What is ERP Integration?

ERP integration is the technical connection between an order management system (OMS) and an Enterprise Resource Planning (ERP) platform such as NetSuite, SAP Business One, Microsoft Dynamics, QuickBooks, or Xero. This integration synchronizes data between the two systems—typically flowing order and sales data, inventory levels, purchase orders, customer records, and financial transactions between the OMS (which manages the operational side of orders and fulfillment) and the ERP (which manages accounting, financial reporting, and broader business resource planning). The goal is to eliminate manual data transfer and ensure that both systems reflect the same, accurate information.

Why It Matters

Most growing businesses operate with both an OMS for order and inventory management and an ERP for accounting and financial management. Without integration, these systems become data silos that require manual reconciliation. Staff re-enter order data from the OMS into the ERP for invoicing, manually update inventory counts in both systems, and spend hours ensuring that sales figures, cost of goods sold, and revenue recognition match across platforms. This manual double-entry is time-consuming, error-prone, and creates delays in financial reporting.

ERP integration eliminates these inefficiencies by creating an automated data bridge. Orders processed in the OMS automatically generate corresponding records in the ERP. Inventory adjustments in either system are reflected in both. Financial data flows seamlessly into the general ledger without manual journal entries. The result is accurate, real-time financial visibility and significant reduction in accounting labor—freeing the finance team to focus on analysis rather than data entry.

How It Works

ERP integration involves mapping data fields and establishing automated data flows between systems:

• Data Mapping: Fields in the OMS (SKUs, order numbers, customer records, price fields) are mapped to their corresponding fields in the ERP. This mapping accounts for differences in data structure, naming conventions, and required fields between the two systems. For example, an OMS “SKU” might map to an ERP “Item Number,” and an OMS “order total” must be broken into ERP line items for revenue, tax, shipping, and discounts.
• Order and Sales Sync: Completed orders from the OMS are synced to the ERP as sales orders or invoices. This includes line items, pricing, tax calculations, customer information, and payment method. The ERP uses this data for revenue recognition, accounts receivable, and financial reporting.
• Inventory Sync: Inventory levels, cost values, and stock adjustments are synchronized between systems. When the OMS records a sale, the ERP’s inventory ledger is updated. When the ERP records a purchase order receipt, the OMS’s available inventory is updated. This bidirectional sync ensures both operational and financial inventory records stay aligned.
• Financial Data Flow: Cost of goods sold, shipping expenses, marketplace fees, refunds, and other financial transactions flow from the OMS to the ERP’s general ledger. This automated journal entry creation eliminates the month-end reconciliation burden and provides real-time profit and loss visibility.
• Customer and Product Master Data: New customers and products created in either system are synchronized to the other, maintaining a consistent master data set across the organization.

How Nventory Helps

Nventory offers pre-built integrations with popular ERP platforms including QuickBooks, Xero, NetSuite, and others. These integrations automatically sync orders, inventory, customers, and financial data between Nventory and your ERP—eliminating manual data entry and ensuring your accounting records always match your operational reality. Configuration is handled through a guided setup that maps your specific data fields and business rules without requiring custom development.