An API allows two applications to communicate and share data. It acts as an intermediate program that handles requests between applications and facilitates the exchange of information. A request is sent by one application to the API, which then retrieves the necessary data from another source like a database and responds back to the requesting application with the information in a format it can understand and display to the user. APIs are commonly used in ERP systems to integrate with other applications and enable key functions like order management, purchasing, inventory checks, and payments by facilitating the flow of data between different programs and systems.
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