ERP Glossary: Common ERP Definitions and Meanings You Need to Know

31 December 2019 5 MIN READ

Whether you are new to the ERP world or just curious to know more about a few ERP terminologies, this blog will give you quick insights about a list of commonly used ERP terms and industry buzzwords.  Understanding some of the common ERP glossary and terms will help you communicate better with your valued ERP partner and its implementation team.

So, let’s take a look at some of the most common ERP glossary and terminologies.  

Pharma Item Group

Every Item group master has Pharma item group data defined. The same will be used in user validation and controls the Item Group. All the Pharma Groups are pre-defined. This will be used for the A/R No. generation process as well. 

Production Order

This is the SAP standard screen. With this screen, users can generate a stage for any finished goods Item. The users can also maintain the manufacturing date, expiry date and future Batch no.

Stage Master

During stage manufacturing, Stage Master is used for the different stages of the product.

Parameter Master

Parameter Master screen is a master for parameter code. The Parameter Master Data will be used in QC Test Set up Screen.

Role Master

SAP Employee master will decide the usage of the Role. The entries at the Transaction screen are validated against the logins and is also controlled by the role of the user. During the role, the creation of Role Master data will be picked from this screen.

Batch Creation

This is the SAP standard process, if the item is managed by Batch then whenever the user will do a transaction, this screen will automatically popup. Also in this screen user will fill the manufacturing & expiry Date. 

GRPO Specification

GRPO Specification screen will be used to fill the remarks w.r.t. the Parameter for each item.

Batch Planning on Material Indent

Batch planning functionality will work on the Material Indent screen. In this process, an internal calculation will be processed based on Assay, Lod, Calculation Required, Overage etc. and the batch will be allocated based on FEFO (First expiry first-out) basis for Item.

Undertest Transfer

From the sampling screen, users will transfer the material in the Undertest warehouse for Quality check & will do the inventory transfer. 


BMR(Batch Manufacturing Record) is a written document of the batch that is prepared during the manufacturing process which contains actual data of every batch related manufacturing process. BPR (Batch Packing Record) is prepared by a user, who is a production personnel. It is then checked by the production head followed by a review by QA. 

Bill Of Materials  

SAP standard bill of the material screen will open. In this screen the user will maintain the Overage %, Calculation Required, Lot No., Factor %, Adjustment Required, LOD Required, Assay Potency Required for each item. 

On-premise ERP

An ERP which is installed, managed and configured on premise for business users. The counter to on premise is Cloud ERP which is available with the pay-as-you-go model.    

Return Material Authorization (RMA)

The process where you return a product for repair, replacement or refund. ERP software should manage RMAs for both customer and supplier returns.     

These were a few of the common ERP glossary and terminologies. Should, you want to know more about the ERP terms and definitions, you may ask our team of SAP certified experts and get a free demo as how SAP Business One can bring visibility into your business.

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About the author

Nidhi Batra

Nidhi Batra is a marketing and brand communication professional with 10 years of experience working in the dynamic B2B marketing environment. She strategizes, writes, reviews a variety of content for demand generation and sales support activities. Having a Master’s in English from Delhi University, she knows how to navigate her readers on insightful journeys with her SAP published blogs and thought leadership content.

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