Running a company means handling a lot of moving parts: products, quotes, orders, invoices — you name it. ERP systems are great at helping you manage all of this, but there’s one thing they don’t fix automatically: how you identify each item. If your naming is a mess before the ERP, it’ll still be a mess after. That’s why having a few simple naming conventions in place - whether you use an ERP or not - can make a huge difference.
Every business that sells something issues invoices. And every invoice needs a unique number. Most companies just go with whatever their accounting software generates. Sometimes that works. But sometimes it doesn’t give you the clarity or control you need. A basic invoice number might look like "000001", and each new invoice just adds one. Or you might see something like "INV-000001" - a prefix that makes it clear you’re looking at an invoice. But with a little planning, that number can tell you more.
Take this example: "INV-25030001". It breaks down like this:
- INV tells you it's an invoice.
- 25 stands for the year (2025).
- 03 is the month (March).
- 0001 is the invoice number for that month.
Even without opening the file, you know when it was issued and what type of document it is. You could even include a code for the customer or location if needed. These little touches make sorting, filtering, and finding documents much easier.
The same idea applies to lots of other documents:
- Quotes – Add a prefix like Q- and date info.
- Sales Orders – Use SO- plus year/month and a sequence.
- Purchase Orders – Try PO-25050012 for the 12th order in May 2025.
- Work or Service Orders – Customize codes for departments or job types.
Once you get into the habit, these conventions become second nature. They reduce confusion and make it easier to spot mistakes or duplicates.
Here’s where most companies miss a huge opportunity: product codes or part number. A lot of ERPs default to simple, auto-generated part numbers. That’s fine if you’re only tracking a few products - but once you scale up, it gets painful. You end up with codes like 100054, 100055, and no clue what those products are without digging into the details.
Other industries have already solved this. Think about tires - ever seen those long codes with all the numbers and letters? They tell you the size, type, and performance category. TVs do it too: screen size, resolution, model year. There’s meaning behind the code, and that meaning saves time for people across the whole chain - from manufacturing to customer support.
One great way to build your part number system is by using your product categories. Let’s say you sell materials like sheets, rods, and fasteners. You could build a code like this:
- First part = material type (STL for steel, ALU for aluminum)
- Second part = form (RD for rod, SH for sheet)
- Third part = dimensions or variation (12X2 for 12mm x 2m)
- So you might end up with: STL-RD-12X2
It’s not overly complex, but it gives instant context. And when combined with a consistent category structure, it makes your ERP (or even a spreadsheet) much easier to work with. You can create items faster, search with more accuracy, and avoid duplicates.
Even if you don’t have an ERP yet, defining naming patterns now gives you a serious head start. And if you already do have one, cleaning up your naming conventions can still improve how your team works with it every day. Take the time to sit down with your team and decide:
- What documents do we create often?
- What parts of those need clear IDs?
- What structure would make them easier to sort, search, and understand?
It doesn’t need to be perfect or overly detailed. Just consistent and useful. When you're ready for an ERP - or ready to make better use of the one you already have - you’ll be glad you did.