ERP and cloud accounting glossary: 45 terms explained

Core ERP and cloud concepts

Enterprise software has its own vocabulary. These terms cover what ERP is, how cloud delivery works and why true cloud is not the same as hosted software.

• ERP (Enterprise Resource Planning): Software that unifies core business processes, finance, purchasing, inventory, projects and reporting, in one system with a shared database, so teams work from the same live data instead of disconnected spreadsheets.
• Cloud ERP: ERP delivered over the internet and hosted by the vendor, accessed through a browser with no servers on site. The provider manages updates, backups and security, and staff can work from anywhere with a connection, including through load-shedding.
• True cloud: Software built for the cloud from the start, where every customer runs on one continuously updated codebase. Sage Intacct is true cloud, unlike hosted products that run older on-premises software on a remote server.
• SaaS (Software as a Service): A model where you subscribe to software hosted by the vendor rather than buying and installing it. You pay a recurring fee and the provider handles infrastructure, maintenance and upgrades.
• On-premises: Software installed and run on servers you own and maintain at your premises. You control the hardware but carry the cost of servers, upgrades, backups and IT support that cloud subscriptions remove.

General ledger and accounting structure

The general ledger and its structure sit at the heart of any accounting system. These terms describe how transactions are recorded and organised.

• General ledger (GL): The central record of all financial transactions, organised by account. Every sale, payment and journal entry posts to the GL, which produces the trial balance, income statement and balance sheet.
• Chart of accounts (COA): The structured list of every account used to record transactions, such as revenue, expenses, assets and liabilities. A clear chart of accounts keeps reporting consistent and financial statements easy to produce.
• Multi-dimensional general ledger: A GL that tags each transaction with dimensions rather than creating a separate account for every combination. Sage Intacct uses this design, so you report by department, location or project without a bloated chart of accounts.
• Dimensions: Tags applied to transactions, such as entity, department, location, project, item, customer or employee, that let you analyse financial data many ways. Dimensions replace long strings of GL codes and drive flexible reporting.
• Trial balance: A report listing the closing balance of every ledger account at a point in time, with total debits equal to total credits. It confirms the books balance before financial statements are prepared.

Accounts payable, receivable and the close

Payables, receivables and the month-end close are where finance teams spend much of their time. Automation and clear definitions shorten the cycle.

• Accounts payable (AP): The money a business owes suppliers for goods and services received but not yet paid. AP work covers capturing invoices, routing them for approval and paying vendors on time.
• Accounts receivable (AR): The money customers owe for goods or services already delivered. Managing AR well, through prompt invoicing and collections, protects cash flow and reduces the risk of bad debt.
• AP automation: Using software to capture, code, approve and pay supplier invoices with little manual entry. Sage Intacct AP automation cuts errors, speeds approvals and gives finance clearer visibility of what is owed and when.
• Bank reconciliation: Matching transactions in the accounting system against the bank statement to confirm they agree. Automating reconciliation catches errors and missing entries and speeds up the close.
• Month-end close: The process of finalising the accounts for a period, reconciling balances, posting adjustments and producing statements. Sage reports that Intacct customers close the books up to 90% faster.
• Soft close: A faster, lighter close that produces reliable management numbers without every final adjustment. It gives leaders early visibility of results, with the formal hard close following later.
• Continuous close: An approach where reconciliations and postings happen throughout the period rather than in a rush at month-end. Automation keeps the books close to ready at any time, shortening the final close.
• Order to cash (O2C): The end-to-end process from taking a customer order to delivering, invoicing and collecting payment. Streamlining order to cash shortens the time between a sale and cash in the bank.

Consolidation, currencies and reporting standards

Groups with subsidiaries, foreign trade or contract revenue need extra structure. These terms cover consolidation, currencies and the standards that govern reporting.

• Multi-entity: The ability to manage several legal entities, companies or branches in one system, each with its own books, while sharing data and consolidating results. This suits groups, franchises and businesses with subsidiaries.
• Consolidation: Combining the results of multiple entities into one set of group statements, removing intercompany transactions. Sage Intacct automates multi-entity consolidation, including across different currencies.
• Multi-currency: Handling transactions, reporting and consolidation in more than one currency. The system records foreign-currency transactions, revalues balances and tracks exchange gains and losses, useful for South African businesses trading beyond ZAR.
• Revenue recognition: The accounting rules that decide when and how much revenue a business records, matching income to when it is earned rather than when cash arrives. This matters for subscriptions, services and projects.
• IFRS (International Financial Reporting Standards): The global accounting standards used in South Africa for preparing financial statements. IFRS aims to make company accounts consistent and comparable across countries.
• IFRS 15: The standard covering revenue from contracts with customers. It sets a five-step model for recognising revenue as performance obligations are met, important for subscription, services and project-based businesses.
• GAAP (Generally Accepted Accounting Principles): A common framework of accounting rules for recording and reporting financial information. Sage Intacct supports GAAP and IFRS reporting and is the accounting solution preferred by the AICPA.
• Fixed asset management: Tracking capital assets through their life, including cost, depreciation and disposal. Accurate asset records keep the balance sheet correct and support tax and audit requirements.

South African finance and compliance terms

South African finance teams work within local tax, privacy and procurement rules, and many are moving off older Sage products. These terms put ERP in a local context.

• VAT (Value-Added Tax): The consumption tax charged on most goods and services in South Africa, administered by SARS. VAT-registered businesses charge it on sales, claim it on purchases and pay the difference to SARS.
• VAT201: The VAT return that registered South African businesses submit to SARS, usually every two months, declaring output and input VAT. ERP systems that track VAT correctly make preparing the VAT201 far simpler.
• SARS eFiling: The South African Revenue Service online platform for submitting tax returns and making payments, including VAT201 and PAYE. Accurate ERP records feed the figures businesses capture on eFiling.
• POPIA (Protection of Personal Information Act): South Africa's data-protection law, setting how organisations may collect, store and process personal information. Cloud ERP with strong access controls and audit trails helps businesses meet POPIA obligations.
• B-BBEE preferential procurement: The part of Broad-Based Black Economic Empowerment that scores companies on spending with empowered suppliers. Detailed, dimension-tagged spend data from ERP makes preferential-procurement reporting easier and more accurate.
• ZAR (South African Rand): The national currency of South Africa. In multi-currency ERP, ZAR is typically the base or reporting currency, with foreign transactions converted and revalued against it.
• Pastel and Sage 50: Established South African accounting packages many smaller businesses start on. Growing companies often outgrow their limits on entities, users and reporting and migrate to cloud ERP such as Sage Intacct.
• Sage 200 Evolution: A mid-market accounting and business management product widely used in South Africa. Businesses needing multi-entity consolidation, deeper automation or true cloud access often move from Sage 200 Evolution to Sage Intacct.

Cloud, data and technology terms

Modern ERP connects to other systems and automates routine work. These terms cover integration, automation and how you get data in and out.

• API (Application Programming Interface): A defined way for software systems to exchange data automatically. Sage Intacct has an open API, so it can share information with CRM, payroll, banking and industry applications.
• Integration: Connecting two or more systems so they share data without manual re-keying. Common ERP integrations include CRM, payroll, expense management and e-commerce platforms.
• Sage Marketplace: Sage's catalogue of applications that connect to Sage Intacct. It gives access to integrations with Salesforce and more than 100 other apps, so businesses extend the system without custom development.
• RPA (Robotic Process Automation): Software robots that carry out repetitive, rule-based tasks such as data entry or matching. In finance, RPA reduces manual effort on high-volume work and lowers the chance of error.
• Role-based dashboards: Screens that show each user the figures and tasks relevant to their role. Sage Intacct offers role-based dashboards and more than 150 built-in reports, so leaders see the numbers that matter to them.
• Business intelligence (BI): Tools that turn accounting and operational data into reports, dashboards and analysis for decision-making. BI helps finance move from recording history to explaining performance and forecasting.
• Data migration: The process of moving records, such as customers, suppliers, balances and history, from an old system into a new one. Careful migration and validation are central to a successful ERP implementation.

Finance metrics and KPIs

Finance leaders track a handful of measures to judge how well the business and the finance function are running. These appear often in ERP dashboards.

• DSO (Days Sales Outstanding): The average number of days a business takes to collect payment after a sale. A lower DSO means faster collection and stronger cash flow, and ERP dashboards track it in real time.
• Days to close: The number of working days taken to complete the month-end close and produce financial statements. Fewer days to close means leaders get reliable numbers sooner, and automation is the main lever for reducing it.
• Working capital: The difference between current assets and current liabilities, showing the short-term funds available to run the business. Managing receivables, payables and stock well keeps working capital healthy.
• Audit trail: A complete, time-stamped record of who did what in the system and when. A strong audit trail supports internal control, external audits and compliance with rules such as POPIA.