20 terms that define the ERP domain.

CFDI

Comprobante Fiscal Digital por Internet — Mexico’s mandatory XML e-invoice format, sealed by an authorized PAC.

Consolidation

Combining the financial statements of multiple legal entities into one, eliminating intercompany transactions to avoid double counting.

Consolidation elimination

Entry that cancels the duplicated effect of intercompany transactions when combining books across multiple entities.

DGI

Dirección General de Ingresos — Panama’s tax authority, responsible for ITBMS, income tax, and e-invoicing.

Dual audit trail

Combination of accounting trail (journal entries) and technical trail (access and change logs) that lets you reconstruct both the "what" and the "who and when".

HardClose state

Terminal state in the period-close state machine: no transaction can modify balances without a formal reopening entry.

HMAC-signed webhook

Outbound HTTP notification whose payload is HMAC-SHA256 signed. Lets the receiver verify authenticity without sharing credentials.

Intercompany

Transactions between legal entities in the same group: sales, loans, dividends. Must be eliminated upon consolidation.

Isolated tenant

Multi-tenant model where each customer has its own database, not a tenant_id column in shared tables.

ITBMS

Tax on the Transfer of Movable Goods and Services — Panama’s VAT equivalent, taxing consumption at a general 7% rate.

Journal entry

Double-entry record that affects one or more general ledger accounts, with balanced debits and credits.

Landed cost

Total cost of inventory once in the warehouse, including freight, insurance, duties, and handling — not just the purchase price.

OpenAPI 3.0

Open standard for describing HTTP APIs in YAML/JSON, enabling client generation, mocks, and interactive documentation.

PAC

Proveedor Autorizado de Certificación — entity accredited by Mexico’s SAT to stamp CFDIs and grant them fiscal validity.

Party hierarchy

Data model where customers and suppliers are organized in parent-child trees (corporate → division → branch) instead of flat lists.

Period close

Monthly or annual process that freezes transactions in an accounting period, ensuring the issued financial statements cannot change retroactively.

RowVersion

Opaque token associated with each record that changes on every modification. Used to detect concurrent update conflicts (HTTP 409).

SOC 2 Type I

Independent attestation that verifies the design of security, availability, and confidentiality controls at a point in time.

Source-currency preservation

Preserving the original amount and currency of each transaction, not only the converted equivalent. Essential for audit and correct FX gain/loss.