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ERP Fundamentals Flashcards

7 cards from real ERP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 ERP Fundamentals flashcards as text

  1. What is the purpose of 'user acceptance testing' (UAT) in an ERP implementation?

    Answer: To allow end users to validate that the system meets business requirements before go-live

    UAT is the final testing phase where actual business users verify that configured processes work correctly and meet defined requirements before production launch.

  2. Which of the following best describes 'ERP integration' with third-party systems?

    Answer: Connecting the ERP to external applications so data flows seamlessly between systems

    ERP integration uses APIs, middleware, or EDI to synchronize data between the ERP and external systems like e-commerce platforms, payroll providers, or CRMs.

  3. In ERP, what is a 'cost center'?

    Answer: An organizational unit used to track costs and expenses for management reporting

    A cost center is a logical unit (e.g., a department or team) that accumulates costs, enabling managers to monitor spending and performance by area.

  4. What does 'real-time data' in an ERP system mean for management decision-making?

    Answer: Managers can access current, up-to-the-minute information without waiting for batch updates

    ERP systems process transactions immediately, so managers can see inventory levels, sales figures, and financial positions at any moment without delays.

  5. Which ERP process converts a customer sales order into a delivery and eventually an invoice?

    Answer: Order-to-Cash (OTC)

    The Order-to-Cash process spans from receiving a customer order through fulfillment, invoicing, and collecting payment.

  6. What is the function of an ERP 'audit trail'?

    Answer: Recording who made what changes and when, supporting accountability and compliance

    An audit trail logs every transaction and system change with user ID and timestamp, providing a traceable history essential for compliance and fraud detection.

  7. A company switches ERP vendors after 10 years. The biggest challenge they face is likely:

    Answer: Data migration, retraining users, and re-mapping customized business processes

    Replacing an ERP involves extracting and transforming years of historical data, rebuilding custom workflows, and retraining an entire workforce on new processes.