--- title: "ERP glossary: trading, purchasing, inventory and accounting terms explained" description: "An ERP glossary for B2B trading businesses: 83 terms from purchase order, GRN and delivery note to GRNI, VAT, e-invoicing and FIFO, each with an example." url: https://1flux.ai/glossary last_updated: 2026-10-10 --- ERP glossary # ERP glossary: trading, purchasing, inventory and accounting terms explained Plain-English definitions of 83 terms used by B2B trading, distribution and project-supply businesses, each with a worked example and a note on how 1flux handles it. ## In short This ERP glossary explains the 83 terms that come up when a B2B trading business quotes, buys, stocks, sells and closes its books, from quotation and purchase order to GRNI, VAT and consolidation. Every entry gives a one-sentence definition you can quote, a worked example, the common confusions and a short note on how 1flux handles it. Quick primer ## Trade abbreviations, decoded Ten abbreviations you'll meet on purchase orders, delivery notes and invoices, each linked to its full entry. B2B trading companies share a working vocabulary that generic ERP glossaries often miss. Buyers raise purchase orders, which in the UAE and Saudi Arabia are usually called LPOs. Stores teams sign goods received notes against the supplier’s delivery note, and accounts won’t process a supplier’s invoice until the receipt is confirmed. Customers expect their own PO number on your delivery note and invoice, and every tax invoice carries the seller’s tax registration number. Tax and registration rules shape the paperwork too, and they differ by country. VAT is 5% in the UAE and 15% in Saudi Arabia, and India uses GST. Saudi businesses quote their commercial registration (CR) number and use the structured national address on contracts, invoices and deliveries. E-invoicing is already mandatory in Saudi Arabia, where every VAT-registered business has had to issue compliant e-invoices since 4 December 2021, and the UAE’s mandate starts in 2027. | Abbreviation | Stands for | In one line | | ------------ | ------------------------------------------------------------------------------------ | -------------------------------------------------------------- | | LPO | [Local purchase order](https://1flux.ai/glossary/local-purchase-order) | The purchase order a buyer sends a supplier | | LPR | [Local purchase request](https://1flux.ai/glossary/local-purchase-request) | A quick request to buy locally, converted straight to an order | | RFQ | [Request for quotation](https://1flux.ai/glossary/request-for-quotation) | Asks suppliers to price specific items and terms | | DN | [Delivery note](https://1flux.ai/glossary/delivery-note) | Travels with the goods so the receiver can check and sign | | GRN | [Goods received note](https://1flux.ai/glossary/goods-received-note) | The stores record of what arrived and in what condition | | GRR | [Goods receipt report](https://1flux.ai/glossary/goods-receipt-report) | Accepts received goods into stock and the books | | GRNI | [Goods received not invoiced](https://1flux.ai/glossary/goods-received-not-invoiced) | Goods received but not yet billed by the supplier | | TRN | [Tax registration number](https://1flux.ai/glossary/tax-registration-number) | A business’s VAT registration number | | CR | [Commercial registration](https://1flux.ai/glossary/commercial-registration) | The record that registers a business to trade in Saudi Arabia | | DSR | [Daily sales report](https://1flux.ai/glossary/daily-sales-report) | A salesperson’s end-of-day record of visits and next steps | LPO, LPR, TRN and CR are regional terms, most common in the UAE and Saudi Arabia. By topic ## Browse the ERP glossary by topic Each topic follows a business process, so related terms sit together. - ### Sales and CRM 19 terms From the first enquiry to the cash in the bank: quotations, orders, deliveries, invoices and credit terms. Start with - [Quotation (quote)](https://1flux.ai/glossary/quotation) - [Customer purchase order (customer PO)](https://1flux.ai/glossary/customer-purchase-order) - [Sales order](https://1flux.ai/glossary/sales-order) - [Tax invoice](https://1flux.ai/glossary/tax-invoice) - [Credit days](https://1flux.ai/glossary/credit-days) [See all 19 terms](#a-z) - ### Procurement and inventory 27 terms From the first request to buy to the value of stock on the shelf: requisitions, receiving, counts and costing. Start with - [Purchase requisition](https://1flux.ai/glossary/purchase-requisition) - [Local purchase order (LPO)](https://1flux.ai/glossary/local-purchase-order) - [Goods received note (GRN)](https://1flux.ai/glossary/goods-received-note) - [Three-way match](https://1flux.ai/glossary/three-way-match) - [FIFO (first in, first out)](https://1flux.ai/glossary/fifo) [See all 27 terms](#a-z) - ### Accounting 25 terms The books of a trading company: ledgers and journals, accruals, currencies, consolidation, tax and the month-end close. Start with - [Chart of accounts (CoA)](https://1flux.ai/glossary/chart-of-accounts) - [Journal entry](https://1flux.ai/glossary/journal-entry) - [Goods received not invoiced (GRNI)](https://1flux.ai/glossary/goods-received-not-invoiced) - [VAT (value added tax)](https://1flux.ai/glossary/vat) - [E-invoicing](https://1flux.ai/glossary/e-invoicing) [See all 25 terms](#a-z) - ### ERP and platform 12 terms What buyers meet when they compare systems: ERP, entities, access control, workflows, migration and AI. Start with - [ERP (enterprise resource planning)](https://1flux.ai/glossary/erp) - [Multi-entity](https://1flux.ai/glossary/multi-entity) - [Role-based access control (RBAC)](https://1flux.ai/glossary/role-based-access-control) - [Data migration](https://1flux.ai/glossary/data-migration) - [AI document extraction](https://1flux.ai/glossary/ai-document-extraction) [See all 12 terms](#a-z) Looking for the end-to-end processes rather than single terms? Read the [quote-to-cash guide](https://1flux.ai/guides/quote-to-cash) and the [procure-to-pay guide](https://1flux.ai/guides/procure-to-pay). A to Z ## A–Z of ERP terms Every term in the glossary, in alphabetical order, with a one-line definition. ### A - Accounting #### [Accounts payable (AP)](https://1flux.ai/glossary/accounts-payable) Money you owe suppliers for goods or services invoiced on credit. - Accounting #### [Accounts receivable (AR)](https://1flux.ai/glossary/accounts-receivable) Money customers owe you for goods or services invoiced on credit. - Accounting #### [Accounts receivable aging (AR aging)](https://1flux.ai/glossary/accounts-receivable-aging) Unpaid customer invoices grouped by days past due. - ERP and platform #### [AI document extraction](https://1flux.ai/glossary/ai-document-extraction) Using AI to turn POs, invoices and other documents into structured data. - ERP and platform #### [Approval workflow](https://1flux.ai/glossary/approval-workflow) Rules that route a record to the right people for sign-off. - ERP and platform #### [Audit trail](https://1flux.ai/glossary/audit-trail) A record of who changed what, and when. - Procurement and inventory #### [Available to promise (ATP)](https://1flux.ai/glossary/available-to-promise) Stock you can still commit to new orders: on hand minus reserved. ### B - Procurement and inventory #### [Barcode](https://1flux.ai/glossary/barcode) A scannable pattern that encodes an item's identifier. - Procurement and inventory #### [Blind receiving](https://1flux.ai/glossary/blind-receiving) Counting a delivery without seeing the ordered quantity. ### C - Sales and CRM #### [Cash collection forecast](https://1flux.ai/glossary/cash-collection-forecast) What each customer is expected to pay this month and next. - Accounting #### [Chart of accounts (CoA)](https://1flux.ai/glossary/chart-of-accounts) The structured list of every account a business records transactions in. - ERP and platform #### [Cloud ERP](https://1flux.ai/glossary/cloud-erp) ERP software hosted by the vendor and used in a browser. - Sales and CRM #### [Commercial registration (CR)](https://1flux.ai/glossary/commercial-registration) The record that registers a business to trade in Saudi Arabia. - Accounting #### [Cost of goods sold (COGS)](https://1flux.ai/glossary/cost-of-goods-sold) The cost of the stock sold in a period. - Sales and CRM #### [Credit days](https://1flux.ai/glossary/credit-days) How many days a customer has to pay, from a set starting date. - Sales and CRM #### [Credit limit](https://1flux.ai/glossary/credit-limit) The most a customer may owe you at one time. - ERP and platform #### [CRM (customer relationship management)](https://1flux.ai/glossary/crm) Software for managing customers, contacts, deals and sales activity. - Accounting #### [Currency translation difference](https://1flux.ai/glossary/currency-translation-difference) The balancing amount from translating a subsidiary's books at different rates. - Sales and CRM #### [Customer purchase order (customer PO)](https://1flux.ai/glossary/customer-purchase-order) The buyer's formal order to you, usually after your quotation. - Accounting #### [Cutover date](https://1flux.ai/glossary/cutover-date) The day you stop using the old system and start in the new one. - Procurement and inventory #### [Cycle count](https://1flux.ai/glossary/cycle-count) Counting a small slice of stock on a regular schedule. ### D - Sales and CRM #### [Daily sales report (DSR)](https://1flux.ai/glossary/daily-sales-report) A salesperson's end-of-day record of visits and next steps. - ERP and platform #### [Data migration](https://1flux.ai/glossary/data-migration) Moving records and balances from old systems into a new one. - Sales and CRM #### [Deal stage](https://1flux.ai/glossary/deal-stage) One step in a sales pipeline, such as Lead, Quoted or Won. - Sales and CRM #### [Delivery note (DN)](https://1flux.ai/glossary/delivery-note) The document that travels with goods so the customer can check and sign. - Accounting #### [Double-entry bookkeeping](https://1flux.ai/glossary/double-entry-bookkeeping) Recording every transaction with equal debits and credits. ### E - Accounting #### [E-invoicing](https://1flux.ai/glossary/e-invoicing) Issuing invoices in a structured format that tax systems can read and validate. - ERP and platform #### [ERP (enterprise resource planning)](https://1flux.ai/glossary/erp) Software that runs sales, purchasing, stock and accounting on one database. ### F - Procurement and inventory #### [FIFO (first in, first out)](https://1flux.ai/glossary/fifo) A costing method that uses the oldest purchase costs first. - Accounting #### [Financial consolidation](https://1flux.ai/glossary/financial-consolidation) Combining a group's companies into one set of figures. - Accounting #### [Functional currency](https://1flux.ai/glossary/functional-currency) The currency a company's books are kept in. - Accounting #### [FX gain and loss](https://1flux.ai/glossary/fx-gain-and-loss) The effect of exchange-rate moves on foreign-currency transactions. ### G - Accounting #### [General ledger (GL)](https://1flux.ai/glossary/general-ledger) The complete record of every account and its balance. - Procurement and inventory #### [Goods receipt report (GRR)](https://1flux.ai/glossary/goods-receipt-report) The document that accepts received goods into stock and the books. - Accounting #### [Goods received not invoiced (GRNI)](https://1flux.ai/glossary/goods-received-not-invoiced) A liability for goods received but not yet billed by the supplier. - Procurement and inventory #### [Goods received note (GRN)](https://1flux.ai/glossary/goods-received-note) The stores record of what arrived, from whom and in what condition. ### I - Accounting #### [Input and output VAT](https://1flux.ai/glossary/input-and-output-vat) VAT paid on purchases, and VAT charged on sales. - Accounting #### [Intercompany elimination](https://1flux.ai/glossary/intercompany-elimination) Removing dealings between group companies when consolidating. - Procurement and inventory #### [Inventory valuation](https://1flux.ai/glossary/inventory-valuation) The money value of the stock you hold. - Procurement and inventory #### [Inventory write-off](https://1flux.ai/glossary/inventory-write-off) Removing lost, damaged or expired stock from the books. - Accounting #### [Invoice price variance (IPV)](https://1flux.ai/glossary/invoice-price-variance) The gap between a supplier's invoice price and the PO price. - Procurement and inventory #### [Item master](https://1flux.ai/glossary/item-master) The central catalogue record for every item you buy, stock or sell. ### J - Accounting #### [Journal entry](https://1flux.ai/glossary/journal-entry) A dated record of a transaction as balancing debits and credits. ### L - Procurement and inventory #### [Landed cost](https://1flux.ai/glossary/landed-cost) Supplier price plus freight, duty and clearing to get goods into stock. - ERP and platform #### [Legal entity](https://1flux.ai/glossary/legal-entity) A company the law treats as separate from its owners. - Procurement and inventory #### [Local purchase order (LPO)](https://1flux.ai/glossary/local-purchase-order) The Gulf name for a purchase order sent to a supplier. - Procurement and inventory #### [Local purchase request (LPR)](https://1flux.ai/glossary/local-purchase-request) A quick request to buy locally that converts straight to an order. ### M - Accounting #### [Month-end close](https://1flux.ai/glossary/month-end-close) The tasks that make a month's books complete, then lock them. - ERP and platform #### [Multi-entity](https://1flux.ai/glossary/multi-entity) One system running several legal companies, each with its own books. ### N - Procurement and inventory #### [Negative stock](https://1flux.ai/glossary/negative-stock) A system quantity below zero, a sign of a recording problem. ### O - Accounting #### [Opening balances](https://1flux.ai/glossary/opening-balances) The balances you bring into a new system or financial year. ### P - Accounting #### [Posting](https://1flux.ai/glossary/posting) Recording a transaction permanently in the general ledger. - Sales and CRM #### [Proforma invoice](https://1flux.ai/glossary/proforma-invoice) A preliminary bill sent before goods ship or a final invoice is issued. - Procurement and inventory #### [Purchase invoice](https://1flux.ai/glossary/purchase-invoice) A supplier's bill as recorded in your books. - Procurement and inventory #### [Purchase order (PO)](https://1flux.ai/glossary/purchase-order) A buyer's formal, numbered order to a supplier. - Accounting #### [Purchase price variance (PPV)](https://1flux.ai/glossary/purchase-price-variance) The gap between standard cost and the price actually paid. - Procurement and inventory #### [Purchase requisition](https://1flux.ai/glossary/purchase-requisition) An internal request to buy, approved before a supplier is contacted. ### Q - Sales and CRM #### [Quotation (quote)](https://1flux.ai/glossary/quotation) A priced offer to a customer, valid for a limited period. - Sales and CRM #### [Quotation revision](https://1flux.ai/glossary/quotation-revision) A new, numbered version of a quotation already issued. - Procurement and inventory #### [Quote comparison](https://1flux.ai/glossary/quote-comparison) Supplier offers side by side, to choose one and record why. ### R - Procurement and inventory #### [Request for quotation (RFQ)](https://1flux.ai/glossary/request-for-quotation) A request asking suppliers to price specific items and terms. - Accounting #### [Reversing entry (reversal)](https://1flux.ai/glossary/reversing-entry) A mirror journal entry that cancels an earlier one. - ERP and platform #### [Role-based access control (RBAC)](https://1flux.ai/glossary/role-based-access-control) Granting permissions through job roles rather than person by person. - ERP and platform #### [Row-level security (RLS)](https://1flux.ai/glossary/row-level-security) Database rules that restrict which rows each user can see. ### S - Sales and CRM #### [Sales cycle](https://1flux.ai/glossary/sales-cycle) How long it takes to turn an opportunity into a won sale. - Sales and CRM #### [Sales order](https://1flux.ai/glossary/sales-order) The seller's confirmed record of what a customer ordered. - Sales and CRM #### [Sales pipeline](https://1flux.ai/glossary/sales-pipeline) All open sales opportunities, grouped by stage. - Sales and CRM #### [Saudi national address](https://1flux.ai/glossary/saudi-national-address) Saudi Arabia's official structured address system. - ERP and platform #### [Service level agreement (SLA)](https://1flux.ai/glossary/service-level-agreement) A commitment to finish work within a set time. - Procurement and inventory #### [Standard cost](https://1flux.ai/glossary/standard-cost) A set cost per item, with differences recorded as variances. - Procurement and inventory #### [Stock count](https://1flux.ai/glossary/stock-count) Counting physical stock and comparing it with the system. - Procurement and inventory #### [Stock keeping unit (SKU)](https://1flux.ai/glossary/stock-keeping-unit) The unique code for each item you stock. - Sales and CRM #### [Stock reservation](https://1flux.ai/glossary/stock-reservation) Stock set aside for a confirmed customer order. - Procurement and inventory #### [Stock transfer](https://1flux.ai/glossary/stock-transfer) Moving stock between warehouses or locations. ### T - Sales and CRM #### [Tax invoice](https://1flux.ai/glossary/tax-invoice) The invoice a VAT-registered supplier issues for a taxable sale. - Sales and CRM #### [Tax registration number (TRN)](https://1flux.ai/glossary/tax-registration-number) The number a tax authority gives a VAT-registered business. - Procurement and inventory #### [Three-way match](https://1flux.ai/glossary/three-way-match) Checking a supplier invoice against the PO and the receipt. - Accounting #### [Trial balance](https://1flux.ai/glossary/trial-balance) Every account's balance, checked so debits equal credits. ### U - Procurement and inventory #### [Unit of measure (UoM)](https://1flux.ai/glossary/unit-of-measure) The unit an item is counted, bought or sold in. ### V - Accounting #### [VAT (value added tax)](https://1flux.ai/glossary/vat) A tax charged on sales and reclaimed on purchases. ### W - Procurement and inventory #### [Warehouse management system (WMS)](https://1flux.ai/glossary/warehouse-management-system) Software that directs work inside a warehouse, down to bin level. - Procurement and inventory #### [Weighted average cost](https://1flux.ai/glossary/weighted-average-cost) A costing method that values all units at their average cost. - Sales and CRM #### [Win rate](https://1flux.ai/glossary/win-rate) The share of closed deals or quotations that are won. FAQ ## Glossary questions, answered Still deciding? [Talk to sales](https://1flux.ai/contact) ### Is an LPO the same as a purchase order? Yes. LPO stands for local purchase order, the name commonly used in the UAE, Saudi Arabia and the wider Gulf for a [purchase order](https://1flux.ai/glossary/purchase-order) a buyer sends to a supplier. Suppliers usually need the LPO number before they deliver, and it should appear on their delivery note and tax invoice. An LPR, or local purchase request, is different: it's an internal request to buy, not an order. ### What's the difference between a GRN and a GRR? A [goods received note](https://1flux.ai/glossary/goods-received-note) (GRN) records what physically arrived at the warehouse: the supplier, the delivery note number, the quantities counted and their condition. A [goods receipt report](https://1flux.ai/glossary/goods-receipt-report) (GRR) is the controlled acceptance that follows. It ties the delivery to the right purchase orders, records short, over and rejected quantities with reasons, and posts the stock and the accounting entry. Some companies use one document for both steps. ### What's the difference between a TRN and a CR? A [TRN](https://1flux.ai/glossary/tax-registration-number), or tax registration number, identifies a business for VAT and is issued by the tax authority: the Federal Tax Authority in the UAE or ZATCA in Saudi Arabia. A [CR](https://1flux.ai/glossary/commercial-registration), or commercial registration, registers a business to trade in Saudi Arabia and is issued by the Ministry of Commerce. Saudi invoices and letterheads often show both. The UAE's nearest equivalent to a CR is the trade licence. ### What's the difference between a proforma invoice and a quotation? A [quotation](https://1flux.ai/glossary/quotation) offers a price for the customer to accept or decline. A [proforma invoice](https://1flux.ai/glossary/proforma-invoice) comes later, when the buyer intends to order: it sets out the expected bill so the buyer can arrange payment, a letter of credit or an import permit. Neither is a tax invoice, and neither records a sale or any tax due. The tax invoice is issued when the goods or services are supplied. ### What's the difference between ERP and accounting software? Accounting software records financial transactions: invoices, bills, payments and the ledger. An [ERP](https://1flux.ai/glossary/erp) also runs the operations that create those transactions, such as quotations, sales orders, purchasing, receiving and stock, and posts the accounting from them, so sales, the warehouse and finance work from the same records. Trading companies often move to an ERP when re-keying orders between spreadsheets and an accounting package starts causing errors. Related ## Keep exploring ### [Quote-to-cash guide](https://1flux.ai/guides/quote-to-cash) The eight stages from enquiry to cash in the bank, with the documents, controls, KPIs and a checklist. ### [Procure-to-pay guide](https://1flux.ai/guides/procure-to-pay) Eleven steps from requisition to supplier payment, with the documents, controls, accounting, KPIs and a checklist. ### [ERP buyer's guide](https://1flux.ai/guides/erp-buyers-guide-gcc) How to choose an ERP: requirements, vendor questions, demo scripts, five-year cost and a scoring table. ### [FAQ](https://1flux.ai/faq) Straight answers about 1flux: modules, AI, Arabic data, VAT, e-invoicing, security and pricing. ### [Resources](https://1flux.ai/resources) Guides, a glossary, the FAQ, blog posts and comparisons for B2B trading businesses. Last updated 10 October 2026