Resources · Glossary

ERP & ERPNext glossary

Plain-English definitions of the ERP and ERPNext terms you'll actually run into — from Doctype and BOM to GST e-invoice and TCO.

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AMC: Annual Maintenance Contract — ongoing support after go-live: upgrades, monitoring, backups, bug fixes and on-call help, usually under agreed response times.

Batch & Serial No.: Ways to track individual units or lots of an item — serial numbers for unique units, batches for grouped lots (e.g. pharma expiry) — for traceability and recalls.
Bench: The command-line tool used to install, configure, update and manage ERPNext/Frappe sites and apps on a server.
BOM (Bill of Materials): The list of raw materials, components and quantities needed to make a finished product. BOMs drive manufacturing, costing and material planning in ERPNext.

Chart of Accounts: The structured list of all accounts (assets, liabilities, income, expenses) used to record a company's financial transactions.
Cloud hosting: Running ERPNext on managed servers accessed over the internet. Convenient and low-maintenance, with the option to move to self-hosting later.
Configuration: Setting up ERPNext using its built-in options (company, chart of accounts, tax templates, roles, warehouses) — as opposed to writing custom code.
CRM: Customer Relationship Management — managing leads, opportunities and customer interactions. ERPNext includes CRM connected to sales and accounting.
Customisation: Adapting ERPNext to a specific process — custom fields, Doctypes, workflows, print formats, reports and scripts — ideally without forking core, so upgrades stay smooth.

Dashboard: A visual summary of key numbers and charts (cash, sales, stock, orders) that updates from live ERP data.
Data migration: Moving master data (customers, suppliers, items, chart of accounts) and opening balances from an old system into ERPNext, then reconciling them before go-live.
Doctype: In Frappe/ERPNext, a Doctype is the definition of a data object — like Customer, Sales Invoice or Item. Creating or extending Doctypes is how ERPNext is tailored to a business without changing core code.

e-Invoice (IRN/QR): India's electronic invoicing system, where invoices are reported to the government portal to get an Invoice Reference Number (IRN) and QR code. ERPNext supports e-invoice generation.
e-Way Bill: A document required in India for the movement of goods above a threshold value. ERPNext can generate e-way bills from delivery/invoice data.
ERP: Enterprise Resource Planning — software that runs a business's core processes (accounting, inventory, sales, purchasing, manufacturing, HR and more) in one connected system with a single source of truth.
ERPNext: A free, open-source ERP built on the Frappe framework. It covers accounting, inventory, manufacturing, CRM, HR/payroll, projects and POS, and is popular in India for its GST support and no per-user licence fees.
ERPNext Partner: A company officially recognised by Frappe to implement, customise and support ERPNext. Partners bring delivery experience so implementations are scoped and run properly.

Fiscal Year: The 12-month accounting period a business reports on. In India this is typically April–March; ERPNext supports configurable fiscal years.
Frappe Framework: The open-source, low-code web framework that ERPNext is built on. It provides the data model (Doctypes), permissions, workflows, REST API and scripting that make ERPNext highly customisable.

Go-live: The point at which ERPNext becomes the system of record and the business runs on it day-to-day, ideally after a parallel run and reconciliation.
GST: Goods and Services Tax — India's indirect tax. ERPNext supports GST invoicing, returns and reporting configured to your filing process.

Implementation: The project of getting ERP live: scoping, configuration, customisation, data migration, testing, training and go-live. It's usually the largest and most variable part of ERP cost.

Module: A functional area of ERPNext — for example Accounts, Stock, Manufacturing, HR or CRM. You implement the modules your business needs and leave the rest.
Multi-company: Running several legal entities in one ERPNext instance, with consolidated reporting and shared masters where appropriate.

On-premise: Hosting software on your own servers/infrastructure rather than a vendor's cloud. ERPNext can be self-hosted on-premise for full data control.
Open-source software: Software whose source code is freely available to use, modify and self-host. ERPNext is open-source, so there are no per-user licence fees; you invest in implementation, hosting and support instead.

Parallel run: Running the new ERP alongside the old system for a short period so numbers can be verified and the team can build confidence before fully switching over.
Payroll: Calculating and processing employee salaries, deductions and statutory contributions (PF, ESI, PT, TDS). ERPNext HR & Payroll handles this for India.

Reorder Level: The stock quantity at which ERPNext flags or triggers replenishment, helping avoid st-outs and overstocking.
Report Builder: ERPNext's tool for creating custom list and query reports without code, so teams can get the views they need from their data.
REST API: The web interface that lets other systems read and write ERPNext data programmatically — used for integrations with e-commerce, payments, apps and more.
Role & Permission: Controls over who can see and do what in ERPNext. Roles group permissions so access matches each person's job.

Site: A single ERPNext instance (one company's data and configuration) served from a Frappe bench. One server can host multiple sites.
Staff Augmentation: Hiring dedicated, vetted developers or a team to extend your in-house capacity — for example, ERPNext/Frappe developers on demand.
Stock Ledger: The record of every inventory movement (receipts, issues, transfers) that keeps stock quantities and valuations accurate.

TDS: Tax Deducted at Source — tax withheld on certain payments in India. ERPNext supports TDS calculation, deduction and reporting.
Total Cost of Ownership (TCO): The full cost of an ERP over time — implementation, hosting/infrastructure, support and (for licensed products) per-user fees — not just the upfront price.

Warehouse: A stock location in ERPNext. Multiple warehouses let you track inventory across stores, branches or production areas.
Webhook: An automated message ERPNext sends to another system when an event happens (e.g. a new order), enabling real-time integrations.
Work Order: A manufacturing instruction to produce a specific quantity of an item, based on its BOM, consuming materials and producing finished goods.
Workflow: A defined sequence of states and approvals a document moves through (e.g. draft → approved → submitted), enforcing your business rules in ERPNext.

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