Programming interface that allows two systems to communicate. Example: ERP integrates with e-commerce via API.
Inventory classification method. A: high-value products (20% of products, 80% of value). B: medium. C: low-value (80% of products, 20% of value). Helps prioritize.
Money customers owe you. When you sell on credit, you create an account receivable. When customer pays, you close it.
Money you owe suppliers. When you buy on credit, you create an account payable. When you pay, you close it.
Process of closing an accounting period (month, quarter, year). Includes: reconciliations, adjustments, financial statements.
Business intelligence. Analysis and visualization of data to make informed decisions. Includes dashboards, reports, and predictive analytics.
Bill of materials. List of materials and quantities needed to manufacture a product. Example: to make a chair you need 4 legs, 1 seat, 2 screws.
Sales level where you don't lose or gain. Formula: Break-Even = Fixed Costs / (Price - Variable Cost per Unit).
Process of matching your accounting records with bank statement. Identifies differences (uncleared checks, deposits in transit, errors).
Financial statement showing financial position at a point in time. Formula: Assets = Liabilities + Equity.
Customer relationship management system. Manages sales pipeline, opportunities, contacts, and customer interactions.
Cloud computing. IT resources (servers, storage, databases, software) delivered via internet. Advantages: scalability, accessibility, no infrastructure investment.
Movement of money in and out of the company. Positive cash flow = more money coming in than going out. Critical for liquidity.
Department or area to which costs are assigned. Examples: sales, production, administration. Allows analyzing profitability by area.
Document canceling or reducing an invoice. Used for returns, discounts, or errors. Reduces amount customer owes you.
Process of collecting accounts receivable. Includes: payment reminders, calls, visits, legal action if necessary.
List of all accounting accounts used. Organized by: assets, liabilities, equity, income, expenses. Foundation of accounting.
Modification of ERP to fit specific needs. Can be: configuration (no code) or development (code). More customization = more cost and risk.
Visual panel showing key metrics (KPIs) in real-time. Allows monitoring business performance at a glance.
Document increasing an invoice. Used for additional charges or corrections. Increases amount customer owes you.
Systematic allocation of an asset's cost over its useful life. Example: buy machinery for $100K, useful life 10 years, annual depreciation $10K.
Process of transferring data from old system to new ERP. Includes: extraction, cleaning, transformation, loading. Critical for success.
Enterprise resource planning system that integrates and manages core business processes (finance, inventory, sales, purchasing, production, HR) in a unified platform.
Earnings Before Interest, Taxes, Depreciation, and Amortization. Measures operational profitability before financial and accounting effects.
Inventory valuation method. First products purchased are first sold. Used for perishable products (food, medicine).
Costs that don't vary with production or sales. Examples: rent, salaries, insurance. You pay them even if you sell nothing.
Electronic invoice. Digital invoice certified by tax authority. Mandatory in many Latin American countries (Guatemala, Mexico, Chile, etc.).
Long-term asset used in operation. Examples: buildings, machinery, vehicles, computers. Not for sale.
Difference between sales and cost of sales. Formula: Gross Margin = (Sales - Cost of Sales) / Sales × 100%. Example: sell at $100, cost $60, margin 40%.
Day the ERP goes into production. You stop using the old system and start using the new one. Critical milestone.
Department managing personnel: hiring, payroll, training, performance evaluation, terminations.
Measures how many times inventory is sold and replaced in a period. Formula: Turnover = Cost of Sales / Average Inventory. High turnover = good.
Document proving a sale and requesting payment. Includes: products/services, quantities, prices, taxes, payment terms. Legally binding.
Financial statement showing profitability over a period. Formula: Net Profit = Income - Expenses.
Social security institute. In Guatemala: IGSS (Instituto Guatemalteco de Seguridad Social). Employer and employee contribute.
Process of deploying an ERP. Includes: analysis, configuration, data migration, training, go-live. Takes 30-180 days depending on complexity.
Connection between ERP and other systems. Example: ERP integrates with e-commerce, CRM, bank. Done via API, files, or middleware.
Accounting record of a transaction. Includes: date, accounts, debit, credit, description. Foundation of double-entry bookkeeping.
Key performance indicator. Metric measuring business performance. Examples: sales growth, gross margin, inventory turnover, customer satisfaction.
Group of products manufactured or received together. Used for traceability: if a lot is defective, you can identify who you sold it to and recall it.
Time from placing an order until receiving the product. Example: if a supplier has 15-day lead time, you must order 15 days in advance.
Inventory valuation method. Last products purchased are first sold. Less common than FIFO. Not allowed in some countries (IFRS).
Material requirements planning. Calculates what materials you need, how much, and when, based on production orders. Prevents shortages and excess.
Minimum inventory level before reordering. When inventory reaches minimum, system alerts to purchase. Prevents stockouts.
Software connecting two or more systems. Example: middleware connects ERP with e-commerce, CRM, and bank. Facilitates integration.
Profit after all expenses (cost of sales, operating expenses, taxes). Formula: Net Margin = Net Profit / Sales × 100%.
Software installed on your own servers, in your facilities. You manage infrastructure, security, and maintenance. Opposite of Cloud.
Document sent to supplier to request products/services. Includes: products, quantities, prices, delivery date. Legally binding.
Set of accounts receivable. "Cartera vencida" = overdue accounts receivable. "Días de cartera" = average days to collect.
Process of calculating and paying employee salaries. Includes: base salary, bonuses, deductions (taxes, social security), net pay.
ERP configuration via parameters (no code). Example: define tax rates, payment terms, price lists. Preferred over customization.
Document offering products/services to a customer with prices and conditions. Not legally binding until customer accepts and becomes an order.
Return on investment. Measures how much return you get for each dollar invested. Formula: ROI = ((Benefits - Costs) / Costs) × 100%
Production route. Sequence of operations to manufacture a product. Example: cut → sand → paint → assemble. Includes time and resources per operation.
Inventory level at which to place an order. Calculated as: Reorder Point = (Daily Demand × Lead Time) + Safety Stock.
Document requesting proposals from suppliers. Used to select ERP: you describe your needs and suppliers respond with proposals.
Software as a service. Delivery model where software is hosted in the cloud and accessed via internet. You pay monthly subscription instead of buying perpetual license.
Unique identifier for each product unit. Used for high-value products (electronics, vehicles, machinery). Allows tracking each unit individually.
Document confirming a sale. Generated when customer accepts a quote. Includes: products, quantities, prices, delivery date. Legally binding.
Tax authority. In Guatemala: SAT (Superintendencia de Administración Tributaria). In Mexico: SAT (Servicio de Administración Tributaria).
Total cost of ownership. Includes all costs: licenses, implementation, training, maintenance, infrastructure, support. Used to compare ERP options.
Ability to track a product through the entire supply chain: from purchase, how it moves within your company, to sale. Critical for regulated industries (food, pharmaceutical).
Costs that vary with production or sales. Examples: raw materials, sales commissions. More you produce/sell, more you pay.
Inventory valuation method. Cost is calculated as weighted average of all purchases. Simple and widely used.
Money needed to operate day-to-day. Formula: Working Capital = Current Assets - Current Liabilities. Positive = good.
Mechanism for a system to notify another when an event occurs. Example: when a sale is created in ERP, it sends a webhook to e-commerce.