ABC Code is a classification attribute that may be applied to any part in your inventory files. Maintaining ABC Codes lets you segment, classify, and report on your inventory based on items importance to your business. There are no fixed criteria for each class, and Cetec ERP lets you configure exact classification requirements of ABC codes based on your company needs. Example of ABC class are:

  • ‘A’ items – 20% of the items accounts for 70% of the annual consumption value of the items.
  • ‘B’ items - 30% of the items accounts for 25% of the annual consumption value of the items.
  • ‘C’ items - 50% of the items accounts for 5% of the annual consumption value of the items.


An aging report lists accounts receivable and accounts payable and their Dock Dates. It is a tool to help you to manage accounts in a timely fashion by alerting you to outstanding bills, delinquent payments, and more.


Accounts payable represents money owed by a business to its suppliers.


Accounts receivable represents money owed to a business by its customers.


Assisted purchasing is the MRP report; it is a tool to aid purchasing users’ buying activities. Assisted purchasing produces an automated system comparison of demand signals against supply signals and generates a material requirement reports. Buyers can work through the buy report, utilize real-time stock checking tools to justify buy quantities, and automate purchase order entry for material required.


The average cost is a part-level attribute that is computed by dividing the total cost of goods available for sale by the total units available for sale, i.e. the sum of actual receipt costs for each part in stock divided by the quantity on hand.


Cetec ERP uses two attributes to locate an item in inventory: warehouse location and bin location. Warehouse location indicates the physical location of a warehouse when more than one warehouse is present. Bin location indicates the location of a particular bin within a specific wearhouse location. Items received are put away into and pulled from a bin.


A bill of materials is a list of intermediate assemblies, components, and parts, and the quantities of each needed to manufacture an end product. In Cetec ERP, there are two types of BOMs: permanent BOMs and temporary BOMs. Temporary BOMs exist to allow you to modify pre-defined BOMs per quote and per order. Cetec ERP also supports multi-level BOMs with BOMs nested under other BOMs.


Booking is a commitment from a customer to spend money with your company. Within the context of Cetec ERP, this is represented as an open order.


CAR is a report of measures taken to address causes of non-conformances to prevent their recurrence.


Cash flow refers to the total amount of money being transferred into and out of business, especially as affecting liquidity. Cetec ERP helps businesses maximize resources and unlock tied up cash that could be used for further growth by helping with inventory control, integration of business processes, and employee producitivity. CLOUD


Commodity code is a part-level attribute that indicates what type of material a commodity is composed of e.g. copper, wire, fiber, steel, platinum, etc. This attribute can be used to compile a report, to generate statistics, etc.

CRM (Customer Relationship Management)

CRM is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize various customer relations. Cetec ERP’s CRM capabilities include: lead management and reporting, customer management and reporting, contact management, followup management, and quoting.


A cycle count is an inventory auditing procedure where a small subset of inventory is counted on a specified day. Cycle counts contrast with a traditional full physical inventory where facility operations are completely stopped while all items are counted at one time. Cycle counts are less disruptive to daily operations, provide an ongoing measure of inventory accuracy and procedure execution, and can be tailored to focus on items with higher value, higher movement volume, or that are critical to business processes.

Cetec ERP enables your warehousing team to perform cycle counts efficiently with mobile tablet computers and barcode scanners.


Dock Date in Cetec ERP is the date that your customer expects to receive your product. This is distinct from Work Start Date, which is your target date to begin production on an order, and also from Ship Date, which is your target ship date.


ECCN is a part-level attribute that identifies the level of export control for the item.


ECO is an order requesting a change to a part’s design or assembly makeup.


ECR is a synonymous term for ECO (Engineering Change Order).


EOQ is the order quantity that minimizes total inventory holding costs and ordering costs.


ERP is a suite of integrated applications that a business can use to store and manage data from every stage of business including product planning, cost and development, manufacturing, marketing and sales, inventory management, and more.


Excess material minimum represents a certain threshold of quantity of material, usually stipulated by a vendor, that must be purchased in order to do place an order for the material. For instance, a customer may place an order with your company for 10 feet of part ABC. You buy part ABC from a vendor that requires at least 15 feet of part ABC per purchase order - 15 feet is part ABC’s excess material minimum. The cost of the additional 5 feet of part ABC is referred to as the ‘excess material cost’.


Ext cost is an abbreviation Cetec ERP uses for ‘extended cost’, which is the unit cost for a part multiplied by its quantity.


Ext resale is an abbreviation Cetec ERP uses for ‘extended resale’, which is the unit resale for a part multiplied by its quantity.


FIFO stands for first in, first out. In receiving parts, Cetec ERP forces the users to put away parts received at different dates into distinct bins. When picking parts, this enables Cetec ERP to guide the users to pick the older parts first before the newer parts get picked out.


‘Free on board’ is a field to track which party (buyer or seller) is going to pay for a particular shipment or loading cost. Most often, the default the buyer pays for transportation of the goods.


An inter-company customer is a ‘customer’ internal to your own business.


An inter-company vendor is a ‘vendor’ internal to your own business.


Inventory refers to the goods and materials that a business holds. Inventory management involves acquiring and maintaining proper ordering, shipping, handling, and related costs. It also involves systems and processes that identify inventory requirements, set targets, provide replenishment techniques, report actual and projected inventory status, and handle all functions related to the tracking and management of material.


An invoice is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. When you purchase material from a vendor, and that vendor issues you an invoice for payment, your accounts payable clerk vouchers it and your company pays that invoice. When you sell material to a customer, you issue an invoice to the customer, and you collect payment on that invoice.


The International Organization for Standardization is an international standard-setting body composed of representatives from various national standards organizations, and is responsible for the ISO 9000, ISO 14000, ISO 27000, ISO 22000 and other international management standards.


A kit audit is an inspection performed after material is pulled/picked for assembly, and ‘kitted’ into a bin, but before the production process has started. Kit auditing is often a requirement in manufacturing imposed by the customers.


Labor variance is the discrepancy between ‘estimated labor’ and ‘actual labor’. Estimated labor is defined per part per order via the BOM worksheet, and actual labor is tracked per work order via the work order view screen.


A lead is a potential customer which may be tracked via Cetec ERP’s lead system.


Lead program is your company sales programs and/or product offerings. Assigning leads to a lead program helps track the effectiveness of sales programs from lead generation to conversion to new business.


Lead source is the medium you received the lead from e.g. cold calls, ads, tradeshow, etc. Assigning leads to a lead source helps track the effectiveness of various methods of sales, marketing, and lead generation from lead generation to conversion to new business.


The ledger is shorthand for a company’s ‘general ledger’. The general ledger contains user-defined account codes and related dimensional codes for recording different types of vouchers including on-balance-sheet, off-balance-sheet, post-balance sheet, financial and non-financial natures.


MRP is a production planning and inventory control system used to manage manufacturing processes. It ensures that materials are available for production and products are available for delivery to customers, maintains the lowest possible material and product levels in store, and plans manufacturing activities, delivery schedules and purchasing activities among other things.


Non-conformance report is a report of goods within your company that is not meeting requirements or specifications.


In Cetec ERP, an order’s NOSI number refers to its unique shipment number. Every time an order is invoiced and a full or partial shipment of one or more order lines is required,- a NOSI number is generated to reference the sequence in which product was shipped for that order.


On-time yield rate is the Cetec ERP graph report that shows the percentage of orders delivered on or before their respective Ship Date.


A (sales) order is a signal from your customer demanding a certain quantity of your product for a certain price.


A packing slip is a shipping document that accompanies delivery packages. It serves to inform all parties, including transport agencies, government authorities, and customers, about the contents of the package. In Cetec ERP, packing slips are generated and printed via the sales order screen with all relevant customer and order information auto-populated in PDF.


Cetec ERP requires that you develop an internal part naming scheme to refer to parts in inventory. A part in in Cetec ERP requires first, a three-character PRC code, and second, an alpha-numeric part number (with no character limit). The term ‘part number’ may be used to refer to the entire PRC + Part Number (i.e. PRCPART) or particularly to the second bit of the part number.


A Gantt chart is a bar chart that illustrates project schedule. Cetec ERP includes an interactive Gantt chart that visualizes your company’s production schedule. In turn, Cetec ERP generates production schedule via a system analysis of open work orders sorted by Ship Dates.


A PO is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from external suppliers.

PQUOTE (Purchase Quote)

In Cetec ERP, a PQuote is a pre-PO template where you can define a vendor on the header level, enter parts to order and respective costs and commit dates, send RFQs (request for quote) to vendors, request approval for POs based on price thresholds, etc. A PQuote thus prepared can be converted to an actual PO with one click of a button.


Cetec ERP requires that you develop an internal part naming scheme to refer to parts in inventory. A part in in Cetec ERP requires first, a three-character PRC code, and second, an alpha-numeric part number (with no character limit).


Cetec ERP requires that you develop an internal part naming scheme to refer to parts in inventory. A part in in Cetec ERP requires first, a three-character PRC code, and second, an alpha-numeric part number (with no character limit). The term ‘part number’ may be used to refer to the entire PRC + Part Number (i.e. PRCPART) or particularly to the second bit of the part number.


Profit and Loss, a.k.a. income statement, is a report within the Cetec ERP accounting module that summarizes cost, revenue, and expenses incurred across a period of time.


In Cetec ERP, a quote is a sales order template with details on price and quantity of product to be sold. In filling out a quote you can also include more data on a customer on the header level, Work Start date, Ship Date, Dock Date, send the quote to the customer as a PDF, send the quote to the purchasing department for review or the engineering department, etc. A quote thus preparely can be converted the quote to an actual sales order with one click of a button.


The quote header is a template to gather all header-level quote and order information. Header-level data includes the customer name, shipping preferences, customer PO number, and other top level information for an order. A quote will have only one quote header, whereas it may have many different quote lines.


Included in a quote, a quote line tracks parts a customer is ordering and that parts relevant data such as respective cost, cost breaks, Work Start date, stocking location, etc. If a quote line is for a top-level assembly, it will link to its corresponding BOM worksheet where component costs and ancillary BOM costs and scheduling information is defined.

QOH (Quantity On Hand)

QOH represents the current quantity of material in assigned unit of measure that exists within your warehouse. Thus, for instance, part ABC123 could have a QOH of 10 in one of your warehouse locations, and QOH of 20 in a different warehouse location. QOH inventory levels are adjusted at receipt or shipment of product, or by manual bin-level quantity adjustments. QOH is not adjusted when pulling material for a certain order because from a cost-accounting standpoint that material is still within the four corners of your warehouse.

QOO (Quantity On Order)

QOO represents the total quantity on order from vendors in the system. This could be amounted to from vendor purchase orders for purchase parts, or from internal vendors, i.e. supply signals from scheduled build-to-stock internal work orders.

QR (Quantity Reserved)

QR represents the quantity of material that is currently reserved for orders. Specifically, when material is pulled from stock to either pack and ship for a stock order, or to begin production for a work order, Cetec ERP queues up this material for inventory relief upon order shipment and invoicing. QR represents the total quantity of material currently queued up to this Work Start stage across all open orders (released, but not yet shipped orders).

Additionally, QR is set when there is an unscheduled order placed for the part - for scheduled orders only parts within leadtime are reserved (based on shipdate for Stock orders; work start date for Build orders).

Random Stock

Since the path to pull stock is dictated by Cetec ERP, and not by the tribal knowledge of your warehouse personnel, it does not matter where you stock the parts at receipt and put away. This method of stocking inventory wherever you want to, or wherever makes sense proximity-wise, is called random stock method.

Receipt Traceability

Since Cetec ERP allows users to put away parts received at different dates into distinct bins, you can later track traceability data like date code, lot code, revision code, and serial numbers with ease. These data can sharpen your competitive edge in high margin verticals such as medical, military, aerospace, etc.


A RFQ is a business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services.


The RoHS, short for directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment, was adopted in February 2003 by the European Union. In Cetec ERP, whether a component is RoHS compliant can be indicated as a part-level attribute.

ROP (Re-Order Point)

ROP is a part-level parameter that indicates the minimum quantity below which inventory levels ought not to drop. This parameter may be leveraged via Assisted Purchasing to indicate to generate a timely buy report.


SaaS is a software delivery mode in which software and associated data are centrally hosted on the cloud. SaaS is typically accessed by users using via a web browser. One of the biggest selling points for these companies is the potential to reduce IT support costs by outsourcing hardware and software maintenance and support to the SaaS provider. Cetec ERP is offered as a SaaS at an unmatched low flat per user fee.


Ship Date in Cetec ERP refers to the date that you promise your customer to ship by. This is distinct from Work Start date, which is your target date to begin production on an order, and from Dock Date, which is the date your customer wants to receive the shipment.


The shortage report is a real-time reporting tool to identify work orders that will be unavailable as of the Ship Date for that order due to unavailability of components or subassemblies that makeup the top level part for the order. The shortage report allows a user to drill into exactly why a work order will be late given current demand signals and supply levels.

Standard Package

Standard Package is a part-level attribute that indicates the standard quantity of the part that may be purchased or sold, i.e. the quantity of the product in the usual packaging of the product.


The Tariff (HTS) field lets you define and track tariff classification codes for product exported to or imported from foreign countries. A country’s Harmonized Tariff Schedule (HTS) will determine the exact format of the tariff code to assign to a particular part.

UOM (Unit of Measure)

UOM is a part-level attribute to determines the metric (e.g. inches, units, pounds, etc.) Cetec ERP uses to display the quantity fields (e.g. QOH, QOO, QR) in the system. Return to top of page


Waterfall reports forecasted sales order quantity for a part (i.e. Demand) against purchase order quantity for a part (i.e. Supply) and displays resulting projected inventory levels. For example, if demand exceeds supply for a part, the waterfall will project a negative inventory quantity for the part.


Work Start Date in Cetec ERP is the target work start date i.e. the date you need to begin production in order to meet Ship Date.


A workflow consists of an orchestrated and repeatable pattern of business activity enabled by the systematic organization of resources into processes that transform materials, provide services, or process information..

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