Glossary for Financials100% account The statement account defined as the denominator when
calculating percentages. abandoned A disposal type, which records that an asset has been
discarded. accelerated cost recovery system A set of rules established in 1981 in the United States
governing allowable deductions, on income tax, for the use of tangible
income-producing property. ACRS is mandatory for tangible long-lived property
placed in service after 1980 and before 1987. ACRS uses the cost of the asset
to determine the asset class and recovery period. Acronym: ACRS accelerated depreciation To depreciate an asset by an extra amount in a specific year.
Accelerated depreciation reduces the depreciation time. accelerated method A depreciation method in which an asset's cost is depreciated
more quickly at the beginning of its life than at the end. Accon Interface Companies in Belgium use a particular software to declare their
annual balance to the National Bank of Belgium. This third party program is
called Accon or Accon Interface. account See: ledger account accounting scheme A scheme of accounts to which the results of certain events are
posted. The accounting scheme consists of ledger accounts, structured in a
parent-child hierarchy. accounting system The base to calculate surcharges. In Cost Accounting, both the
full cost and variable cost can be charged. account matching authorization scheme A company-specific set of authorization restrictions that can
be linked to account matching users. account matching properties A company-specific set of properties with matching information
linked to a ledger account. See: automatic account matching criteria
set account number Consists of a natural account (12 characters) and up to twelve
dimensions (6 characters each dimension) in LN. The dimensions are
user-defined. accumulated depreciation The total depreciation recognized and recorded for an asset
since its acquisition. Accumulated depreciation is subtracted from the original
cost of the asset to provide the net book value. ACRS activity The process of performing a specific task in a company.
Activities are used for the allocation of cost amounts, quantities, or
percentages to a cost object. In LN the activities are the dimensions of one dimension type. activity-based costing (ABC)
actual costs The real cost amounts that are booked in the General Ledger. To
control the actual costs, you can compare budgeted costs. Antonym: budgeted amounts Antonym: budgeted
costs actual discount amount The sum of all the discounts actually deducted during a certain
period. actual late payment surcharges The sum of the late payment surcharges that were actually
deducted. additional costs Extra costs charged by the invoice-from business partner which
create a difference between the invoice amount and the order amount or the
goods received amount. For example, storage costs, freight costs, and insurance
costs. adjusted current earnings federal tax book code An identifier for an asset that belongs in an Adjusted Current
Earnings (ACE) Federal Tax Book. ACE is the recalculation of income for
purposes of computing an adjustment to Alternative Minimum Tax (AMT) as
required by United States federal tax code for assets placed in service after
1989. adjustment A modification to an actual budget that has the Final status. Adjustments are associated with the budget as a whole and not with any
individual budget line. Unlike extensions, where any additional costs can be
passed to the project customer, adjustment costs are absorbed by the project
company and do not affect customer invoicing. adjustment A modification to a purchase invoice transaction that was
posted to the General Ledger. An adjustment is included in a correction document. adjustment transactions Correction entries to be made on financial statement
values. advance installment See: advance invoice advance invoice A request to pay (a part of) the sales amount before the goods
are sent to a sold-to business partner. Synonym: prepayment Synonym: advance
installment advance payment/receipt A paid or received amount, which cannot be allocated to an
invoice or any other document. After an invoice has been created, the advance
payment or receipt can be allocated to it. Unlike an unallocated
payment/receipt, you can calculate tax on a advance payment/receipt. advances granted to personnel An account that records debit advances and credits them to
salaries from which the advances are deducted. aging analysis A classification of open entries based on aging periods and
period types. AGL Advanced General Ledger allocated cost The indirect costs incurred in the purchase of an asset. For
example, when you buy a car, the price of the car, the license, and the
insurance are direct costs. The costs you incurred while shopping for the car
and taking time off to collect it are indirect costs. In some cases, the
government requires you to capitalize these indirect costs for tax purposes. allocation key A key that specifies a set of dimensions and percentages,
serving as destination for percentage allocation relations. The key can be
applied for a defined allocation source, to create allocation relations. allocation relation A relation by means of which a budgeted or actual amount is
charged to, for example, another department. allocation rule set A set that offers various possibilities to build the allocation
relation. You can build allocation relations by using allocation keys, default
allocation relations or consumption rules. allowed costs A flexible cost budget per cost center and reference unit, that
depends on the actual output performance of the reference unit. This applies to
a performance-dependent planning: In case of a performance-independent planning
without reference units the allowed costs are the same as the planned fixed
costs. alternate account An account to which you can transfer amounts with a different
sign (debit/credit value) compared to the linked statement account. Example The Short Term Debts statement account, defined as a credit account, was set up as the alternate account for Cash, which was defined as a debit account. The total value of the ledger accounts linked to the Short Term Debts statement account is 10000.
alternative depreciation life The number of years that the assets in the modified accelerated
cost recovery system (MACRS) group accounts can depreciate using alternate
depreciation methods such as the Alternate Minimum Tax (AMT) preference
calculation. Some tax authorities require you to use the alternative
depreciation life, which is only available for group accounts with the MACRS
account type. alternative depreciation life The number of years the assets in the modified accelerated cost
recovery system (MACRS) group account can depreciate using the standard
depreciation expense allowed by Internal Revenue Service (IRS) Federal tax
regulations. Alternative depreciation life is available for group accounts with
a MACRS account type. alternative minimum tax The types of depreciable property are identified for which
depreciation should be recalculated to compute a taxpayer's Alternative Minimum
Tax (AMT), which will reduce the tax advantages available under regular tax
rules for depreciation. The difference between the standard tax depreciation
amount and the AMT depreciation amount is the amount of the AMT adjustment. AMT
rules have been devised to ensure that at least a minimum amount of income tax
is paid by corporate and high income non-corporate taxpayers, essentially a
recapture mechanism to reclaim some of the tax breaks primarily available to
high income taxpayers in an attempt to maintain tax equity. amortization The systematic reduction or writing off of an amount, such as
an account balance, over a specific number of time periods. Amortization is a
form of depreciation. Amortization is the recovery of certain capital
expenditures, including goodwill and other intangible assets. Amortization is
not available for expenditures for which a current business deduction may be
claimed, or those which are capitalized and depreciated. amount paid The total amount paid of all the partial payments that were
actually made for a certain order. amount received or paid The total amount actually received or paid during a certain
period. The amount does not include any anticipated amounts. annuity A special depreciation method based on an annual instalment
calculation formula. Annuity only applies to a calculatory book (it does impact
the asset's value). anticipated payment A payment that is not entirely executed yet, or is on its way
to be executed. These anticipated payments can be created:
Antonym: anticipated receipt anticipated payment See: anticipated receipt anticipated receipt See: anticipated payment anticipated receipt A receipt that is not completed yet. Anticipated receipts can be created:
Antonym: anticipated payment asset The actual pieces of property, plant, or equipment that are
uniquely utilised and used by an organization for a defined life time. asset acquisition The process of recognizing an asset. When an asset is acquired
it has been fully invoiced, paid, and received. Acquired assets can be
depreciated. An acquired asset has already been capitalized. asset adjustment A transaction that makes changes to asset values that can no
longer be directly changed after the asset is capitalized. Adjustments are
typically used to correct clerical errors or to reclassify the asset's life,
depreciation method, or cost. You can adjust an asset at any point in the
asset's life cycle as long as it is not disposed or removed from
capitalization. asset book A book that has been attached to an asset. You use books to
record depreciation and other transactional data for your organization's
assets. For each book you create, you specify whether assets associated with
the book will depreciate or not. An asset can be associated with several books,
and depreciate differently or not at all in each book. asset capitalization A way to recognize that an asset is in service and is eligible
to depreciate. In order for an asset to be capitalized, it must first be
acquired. asset class A unique identifier for the tax code class for the assets in
the vintage or group account. The class determines the available life range for
asset-depreciation range (ADR) assets or the actual life for modified
accelerated cost-recovery system (MACRS) group assets. The life set in the ADR
book for all assets in the account must be the same as the life set for the
account. asset depreciation The ability to recover, over time, the expense or cost of an
asset that is in use. Depreciation permits you to either match expenses with
revenues or reduce tax liabilities by using a mathematical formula defined as a
depreciation method. An asset can be depreciated on the asset or asset book
level. During asset depreciation LN depreciates the asset or asset book you specify according to the
accounts indicated in the asset distribution. Asset depreciation is run on a
book by book or asset by asset basis. Mass depreciation occurs on a book or
company for a group of assets or group of assets or asset books, while single
depreciation occurs one asset or asset book at a time. asset depreciation range A series of depreciation regulations defined by the United
States IRS applied to certain assets placed in service after 1970 but prior to
1981. The ADR does not apply to assets first placed in service before 1971, or
to property placed in service after 1980 if depreciable under ACRS or MACRS, or
in a year in which an ADR election was not made. ADR is one of several
different types of mutually exclusive regulations that can apply to an asset.
The primary characteristic is that upper and lower limits are set by the United
States IRS for asset lives. A depreciation period used initially in the
election year cannot be changed by either the United States IRS or the taxpayer
during the remaining period of use of the asset. asset disposal A transaction that is applied to remove the values stored on an
asset's related books. A disposed asset remains in Fixed Assets until the specified retention period, but it will not depreciate. There are
several types of asset disposals that can be recorded against an asset (such as
sale, donation, etc.). The impact on reporting varies according to the type of
disposal. asset distribution An asset's distribution indicates the depreciation expense to
specific companies and expense accounts, and their related dimensions.
Distributions also store related location(s), accounts through either the
integration mapping scheme or the transaction template, and the quantities or
percentage costs for the distribution line. asset group A broader level of grouping than an asset category. Used to
classify your organization's assets for reporting and inquiry. asset life An asset's expected useful life; this determines how long the
asset will be depreciated. asset number and asset extension The asset number and asset extension create a unique identifier
for the asset in the selected company. asset transaction A record generated to record an event for an asset, its related
books, and distributions. Transactions are stored for assets that are adjusted,
capitalized, depreciated, disposed, and transferred. asset transfer A transaction that is applied to move part or all of the values
stored on an asset's related books as a result of a change in owner, location,
or responsibility. assigned approver The person or department that is responsible for removing a
hold reason from a registered invoice and release the invoice for further
processing. audit The process of performing a number of checks. audit trails A chronological sequence of audit records, each of which
contains evidence directly pertaining to and resulting from the execution of a
business process or system function. automatic account matching criteria code A list of fields that determines the matching criteria,
including a priority sequence in order to match on different combinations of
fields. See: automatic account matching criteria
set automatic account matching criteria set A company-specific set of priorities with matching criteria
that can be linked to an account matching priority to enable automatic
matching. See: account matching property automatic payment See: direct debit average days outstanding The sum of the outstanding amounts each one multiplied by the
number of days between the invoice date and the end date of a period, divided
by the total outstanding amount. average number of days overdue The sum of all the amounts received or paid, each one
multiplied by the number of days between the due date and the receipt date or
payment date, divided by the total amount received or paid in a certain period. average receipt period or payment period The sum of all the amounts received or paid, each one
multiplied by the number of days between the invoice date and the receipt date
or payment date, divided by the total amount received or paid in a certain
period. averaging convention A way to determine the beginning and end of an asset's recovery
period. The recovery period determines how much an asset depreciates (and
indicates the respective tax deduction) in the first and last year of service. balance sheet A statement of assets, liabilities, and equity at a given date. bank charge The costs a bank charges to process the transactions. The bank
charges can depend on the type of transfer, for example, whether the transfer
is between different banks or between branches of the same bank. In addition,
the bank charges can vary for different ranges of transaction amounts. bank identifier An eleven-character, alphanumeric code that identifies a bank.
In various countries, a bank identifier is used to denote the bank to which an
account belongs. For payments, for example, the bank identifier is used on a
remittance form to denote a banking relation or a pay-to business partner. bank identifier code (BIC) The SWIFT code that identifies financial institutions. The BIC
consists of eight or eleven contiguous characters. Abbreviation: BIC bank reference A unique number used by the banks to reference each invoice.
The bank reference number can be a string of 20 or more digits, composed in
such a way that a number check can be performed to check its validity. In some countries, the bank reference number is a critical component of payment and receipt transactions, especially if payment slips are used. If bank reference numbers are used, the bank reference number must appear on the invoice document, on the payment slip if applicable, and on the payment document. bank relation A bank account of your company. The bank relation definition
includes details such as your bank account number, account type, the international bank account number, the bank's currency
and whether other currencies are allowed, and whether the account is a blocked account. base year The year on which the index values of all other years are
based. The index value of the base is always 100. batch A group of financial transactions processed together. If you
finalize a batch, all the transactions are processed, or if an error occurs, no
transactions are processed. BEI Belgian Balance of Payments Companies in Belgium and Luxembourg are obliged to declare
their financial transactions (payments) with foreign countries. You can use a
specified form to make the declaration which provides information related to
the assets and liabilities as a result of sales and purchases with foreign
companies. Belgian bank files The banking standards specified by the Belgian Bank Association
for electronic payments and transfer of orders and credit advises between
financial institutions and customers. There are different standards for
domestic payments in BEF (Belgian Francs), domestic payments in EUR (Euro) and
other foreign payments. Belgian VAT Reporting The VAT reporting for Belgium requires an alternative way of
presenting the tax amounts. You must use the country groups to facilitate the
setup of the relations by tax position. In addition, you can use the country
groups for tax reporting (both the tax declaration and the yearly tax reports)
and tax journal. BIC bill of activities (BOA) A list of activities used in activity-based costing (ABC). See: activity-based costing
(ABC) See: activity BIRT BIRT is an open source reporting system for web
applications, especially those based on Java and J2EE. blocked account A special account for transferring money to the national tax
authorities. The blocked account is used when subcontractors are contracted.
They must deposit part of the invoice amount into the blocked account. BLWI Belgisch-Luxemburgs Wisselinstituut (Belgium Luxembourg Exchange Institute). book An instance of an asset. Books are attached to assets, and are
designed to capture values for an asset. Each asset may have many books
attached to it for reporting or calculation requirements. Books defined with
particular types ( Calculatory, Financial, etc.) are dedicated to specific calculations. book code Identifies the book associated with the asset. Book codes
permit you to define the books used by assets to record transactional data.
Each asset must have at least one asset-book relationship. book value The purchase value of an asset added with all revaluations and
subtracted with all depreciations, adjustments, and reductions to the purchase
value. The book value can be used as a base for the depreciation calculations. Antonym: purchase value budget A plan of units or amounts allowed to be spent on certain
objects such as departments, cost centers, items, or item groups. This plan can be evaluated with the actual figures afterwards, and it can be compared with other budgets. In addition, you can simulate different scenarios. budget account A budget account generally covers an organized set of
activities, programs, or services directed toward a common purpose or goal.
Budget accounts are the basic building block of the budget levels in the master
budget hierarchy. budget adjustment The process of amending the budget by moving funds from one
category or line item to another. budget amendment budget balance type The budget balances that must be updated for a transaction such
as budget check, release, amendment and budget transfer. The types of budget balances are:
budget control Budget Control is an integrated information system that tracks
and controls budget-related business transactions. Financial health is
continuously monitored by capturing sources and uses of budgets as they are
committed and realized. budget controller A person, who is responsible for all the budget management
functions in the company. budgeted amounts See: actual costs budgeted costs See: actual costs budget entity A company's organizational unit whose budget allocations are
monitored using the budget control process. A budget entity can be one of these types:
budget level The level of a budget within a company or within a group of
companies. budget manager A person, who is responsible for his own budget which is a part
of the company's budget. budget period A period of time for which the budget is applicable or
active. budget policy The policy defined for a budget, which defines the way the
budget must perform. budget status The status of the budget. Allowed values
budget structure The hierarchy which contains all roll-up structures and budget
accounts. budget structure tree A graphical display of all levels in the budget structure, by
clicking on each branch the underlying levels are displayed until the lowest
level 1 is reached. By selecting a branch all other panes are adjusted so the
relevant amounts, balances and exceptions are displayed. budget transfer A budget amendment process. A transfer updates both the budget
and the allotment for the account. The original budget can still be found by
adding or subtracting all budgetary amendments from the actual budget. budget year The fiscal year for which the policy is
applicable. business entity identifier (BEI) The SWIFT code that identifies non-banking institutions and
trading partners. The BEI consists of eight or eleven contiguous characters,
and has the same structure as a Bank Identifier Code. Abbreviation: BEI business object In the context of financial integration transaction processing,
a business object is a logistic entity or event such as an item, a purchase
order, a business partner, or a warehouse issue. business object attribute A characteristic of the business object that can be used to map
the integration transaction to specific ledger accounts and dimensions. For
example, the Sales Order business object has the Series attribute and the Sales Order Type attribute, among others. business object ID The unique code that identifies a specific business object. For
example, the business object ID of a Purchase Order business object is the purchase order number. business object reference A transaction identification more detailed than the business
object, for example, a receipt number or an order number. You can use the
reference during reconciliation to match transactions if the business object
alone does not provide enough information, for example, during GRNI
reconciliation. Note The business object reference is not the same as a reference link. business percent The asset percentage that is used for business purposes. For
tax books, if the business percentage is less than 50, the asset is not
eligible for an investment tax credit (ITC) or asset-depreciation range (ADR)
or modified accelerated cost recovery system (MACRS) group depreciation. Other
books do not modify depreciation according to business use percent. The default
value is 100%. You can also distinguish between business use and personal use. calculation group A set of financial companies that indicates the currency that
must be used for each company in financial statements. The currency can be one of these:
Calculator book A book type that permits methods of depreciation specific to
European requirements (as in annuity method). calculator interest The interest rate that is used in order to calculate the
interest on the average capital invested. capitalization A transaction that is used to enable asset-related books to be
depreciated. Capitalization is the point in time that an asset is used. This
point is recorded in specific balance sheet accounts to reflect this change in
status from Entered to Acquired. capitalized interest The amount you saved by funding a large material project
yourself, instead of borrowing from the bank. It is recognized as a credit to
interest income, and a debit to assets. This is a non-cash entry. cash All money handled through bank accounts, cash boxes, including
documents representing a monetary value such as checks and trade notes, that
are used in payment/receipt procedures. cash application The assignment of received payments to open entries. cash flow reason An indication of the kind of cash transaction. Transactions to
which you link a reason code of the Cash Flow type are included in the cash flow statement, sorted by cash flow
reason. cash flow reason group A way to group cash flow reasons on the cash flow statement. On
the cash flow statement, LN prints the subtotals for each cash flow reason group. cash flow statement A report of the cash transactions history in a financial
period. The report provides an overview of the sources and uses for cash. In
some countries, a cash flow statement must be submitted to the authorities
periodically. cash forecast The expected cash position at a future date. The current cash
amount is increased by the amounts to be received and reduced by the amounts to
be paid, in all periods in between. cash transaction matching Payment or receipt (partly) linked to an invoice. category Used to classify an asset and provide data entry defaults
during asset entry. Categories have associated subcategories, which are
assigned by default. charitable contribution An asset that is donated to others. For example, computers that
are given to schools. chart of accounts A hierarchical structure of ledger accounts and dimensions. To support dual accounting, the chart of accounts can consist of a structure of statutory accounts for fiscal reporting purposes and complementary accounts used for management reporting. check A written order directing a bank to pay money as instructed. check master A function in which checks can be prenumbered. The prenumbered
checks can be used later on in the payment process. child budget Part of a parent budget; the budget for an autonomous part of
the company, such as a department. CI class life The number of years that the assets in the modified accelerated
cost recovery system (MACRS) group accounts can depreciate. The class life is
only available to MACRS group accounts. class-life depreciation range The asset-depreciation range for a class is a range of years
from 20% below to 20% above the class life, rounded up to the nearest whole or
half year. clearing accounts A temporary account containing costs or amounts that must be
transferred to another account. closing method A schedule for the generation of monthly billing invoices. For
example, you can define a closing method to generate two monthly billing
invoices each month: one on the 15th day of the month and one at the end of the
month. collateral A security to secure a loan from the bank. column layout Column layouts determine the general presentation of columns
in financial statements. This includes the number and position of columns,
format, and alignment. This data is used to define the statement columns in a
financial statement. LN will order the column data according to the parameters corresponding with the
layout code selected. column references The data linked to a financial statement column that allows to
calculate the column values. commercial book Used in countries other than the United States to record data
that is not subject to tax reporting regulations, such as general ledger data. commitments Represents the start of a spending process through the
generation of a purchase requisition. A commitment sets aside an estimate
amount from the budget. This prevents other commitments that could exceed the
budget. A commitment is not a legal obligation. company ID The identification number the bank assigns to your organization
for the electronic processing of bank files. complementary account A ledger account that you can use for the amounts that are
complementary to the amounts in the statutory accounts. For example, you can
link a statutory account and a complementary account to a parent account. If
you print the Management report based on the parent accounts, on the report LN adds the amounts in
the complementary account to the amount in the statutory accounts. Antonym: statutory account complementary account See: statutory account compression A method to decrease the number of figures by saving only a
total amount, based on a set of common attributes. Compression is for example possible for:
consolidated statement Consolidated statements represent the accumulated financial
figures of various financial companies, in or outside the financial group
company, referring to a specific period. You can accumulate the figures of
subsidiaries belonging to the same holding, based on a percentage of ownership
(fully owned or majority/minority share). Consolidation can take place by joining separate financial statements. If these statements use a currency that differs from the consolidation currency, the Financial Statements (tffst1600m000) session allows you to define the rates between the statement currencies and the consolidation currency. Consolidation is also possible on a higher level by joining separate consolidation statements. consumption rules Rules that allow you to generate outgoing budget and actual
allocation relations from a retrograde source. control account A ledger account used to reflect the balance of a number of
related subsidiary accounts. In LN, 'control account' usually refers to the creditors' account or the debitors' account defined for the financial business partner groups in Accounts Payable and Accounts Receivable. In addition to the creditors' account and the debitors' account, you can define a number of specific control accounts for a business partner group, such as control accounts for doubtful invoices, advance and anticipated payments or receipts, and realized and unrealized currency profit or loss. correction document The document that includes the adjustments made to the original
purchase invoice. See: original document cost accounting A system to record and report aggregate and detailed cost data
from cost centers. cost allocation Budget amounts and actual amounts can be allocated between
dimensions. cost allocation sheet A report per dimension or reference unit showing cost amounts
per cost type. Note The way of representation is similar to the presentation in flexible budgeting. cost-allocation sheet A report per cost center or reference unit showing the cost
amounts per cost type. cost category A set of cost types, represented as ledger accounts. In
cost/budget allocation you can restrict the amounts to be allocated to a cost
category, a subset, of all cost types. cost center An organizational unit to which costs can be allocated. Cost
centers are represented as dimensions. cost driver An activity which creates costs, for example, a machine. Cost
drivers are represented as reference units. cost invoice A purchase invoice for which no related purchase order
exists. cost object An unit to which costs can be linked. cost portion A part of the cost pie. In Cost Accounting different
portions can be distinguished which can be posted to different cost centers
(dimensions) and cost types (accounts). cost rate The price, budgeted or actual, per reference unit. For example,
the price of a machine per hour. cost type Type in classification of budgeted or actual costs. Cost types
are represented as ledger accounts. credit note The correction form for a (partly) returned purchase or sales
order. The credit note states the quantity and value of the goods concerned and
the reason for the credit. creditor identifier (CI) A country-specific code which allows debtors as well as debtor
banks to return to the creditor for refunds and complaints, and to check the
existence of a mandate at the presentation of a collection by the creditor. A
creditor identifier always refers to a one creditor. However, a single creditor
may use more than one CI for the initiation of collections in all SEPA
countries. The creditor identifier consists of up to 35 characters, with this format:
Abbreviation: CI cross validation rule A user-defined rule that allows you to indicate which
combinations of GL accounts and dimension values are valid. A cross validation
rule requires at least one rule element. Cross validation
rules are applied to all transactions registered in the General Ledger. In case
of multiple financial companies, validation rules can be either
company-specific or applicable across all companies. See: rule element currency differences Currency result caused by fluctuations in the exchange rate,
for example, if the exchange rate between the invoice currency and your home
currency differs between the invoice date and the payment date. current quantity The remaining asset quantity. As the asset goes through its
life, its quantity decreases, depending on the asset type. customer statement A document sent to the customer showing the open entries. custom method A free definable method based on depreciation percentages.
Percentages can be defined for the years in service, or alternatively for each
period of a year in service. In the first period of depreciation, the
corresponding percentage is selected, and is used for calculation throughout
the total life of the asset. DAS 2 Déclaration annuelle des salaries (Annual
declaration of the wages/fees). A report of all payments made to third parties
during a fiscal year, which must be submitted annually to the French
government. data type Defines a set of values and the allowable operations on those
values. For mapping XML elements to LN records, these data types exist:
declining-balance method In declining balance, the system calculates each year's total
depreciation by applying a constant percentage to the asset's net book value.
This leads to continuously decreasing depreciation amounts. A declining balance
does not depreciate the asset to its salvage value. If you want to depreciate
the asset to its salvage value, you must use the declining balance with a
switch to straight line formula. declining percentage A percentage rate that is applied in the declining balance
formula to calculate the depreciation amount as a percentage of the asset's net
book value. deductable late payment surcharges The sum of the late payment surcharges that were not due
because the invoices were paid in time. default allocation relation Templates for allocation relations with source and destination
dimensions in different allocation models. deferred tax An estimated amount of future income taxes that may become
payable because of income that has already been earned but has not yet been
recognized for tax reporting purposes. It is not an actual liability or present
obligation but instead represents an attempt to compensate for timing
differences in the recognition of certain income and expense items for tax
reporting and for financial reporting purposes. delivery terms group The delivery terms group that will be mentioned on the Belgian
Balance of Payments report. depreciable books Indication whether the assets associated with a newly created
book depreciate. depreciable cost Generally depreciation cost is the cost of the asset minus its
salvage value minus accumulated depreciation. depreciation The decrease in value of fixed assets. The depreciation amount
is calculated as the result of the combination of a depreciation method on the
book or purchase value of a fixed asset. The depreciation amount is the amount
that is deducted from the purchase value to calculate the book value. See: depreciation costs depreciation adjustments An adjustment for the depreciation of an additional investment
on the same fixed asset. The adjustment is done for the time between the start
of depreciation and the moment of additional investment. depreciation amount A calculation amount based on a depreciation method. depreciation costs The costs of depreciation that are posted to the profit and
loss sheet. It is used as the price of using an asset for a certain
period. See: depreciation depreciation expense An amount deducted from revenue in determining income, based on
an allocation of a long-lived asset's original cost over the years of its
useful life. depreciation frequency A way to determine how often depreciation is recorded. It also
determines whether a particular period is suspended. depreciation method The depreciation method used for an asset determines the
formula for calculating the amount of depreciation taken on an asset.
Depreciation methods are case-sensitive. depreciation method The way in which the depreciation of a fixed asset is spread
out over the years. destination gain and loss Currency result caused by different results when the
transaction currency is converted to the various home currencies. Destination
gain and loss can only occur in an independent currency system. dimension Analysis account for ledger accounts to get a vertical view on
ledger accounts. Dimensions are used to specify ledger account information. See: dimension type dimension type One of up to twelve available analysis account bases for ledger
accounts. direct debit The initiation of pay-by business partner receipts by means of
sending requests to the bank for transfer of the amounts due from the customers
bank account to the company's bank account. Antonym: automatic payment disinvestment The withdrawing of investment. disposal
The sales revenue is recorded in order to post book profits or losses. disposal type Indicates the reason why a fixed asset is disposed of. distribution A method for spreading out budgeted or actual year totals to a
number of periods. Both quantities and amounts can be spread out. distribution account Each asset can be assigned to one account or distributed across
multiple distribution accounts. The asset depreciation can be recorded in each
distribution account as determined by a percentage or by a unit amount. The
distribution accounts are determined by the transaction template or integration
mapping scheme identified for each line of distribution. distribution line Includes the transaction template or integration mapping scheme
that will determine the distribution account for that particular part of the
asset, the physical location of the asset, and the quantify or percentage of
the asset which is to be distributed to the indicated location and distribution
account. Also the company that the depreciation expense should be recorded. document The identification of a transaction. The document code is a combination of:
document date The transaction date in Financials. The document
date is always registered in local time. Usually the document date is the same
date as the transaction date, except if you manually enter a different
transaction date in Financials or if the UTC time and the local time
differ by a day. donation A disposal type used to record the charitable contribution of
an asset to an organisation. doubtful invoice An invoice that probably cannot be collected. DTAZV Datentraeger Auslandszahlungsverker,
German for international disc clearing payments. These are payments from German
bank relations to recipients outside Germany. Each DTAZV file consists of a
payment advice and, if the amount exceeds a defined limit, Z1 report data. EBS batch A batch that converts a sequential file of electronic bank
statements to Financials. economic recapture Allows depreciation to continue to occur after a fixed asset is
fully depreciated. The depreciation is posted to an economic recapture account. effective date The point-in-time of an asset's life on which the transaction
takes place. The effective date of a transaction may be any point from the
in-service date to the date the asset is fully disposed in all its related
books. effective rate A comparison rate to express the price that:
Synonym: political price efficiency variance The difference between the actual and the allowed costs. See: actual costs See: allowed
costs See: budgeted amounts electronic bank statements (EBS)
element group A selection of mapping elements used to define a mapping. To
map the integration document types, you must link one or more element groups to
the integration document types. An element group must contain at least one
mapping element and can contain up to 15 mapping elements. elimination transactions Transactions used to remove double entries resulting from
intercompany transactions (intercompany holdings, intercompany balances), so
that these values will not be printed in the consolidated
statement. encumbrance An obligation in the form of a purchase order, contract or
salary commitment that is chargeable to an appropriation, and for which part of
an appropriation is reserved. entry Recorded transaction. EU country The country is a member of the European Union. evaluated receipt settlement (ERS) A process where there is no invoice between the supplier and
the customer. Payments are initiated by the customer and based on the
deliveries done by the supplier. The payments to be made are recorded in
advance by the customer in a remittance advice EDI message and are sent to the supplier who will subsequently be able to
reconcile the relevant open entries. exception error table A table that lists the exception errors that occur during a
payment run. exchange gain and loss Currency result caused by the use of different exchange rate
types, for example, the Sales rate type and the Internal rate type, or if by means of the rate
determiner you have changed the exchange rate for a transaction during the
order handling procedure. expense type An indication of the type of payment, for example, fees,
brokerage, or a reduction, of the payments on the DAS 2 report. external invoice An invoice automatically created in LN, triggered by and
based on data from an integrated external application, for example,
E-Procurement. factor The funding source for the company. The factor is usually a
bank or a commercial finance company that purchases the accounts receivable
(sales invoices) from the company. factor Absolute figure by which the values of a specific consolidated
statement column are multiplied. This may, for example, give you insight into
expected financial figures. Factors can also be used to express statement
values in other currencies. factor's advance payment The money the factor sends to the company in advance, after the
verification process is complete, and before the factor receives payment from
the company's customer. factor's commission The fee that the factor charges for collecting the company's
accounts receivable. This fee can also include the interest on the advance paid
to the company. factoring A form of accounts receivable financing that consists of the
sale of a company's accounts receivable to a third party (the factor), in order
to obtain funding. The sale is made at a discount from the account's value. Customers remit to the factor either directly or indirectly through the seller. Factoring can be with or without recourse. For factoring with recourse, the risk of customer non-payment remains with the company. FASB 52 A guideline about currency translation problems from the
Financial Accounting Standards Board (FASB). federal tax - U.S. book Used to record data that is subject to United States IRS tax
reporting regulations. IRS regulations dictate specific depreciation methods
which are used for varying circumstances, such as adjusted current earnings and
alternative minimum tax. You may specify whether the book records data for
alternative minimum tax (AMT) reporting and adjusted current earnings (ACE) tax
reporting. You can define three separate federal tax books: Standard, ACE, or
AMT. They are separate books; therefore, one, two, or all of them can be
attached to the same asset and depreciate independently of each other. finalization The process by which batches that contain transactions are
committed to actual data and committed to ledger accounts and dimensions. After
finalization, you can no longer modify batches. Finalization includes updating
the ledger account history and dimension history. finalization of transactions To freeze booked transactions after checking for completeness
and validity of all transaction lines. Changes to these transactions can only
made by means of adjustment transactions. See: adjustment transactions Financial Accounting Standards Board (FASB) American institute for financial accounting standards. financial business-partner group A group of business partners with common characteristics, for
which you can define the creditors' account or the debitors' account and a set
of additional control accounts such as control accounts for doubtful invoices,
advance and anticipated payments or receipts, and realized and unrealized
currency profit or loss. LN automatically uses these control accounts in business processes
such as sales invoice registration, and the payment process. financial company A company that is used for posting financial data in Financials. You can link one
or more enterprise units from multiple logistic companies to one financial
company. financial depreciation code The depreciation code that is used by LN in order to post
fixed asset results to the General Ledger. You can define up to three financial depreciation codes, one
for each home currency. financial integration The integration between the logistic and finance modules consists of:
financial period A separate period, or year for financial purposes. Three financial period types exist:
financial statement An account structure that can consist of child statement
accounts and parent statement accounts. At the child level, the statement
accounts are linked to ledger accounts and dimensions. With a financial
statement, you can collect the desired financial values from the General Ledger and Budgeting modules, and use this data for internal and external financial reporting and
analysis. financial transaction (FITR) The transaction created to reflect a logistic event in Financials. The combination
of a transaction origin (TROR) and the financial transaction (FITR) results in
an integration document type. financial - U.S. book Used to record data that is not subject to tax reporting
regulations, such as general ledger data. first period depreciation In some countries, assets of a lower value (net price purchase
price below a specified limit) can be depreciated completely and immediately,
even if the asset must be recorded for a given number of years. fixed amount Constant or nonvarying amount that is used as a depreciation
amount during depreciation. fixed amount depreciation A depreciation method that depreciates a fixed amount. The
asset depreciates in its related books for this amount until the end of the
asset life, or until the salvage value of the asset is reached. fixed asset A long-term (longer than one year) production means which is
activated on the company's balance sheet in order to calculate depreciations. A
fixed asset is, for example, a manufacturing plant. fixed-asset group A collection of fixed assets that have common features. Fixed
asset groups are part of the main groups. fixed-asset main group A collection of fixed asset groups. The fixed asset structure
requires at least one main group. fixed costs Costs that are independent of the output performance of a cost
center for a certain period. Antonym: variable costs fixed costs See: secondary costs fixed costs See: variable costs fixed overhead volume variance The difference between the planned fixed costs and the actual
charged part of fixed costs. This deviation only applies to full cost
accounting systems. fixed rate The exchange rate agreed upon by contract with your bank or
business partner (in order to avoid a currency loss). flexible budget flexible budget A budget that is based on the performance of a cost center
(dimension). Antonym: ledger-account budget flexible reporting code A code that identifies a list of fields that must be included
in a customized integration or tax report. The code determines what fields must
be selected, and in which order they must appear in the output file. foreign payment A payment to a foreign business partner. formula Indicates how the values of the statement column must be
calculated. The formula contains variables that are linked to statement account
values. Example a + b - c Where:
full cost accounting A method to calculate surcharges based on both fixed and
variable costs. fund A financial resource to pay for budgeted activities within
project/programs/organizations. A fund can be a subsidy, grant, endowment,
etc. GAF file Abbreviation of GST Audit File. In
Malaysia this file is used to audit the official GST-03 tax
declaration. See: GST general depreciation life The number of years that the assets in the modified accelerated
cost recovery (MACRS) group account can depreciate using the standard
depreciation expense allowed by the tax authorities. This depreciation system
is only available to MACRS group accounts. general depreciation life The number of years the assets in the modified accelerated cost
recovery system (MACRS) group accounts can depreciated using the alternate
methods of depreciation (such as Alternative Minimum Tax preference
calculation). This is required for some Internal Revenue Service (IRS) Federal
tax regulations and this is only available for group accounts with a MACRS
account type. GL code Represents a ledger account and the corresponding dimensions.
GL codes are used to represent ledger accounts to users who are not familiar
with the structure of the chart of accounts. To specific logistic transactions, you can link a GL code. Such integration transactions are mapped directly to the ledger account and dimensions of the GL code, they are not included in the mapping process. group amount An account that records temporary advances of funds within
companies of the same group. group company A financial company to which a number of other financial
companies is linked. A group company is used to centrally:
GST Abbreviation of Goods and Services Tax. In
Malaysia, this is the equivalent of Value Added
Tax. See: GAF half-year convention A convention code that says that one half of the depreciation
for the first year of the assets recovery period can be taking in the tax year
in which the asset is first placed into service, regardless of when the
property is actually placed into service. hierarchical result The actual costs, allowed costs and deviations calculated for
dimensions are shown for any combination of ledger account and dimension. The
results must be made available first by the generation of hierarchical results
regarding a hierarchy that is defined in the cost accounting system. hierarchy A parent-child structure for ledger accounts and dimensions,
separate from the standard parent-child structure within the General Ledger. Amounts
can be analyzed according to the level of accumulation in a hierarchy. history purge A way to purge historical data for the assets of the company. hold reason A code attached to a purchase invoice to block the payment of
that invoice. IBAN I-Code The Intracom Code for Business Partner. IFRS International Financial Reporting
Standards, previously International Accounting Standards
(IAS) index The value of one period relative to another. One period is the
base index (100%) and the other periods can be expressed as a percentage of
that index value. Within Financials it is used for revaluations of fixed assets. Industrial Assurance Board (IAB) A public body responsible for collecting, administering, and
making social security payments. In a subcontracting invoice, you must transfer
a partial amount of the invoice to the Industrial Assurance Board (IAB). inquiry The principle method of viewing information in Fixed Assets. in-service date The date the asset is ready to be placed into service. Assets
can begin depreciating after their in-service date. The in-service date can be
the same as the purchase date. If the asset requires preparation before use,
the in-service date can be later. An asset cannot be capitalized before its
in-service date. integration account A ledger account used for integration transactions. You can use
the account for other transaction types, such as manual transactions, only if
you specify exceptions. To maintain data integrity for reconciliation purposes, by default, you cannot manually enter transactions on an integration account. To correct postings on integration accounts, two methods are available:
integration document type Represents a type of Operations Management transaction for the
purpose of mapping and posting the integration transactions to Financials and for financial
reconciliation. The integration document types supplied by LN each have the corresponding business object attached to them. For example, the integration document types for the various sales order transactions have the Sales Order business object linked to them. integration document type group A way to group integration document types for reporting
purposes. integration mapping scheme A scheme that defines the ledger accounts and dimensions to
which the integration transactions are posted. integration transaction A financial transaction that is generated through LN packages other than Financials. For each
logistic transaction that must be reflected in Financials, LN generates an
integration transaction, for example, Purchase/Receipt, Production/WIP
Transfer, and Project/Costs of Goods Sold. LN posts the
integration transaction to the ledger accounts and dimensions defined in the
integration mapping scheme. integration user group A way to group users who create financial integration
transactions and users who post financial integration transactions. An integration user group can be used:
intercompany account A balance sheet account that include transactions between
different companies controlled by the same group company. It applies both to
transactions between companies within the same group or across groups. intercompany transactions The transactions created between financial companies which
belong to the same financial group. intergroup account An intercompany account that LN uses when generating
intergroup transactions. interim account An account between two actions or events containing costs or
amounts that must be transferred to another account. Internal Revenue Service (IRS) The government agency responsible for enforcement of income tax
regulations in the United States. internal transfer account Clearing accounts used for practical and controlled accounting
operations, such as transferring cash funds to the bank. In addition, such
accounts are used for operations that require several accounting journals.
These accounts must not appear on the balance sheet. international bank account number International Bank Account Number. An
international standard account identifier for identifying an account held by a
financial institution, in order to facilitate automated processing of cross
border transactions. The IBAN is provided by the bank/branch servicing the
account. Acronym: IBAN investment A sum of money invested in a fixed asset. An investment can
relate to a new fixed asset or an increase in value of a current fixed asset. LN uses investment
amounts to determine the purchase value of fixed assets. investment tax credit A credit against, or reduction in, a taxpayer's federal income
tax liability equal to a specified percentage of the cost of certain qualifying
machinery and equipment acquired and placed in service during the current
year. Acronym: ITC investment tax credit amount An incentive provided by U.S. tax law designed to stimulate
investment in the economy by allowing a percentage tax credit for the purchase
of eligible property. investment tax credit method Indicates whether an asset is eligible for an investment tax
credit (ITC), and how that credit should be applied. IRS 1099-misc The Internal Revenue Service (IRS) is the government agency
responsible for enforcing the regulations of the US tax code. 1099-MISC income
is one of the types of revenue included, and certain supplier payments are
subject to reporting under these regulations. ITC journal book A report of all financial transactions in date sequence, which
in some countries you must periodically submit to the authorities. The journal
book is used for internal and external audits, during lawsuits, and so on. Both
a detailed report and a summary report are required. The report pages and the
transaction lines must be numbered sequentially. journal book section A part of the journal book that contains one or more specific
categories of transactions. For example, you can define a journal book section
for sales invoices, for bank transactions, or for the transactions created at a
specific branch office. journal entry The medium for entering the details of a transaction or event
into an accounting system. journal vouchers A transaction for which no subledger (invoice) document is
available. Journal vouchers can be posted to the General Ledger. ledger account A register used to record financial transactions and to
accumulate the values of the transactions for reporting and analysis. The
ledger accounts classify the transactions into categories such as revenues,
expenses, assets, and liabilities. Synonym: account ledger-account budget A budget based on relations between ledger accounts and
dimensions. Synonym: static budget Synonym: multi dimension
budget Antonym: flexible budget Antonym: performance
budget ledger-account budget See: flexible budget ledger account matching scheme A set of ledger accounts for which a user can perform account
matching. ledger account transaction matching Matching the credit and debit entries of multiple transactions
on the same ledger account to each other. A matching transaction can be
generated to solve differences that are within the specified tolerances. location A location defines the physical site of an asset. A location
consists of up to eight segments, each of which further defines the precise
site of an asset. lower class life The minimum life for the asset depreciation range (ADR) vintage
account assets. Typically, the lower class life is 20% lower than the class
midpoint. The lower class life is available only to ADR vintage accounts. maintenance A monetary field that stores expense costs associated with the
maintenance of an asset. This field is updated from transactions in Accounts Payable or General Ledger based on
account definitions. mapping element A property of a logistic transaction that you can use to define
the ledger account and dimensions for an integration transaction. You can post
the transactions with specific values of the mapping elements to specific
ledger accounts. A mapping element consists of the combination of a business
object and a business object attribute. For example, the Item Group/ Item mapping element represents the Item Group business object attribute of the Item business object. Example Some examples of the mapping elements of a warehouse receipt transaction are: item, item group, warehouse, and cost component. mapping priority The priority of a mapping. A low value indicates a high
priority. To determine the ledger account and dimension to which an integration
transaction must be posted, LN checks whether you defined specific ledger accounts or dimensions
for the mapping element value in the order of their priority. For example, if specific values of the Item Group mapping element are mapped with priority one and specific values of the Business Partner mapping element are mapped with priority two, to map the integration transaction LN first checks the value of the item group and next, LN checks the value of the business partner. mapping sequence The order in which LN searches the values of the mapping
elements within a mapping priority to find the mapping of an integration
transaction. For performance reasons, it is recommended that the most specific
mapping has mapping sequence number one. marginal cost accounting The method to calculate surcharges based on the variable costs. matching An account analysis technique in which you link through the
same reference, for a given account, a series of accounting movements that
balance each other out. matching To check which
To increase speed, you can automatically match batches. The remaining part must be matched manually. matching code A generated code used to group matched
transactions. matching reference A reference that is used to link accounting series. matching sequence number An automatically generated sequence number that identifies the
transactions generated during the matching process. This is the sequence number
that is connected to the matching series number. matching series A series of maximum four digits that is used to identify the
transaction generated during the general ledger matching process. maximum unit value The highest possible amount per unit that an asset is allowed
to depreciate during the first year. midmonth convention A convention code that says that one-half month of depreciation
is allowed for the month that an asset is placed in service and for the month
of disposition if the property is disposed before the end of the recovery
period. Applies to residential rental property, nonresidential real property,
and railroad grading and tunnel bores. Used in United States tax methods. midpoint class life The point on which the tax lower class life and upper class
life is based. In some cases, the midpoint life only is allowed for an
asset-depreciation range (ADR) account. The midpoint life is only available to
ADR vintage accounts. modified accelerated cost recovery system A revised edition of the accelerated cost recovery system
(ACRS) guidelines. It classifies depreciable assets into one of several
recovery periods depending on the selected depreciation method. Acronym: MACRS monetary account A GL account that is used to record any amount of money stated
as a fixed sum, for example, cash, accounts receivable, or accounts payable. See: non-monetary account monthly billing invoice A monthly statement of the open sales invoices that you send to
an invoice-to business partner. The business partner generates self-billed
invoices and uses the monthly billing invoice for reference. multicurrency multicurrency accounting Accounting in more than one currency. In Financials multicurrency
means multiple home currencies by which balances on ledger accounts are stored
in multiple home currencies simultaneously. Synonym: multicurrency multidimensional budget See: static budget multi dimension budget multisite The structure of several physical or logical companies between
which transactions can be done. net book value The value of an asset calculated by subtracting accumulated
depreciation from its current cost, as stored on the asset's related book(s).
Net book value changes for each asset's related books when depreciation is
calculated and updated, or when an adjustment is made to either cost or
accumulated depreciation. If the book type is Federal Tax, the Section 179 value is also subtracted from the above
calculation. none depreciation No depreciation method is defined. You can use this method when
an asset cannot be depreciated, for example: real estate. non-monetary account A GL account that is valued at historical rates, for example,
inventory account, fixed assets account, or WIP account. See: monetary account open entry An unpaid transaction, for example a purchase or sales invoice. open entry See: open invoice open invoice Unpaid invoices. Synonym: open entry Synonym: outstanding
invoice operating results The variance between the expected (planned, budgeted) costs and the actual costs which can consist of these elements:
Operations Management A collective name for the non-financial LN packages. Operations
Management represents all the logistic LN packages. original document The document that includes the transactions for the finalized
and approved purchase invoice. The original document does not include
adjustments. See: correction document original pay-by business partner The pay-by business partner that is linked to the invoice-to
business partner of the order. other tax - U.S. book Used to record data that is subject to tax reporting
regulations other than federal, such as state tax or insurance replacement. outstanding amounts The sum of all the unpaid amounts that refer to invoices and
credit notes or debit notes. outstanding invoice See: open invoice overhead costs The costs which are not linked to cost objects, but are planned
and controlled in cost centers. overhead costs See: primary costs overhead costs See: secondary costs owner code The code that indicates whether the asset is:
parent budget The budget that combines several lower-level company child
budgets (for example, departmental budgets) into a higher-level budget (for
example, the overall company budget). parent budget An aggregated company budget which can contain multiple child
budgets for the various autonomous parts of the company, such as departments. parent-child structures A hierarchical structure for dimensions and accounts. Multiple
child elements can be linked to a parent element. It is used for subtotaling
and reports and inquiries. To determine the level in the hierarchy, dimensions
and accounts have a sublevel. partial payment See: single payment PAYE Tax authorities (PAYE) pay from receipt (PFR) The purchase invoice is created during the receipts of the
goods. In this case, the complete invoice approval and matching procedure can
be skipped because the purchase order has been created by the receiving company
itself and will be booked as such. payment agreement A way to define how invoice amounts must be paid. This includes
the payment methods that apply to various parts of the invoice amount, and the
payment currency. For example, you can define a payment agreement to pay the first part of the invoice amount through the bank according to payment method PM1, 40 percent of the remaining amount, according to payment method PM2, and the other 60 percent according to payment method PM3, which can be a trade note payable. payment batch A batch that contains selected invoices to be paid. After you
have checked this batch, LN can carry out the payment run and generate the payment documents. payment difference A difference between the invoice amount and the payment amount.
If the payment difference falls within the user-defined margins, it can be
accepted and written off automatically. payment method The method used to create a payment (purchase invoice) or a
receipt (sales invoice). The payment method defines details such as:
These are default values that you can change on the order or on the invoice. payment reconciliation Supplier reconciliation handles the matching of actual payments
on a bank statement with anticipated payments. These payments were anticipated
at the time checks, automatic payments or other similar transfer orders were
sent to the bank. payment slip Optically readable document attached to an invoice, which can
be sent to the bank to make the payments for the invoice. The supplier's bank
account number, the invoice amount, and an invoice reference number are
preprinted on the payment slip. If a payment slip is attached to an invoice,
the payment slip is created and printed together with the invoice. performance budget A flexible budget for which one or more reference units are
connected to the dimension. Performance budgeting is carried out simultaneously
with the amount budgeting. performance budget performance unit The use of a fixed asset expressed as a certain unit, for
example, as the number of machine hours. period close An update process to close or finally close an accounting
period. This process is performed after all transactions for the current period
have been finalized. A finally closed period cannot be reopened. period end Closes and increments the accounting period for selected
companies and purges history based upon the specified history retention rules.
Running Period-End at year end purges history year end data and resets year to
date depreciation to zero. policy date The date the policy was modified. political price See: effective rate political price variance This deviation only occurs, if the effective rates/surcharges
differ from the calculated values. It is the difference between the two
rates/surcharges, multiplied by the actual performance. positive pay file In the United States, a file of issued and voided checks that
is sent to the bank for verification purposes. posting book The source book from which journal entries are sent to the
company's General Ledger. posting data schedule See: transaction template posting method A method that shows how the order data must be posted. premium The periodic rate an organization pays for insurance. prepayment See: advance invoice price difference A difference between the invoice amount and the order amount or
the goods received amount which is caused by a difference between the price per
unit on the order and the price per unit on the invoice. price iteration A repetitive and precise method to determine the value of an
allocation relation. primary costs The costs which are linked to cost centers (dimensions). Synonym: variable costs Antonym: overhead
costs Antonym: secondary costs primary costs See: secondary costs proceeds amount Cash or other proceeds received as a result of asset disposal. profit and loss A summary account used at the end of a fiscal period to collect
the balances of the profit and loss accounts so that the net profit or loss may
be shown. pro forma invoice A sales invoice which can be changed prior to printing the
final invoice. projected depreciation Used to calculate future depreciation for an asset without
recording depreciation expense. property class A classification of fixed assets for United States legal tax
depreciation requirements. property type A classification of fixed assets for United States legal tax
depreciation requirements. protocol invoice An invoice that is related to a purchase in an EU country
(other than Bulgaria) and subject to protocol reporting. protocol number A unique sequence number for each document. In some countries, for example Italy, it is required to report in a fixed sequence to the local authorities. Predefined protocol numbers can be automatically assigned to finalized transactions. provider depreciation book A book that contains fixed asset depreciation information. The
fixed asset depreciation information is maintained on the fixed asset provider. LN does not use the
depreciation books for depreciation calculations. purchase invoice matching To ensure that the purchase invoice is correct, by linking the
invoice to purchase orders and purchase receipts. purchase type A purchase order property that enables you to identify the kind
of purchase made and in this way, the kind of payable. This property is used to
post the purchase to the correct Accounts Payable account when the invoice is created. To
post a purchase invoice, LN retrieves the control account from the purchase type linked to the
purchase order line. purchase value See: book value purchase value The value for which the fixed asset is purchased. This value
can be used for the calculation of the depreciation. RAM rates A rate determined in Cost Accounting (CAT)
which states the price for one reference unit (operation unit) in a certain
cost center (work center, task). ratio Represents the proportion of two values, based on a specified
formula that uses the data included in a financial statement. Examples are the
current ratio and the quick ratio, which represent the liquidity position of
the company. Ratios are used to:
See: formula ratio variables The elements included in the formula used to calculate the
statement column values. They correspond with the statement account
values. See: formula reason code A user-defined description that is based on a transaction and
its type. Reason codes assist in selecting data for inquiry and for reporting. reason for payment
reason for payment group The method used to group reasons for payment on the Z4 report. A subtotal is printed for each reason for payment
group. receipt Received payment. receipt reconciliation The matching of actual receipts on a bank statement with
anticipated receipts. These receipts were anticipated at the time the received
checks, direct debit orders, or other similar transfer orders were sent to the
bank. receipts against shipments A method to make payments or receipts separately for the
approved quantity of each shipment rather than for the invoice that covers the
complete order. received purchase invoice A received invoice for which no open entries have been created
yet. Such an invoice is registered to show that it has been received. recharge A special form of duty tax, for example, in Spain. If you use
multiple tax lines, you can use a sequence number for special additional taxes.
In a printed report, the sequence number for recharge is then kept separate
from the normal tax amounts. reconciliation To match related financial data from different sources to
detect differences. Usually, reconciliation results in a report that you can
use to view the matched data, the totals, and the detected differences. For example:
reconciliation area A general area on which you can perform reconciliation, for
example, Inventory, Production Order WIP, Interim Costs, and Invoice Accrual. The reconciliation area and subarea together form a
reconciliation group which represents a group of integration ledger accounts. reconciliation element A property of a logistic transaction that you can use to trace
the transaction for reconciliation. The reconciliation elements correspond with
the mapping elements of the business objects. reconciliation group Represents a group of integration ledger accounts on which you
can perform reconciliation. A reconciliation group consists of the combination
of a reconciliation area and a subarea, for example, Invoice Accrual/ Purchase Order WIP. reconciliation subarea A further division of a reconciliation area into the kinds of
origins of the transactions. For example, the Interim Costs and Invoice Accrual reconciliation areas are divided into many subareas such as Sales Order, Purchase Order, and Service Order. The reconciliation area and subarea together form a
reconciliation group which represents a group of integration ledger accounts. recourse A type of factoring or trade note discounting for which the
risk of customer non-payment remains with the company. If the company's
customer is financially unable to pay the amount due, the factor or bank has
recourse against the company for that amount. recovery period The entire time an asset may depreciate. The period in which
you are currently depreciating is the current recovery period. recurring purchase invoice A periodic purchase invoice that is generated on the basis of
another purchase invoice. You can use this invoice type to create identical,
recurring invoices. recurring sales invoice A periodic sales invoice generated on the basis of another
sales invoice that is originally registered in Accounts Receivable. You
can use this invoice type to create identical, recurring invoices. recurring transaction A periodical transaction on a predefined date or on dates based
on user-defined settings. recurring transactions A transaction that is entered for defined number of periods,
and which automatically creates a journal entry. In addition, recurring
transactions for the current period must be generated before you can close the
period. reference Any informative description field used to refer to, for example:
reference link A generated code that is attached to the debit posting and the
credit posting of an integration transaction. You can use the reference link to
match the postings on interim accounts that you cannot match business object ID
because they belong to different business objects, for example, a Purchase
Receipt and an Inventory Transaction. Note The reference link is not the same as a business object reference. reference unit A performance measure of a cost center and a calculation base
to determine rates and surcharges. reminder A financial letter, urging a business partner to pay. remittance advice message (RAM) A notification in which a business partner states the amounts
he has transferred per bank. These notifications can be received electronically
through EDI or diskette, in standard EDI format. Synonym: RAM remittance agreement A subcontracting document that contains agreements about how
the payment for a project will take place. For example, the remittance
agreement states that part of the invoice amount must be paid to the
subcontractor's industrial assurance board (IAB) and to the tax authorities. remittance code The code used to identify the remittance advice. remittance company The company used to process and post the remittance advices. remittance header The remittance received from the pay-by business partner either
in the form of check, fax or email. remittance rate The rate at which the remittance advices are applied and
posted. remittance reference The shipment reference, packing slip number, external packing
slip number, or customer order number recorded in the EDI message that was received from the customer. removal A transaction that is applied to remove capitalization stored
on asset-related books. report currency In Financial Statements, the currency in which the report
values are expressed. reporting currency group In an environment with multiple financial companies, a code
that defines the common home currency to be used in reporting and viewing data
for those companies that are linked to that code. requisition/trace number A reference number that you can use to identify purchase
requisitions on the statements that you receive from a procurement card
company. retrospective adjustment The adjustment to adjust the depreciation amount based on the
revaluation value of an asset. This adjusts the non-depreciated amounts for the
periods in the past, as from the first date of depreciation. revaluation An update of the current value of a fixed asset to market
prices. In Financials, you
can revaluate a fixed asset based on an index or enter the amount manually. revaluation index A current value update of a fixed asset to market values. You
can use a revaluation index to set a new value for the asset cost in reference
to the index increase or decrease for a given year. The revaluation index is
unique and it is linked to an asset-book combination. reversal transaction A transaction that reverses the original posting on a
predefined date or on dates based on user-defined settings. These types of reversal exist:
rounding difference Small differences between related debit and credit postings
resulting from the rounding of calculated amounts. rule element In a cross validation rule, a range of GL
accounts and dimension values to be either included or excluded. See: cross validation rule SAF-T See: standard audit file sale A disposal type, which records that an asset has been sold. sales invoice A document transaction entered in Invoicing. When an
asset account is affected, a disposal transaction is generated from Invoicing in Fixed Assets to process this event based on the general ledger account definition. See: asset disposal sales type A sales order property that allows you to identify the kind of
sale made and the kind of receivable. This property is used to post the sales
to the correct Accounts Receivable account when the invoice is created. To post a sales
invoice, LN retrieves
the control account from the sales type linked to the sales order line, project
contract, and so on. salvage value The amount expected to be recaptured when a fixed asset is
disposed at the end of its useful life. scrap An asset taken out of service, which can result in an
extraordinary gain or loss. secondary costs See: primary costs secondary costs Costs which are not related to a cost center (dimension), but
are results of allocations between dimensions based on performance relations. Synonym: overhead costs Antonym: primary
costs Antonym: fixed costs section 179 value A deduction available to certain types of property as specified
by the Internal Revenue Service. This allows taxpayers other than estates,
trusts, and certain non-corporate lessors to claim a current deduction for a
specified amount of the cost of qualified property placed in service during the
tax year. segment One of up to eight components that define an asset's
location. See: location segment reporting Information about an enterprise’s different types of products
and services and its operations in different geographical areas, required by
IFRS. See: IFRS self-billing The periodic creation, matching, and approval of invoices based
on receipts or consumption of goods by an agreement between business partners.
The sold-to business partner pays for the goods without having to wait for an
invoice from the buy-from business partner. SEPA The Single Euro Payments Area (SEPA)
initiative for the European financial infrastructure involves the creation of a
zone for the Euro in which all electronic payments are considered domestic, and
where a difference between national and intra-European cross border payments
does not exist. SEPA will enable customers to make cashless Euro payments to
anyone located anywhere in the area using only a single bank account and a
single set of payment instruments. serial number The selected asset's identifying number to distinguish it from
other products in a similar line. shift factor The rate that accounts for an asset's use beyond a regularly
scheduled work period. The value of the shift factor cannot be less than one. simulated asset A nonexistent asset that can be used to project the
depreciation expense. Note
single payment A payment that is paid as a single amount. Antonym: partial payment SIREN Système Information et Répertoire des
Entreprises (Corporate Information and Directory System). An
organizaton's identification used in France mainly for the official
registration in the Trade Register and in communications of the authorities
with or about the organizations. sort position The value used to sort the financial transactions within a
business object. For every business object, LN generates the sort
position from the values of some of the business object properties. For
example, for a freight order cluster the sort position is the cluster line, and for an inventory transaction the sort position is the inventory transaction sequence. special book A book type for non-U.S. countries that permits specific
depreciation method (either custom or excess depreciation to what is normal) to
be posted. It supplements Commercial or Statutory depreciation. special depreciation Depreciation other than the usual decrease in value. You can
use special depreciation to take into account, for example, a pollution tax. spot rate A fixed rate that is linked to a financial transaction. stand-alone payment A payment that is not related to any invoice. Synonym: standing order standard audit file The "Standard Audit File for tax compliance checking purposes"
(SAF-T) is a file containing reliable accounting data exported from an original
accounting system, for a specific time period, easily readable by virtue of its
standardisation of layout and format, and one that is extensible according to
need. Note For more information, refer to OECD, SAF-T version V1.42 of May 2005 Synonym: SAF-T standard industrial classification code A standard industrial classification code for United States tax
purposes. Acronym: SIC standing order An order to which no invoices are linked, for example,
recurring payments. standing order See: stand-alone payment statement code A separate code which is assigned to each remittance letter. statement layout Statement layouts determine the general presentation of
financial statements. This includes margins, header data of columns and
accounts, header and footer texts, etc. This data is used to create financial
statements. LN will
order the statement data according to the parameters corresponding with the
layout code selected. statement method The method LN follows to create account statements. The method determines when,
at which interval, and to which business partner the account statement is sent. statement of account A report that gives information about the account status of an
agreement between business partners. A statement of account can include:
statement of operating results A time-oriented view of the revenues, costs, and deviations of
cost centers. static budget A static budget is the ledger-account-oriented approach where
costs can be related to multiple dimensions at a time. Synonym: multidimensional budget static budget statutory account statutory account A ledger account used for official accounting purposes
according to legal requirements. Antonym: complementary account statutory book A tax book for non-U.S. countries that permits you to report
depreciation for tax reporting purposes for Calculatory, Commercial, and Special book types. statutory depreciation Depreciation that occurs in a statutory book, which is used in
countries outside the U.S. to record depreciation for tax purposes. straight line depreciation Method of calculating depreciation of an asset that assumes the
asset will lose value in an equal amount per year which is calculated by the
formula: . 100 / years = percentage subcategory Subcategories provide additional classification of assets
within a category. For each category, you enter one or multiple subcategories. subcontractor A business partner from whom you buy service to perform or
execute part of a project or production order. sublevel A number that indicates the level of a ledger account or a
dimension in the hierarchical structure of accounts and dimensions. A low
number corresponds with a low sublevel. Ledger accounts can have sublevels 0
through 99. Dimensions can have levels 0 through 9. Transactions can only be posted to accounts and dimensions which have a sublevel zero. All amounts and quantities on the sublevels 1 and higher are aggregated from lower sublevels. summary dimension The default user-defined account dimension by which summary
data is stored. summary history The number of years to retain asset summary data. sum of years digits depreciation The depreciation amount is calculated by means of a fraction.
It is a form of accelerated depreciation, whereby each year a part of an
asset's depreciation costs will be written down from its balance sheet value.
The fraction consists of the current year (years are numbered in descending
order) divided by the sum of the number of years that the asset is in use. sundry debtors and creditors account The account used to record receivables and payables which are
not attached directly to the operating business cycle. For example:
suspended periods The process of discontinuing an asset's ability to depreciate
during a specified period. suspense account An account that records operations that cannot be posted
definitely to an account. However, such accounts must not appear on the balance sheet. For example:
Note: Unidentified movements can, for example, be customer receipts. tag number An identification number for an asset. tax country The country in which the tax must be paid. theft A disposal type, which records that an asset has been stolen. TNP TNR to discount a trade note A form of accounts receivable financing that consists of the
sale of a company's trade notes receivable to a third party (usually a bank),
in order to obtain funding. The purchase is made at a discount from the trade
note's value and the net amount of discounting charges and commission is
remitted to the company. Customers remit to the discounter either directly or indirectly through the company. Discounting can be with or without recourse. For discounting with recourse, the risk of customer non-payment remains with the company. to endorse a trade note To transfer a trade note receivable to your supplier to settle
purchase invoices. The transfer is achieved by putting the signature of the
authorized signatory and the company stamp on the trade note. tolerated discount amount The tolerated discount amount is determined for all outstanding
amounts of a certain business partner. LN determines the
first, the second, or the third cash discount that must be deducted according
to the payment terms that apply to the transaction. This amount will be
maintained per period, per business partner. tolerated price difference The price difference levels, defined by the employee ( LN user), that are tolerated
when matching purchase invoices with receipts. to mature When a trade note matures, the payment is due. trade in A disposal type, which records that an asset has been traded
for a newer model. trade note Generic term for payment instruments such as bank drafts,
checks, promissory notes, and bills of exchange. Trade notes can be used
instead of cash payments if credit is extended to the customer. A trade note
can replace the invoice. Because trade notes are negotiable, they can also be
used as a credit instrument, for example, for discounting and endorsing. Trade notes can exist on paper and on magnetic supports, according to local business practices and banking standards. trade note division Sometimes, the total payable amount is divided into multiple
trade notes of smaller denominations so that such trade notes can be either
discounted or endorsed. The denomination of such trade notes depends on the
agreement between the company and the business partner. To minimize the amount of revenue tax paid, companies usually break up the amount payable by trade notes. Instead of issuing one trade note for the entire amount, they issue multiple trade notes that together cover the amount. trade note payable (TNP) A promissory note that you send to a supplier or a bill of
exchange received from your supplier with the commitment to pay the amount due
after a certain period. Acronym: TNP trade note receivable (TNR) A promissory note received from a customer or a bill of
exchange accepted by a customer with the commitment to pay the amount due after
a certain period. Acronym: TNR transaction A record generated to record an asset's event, its related
books, and its distributions. You can store transactions for assets that are
capitalized, adjusted, transferred, and disposed of. transaction category A way to categorize transaction types, for example journal
vouchers, recurring/reverse journals, purchase invoices, and sales invoices.
The category defines how to process a transaction linked to the selected
transaction type. transaction cost The price you pay for an asset, expressed in the purchase
currency. transaction date The date you enter when you create the transaction such as a
sales order or a warehouse receipt. Usually the transaction date is the current
date. Only for backdated and antedated transactions, the transaction date
differs from the current date. Internally, the transaction date is registered
in UTC time. transaction entry date The date you enter when you create the batch. Usually the
transaction entry date is the current date. Only for backdated and antedated
transactions, the transaction entry date differs from the current date.
Internally, the transaction entry date is registered in local time. transaction origin (TROR) The definition of the (logistic) origin of an integration
transaction. The combination of a transaction origin (TROR) and the financial
transaction (FITR) results in an integration document type. transaction reference A user-defined description of the transaction. transaction schedule See: transaction template transaction scheme See: transaction template transaction template A set of entries created (generated and repeated) to
distribute a transaction across a number of ledger accounts and dimensions. For
example, you can distribute the recurring purchase invoices for general
supplies across a number of departments or work centers. The set of
transactions is automatically linked to the document. Synonym: posting data schedule Synonym: transaction
scheme Synonym: transaction schedule transaction type A user-defined three-position code used to identify documents.
The series linked to the transaction type give documents the sequence number. transfer A transaction that applies to moving values stored on an
asset's related books to another asset as a result of a change of owners,
location, or responsibility. translation adjustments Before reporting in a currency other than the reporting
currency, the amounts in the local currency have to be translated with the
proper currency rate according to FASB 52 guidelines. See: FASB 52 translation gain and loss Currency result caused by the use of different currencies
during the order handling procedure, for example, if the order currency or the
payment currency differs from the invoice currency. unallocated payment/receipt A payment/receipt, appearing on a bank statement, which cannot
be allocated to an invoice or other document. This payment can be registered as
unallocated. An unallocated payment/receipt can be allocated to invoices later. uncharged costs All costs that are not yet charged to cost objects, cost units,
or cost centers by means of rates and surcharges. The cost portions are fixed
costs, fixed overhead volume variance, efficiency variance, political price
variance, all uncharged costs. units of production The method of determining the periodic depreciation expense of
an asset whose life is recorded in units instead of in periods. units of production depreciation A method of determining the periodic depreciation charge based
on projected number of units to be produced by an asset instead of the asset's
useful life. The calculation is made by multiplying the depreciable amount
(original cost - salvage value) by the percentage of the asset's expected total
output that was produced during the period. upper class life The maximum number of years the asset-depreciation range (ADR)
vintage account asset can depreciate. Typically, the upper class life is 20%
higher than the class midpoint. The upper class life is only available to ADR
vintage accounts. value-adding activity An activity that adds value to the company's profit. For
example, invoicing is non-value adding, whereas manufacturing is value adding. variable costs See: fixed costs variable costs See: primary costs variable costs Costs that are directly dependent of the output performance of
a cost center. An increase of the performance will cause a proportional
increase of the total variable costs. Antonym: fixed costs VAT book A legal report of all value added tax (VAT) transactions of a
company, in date sequence. The transactions can be grouped by tax articles,
which typically group transactions that have the same tax percentage. VAT liquidation report A report that shows the net VAT amount due to the tax
authorities for the report period. The liquidated VAT amount is the result of the VAT on purchases minus the VAT on sales. If the result is a negative amount, the amount must be paid to the tax authorities. If the result is a positive amount, the amount is carried over as a credit amount to the next VAT book period. In some countries, the VAT liquidation report replaces the VAT declaration. vintage or group account You use vintage or group accounts to associate and maximize the
United States tax deduction for assets subject to asset depreciation range
(ADR) and modified accelerated cost recovery system (MACRS) group depreciation.
You can create either a MACRS group account, for any MACRS asset placed into
service after 1994, or an ADR Vintage account, for assets placed into service
prior to 1980. Assets in a vintage or group account are depreciated as a group,
and are subject to different disposal rules than assets that are not part of an
account. XBRL Abbreviation of eXtensible Business Report
Language. XBRL is an XML-based computer language for the electronic
transmission of business and financial data. year-to-date amount The accumulated depreciation for the current year. The time
frame for this type of depreciation ranges from the beginning of the current
year up to the current date. Year-to-date amounts are stored in the asset books
( Fixed Assets). year-to-date amount The budget amount accumulated in a budget account from previous
periods till date, and can be carried forward and used for next budget period.
A budget manager is responsible for his own budget(s) as part of the company
budget. Z1 report A report that is required by the Bundesbank, the German central bank. A Z1 lists payments
to foreign recipients. Z4 report A report that is required by the Bundesbank, the German central bank. A Z4 report lists
inbound and outbound foreign payments. Note If your organization uses SEPA filing for payments and direct debits, Z4 reporting is mandatory. Z5 report A German report of claims on and liabilities to non-residents
arising from transactions in goods and services. The report includes claims on
and liabilities to non-resident associated enterprises and non-resident
businesses other than banks, to which you are linked through common interests. Note For each of the report's four sections, a CSV file must be generated and uploaded to the Deutsche Bundesbank.
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