over time and totalled in the end.

Job Journals – Are detailed logs that track all activities, costs, and resources associated with specific projects or jobs, providing essential insights for efficient project management and financial analysis.

Job Shop – Is a manufacturing environment where small batches of custom or made-to-order products are produced. Typically, job shops handle highly varied and specialized work, often requiring different types of equipment, skilled labor, and flexible production processes. In contrast to mass production environments, job shops are focused on providing unique or customized products based on specific customer requirements. In an ERP system, job shop management involves tracking orders, managing production schedules, handling inventory, and allocating resources to ensure efficient job execution, cost management, and timely delivery.

Journals – Refer to chronological records or logs that document all financial transactions and entries within the system, facilitating accurate accounting, financial reporting, and analysis of business operations.

Journal Entry – Record a business transaction in your company’s ledger. It should include all the details of the transaction, including the date, amount, and purpose of the transaction.

Just-in-Time (JIT) – Is a strategy aimed at providing component inventory exactly at the time when it is needed for consumption.

K

Key Performance Indicator (KPI) – Any measurable value that reflects how well a business is progressing towards its key business goals.

Kitting – Is an assembly process where various products are merged and packaged.

Knowledge Management – The approach of retaining and organizing company knowledge, and making it accessible to anyone within the company.

L

Landed Cost – Refers to the total cost incurred to bring a product from its point of origin to its final destination, including the cost of the item itself, transportation, import duties, taxes, handling fees, and any other expenses associated with the procurement and delivery process.

Last-In First-Out (LIFO) – Is an inventory approach where the newest inventory is consumed first.

Lead Time – The total time between an order being made and the materials being delivered and ready for use.

Lean Manufacturing – A common manufacturing method focused on reducing waste in a manufacturing system.

Line of Business  (LOB) – Functionalities within an ERP software that are created for a specific business need.

Lot Number – Is a number or alphanumeric name used to identify a given quantity or lot of material.

M

Machine Hour Rate – Is the cost of running a machine for one hour under normal circumstances.

Machine Learning – Is a type of artificial intelligence (AI) that relies on pattern recognition to improve over time without being programmed.

Maintenance Repair and Overhaul (MRO) – Can be an ERP software module or third-party software used to help companies with preventive maintenance and equipment failure.

Make-To-Order (MTO) – A manufacturing strategy where the production of an item only begins after a customer’s order is received.

Make-To-Stock (MTS) – A manufacturing strategy that matches inventory levels with the forecasted customer demand.

Master Production Schedule (MPS) – A schedule that a company uses to organize and plan how many items are needed to be produced in a given timeframe.

Material Control – Is a process in place to ensure there is sufficient material available for production and sale.

Material Handling – Refers to the process of moving, storing, controlling, and protecting materials and products throughout the production, warehousing, distribution, and disposal stages of the supply chain. It involves various activities, including loading, unloading, transporting, storing, and organizing materials, all of which are designed to improve efficiency, reduce damage, and ensure the safe handling of goods. In an ERP system, material handling is often integrated with inventory management to optimize the flow of materials, track stock levels, and ensure that the right materials are available at the right time for production or shipment. Efficient material handling helps minimize labor costs, improve productivity, and enhance overall operational efficiency.

Materials Management – Is the process of planning, organizing, and controlling the flow of materials and resources throughout the supply chain. This includes the procurement, storage, inventory control, and distribution of materials needed for production or service delivery. In an ERP system, materials management helps ensure that the right materials are available at the right time, in the right quantity, and at the right cost, while minimizing waste and inefficiencies. By integrating materials management with other business functions like production planning, purchasing, and inventory management, companies can optimize their operations, reduce lead times, and improve overall cost management.

Material Requirements Planning (MRP) – Is a system designed for production planning, scheduling and inventory planning. Ensures that there is enough material available and the minimum amount of material and product are available on hand.

Manufacturing Resource Planning (MRP II) – Is an integrated method for planning and managing all resources involved in the manufacturing process, including materials, labor, equipment, and financials. It expands upon traditional Material Requirements Planning (MRP) by incorporating additional aspects of manufacturing, such as capacity planning, scheduling, and financial management. MRP II systems use real-time data to optimize production schedules, improve resource allocation, and streamline supply chain operations. By offering a comprehensive view of the entire manufacturing process, MRP II helps manufacturers enhance efficiency, reduce costs, and improve delivery timelines.

Mixed Mode Manufacturers – Are businesses that operate using a combination of different manufacturing strategies, such as make-to-order (MTO), make-to-stock (MTS), and engineer-to-order (ETO). These manufacturers produce both custom and standard products, depending on customer demand or project requirements. Mixed mode manufacturing allows companies to be flexible and responsive to varying market needs, offering a diverse range of products while optimizing production efficiency. In an ERP system, mixed mode manufacturing is supported by modules that manage production workflows, inventory, and orders, ensuring that both standard and custom orders are processed smoothly and efficiently.

N

Network Administrator – Is the individual or individuals responsible for the overall performance of the computer network, including data integrity, security, accessibility.

Net Profit – To calculate net profit, a company subtracts expenses and all other costs associated with doing business from its gross profit. Net profit is also referred to as net income or net earnings.

Non-Disclosure Agreement (NDA) – In ERP, a non-disclosure agreement (NDA) is a binding legal document specifically for ERP consultants and salespeople.

North American Industry Classification System (NAICS) – The standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

O

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S

Sandbox – A Sandbox in computing refers to a controlled testing environment where software or applications can be run safely without affecting the rest of the system. It is commonly used by developers to test new programs, code, or features in isolation, preventing any potential risks or damage to the live system. In business contexts, particularly in ERP systems, a sandbox allows users to experiment with configurations, processes, and customizations without impacting the production environment. This ensures that changes can be tested and validated before being implemented in real-time operations.

Selection Criteria – Refers to the set of standards or requirements used to evaluate and choose between options, such as suppliers, candidates, products, or solutions. These criteria are typically defined based on the goals, needs, and priorities of a business, and may include factors like cost, quality, performance, compatibility, and reliability. In procurement, for example, selection criteria help businesses identify the best suppliers or vendors. In an ERP system, selection criteria can be used in areas such as vendor management, job applicant selection, or software customization, ensuring that the chosen options align with the organization’s objectives and operational needs.

Service Items – Are the essential supplies or resources required by a business to perform a unit of work and provide a service to its customers, priced based on factors like labor, materials, expertise, time, and customer value.

T

U

User Defined Field (UDF) – Is a field in an ERP that can be defined by an end-user.

V

Vendor Priority – Refers to the ranking or categorization of suppliers based on factors such as reliability, payment terms, lead times, or the strategic importance of the goods or services they provide. In an ERP system, assigning a vendor priority helps businesses manage procurement more effectively by ensuring that high-priority vendors are given preferential treatment in terms of order processing, payments, and inventory restocking. This feature allows companies to optimize their supply chain, improve vendor relationships, and meet critical operational needs, ensuring that essential goods or services are always available when needed.

W

Warehouse Receipts – Are documents or electronic records that confirm the receipt of goods into a warehouse. These receipts are typically issued when inventory items are delivered and inspected, providing details such as the quantity, description, and condition of the goods. In an ERP or warehouse management system (WMS), warehouse receipts are used to update inventory records, verify order fulfillment, and track the movement of goods within the warehouse. They are critical for maintaining accurate stock levels, ensuring compliance with inventory management practices, and serving as proof of receipt for both the supplier and the receiving business.

Warehouse Shipment – Refers to the process of preparing and dispatching goods from a warehouse to fulfill customer orders, transfers, or distribution needs. In an ERP or warehouse management system (WMS), warehouse shipment includes tasks such as picking, packing, labeling, and arranging for transportation. Once the goods are ready for shipment, a warehouse shipment record is created to track the items being sent, the destination, and any relevant shipping details. This process ensures accurate and timely delivery of orders, helps maintain inventory accuracy, and supports efficient logistics and supply chain management.

Workflow – Is a series of defined steps or processes that outline the tasks and activities needed to complete a specific business operation or project. In an ERP system, a workflow automates and streamlines business processes, ensuring that tasks are completed in a specific order and by the appropriate personnel. Workflows can be customized to fit different departments, such as finance, procurement, sales, or manufacturing, and are often used to manage tasks like order approvals, inventory management, or invoice processing. By automating workflows, businesses can reduce manual errors, improve efficiency, and ensure consistency in operations, all while providing transparency and accountability across teams.

Work Orders – Also known as job orders, it is a document that specifies the material and labor operations needed in order for the product to be manufactured by a specified date.

Work Order Costs – Represents the value of materials, labor, outsourcing, and resources that went into the work order.

Work Types – Refer to the categorization of tasks or activities within a business or ERP system that helps define the nature of the work to be performed. In the context of a warehouse, manufacturing, or project management system, work types can include various classifications such as picking, packing, assembly, maintenance, or project-specific tasks. Work types help organizations streamline operations by providing clarity on resource allocation, labor tracking, and performance measurement. By defining specific work types, businesses can improve scheduling, ensure the appropriate skills are applied, and generate accurate reporting for labor costs and project progress.

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