Glossary of Terms

Presented below is a list of selected terms used in the accounting software industry:

API

Application Program Interface. A software solution with an API has a set of tools, routines and protocols that facilitate the integration of that solution with other software programs or the development of a custom user interface.

ASP

This acronym refers to "Application Service Provider". ASPs generally load an application (like Oracle Small Business Suite or SAP) on a remote server, and then allow customers to access that application for a monthly or annual rental fee. This service is also referred to as "Hosting". Popular ASPs include IBM, EDS, Future-Link, and the Taylor Group.

Client Server

This term describes an accounting system (or any program) that is designed to process data at both the client computer (workstation) and the server (file server). The result is that the server is able to perform much of the calculations, sorts, and computations at the server level and then send the results to the workstation. The effect of client server is to dramatically reduce the amount of traffic on local area networks and wide area networks, and thus increase speed in heavy traffic environments. Client server technology is essential when operating a system through low bandwidth connections such as a telephone line and in situations with very large volumes of data.

CRM

This acronym refers to "Customer Relationship Management". Originally referred to as "Contact Management" and then as "Sales Force Automation", CRM encompasses a wide assortment of capabilities designed to help a company better manage their customers.

Discrete Manufacturing

This term refers to the manufacturing of specific unique items to exacting specifications such as a custom-made cabinet or a new sophisticated carburetor. Discrete manufacturing is used heavily by the engineering, automotive, electronics, and aerospace industries, among others.

ebXML

ebXML is an world-wide project to create an open XML-based standard for the exchange of business data.

E-Commerce

The conducting of business communication and transactions over networks and through computers. As most restrictively defined, electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications. However EC also includes all inter-company and intra-company functions (such as marketing, finance, manufacturing, selling, and negotiation) that enable commerce and use electronic mail, EDI, file transfer, fax, video conferencing, workflow, or interaction with a remote computer.

EDI

An acronym for “Electronic Data Interchange”. Contact between companies exchanging orders via intra- or internet. A standard for that is EDIFACT (Electronic Commerce). This can be more secure using internet-tunneling, i.e. two partners use connections that can not be accessed by anybody else.

ERP

This is an acronym for "Enterprise Resource Planning". It is an industry term for the broad set of activities supported by multi-module application software that helps a manufacturer or other business manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service, and tracking orders. ERP can also include application modules for the finance and human resources aspects of a business. The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures.

ERM

ERM (Enterprise resource management) is software that lets an enterprise manage user access to its network resources efficiently. It generally lets a user sign on to different enterprise systems and applications using the same password. ERM software makes it easy for the enterprise to control and keep track of which systems and resources each user has access to, and provides consistent standards for creating and changing passwords.

Front Office Automation

Closely related to CRM, this refers to applications that are designed to be used when working with a customer, the results of which are transmitted seamlessly back to the back office applications (general ledger). For example, the radio clipboard used by a UPS delivery person to capture the customer's signature and transmit it back to headquarters is an example of front office automation.

Hosting

See ASP above

Integrated

This term means that the data from one module or system flows directly to another module or system without rekeying the data. Seamless integration means that the data flows automatically with no action required by the user.

Just-In-Time

Refers to the process of ordering inventory so that it arrives just-in-time for you to use it. This reduces the cost of carrying excessive levels of inventory that are not needed by reducing interest expense and warehousing costs.

PP

This acronym refers to "Production Planning" in which complex calculations are used to schedule various production processes and order raw materials just-in-time.

RFID

Radio Frequency Identification (RFID) is a technology that incorporates the use of electromagnetic or electrostatic coupling in the RF (radio frequency) portion of the electromagnetic spectrum to uniquely identify an object, animal, or person. RFID is coming into increasing use in industry as an alternative to the barcode.

ROI

Return On Investment. For a given use of money in an enterprise, the ROI is how much profit or cost saving is realized. An ROI calculation is sometimes used along with other approaches to develop a business case for a given proposal. The overall ROI for an enterprise is sometimes used as a way to grade how well a company is managed.

Screen Scrape

This term is used to describe an older DOS-based accounting system that has implemented a Windows front end on top of the older technology. The resulting product looks like a Windows product, but is really still a DOS-based product underneath.

SME

This acronym refers to the "Small to Medium Enterprise Market" generally defined as companies with revenue ranging from $50 million to $500 million.

SCM

This acronym refers to "Supply Chain Management". This refers to a companies suppliers, the suppliers' suppliers, and so on. Accounting systems that support the "Supply Chain" provide the ability to link their systems seamlessly into it's suppliers and customer up and down the chain.

SOAP

Simple Object Access Protocol. SOAP is a lightweight XML based protocol used for invoking web services and exchanging structured data and type information on the Web.

TCO

Total Cost of Ownership. Cost to purchase and maintain software over time.

XML

XML (eXtensible Markup Language) is a specification developed by the W3C. XML is a sub-set of Standard Generalized Mark-Up Language, designed especially for Web documents. It allows for the creation of customized tags. This enables the definition, transmission, validation, and interpretation of data between different systems via the Internet.