What Is a System of Record?

The need to name one becomes acute when management information systems are built by taking data from several source systems, reprocessing it and presenting the result for a new business use. Those systems may then disagree about the same information. The disagreements may stem from:

• Meaning. Semantic differences in how the data is defined.
• Opinion. Differences in opinion.
• Sources. Each system used a different source.
• Timing. The extract, transform, load (ETL) processes that create the data ran at different times.
• Bugs. The disagreement may simply be the result of a bug.

A system of record is the authority for a given data element, so one system can hold the authoritative prices while another holds something else. Any data set is open to question when it has no traceable connection to a good source, and listing a system of record is a solution to this.

The approach fits best where there is a single authority over everyone who uses the data and all of them have similar needs. In more diverse environments, consumers may accept different authorities, so multiple opinions have to be supported instead.

In US federal government use, the phrase "system of records" means something different. NIST defines it as a collection of records that contain information about individuals, are under the control of an agency, and can be retrieved by the individual's name or another identifier.

Single source of truth (SSOT) architecture is the practice of structuring information models and data schemas so that every data element is mastered, or edited, in only one place. A golden record is the master version of a data element in a single source of truth system. A system of record is the system that is the authoritative data source for a given data element.

An ideal single source of truth is rarely possible in most enterprises, because many organizations have several information systems that each need data about the same entities, such as customers. An ERP may store a customer record, while the CRM and the warehouse dispatch system may also need copies. There are several scenarios for copies and updates:

• No copies. Other systems hold only references, so all reads and updates go directly to the source.
• Read-only copies. Copies are only read, and only the master data is updated.
• Updated copies. Copies are updated too, which needs a reconciliation mechanism when updates happen at the same time.

For organizations with more than one information system that want a single source of truth, master data management (MDM) is one supporting architecture. An MDM application receives updates from multiple sources, decides which updates are authoritative (the golden record) and then syndicates the updated data to all subscribing systems.

A distributor names its ERP as the system of record for contract prices. A buyer's agreed price is $42 per case, but someone edited the online store by hand to $45.

• The conflict. The store shows $45 and the ERP holds $42.
• The rule. The ERP is the system of record, so $42 wins and the store is corrected.
• The order. 10 cases are billed at 10 x $42 = $420, not $450.

Shopify lets you integrate ERP, accounting and other business systems with a B2B store, and build your own integrations with its B2B APIs. Apps built on the GraphQL Admin API can work with B2B objects such as companies, catalogs and price lists. A catalog is a set of products published and priced for certain customers. Apps can subscribe to Shopify webhooks to receive near-real-time data about events on a shop, which keeps them in sync with Shopify data. As general practice, decide which system is authoritative for each data element when you plan the integration.

With Uncap Connect, the ERP stays the system of record, and Connect keeps Shopify in sync with it rather than replacing it. Field-level rules decide which system wins, every time. See how it works on the Uncap Connect page.

• ERP integration
• iPaaS
• Middleware
• Webhook
• Order management system
• Price list

• System of record (Wikipedia)
• System of record (NIST CSRC glossary)
• B2B features on Shopify (Shopify Help Center)