ERP Glossary: 50+ Essential Terms for UK Manufacturers and Distributors

Business Concepts

Back Office System Business Concepts

The internal systems a business uses for accounting, order processing, payroll, inventory management, and other administrative functions. Back office systems are typically not customer-facing. In manufacturing SMEs, the ERP is usually the central back office system. Related: business system modernisation

Business System Business Concepts

Any software application that supports a business process, from ERP and CRM to HR and payroll platforms. A “business system” often refers to the collection of tools a company runs. When someone talks about “business system modernisation,” they mean improving or replacing these systems to work better together.

Customer Portal Business Concepts

A self-service website that gives customers direct access to their orders, invoices, statements, and account information. A customer portal connected to your ERP lets customers check stock availability, submit orders, and download documents without calling your sales team. Read more about ERP customer portals

Digital Core Business Concepts

The central technology platform that runs a company's essential business processes — typically the ERP system. The digital core is the system of record that everything else connects to. Modernisation strategies often involve wrapping the digital core with new interfaces rather than replacing it entirely.

Digital Transformation Business Concepts

The process of adopting digital technology to change how a business operates and delivers value. For manufacturers and distributors, digital transformation often means moving from paper-based or spreadsheet-driven processes to integrated digital workflows — without necessarily replacing the underlying ERP.

Employee Portal Business Concepts

An internal web application where staff can access company information, submit requests, view rotas, and interact with business systems. When integrated with an ERP, an employee portal might show personalised dashboards, task lists, and role-specific data — replacing the need to navigate the raw ERP interface.

Enterprise Software Business Concepts

Software designed to serve the needs of an organisation rather than an individual user. Enterprise software handles large volumes of transactions, supports multiple users with role-based access, and typically integrates with other business systems. ERP is the most common category of enterprise software in manufacturing.

ERP (Enterprise Resource Planning) Business Concepts

A category of business software that integrates all core business processes — finance, supply chain, manufacturing, inventory, sales, and HR — into a single system. ERP systems act as the single source of truth for business data. Examples include Microsoft Dynamics 365 Business Central, Sage 200, and OrderWise. Learn about ERP interface layers

Experience Layer Business Concepts

A user-facing application layer that sits on top of underlying business systems. The experience layer controls how users interact with data and processes, independent of the back-end system that stores and processes that data. “Experience layer” is often used interchangeably with “interface layer.”

Legacy System / Legacy Software Business Concepts

An older software system that remains in use despite being outdated. Legacy systems are often critical to daily operations but difficult to maintain, upgrade, or integrate with modern applications. Many UK manufacturers run legacy ERP systems with interfaces designed decades ago. Related: ERP modernisation

Modernisation Business Concepts

The process of updating a software system to use current technology without fully replacing it. For ERP systems, modernisation typically involves adding modern interfaces, APIs, cloud capabilities, or mobile access while keeping the existing data and business logic intact. Read more about ERP modernisation

Overlay Software Business Concepts

A layer of software that runs on top of an existing system to extend its capabilities or change how users interact with it. An overlay does not modify the underlying system — it sits between the user and the system, translating between them. Sysgraft's interface layer is a form of overlay software.

Supplier Portal Business Concepts

A web portal that gives suppliers access to purchase orders, delivery schedules, invoice status, and forecast demand data from your ERP. Supplier portals reduce procurement admin, speed up order fulfilment, and improve supply chain visibility by giving suppliers real-time access to the information they need.

System of Record Business Concepts

The authoritative data source for a given piece of information. In a well-architected business, the ERP is the system of record for financial transactions, inventory, and orders. Modernisation strategies preserve the system of record while improving the systems that interact with it.

System of Work Business Concepts

A platform where work gets done, often involving collaboration, communication, and user interaction. A system of work (like a modern portal or dashboard) typically reads from and writes to a system of record (like an ERP). The distinction matters when planning an interface layer: you keep the ERP as system of record and build a new system of work on top.

Wrap and Extend Business Concepts

A modernisation strategy where a new interface layer is built “around” (wrapping) an existing system, adding new capabilities (extending) without modifying the underlying application. This approach avoids the risk, cost, and disruption of a full replacement. It is the core philosophy behind Sysgraft's approach to ERP modernisation.

Technical Terms

API (Application Programming Interface) Technical Terms

A set of rules and protocols that allows one software application to communicate with another. APIs define how requests and responses should be formatted, enabling different systems to exchange data. Modern ERP systems expose REST APIs that allow developers to read and write data programmatically.

API Adapter Technical Terms

A software component that translates between the API of one system and the expectations of another. In an ERP interface layer, an API adapter sits between the modern frontend and the ERP, handling authentication, request formatting, response parsing, and error handling. It isolates the frontend from changes to the ERP's API.

API Gateway Technical Terms

A server that acts as a single entry point for multiple API services. It handles authentication, rate limiting, request routing, and logging. For ERP integrations, an API gateway can sit between your interface layer and the ERP to manage traffic, cache responses, and enforce security policies.

Back-end System Technical Terms

The server-side part of a software application that handles data storage, business logic, and processing. In an ERP context, the back-end system is the core ERP platform that stores your data and runs your business rules. The frontend (user interface) communicates with the back-end via APIs.

Clean Core Technical Terms

A principle of keeping an ERP system's standard codebase unmodified, avoiding customisations that change the core application. A clean core makes upgrades, patches, and migrations simpler and less risky because there are no custom code conflicts to resolve. APIs and extension platforms enable clean-core strategies.

Data Migration Technical Terms

The process of moving data from one system to another. ERP replacements require large-scale data migration — extracting data from the old ERP, transforming it to fit the new system's structure, and loading it into the new system. Data migration is one of the most expensive, time-consuming, and risky parts of an ERP replacement project.

Data Residency Technical Terms

The physical or geographical location where an organisation's data is stored. UK manufacturers must often comply with data residency requirements that mandate their business data stays within the UK or European Economic Area. Cloud providers offer regional data centres (e.g. Azure UK South) to meet these requirements.

Idempotency Technical Terms

A property of an API operation where making the same request multiple times produces the same result as making it once. Idempotency is critical for ERP write operations because network failures can cause retries. If an order creation endpoint is idempotent, retrying a failed request will not create duplicate orders.

Interface Layer Technical Terms

A software layer that sits between the user and the underlying business system, providing a modern, purpose-built interface without modifying the back-end. Interface layers connect to the existing system via its API, translating data and actions between the two. This is the core concept behind Sysgraft's approach. Read the full guide

iPaaS (Integration Platform as a Service) Technical Terms

A cloud-based platform that connects different software applications and data sources. iPaaS tools provide pre-built connectors, data transformation, and workflow automation. Examples include Microsoft Azure Logic Apps, Workato, and MuleSoft. They are often used to connect ERP systems with other business applications.

Low-Code Technical Terms

A software development approach that uses visual interfaces, drag-and-drop components, and pre-built templates to create applications with minimal hand-coding. Microsoft Power Platform is a low-code environment. Low-code platforms are useful for simple dashboards and workflows but can struggle with complex business logic.

No-Code Technical Terms

An approach to software development that requires no programming at all. Users build applications through graphical interfaces and configuration. No-code tools are excellent for simple forms, approval workflows, and data visualisation but typically lack the flexibility needed for complex ERP integrations or customer-facing portals.

OAuth 2.0 Technical Terms

An industry-standard protocol for authorising access to web APIs. OAuth 2.0 allows applications to obtain limited access to a user's data without exposing their password. ERP integrations use OAuth 2.0 with Microsoft Entra ID to authenticate API calls securely. It supports several “flows,” including the client credentials flow for server-to-server communication.

OData (Open Data Protocol) Technical Terms

An open standard for building and consuming REST APIs. OData defines conventions for querying and manipulating data, including filtering, sorting, and pagination. Dynamics 365 Business Central's REST API is built on OData. Developers use OData queries to request specific records, filter by fields, and expand related entities.

OLTP (Online Transaction Processing) Technical Terms

A type of data processing that handles high volumes of short, atomic transactions — such as creating a sales order, posting a payment, or updating inventory. OLTP systems (like most ERPs) are optimised for fast, reliable transaction processing. They are distinct from OLAP systems, which are optimised for analytical queries.

OpenAPI Technical Terms

A specification (formerly known as Swagger) for describing REST APIs in a standard, machine-readable format. An OpenAPI specification lists all available endpoints, request parameters, and response formats. BC's API v2.0 can be exported as an OpenAPI document, which developers use to generate client libraries and API documentation automatically.

Rate Limiting Technical Terms

A technique used by APIs to control the number of requests a client can make within a given time period. Rate limiting prevents a single client from overwhelming the API server. Business Central's API has rate limits that integrations must respect — typically measured in requests per minute per tenant.

REST API Technical Terms

A type of API that follows Representational State Transfer (REST) principles. REST APIs use standard HTTP methods (GET, POST, PATCH, DELETE) and return data in formats like JSON. Almost all modern ERP systems, including Business Central, Sage 200, and OrderWise, provide REST APIs for integration and extension.

SSO (Single Sign-On) Technical Terms

An authentication method that allows users to log in once and access multiple applications without re-entering credentials. In a business context, SSO typically uses Microsoft Entra ID (formerly Azure AD) so employees can access their ERP portal, email, and other apps with a single set of credentials.

Service Principal Technical Terms

An identity created in Microsoft Entra ID for use by applications, services, and automation tools rather than human users. Service principals are used in OAuth 2.0 client credentials flows to authenticate API-to-API communication. When an interface layer talks to a BC API, it typically authenticates using a service principal.

Strangler Fig Pattern Technical Terms

A software migration strategy named after the strangler fig plant, which grows around a host tree and gradually replaces it. In software, you build new functionality alongside the existing system, routing users to the new system piece by piece until the old system can be retired. Interface layers often use this pattern to replace an ERP's UI incrementally.

Microsoft / Business Central Specific

API Page (Business Central) Microsoft / BC

A custom API endpoint created in Business Central using the AL programming language. API pages expose any BC table or combination of data as a REST API endpoint, extending the standard API v2.0 surface. They allow partners to expose custom business logic or data that is not available through the default API endpoints.

CAL / SUL Microsoft / BC

Client Access License (CAL) and Subscription User License (SUL) are licensing models for Business Central. CAL licensing is the traditional model where you buy a licence per user. SUL is the newer subscription model included with Dynamics 365 Business Central. Understanding your licensing type matters when evaluating extension and modernisation options.

Microsoft Entra ID (formerly Azure AD) Microsoft / BC

Microsoft's cloud-based identity and access management service. Entra ID handles authentication for Microsoft 365, Azure, and Dynamics 365. It supports OAuth 2.0, SSO, multi-factor authentication, and service principals. In an ERP context, Entra ID manages who can access your BC data and how applications authenticate to the BC API.

Power Apps Microsoft / BC

A low-code application development platform within Microsoft Power Platform. Power Apps lets business users build simple apps with drag-and-drop tools and pre-built connectors. It is useful for internal dashboards and approval workflows but has limitations for complex, customer-facing ERP portals. Power Apps vs custom code

Power Pages Microsoft / BC

A low-code platform within Microsoft Power Platform for building external-facing websites. Power Pages is the successor to Power Apps Portals and can be used to create customer self-service portals connected to Dataverse and, through it, Business Central. It is designed for simple to moderate portal scenarios.

Power BI Microsoft / BC

Microsoft's business analytics service for creating interactive dashboards and reports. Power BI connects to Business Central data (via API, OData, or direct database) and visualises KPIs, trends, and operational metrics. It is commonly used alongside interface layers to provide management dashboards and operational reporting.

Power Platform Microsoft / BC

Microsoft's collection of low-code tools: Power Apps, Power Automate, Power BI, Power Pages, and Power Virtual Agents. Power Platform integrates deeply with Dynamics 365 and Microsoft 365. It is a popular choice for extending BC but has architectural limitations for high-scale customer-facing applications.

Role Centre Microsoft / BC

A customisable home page in Dynamics 365 Business Central that presents role-specific information through tiles, lists, charts, and action buttons. Each user is assigned a role centre based on their job function (e.g. Sales Order Processor, Production Planner, Accountant). Role centres are one of the main targets for interface layer modernisation.

Platform Terms

Extension Platform Platform Terms

A framework that allows third-party developers to add features to an existing software system without modifying its core code. Business Central's extension platform uses the AL programming language and allows partners to build extensions that add fields, tables, pages, and API endpoints while maintaining upgrade compatibility.

Microsoft Entra ID Platform Terms

See entry under Microsoft / Business Central Specific. Formerly known as Azure AD, Microsoft Entra ID is the identity and access management platform for Microsoft cloud services. It supports OAuth 2.0, OpenID Connect, SAML, and SCIM protocols for authentication and authorisation.

Manufacturing Terms

MES (Manufacturing Execution System) Manufacturing Terms

A system that monitors, tracks, and controls the production process on the shop floor in real time. An MES bridges the gap between the ERP (which handles planning and orders) and the factory floor (which handles production). It tracks work orders, machine status, quality measurements, and labour against production runs.

OEE (Overall Equipment Effectiveness) Manufacturing Terms

A metric that measures manufacturing equipment productivity by combining three factors: availability (uptime), performance (speed), and quality (defect-free output). OEE is expressed as a percentage, with 85% considered world-class. Interface layers can pull OEE data from MES or manual entry and display it on live dashboards.

WMS (Warehouse Management System) Manufacturing Terms

A software system that manages warehouse operations including receiving, put-away, picking, packing, and shipping. A WMS typically includes barcode scanning, location management, and real-time inventory tracking. Many ERPs include basic WMS functionality; standalone WMS solutions offer more advanced capabilities for complex warehousing operations.