Glossary for Common

11 check
An arithmetical check regarding bank account numbers used in, among other countries, the Netherlands. By applying a specific formula, you can check if a combination of digits constitutes a valid bank account number.
97 modulo check
An arithmetical check regarding bank account numbers used in Belgium. In this method, the sum of the first 10 digits of the entered numbers is divided by 97. The remainder must equal the number that is formed by the digits on position 11 and 12 of the bank account number.
ABC transaction
acceptable quality level
The minimum percentage of a test sample that must be approved to have the entire item quantity approved. For instance, if the AQL is set to 90 and the percentage approved lies below that figure, the entire quantity is rejected.
Acronym: AQL
accepting bank
The bank, named in a letter of credit (L/C) on which drafts are drawn, that has agreed to accept the draft.
accounting entity
The lowest level on which financial reports are produced.

In LN, accounting entities have a one-to-one relationship with financial companies.

Accounting entity is a mandatory field in Business Object Documents (BODs) for transactional data.

accounting office
A department that a financial company uses to group financial data on a more detailed level than by enterprise unit.

You can typically use accounting offices to group the following types of financial data:

  • Manually entered sales invoices
  • Trade notes
  • Business partner financial data

You can link an accounting office to several business partner roles.

account type
A way to characterize an account. The account type is relevant when you process financial data in Financials.

The account type can be:

  • Normal
    The account is a regular account.
  • Blocked
    The account is blocked for any reason.
  • Other
    The account type is country-specific.
acknowledge (a contract)
The act of sending a formal and written confirmation. The supplier sends an acknowledgment to the customer, to acknowledge the receipt of a contract or an order.
acknowledgment (of letter)
A communication by a supplier to confirm that a purchase order has been received. Acknowledgment typically implies the supplier's order acceptance.
actual calendar
The runtime calendar used for scheduling and resource allocation.

The actual calendar is linked to a calendar code, and inherits all the details of the its parent calendar.

For example, the actual calendar for calendar code A consists of the calendar lines from A. It also consists of the lines from its parent calendars plus, the lines from the standard calendar.

additional cost set
A cost set that is used to charge extra general costs to purchase and/or sales orders.
Additional statistical information set
A full set of address-related details, which include the postal address, access to telephone, fax, telex numbers, and email, Internet address, identification for taxation purposes, and routing information.
address format
The definition of how the address data is printed on a report or document. You can define which data must be printed on each line of the address, in which order, and which fields must be skipped if there is not enough space.
administrative department
The department that creates and maintains the order and which determines details such as the order number series, the price book, the rates, and various default values for the orders. The administrative department is a sales office, a purchase office, or a service department.
advance shipping notice
A form of pre-invoicing. The customer receives an advance notification of details of a shipment that is on its way to the customer.
Acronym: ASN
advise through bank
If different from the advising bank, the bank through which the letter of credit (L/C) is to be advised or confirmed to the beneficiary.
advising bank
The bank that accepts a letter of credit (L/C) from the issuing bank. The advising bank verifies the authenticity of the letter of credit, and forwards the L/C to the seller. The advising bank does not take on any payment obligations. The advising bank is typically located in the seller's country and can be the seller’s bank.
affiliated company
A separate logistic company that acts as a business partner to your logistic company. You must define the sold-to role and the buy-from role for an affiliated company business-partner.

For example, an affiliated company can represent affiliated enterprises and locations of your enterprise in other countries.

agreed turnaround time
The duration for which the MRO Service Provider can work on a task.
An expression that is used to compute a characteristic by means of other variables or fixed characteristics.
An amount paid to cover expenses.
alternative items
Items that can serve as a substitute for the standard item if the standard item cannot be delivered or is being replaced.
alternative unit
This is any unit other than the inventory unit. Conversion factors are maintained to handle the different units (the unit set's base unit and the alternative unit) for a particular item.
Dividing the fixed landed cost amount of the header into partial amounts on the related lines.
appropriate menu
Commands are distributed across the Views, References, and Actions menus, or displayed as buttons. In previous LN and Web UI releases, these commands are located in the Specific menu.
archive company
A company created for the purpose of archiving historic documents and data. You can store redundant data in an archive company.

To access and retrieve data from an archive company, you must change company to the archive company.

A region used to group business partners, customers, suppliers and employees on a geographical basis.
The type of functionality for which you set the parameters in the Parameter Wizard. For example, functionality that is only required in specific countries has the Country aspect.
A part of an item. For example, a bolt can have the aspects head and tail. An aspect can have one or more characteristics. For example, a head can have a diameter and a length, and a tail can have a diameter and a color.
assigned rule
An assigned rule is used to set up data authorization that is specific for an employee. These rules are mostly used to deal with exceptional scenarios.
Characteristics of the data that is specific to a business process to which the permission is linked and are used to define permissions. For example, in Project Management a characteristics of a project, such as project group, can be used to define permissions for employees who are only allowed to work with projects of a certain project group.
The user's permission to use specific terminals or sessions.
authorization policy
An authorization policy is used to set up data authorization for a group of employees, irrespective of the roles.
authorization role
An authorization role is used to set up data authorization for a set of employees with the same role.
automatic events
The automatic events include the process of receiving a maintained item from the customer in the warehouse of the part maintenance line. An automatic event is only triggered when the step is limited to one.
availability type
An indication of the type of activity for which a resource is available. With availability types, you can define multiple sets of working times for a single calendar.

For example, if a work center is available for production on Monday through Friday and available for service activities on Saturdays, you can define two availability types, one for production and one for service activities and link these availability types to the calendar for that work center.

The sum required to make one side of an account equal to the other side. In other words, the difference between the total of all the debit entries and the total of all the credit entries in an account. Whether it is a debit or a credit, this amount expresses the financial position of the particular account at the time the balance is struck.
bank account
A record of debit and credit entries to cover transactions involving a particular item, person, or concern. The bank account is identified by a number.

LN can be set to check bank account numbers when you enter them. If the account number does not pass the check, LN displays a warning message.

banker's order
An order to a bank to pay a fixed amount from an account to a named person or organization at a regular time each month, year, and so on.
bank type
This type indicates if the account is a bank or a giro account.
bar code
A series of alternating bars and spaces printed on documents or products, representing encoded information that can be read by electronic scanners.
base company
A financial company or a financial and logistic company that is used to book the transactions between financial companies that belong to different group companies.
batch number
An identification assigned to a homogeneous quantity of material.
Belgian Balance of Payments country group
A way to group countries for the Belgian Balance of Payments report, which is part of the EU tax reporting.
Belgian Balance of Payments report
A report that companies in Belgium and Luxembourg must submit to the National Bank of Belgium (NBB). The report lists the total amount of assets and liabilities that result from foreign sales and purchase transactions with other countries.
bilateral invoicing
The automatic generation of invoices between two financial companies as a result of goods transfer between warehouses of enterprise units linked to these financial companies.
blocking definition
Indicates the stage at which the order process must be blocked or a signaling message must be displayed, with the associated reason.
1) A commercial cost estimate in the preproduction stage of projects. 2) A plan that includes an estimate of future costs and revenues related to expected activities.
Business Entity
An independent entity, such as sales order, item group, and others for which data authorization can be set.
business object
A business related object, such as a purchase order or an organizational unit. A business object has information stored in the business object attributes, such as the purchase order number or the organizational unit name. A business object also contains a set of actions, known as business object methods, that can manipulate the business object attributes, such as Create Purchase Order and List Organizational Units.

From a development perspective, a business object is a collection of tables, and functions that manipulate these tables, implemented simultaneously during the development phase. A business object is identified by the combination of a package code, module code, and business object code.

business partner
A party with whom you carry out business transactions, for example, a customer or a supplier. You can also define departments within your organization that act as customers or suppliers to your own department as business partners.

The business partner definition includes:

  • The organization's name and main address.
  • The language and currency used.
  • Taxation and legal identification data.

You address the business partner in the person of the business partner's contact. The business partner's status determines if you can carry out transactions. The transactions type (sales orders, invoices, payments, shipments) is defined by the business partner's role.

business partner role
Indicates the relationship between your organization and the business partner. The role defines the types of transactions you can carry out with the business partner. The business partners with different roles are linked by a common parent business-partner.

Examples of business-partner roles:

  • Sold-to business partner
  • Pay-by business partner
business partner set
A user-defined group of business partners.
business partner status
The status assigned to the business partner, which determines the actions that can be carried out for the business partner.

For example, you cannot specify a sales order for a business partner with status Prospect, or ship goods to a business partner with status Inactive.

business partner type
A way to group business partners with similar characteristics, for example, members of the EU, or subject to specific customs rules.

A business-partner type is not the same as a business-partner role or financial business-partner group.

buyer role
A classification of a contact's role in the decision making process related to an opportunity. With this classification, sales representatives know, for example, how to approach a contact to win a deal.

A buyer role can be, for example, economic buyer, decision maker, influencer.

buy-from business partner
The business partner from whom you order goods or services; this usually represents a supplier's sales department. The definition includes the default price and discount agreements, purchase-order defaults, delivery terms, and the related ship-from and invoice-from business partner.
Synonym: supplier
calculation method
There are two methods available: Parallel and Cumulative. Parallel tax calculation means that, for example, the combination of tax rates 5% and 15% results in an eventual tax rate of 20%. Cumulative tax calculation means that the second tax rate is applied over the first tax rate. For example, the combination of tax rates 10% and 5% results in an eventual tax rate of 15.5% (= 10% + 5% + (10% / 100% * 5%)).
A set of definitions, that are used to build a list of calendar working hours. A calendar is identified by a calendar code and availability type combination.
calendar code
A list of workable days, that is used to build a calendar.
calendar working hours
The horizontal lines in a calendar table, which group planning data by date.
calibration date
The date on which an instrument is calibrated.
cancel order
The process of stopping existing orders at an intermediate stage in the procedure.
capacity percentage
The percentage of the available production capacity that is the basis for work center utilization views and reports. For example, if a work center's working times are 06:00 - 16:00 (10 hours), the effectivity factor is 1.0 and the capacity percentage is 80%. 8 hours of production order execution corresponds with a capacity utilization of 100%.

The default capacity percentage is 100%.

An organization that provides transport services. You can link a default carrier to both ship-to and ship-from business partners. In addition, you can print sales and purchase orders on a packing list, sorted by carrier.

For ordering and invoicing, you must define a carrier as a business partner.

Synonym: forwarding agent
Synonym: Logistics Service Provider (LSP)
A division within a system of classification for enterprise units or enterprise unit relationships.
A classification or division of items. The classification can be by form, fit, or function.
central calendar
A defined calendar that you can use to plan and calculate operations by different packages.
central currency
The base currency used for conversion of amounts by using triangulation. For example, to convert DEM to FFR you can convert the amount in DEM to euro and then convert the amount in euro to FFR. The euro is then the central currency.
A sales or distribution channel used to assign goods to customer groups.

You can link channels to sold-to business partners and to items. Channels can be used in connection with available-to-promise (ATP).

You can assign a certain ATP volume to a channel. This volume limits the ATP for that channel to a maximum.

A reference to a particular quality or distinctive mark of an item or an item part/component. For example, diameter, length, weight.
characteristic unit
The unit in which an item's characteristic is expressed, for example, meters, kilograms.
A group of entities that are not necessarily related to one financial company or logistic company.

In Enterprise Planning, planning clusters are used for groups of warehouses, connected by supplying relationships. See: planning cluster.

collection office
The authority to which the tax or social contribution must be paid. In LN, a collection office is defined as a business partner with only the invoice-from and pay-to roles.
collective invoice
An invoice containing multiple entries for delivering several orders to customers. The orders, however, are specified individually.
A working environment in which you can carry out logistic or financial transactions. All the transaction data is stored in the company's database.

Depending on the type of data that the company controls, the company is:

  • A logistic company.
  • A financial company.
  • A logistic and a financial company.

In a multicompany structure, some of the database tables can be unique for the company and the company can share other database tables with other companies.

company number
A logistic or financial unit for which you can define and maintain a data set.

Which includes, for example:

  • Ledger account
  • Customers
  • Suppliers
  • Order balances
  • Production plans
configurable item
An item that has features and options and must be configured before any activities can be performed on it. If the configurable item is generic, a new item is created after configuration. If the item is manufactured or purchased, the configuration is identified by item code and option list ID.
  • Manufactured or Product items with the default supply source set to Assembly and Generic items are always configurable.
  • Purchased or Product items with a purchase schedule in use can be configurable.
  • Configurable Purchased or Product items can be used within Assembly Control only.
configuration group
A group of items configured by the CPQ Configurator that have the same settings. The items are part of the same configuration model family.
configured item
A configurable item that is configured, which means options and features are chosen for the item.

A configured item can have components that are also configured, for example, a bike with a bike light. If a configured item is an end item, it is configured with its configurable components and stored as a product variant.

confirming bank
The bank that adds its confirmation to a letter of credit (L/C) upon the issuing bank's authorization or request. According to current L/C rules, a confirming bank is irrevocably bound to honor or negotiate the L/C as of the time it adds its confirmation to the credit.
conformance reporting
Indicates that an item requires a conformance document check at source inspection, which must be executed before shipment of an item. The purpose of conformance reporting is to deliver the related documents to the customer.
consignment not owned warehouse
A warehouse that is used for storing not-owned consignment inventory. Not-owned consignment inventory are goods owned by a supplier, but stored in your warehouse without being paid for until after the goods are used or sold. You register the goods as consignment inventory.
consignment owned warehouse
A warehouse that is used for storing owned consignment inventory. Owned consignment inventory are goods owned by your company and stored in a customers warehouse without receiving payment until after the goods are used or sold. You do not register the goods as consignment inventory, because the goods are still part of your inventory.
The person with whom you discuss business transactions. For example, you address questions, quotations, and follow-up calls, direct mail, and promotional gifts to the contact. The contact's data include the name, telephone number, e-mail address, and other details.
contact category
A user-definable classification of contacts.
contact-type mask
The business-partner roles in which the contact represents the business partner.

You can have one contact for the business partner in multiple roles. For example, the same person can be both the invoice-to and the pay-by business partner's contact, but not the sold-to contact. The mask then consists of invoice-to and pay-by, whereas the other roles are not selected.

conversion cluster
A cluster of financial companies linked to enterprise units of logistic companies which are, for conversion, considered as one logical unit of companies.
conversion cluster
A group of companies and/or currencies to be converted together with the conversion details such as the type of conversion to be processed.
conversion weight
A number that indicates the size of a conversion task. Tables with a higher conversion weight are converted before tables with a lower conversion weight. LN uses the conversion weight to determine the order in which tables are converted if no priority is indicated.
The value given for accounting purposes to the stock of an article or commodity at the end of an accounting period. In a retail business, the cost is usually prime cost, that is, the price paid to the supplier. However, other amounts to cover storage and transportation are sometimes added. In a manufacturing business, the cost is usually a prime cost or production cost.
cost component
A cost component is a user-defined category for the classification of costs.

Cost components have the following functions:

  • To break down an item's standard cost, sales price, or valuation price.
  • To create a comparison between the estimated production order costs and the actual production order costs.
  • To calculate production variances.
  • To view the distribution of your costs over the various cost components in the Cost Accounting module.

Cost components can be of the following cost types:

  • Operation Costs
  • Material Costs
  • Surcharge
  • General Costs
  • Not Applicable

If you use Assembly Control (ASC), you cannot use cost components of the General Costs type.

costing breaks
Are used to break up and redirect costs related to a project, to project pegs that are linked to specific attributes, such as items, item groups, or work centers. The project costs are no longer linked only to the top demand project peg, but are spread over lower level pegs for the specified attributes (breaks), which improves project management.
cost item
An administrative item that is used to post extra costs to an order. Extra costs are, for example, accounting expenses, clearance charges, design costs, and freight expenses.

Cost items are not used for production and cannot be held in inventory. They are also referred to as expense items.

counter order
Purchase or sales-order type related to counter sales and direct invoicing in which the customer immediately takes home the goods. Also, collect orders do not require you to print various documents.
Countries are the national states where your suppliers and customers are located. For each country you can define the country code, international dialing, telex, and fax codes.

Countries are part of the data that you must set up for tax reporting. In addition, items can be grouped and selected according to their country of origin.

country set
A user-defined group of countries.
credit analyst
One of your employees in charge of controlling and monitoring the credit that you give to an invoice-to business partner.
credit insurance company
The company where (part of) the credit limit of the invoice-to business partner is insured.
credit limit
The maximum financial risk that you accept or are insured against concerning an invoice-to business partner, or that an invoice-from business partner accepts concerning you.

When you create orders, LN continually checks that the total amount of created and invoiced orders does not exceed the credit limit. When you exceed the limit, LN gives a warning message.

credit rating
A system of classifying customers and possible future customers according to their financial strength and the degree of trust that a supplier can place in them.

The credit rating is linked to an invoice-to business partner and defines a number of details such as, the action to be taken when a sales order is processed, and when the credit check must be repeated.

critical safety item
A part, assembly, installation, or production system with one or more essential characteristics which, when they do not conform to the design data or quality requirements, result in an unsafe condition that can cause loss or serious damage to the end item or major components, loss of control, or injury to personnel.
A generally accepted medium of exchange such as coins, treasury notes, and banknotes.

The following currency types are available in LN:

  • Home currency, which is used internally by companies to calculate costs, record budgets, and register tax amounts
  • Transaction currency, which is used in transactions with business partners, such as orders and invoices
currency exchange rate
The factor by which an amount in a different currency is multiplied to calculate the amount in the currency base.
Synonym: currency rate
currency format
The degree of exactness with which currencies are presented differs from one currency to the other. In practice, currencies of which the basic unit represents a relatively low value are generally presented as integers (for example, Belgian franc or Italian lira). Currencies of which the basic unit represents a relatively high value are generally presented with one or more decimals (for example, Dutch guilder, German mark).
currency rate
A person or company your company supplies goods to or provides services for.
Synonym: sold-to business partner
customer approval
A business regulation according to which the goods that are delivered on a sales order must be approved by the customer before you can invoice the goods. The ownership of the goods changes from supplier to sold-to business partner when the delivered goods are approved.
customer furnished material
An item supplied by the customer being used as material in the production of an end-item for that same customer.
customer order decoupling point
The point in the product structure or production process up to which the material requisition is order-controlled. Beyond this point, anonymous production takes place.

Typical examples of CODP positions:

  • The entire production process from purchasing components to final assembly is driven by customer orders.
  • Standard components are manufactured based on forecasts; production of finished products is order-controlled.
  • The production of finished products, subassemblies, and components is driven by forecasts (make-to-stock).
Abbreviation: COPD
date format
The order of the numeric characters that specifies the way the system date is presented. This concerns the day of the month and year as they appear on documents, for example, 15/09/78 (in Britain) and 7/22/78 (in the U.S.A.).
default supply source
The source that supplies an item by default. You can use purchase orders or schedules, production orders or schedules, assembly orders, or warehousing orders to supply an item.

The default supply source determines what type of order is used to supply the item, but in general, you can override the default and specify an alternate source.

delivery address
The actual address where goods must be delivered that you recorded for each supplier. In practice, this can be one of your warehouses.
delivery point
An address specification within a delivery address. For example, a warehouse dock location.

The supplier uses the delivery point in the shipment building process: the shipments are grouped by delivery point.

delivery terms
The agreements with the business partner, concerning the way the goods are delivered. Relevant information is printed on various order documents.
A company's organizational unit that carries out a specific set of tasks, for example, a sales office or a purchase office. Departments are assigned number groups for the orders they issue. The department's enterprise unit determines the financial company to which the financial transactions that the department generates are posted.
dependent currency system
A currency system in which you can use multiple home currencies within a single company. For most entities, the financial company determines the local currency that is used. All transactions are registered in all the home currencies.

Currency rates are defined between the external currencies and the reference currency, and between the reference currency and the other home currencies. Transaction amounts are first converted into the reference currency and then the transaction amount in the reference currency is converted into the other home currencies.

See: standard currency system
destination sales tax
Sales tax regulations in North America and Canada. The tax rates are determined by the local authorities in the jurisdiction where the goods or services are received or consumed. In many cases, tax must be paid to multiple jurisdictions with authority over the same location.
destructive test
A test in which the tested items are destroyed after testing.
details session
A dialog box that shows all the details (fields) of the line (record) selected in the associated overview session. Use a details session to view, enter, or change the data of one record.

A details session can contain a number of tabs to group related fields.

direct debit
An order to a bank to accept charges to an account from another named account at regular times.
direct pay
A way for a buyer to directly submit a sales tax to the tax authority instead of first paying it to the supplier. To withhold tax from the invoice, you must provide your direct pay certificate number to the supplier.

If direct pay applies to an order line, the order line must have a shifted tax code.

discount code
A method to indicate the reason a discount is granted. For example, you can grant a discount because the customer orders large quantities. If you grant a discount or if you add a surcharge to a sales invoice, you can enter a discount code to indicate the reason.

Surcharges and discounts can be the result of the following:

  • Standard discounts
  • Surcharges
  • Payable commissions
  • Payable rebates
discount percentage
The percentage that you can subtract from the gross sales price or purchase price.
A generic term for objects, such as orders or order lines. Also used to refer to printed matter, such as reports, shipping documents, order documents, or user documentation.
document compliance
The requirement for documents such as sales orders, purchase orders, or shipments to be compliant with the settings specified for the global trade compliance functionality, the letter of credit functionality, or both.

Parameter settings and settings for individual items, contract deliverables, sales orders, or purchase orders determine whether the document compliance includes letters of credit, global trade compliance, or both.

Document compliance checks are performed at various stages in the document handling processes.

document line price
The price on the document line, which is the sum of the item price and the total material price.
domestic tax
Tax rates applied to transactions that for taxation purposes are considered as transactions within a single country.
The party expected to accept and pay a bill of exchange, such as a check, draft, or letter of credit (L/C) on presentation, or on a certain date (called due date or maturity date). This is usually the confirming bank or the issuing bank.
due date
In LN, the date that a payment or receipt is required.
economic order quantity
The amount of an item to be purchased or manufactured at one time. This amount is the quantity for which the combined costs of acquiring and carrying inventory are the lowest. This is also referred to as the minimum cost order quantity.
EDI message
A standard electronic business document consisting of an organization name and a message. EDI messages are processed as incoming or outgoing messages.

An EDI messages can concern, for example, an order acknowledgement or an advance shipment notice (ASN).

Organizations that determine EDI message standards are:

  • ANSI
  • X12
  • VDA
effective change order
A change order that makes the effectivity unit active.
effective date
The first day on which a record or a setting is valid. The effective date often includes the effective time.
effectivity series
A range of sequence numbers that is linked to an end item and represents one or more effectivity units. An effectivity series consists of a unit series code, a from-sequence number, and a to-sequence number. An effectivity series is identified by the unit series code and the from-sequence number. You can link one or more effectivity units to a combination of end item, unit series code, and from-sequence number.

An effectivity series is identified by the unit series code and the from-sequence number.

You can link one or more effectivity units to a combination of end item, unit series code, and from-sequence number.

effectivity unit
A reference number, for example a sales order line or a project deliverable line, that is used to model deviations for a unit effective item.
efficiency factor
A variable that LN uses to take into account differences in the daily availability of a resource, such as when working overtime, hiring extra staff, or working in different shifts. For example, if an employee works six hours out of a possible eight hours on a project, the efficiency factor is 0.75.

Efficiency factors influence the lead-time calculation in Enterprise Planning.

electronic data interchange
Way to exchange information with your business partners by using electronic mail. Information include catalogs, sales and purchase orders, and all other types of information necessary to carry out business transactions.
e-mail address
The location where e-mail messages can be sent to a user. An e-mail address consists of a username and an Internet address separated by an at sign (@). For example,, where lucy is the username and is the Internet address.
A person who works at your company who has a specific function such as sales representative, production planner, buyer, or credit analyst.
Employee’s data must exist in the Employees - People (bpmdm0101m000) session and the employee is Active (based on the First Date of Employment and the Last Date of Employment).
engineering module
A virtual item that is used to model a fixed part of a product engineering structure in Assembly Planning in Manufacturing. The product engineering structure is used to generate assembly orders for the Assembly Control module of Manufacturing.

The engineering module is the top of a tree structure (BOM) of engineering items. If Assembly Planning generates the assembly orders, the Engineering Module item type is created in the Item Base Data tables in LN, if not yet present. The engineering module is part of the order content and the as-built structure.

Enterprise Modeling Management
The module that enables you to model your organization. You can define flows between entities and subdivide them into goods, document, information, and receipt/payment flows. These flows are created for entities such as warehouses, employees, and work centers. Dependent on the organization structure, these flows allow you to flexibly handle goods, documents, and information.
Abbreviation: EMM
enterprise unit
A financially independent part of your organization that includes entities such as departments, work centers, warehouses, and projects. The enterprise unit's entities must all belong to the same logistic company, but a logistic company can contain multiple enterprise units. An enterprise unit is linked to a single financial company.

When you carry out logistic transactions between enterprise units, the resulting financial transactions are posted to the financial companies to which each enterprise unit is linked.

enterprise unit relationship
Identifies the relation between two enterprise units in a multicompany organization.
A separate and independent building block for a planning cluster, site, or enterprise unit. For example, warehouse, work center, employee, sales department, purchase department, project, customer, supplier, financial company.
Reusable items used to produce or to ship goods for a project. Equipment is not consumed while the project is carried out. Equipment can be internally owned or externally rented. Equipment items can range from tools such as electric drills and wheelbarrows, to machines, large cranes, trucks, tug boats, and so on.
equipment item
Reusable items used to produce or to ship goods for a project. Equipment is not consumed while the project is carried out. Equipment can be internally owned or externally rented. Equipment items can range from tools such as electric drills and wheelbarrows, to machines, large cranes, trucks, tug boats, and so on.
A statement of probable cost for supplying certain goods or services. An estimate is created in anticipation of receiving an order.
EU rate
The rate used in the European Union when import and export data is processed for intra-EU transaction reporting.
Events are the service and the business related activities, that impact the logged turnaround time. The events can be activities, that are executed by a user or a related LN session.
event Set
Event Set is an agreed set of actions, executed in a defined sequence, that determine how and when the TAT information is affected during the maintenance process of an item. An event can be a manual activity or a LN session.
A deviation of an effective item's standard configuration. An exception indicates, for example, whether a specific BOM line or a specific routing operation is used for an effectivity unit. Exceptions are often created as a result of customer requirements, or technology upgrades.
A document type or material that must be excluded from the material price calculation.
exchange rate
The price at which one currency can be exchanged for another currency. In other words, the amount which one currency will buy another currency at a particular time.
expiry change order
A change order that makes the effectivity unit inactive.
expiry date
The date from which a record or a setting is no longer valid. The expiry date often includes the expiry time.
export license
A license required by the authorities before selling and/or shipping of items (high-tech, classified or potentially dangerous) which are regulated by law. Items requiring this license have restrictions applied to them in Enterprise Planning. Supply for export license required items or items containing an export licensed item can only be commingled with supply for the same project. Similar restrictions exist for cost transfer rules.
export tax
A tax, other than destination sales tax, that is levied on goods exported from the tax country. For European Union (EU) member countries, export tax applies to goods exported to non-EU countries.
extensible markup language
A language to create structured documents with metadata. The structure of an XML document is prescribed by a document type definition (DTD) that can be user defined.

A typical fragment of an XML document is the following:

<item status="preliminary">
    <description>front axle-bearing</description>
Acronym: XML
External Employee
An external employee is not on the payroll of the organization. Yet, the external employee is used for planning purposes. The Employee Type can be set to External in the People Data tab of the Employees - People (bpmdm0101m000).
external initialization
Conversion to the euro of the transaction currencies and the transaction amounts that are related to the business partners for which you process the external conversion.
Extra Intrastat info
Statistical import/export data that is not available as standard information in LN, but which is required on the sales listing or the Intrastat declaration by some of the EU member states.

You can add up to 15 data fields to the Intrastat statistical data by defining them as extra Intrastat information set. You can assign the extra Intrastat information sets to warehouse order lines.

Synonym: Additional statistical information set
The day number in the month, used to determine in which following month the due date lies.
A specified area of a record used for a particular category of data.
financial company set
A set of financial companies for which you can set up specific tax data and/or generate reports such as the Intrastat declaration at a time. A financial company set can contain one or multiple financial companies.
financial department
The department that determines the financial company to which the transaction must be posted and which is responsible for the tax declaration in the tax country of the order. The financial company's home country must be the tax country of the order. The financial department is an accounting office of the financial company.

If the financial company of the administrative department has a tax number in the tax country of the order, the financial department is the same department as the administrative department.

first day number
The start day-number of a week.
first free number
The first available number within a series. When you create orders, and so on, this number is offered by default. Series enable you to group orders of the same type by assigning order numbers starting with the same figures.
first in, first out
A method of inventory valuation for accounting. The assumption is that the oldest inventory (first in) is the first to be used (first out), but there is no necessary relationship with the actual movement of specific items.
Acronym: FIFO
fiscal ID
In Italy, a number used to identify natural persons or businesses.
fiscal number
A number used to identify corporate bodies as well as natural persons for income tax and social contribution registration.
fixed order quantity
A predetermined, fixed quantity of an item for which planned or actual orders are generated. If the net requirements for the period exceed the fixed order quantity, a multiple of the fixed quantity is ordered.

Generated orders always have a fixed order quantity.

forwarding agent
See: carrier
functional currency
The main currency the legal entity is doing business in. This currency must be used for corporate reporting and should comply with the US GAAP/IFRS requirements for functional currencies.
general category
A type of category.
general data
General archiving data includes master data from all LN application packages, such as Sales, Warehousing, Manufacturing, and Common.
GEO code
The code used together with or instead of address information such as the city, state/province, and postal code to identify a taxing jurisdiction.

The tax provider determines the GEO code based upon the address information entered and the county and city selected.

global trade compliance
Functionality used to lay down, audit, and automate global trade compliance data, such as the international rules, regulations, and licenses required for conducting global trade. This data is used to validate items, business partners, and import and export documents, resulting in a success or failure for the compliance check. For example, if the compliance check results in a failure for a document such as an order or shipment, the document may be blocked and a user must take action.

Global trade compliance reduces the risk of trade delays, additional costs, or penalties for violating import or export regulations.

goods transfer
The relationship that contains the information that is needed to transfer goods between two entities or between two enterprise units.
goods value
The total goods amount on the invoice. The goods amount consists of the net order-line amount excluding tax and the late payment surcharge. The amount is expressed in the invoice currency.
grand total rounding
To round the grand total amounts on legal documents that you send to your customers, such as sales quotations, service contracts, and sales invoices.

For example, if the currency rounding factor is 0.01 and grand totals must be rounded on 0.05, you can use grand total rounding and define a grand total rounding factor of 0.05.

Field concerning the printing of the discount on the invoice. Net: The line item discount is not printed on the invoice. Gross: The line item discount is printed on the invoice.
group tax code
A tax code that represents multiple individual tax codes. If more than one tax code applies to a transaction, you can link a group tax code to the transaction.

For example, a group tax code can contain tax codes for:

  • Value added tax
  • Withholding income tax
  • Withholding social contribution
harmonized system code
Code that identifies group of items in order to collect and report statistical data on the export and import of goods in the countries of the European Union (EU). The reporting authorities determine the harmonized system codes.
home currency
One of a company's base currencies in which LN registers and reports amounts.

In a multicurrency system, up to three home currencies can be defined:

Abbreviation of Intrastat Data Entry Package. A third party application for the generation of EU Intrastat declarations. You can set up IDEP to generate the Intrastat declaration from the Intrastat data that you export from LN.
implementation parameter
The parameter that LN uses to decide whether a function must be used. For example, Use Tax Provider, and Factor Invoices.
The shipping or delivery of goods across national boundaries.
import tax
A tax, other than destination sales tax, that is levied on goods imported into the tax country. For European Union (EU) member countries, import tax applies to goods imported from non-EU countries.
Incoterm codes
A set of codes representing international delivery terms rules for the uniform interpretation of common contract clauses in export/import transactions, developed and issued by the International Chamber of Commerce (ICC) in Paris.
independent currency system
A currency system in which all financial companies and logistic companies that are related to each other in the enterprise structure model use the same two or three home currencies. All transactions are registered in all the home currencies.

Currency rates are defined between the transaction currencies and all home currencies. Transaction amounts are converted directly from the transaction currency into the home currencies.

See: standard currency system
industry code
The codes that classify business partners by type of business based on a code list, as determined by the government authorities. These codes can be used to segment customers for territory management and campaigns. Examples of industry coding systems are: SIC (Standard Industrial Classification) and NAICS (North American Industry Classification System).
initial price
Item price + material base prices.

This price does not include material price surcharges.

To measure, examine, test, or gauge one or more characteristics of a product or service. After doing this, you can compare the results with the specified requirements to determine whether conformity is achieved for each characteristic.

Inspection is often performed on delivered goods upon arrival.

installment plan
A plan based on which installments are generated for an order. The plan includes configuration data for installments, such as when installments must be invoiced, the type(s) of installment that must be generated and the installment percentages. The installments are generated based on a Prorate method, which means the installment percentages are prorated across all order lines of an order.

Because the plan is considered an invoicing plan for an order, the installments are generated, maintained, settled, and corrected in Invoicing.

intercompany settlement transaction
The automatic postings in one financial company to intercompany billing and clearing accounts instead of invoices generated for sales/purchase transactions between the entities of two logistic companies.

You must define the logistic companies as affiliated-company business partners and you must indicate that intercompany settlements can be performed for the business partner.

intercompany trade agreement
An attribute that includes the intercompany trade details for an intercompany trade scenario. An intercompany trade agreement is linked to an intercompany trade relationship, together with the intercompany trade scenario.

For the applicable intercompany trade scenario and trade relationship, an intercompany trade agreement:

  • Determines whether internal invoicing is used.
  • Determines whether intercompany trade orders must be approved before they can be processed.
  • Includes the transfer pricing rules that determine the amounts of the intercompany trade transactions.
  • Determines the amounts of the internal invoices, if internal invoicing is specified.

Sales office S1 and warehouse W1 are part of organization A, but are located in different countries. To fulfill a sales order to an external customer, S1 instructs W1 to deliver the goods to the customer. W1 sends an internal invoice to S1 to cover the costs for the goods and the delivery. The amount of the internal invoice is based on the sales order price.

intercompany trade classification
An attribute consisting of a code and a description that is used to create groups of entities or enterprise units. To create a group, a number of entities or enterprise units is linked to an intercompany trade classification. These groups can be used to define intercompany trade relationships.

A large international organization includes these enterprise units:

In Europe

  • UK
  • France
  • Belgium

In Asia

  • India
  • China
  • Japan

Trade classification Europe is linked to the European enterprise units and trade classification Asia is linked to the Asian enterprise units. You can set up trade relations, for example to define different trade agreements in Europe and Asia, such as:

  • Asia to Europe
  • Europe to Asia
  • Asia to Asia
  • Europe to Europe
intercompany trade order
A commission to buy, sell, or transport goods, or render services between organizational units that belong to the same organization.

For example, a sales office and a warehouse belong to the same organization. The sales office instructs the warehouse to deliver goods to an external customer to fulfill a sales order. The warehouse incurs costs for the goods delivered and the sales office is indebted to the warehouse.

An intercompany trade order consists of a header and transaction lines. The header data include the organizational units involved and the applicable transfer pricing rules. The transaction lines display the amounts of the individual items and the dates and times. Depending on the transfer pricing rules, some pricing details are maintainable.

intercompany trade relationship
A "from and to" relationship between two parts of an organization. When an intercompany trade relationship is defined, the transactions between the from and the to-part of the relationship are regarded as intercompany trade. Consequently, specific cost and revenue bookings are posted for the from and the to-part.

The from-part incurs costs for goods delivered or services rendered to the to-part. The to-part is indebted to the from-part. The from-part invoices the to-part to be compensated for the costs incurred, if specified in the intercompany trade agreement.

The parts constituting an intercompany trade relationship can be:

A trade relationship between two parts applies to the underlying entities linked to these parts. For example, a trade relationship between two enterprise units applies to the entities linked to these enterprise units.

An intercompany trade relationship is linked to one or more intercompany trade agreements. In turn, each intercompany trade agreement is linked to an intercompany trade scenario. In this way, transfer pricing rules are defined for each trade scenario that is linked to the trade relationship. The transfer pricing rules determine the amounts of the intercompany trade transactions and, if specified, the internal invoices.

intercompany trade scenario
A business process, such as External Material Delivery Sales, involving two parts of an organization defined as entities. An intercompany trade scenario is linked to an intercompany trade agreement. The intercompany trade scenario and the intercompany trade agreement are linked to an intercompany trade relationship.

The entities sales office S1 and warehouse W1 are part of organization A, but they are located in different countries. To fulfill a sales order to an external customer, S1 instructs W1 to deliver the goods to the customer. W1 sends an internal invoice to S1 to cover the costs for the goods and the delivery. The amount of the internal invoice is based on the sales order price.

In triangular trade situations, the intermediary is the party which creates the sales order and invoices the customer for the goods.

Usually, the intermediate sends a purchase order for the goods to the supplier and an invoice to the customer. In addition, the intermediary can receive an invoice from the supplier.

intermediate consignee
A distribution center where goods sent from the supplier are consolidated and often repacked before being shipped to the final destination at the customer's. An intermediate consignee is owned by the customer or a carrier acting on behalf of the customer.
internal business partner
A business partner that represents an enterprise unit of the same logistic company. The use of internal business partners allows you to model the goods flow between enterprise units and the corresponding financial relations, such as invoicing and pricing agreements. You must define all business partner roles for an internal business partner.
internal EDI
Receiving and sending messages between LN (logistic) companies on the same computer system. There is no intervention from any EDI translator/communication package.
internal initialization
Conversion of the company's home currencies to the target currencies whether or not in combination with the company's currency system. The home currency amounts are converted according to the general concepts that apply to the currency system.
International Bank ID
international country code
An internationally accepted standard for denoting countries by using codes. For example, UK is used for the United Kingdom and USA is used for the United States of America.
Internet address
An IP (Internet Protocol) address is the numeric address of a machine, in the format used on the Internet. For example, the IP address of one of the University of Georgia's computers is
Intracom code
An indication of the type of transactions that you conduct with the business partner. The Intracom code is required for the sales or purchase listing that is part of the EU tax reporting.
Synonym: I-code
See: Intracom declaration
Intracom declaration
A list of the tax exempt transactions with business partners within the EU. Intracom declaration is the term used in Belgium and Luxembourg for the sales listing.
See: Intracom code
intracommunity transactions purchase VAT
The VAT that is levied on purchase transactions between EU countries.
Synonym: ICT purchase VAT
intracommunity transactions sales VAT
The VAT that is levied on sales transactions between EU countries.
Synonym: ICT sales VAT
Intrastat declaration
A statistics report on the physical goods flows between the member states of the European Union (EU). The information about the nature, origin, and extent of the goods flows must be reported regularly with an EU Intrastat declaration.

These statistics must be reported regularly with an EU Intrastat declaration. The EU Intrastat declaration is required by the national tax authorities in the framework of the European Common Market since 1993 (EC '93).

investment charge
A shifted expensed purchase tax that can be imposed on investment amounts. Investment charge tax can be used to steer investments, for example, environmental investments can be exempt from investment charge tax. Investment charge tax can be applied to purchase invoices and to journal vouchers.
Acronym: IVC
invoice balance
The total unpaid invoice amount.
invoice delivery method
A user-definable way to categorize invoices by their delivery method. LN prints invoices grouped by the invoice delivery method. Per invoice delivery method, LN sorts and prints the invoices within each ZIP/postal code by address.

You can select a default invoice delivery method for each invoice-to business partner.

invoice-from business partner
The business partner that sends invoices to your organization. This usually represents a supplier's accounts receivable department. The definition includes the default currency and exchange rate, invoicing method and frequency, information about your organization's credit limit, the terms and method of payment, and the related pay-to business partner.
invoice-to business partner
The business partner to which you send invoices. This usually represents a customer's accounts payable department. The definition includes the default currency and exchange rate, invoicing method and frequency, information about the customer's credit limit, the terms and method of payment, and the related pay-by business partner.
This package is used to improve efficiency and user-friendliness. You can generate and print all types of invoices in Invoicing. This package enables the user to combine the invoices from the other LN packages.
irrevocable letter of credit
A letter of credit (L/C) that you cannot change or cancel without the consent of all parties involved. Almost all L/Cs are irrevocable unless otherwise stated in the L/C.
ISO code
A code from a coding standard set up by the International Organization for Standardization. These standards and codes are internationally accepted. For example, codes for the representation of names of languages (ISO 639.2), codes for the representation of names of countries and their subdivisions (ISO 3166), and so on.
issuing bank
The bank that issues a letter of credit (L/C) and sends it to the advising bank on behalf of the buyer.
The raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, and sold.

An item can also represent a set of items handled as one kit, or which exist in multiple product variants.

You can also define nonphysical items, which are not retained in inventory but can be used to post costs or to invoice services to customers. The examples of nonphysical items:

  • Cost items (for example, electricity)
  • Service items
  • Subcontracting services
  • List items (menus/options)
item code
Identification code for an item (product, component, or part). The item code can consist of multiple fields or segments.
item code systems
External, alternative methods of coding items. Item-code systems can be general standard systems (for example, EAN) or specific, customer-dependent or supplier-dependent systems.
item fiscal group
A group of items with common tax characteristics.

The item fiscal group data include:

  • The usage type (for example, sales, fixed assets, raw materials, and so on)
  • The fiscal category
  • The tax code
item group
A group of items with similar characteristics. Each item belongs to a particular item group. The item group is used in combination with the item type to set up item defaults.
item material content
The quantity of a material that is part of an item.
item price
The item price as retrieved from the relevant Price Origin.
item type
A classification of items used to identify if the item is, for example, a generic item, a service item, or an equipment item. Depending on the item's type, certain functions will only apply to that item.
JIT item
One or more sessions and/or shell scripts that LN executes without user interaction. You can schedule jobs to run periodically or at a specified time.
Manufacturing based on improvement of productivity in time and used materials.

The basic conditions of Just-in-Time:

  • To have only the required inventory used for current production.
  • To improve quality to a minimum of defects.
  • To reduce setup times, queue lengths, and lot sizes (reducing lead times).
  • To reduce costs.
just-in-time item
An item of which the procurement is controlled using purchase schedules instead of ordinary purchase orders. The purchase schedule corresponds to a regular series of deliveries during a certain time period.
Acronym: JIT item
landed costs
The total of all costs that are associated with the procurement of an item until delivery and receipt in a warehouse. Landed costs typically include freight costs, insurance costs, customs duties, and handling costs.

In LN, landed costs can be part of multiple landed costs sets.

landed costs classification
Attribute that allows users to link a logistic transaction to a specific landed costs set, overruling the landed costs settings of that transaction. If required, users can specify a landed costs classification and use this classification on the transaction.
landed costs code
A code that identifies landed costs.
landed costs scenario
A set of conditions used to determine a logistic transaction's landed costs. Each scenario is linked to a landed costs set.
landed costs set
One or more landed cost lines that are defaulted as a group on the order.

The landed costs set includes search attributes that link a set of landed cost lines to a transaction.

landed cost type
A user-defined category of landed costs, for example, "Freight", "Handling", "Insurance."
The language in which the company communicates and in which the work instructions are printed.
late payment surcharge
The percentage that is charged over the goods amount or over rendered services that the recipient of the invoice must pay if the invoice is not paid within a specified period.
letter of credit (L/C)
A financing agreement most commonly used for trade arrangements across international borders. An L/C is issued by a bank at the request of the customer, also referred to as importer or buyer. In the letter of credit the bank promises to pay the seller, also called exporter or beneficiary, for goods or services provided, if the exporter presents the required documents and meets the terms and conditions stipulated in the L/C.
Abbreviation: L/C
lines of business
Groups of customers and/or suppliers working in the same business sector. You can use lines of business as selection criteria when generating reports/inquiries of statistical or historical data.
list group
A way to group list items. For example, you can use an SLS list group to group list items used on sales orders. A list item can belong to different list groups.
list item
A type of item that consists of multiple components. The components can also be managed and ordered separately. The type of list item (kit, menu, options, or accessories) indicates how the components are related.

List items are used to speed up the order-entry process. The order lines for a list item can contain main items or components.

LN shell
The LN shell is a program that runs the LN applications. The LN shell serves as an interface program between the LN applications, operating system, user interface, and database. This open systems architecture allows the LN applications to operate on all supported combinations of operating systems, user interfaces, and databases.
Acronym: bshell
Synonym: virtual machine
local currency
The currency of the country in which the company is located. Otherwise, the currency in which you report to the local tax authorities.

In a multicurrency situation, you can use three home currencies. The three home currencies that you can define for a company are:

  • The company's local currency
  • Reporting Currency 1
  • Reporting Currency 2
local home currency
The home currency that is the legal currency of the country in which the company is established. Tax reporting must usually be done in the local home currency.
The physical location that is associated with the data or transaction, such as a warehouse, production facility, city, or country.

Location is a mandatory field in Business Object Documents (BODs) for transactional data.

The process of storing every single transaction in a log file.
logistic area
A combination of logistic companies and financial group companies. A logistic company contains multiple enterprise units. Financial group companies contain one or more financial companies.

The logistic company's enterprise units can be linked to a financial company within one financial group company. However, enterprise units can also be linked to financial companies within different financial group companies. Also, enterprise units within different logistic companies can be linked to one financial company. And finally, it is possible that some financial companies within a financial group company are not linked to an enterprise unit.

logistic company
An LN company used for logistic transactions, such as the production and transportation of goods. All the logistic data concerning the transactions is stored in the company's database.
Logistics Service Provider (LSP)
See: carrier
logon code
The identification code for the LN user. This code is used for system security.
lot and serial set
A list of the lot codes and/or serial numbers of an item on a sales order line. The lot and serial set can be used in invoicing or after-sales service.
lower margin
The lower margin is the percentage that the actual sales price is allowed to be lower than the target price. If this percentage is negative, the item can only be sold for a price higher than the target price. This is the case when the target price is the standard cost.
main category
Defines the highest level of a catalog structure. A main category cannot be a member of another category.
Items made from raw materials and/or subassemblies entirely on the basis of a customer order.

The end item is usually a high-tech standard product, configured according to customer specifications.

manual order system
An order system for items that are not planned by LN. You can manually create purchase orders and production orders for such items.
A supplier of finished goods. User-definable item grouping data used for sorting and selecting.
A template that specifies the structure of an identification code. A mask is used to generate the identifier for a shift when it is generated through either the Update Calendar Working Hours (tcccp0226m000) session.
See: mask segment
mask segment
A part of a mask that represents specific data. For example, a mask segment can be a date, a LN field, or a sequence number.
See: mask
See: translation table
match code
A code that defines a set of priority-based additional criteria that must be applied when self-billed invoices are automatically matched with corresponding order data.
The substance of which an item is composed, such as wood, nylon, copper, and gold.
material actual price
The real price of a material from a material exchange for a specific date.
material base price
The fundamental price of a material, which is used as a basis for computing material price surcharges.

For materials with fluctuating prices, material base prices prevent high material surcharges and ensure realistic initial prices.


For the item Copper Wire with Plastic Coating, the major part of the price includes the copper price. The minor part of the price includes the costs of the plastic coating and the production costs for coating the copper wire with the plastic.

If one meter of plastic coated copper wire costs $8.00, the price parts would be as follows:

  • One meter of copper wire (1 kg) = $6.978
  • Plastic coating = $0.422
  • Production costs = $0.600

To prevent the initial price being low with only $1.022 and the (variable) material price surcharge being high with $6.978, you can specify an (approximate) material base price for copper of $6.500. As a result, the initial price is $7.522 (0.422 + 0.600 + 6.500) and the material price surcharge is $0.478 (6.978 - 6.500), which represent more realistic figures.

material exchange
A global standard for industrial materials trading and price-risk management from which actual material prices are retrieved.

Examples of material exchanges are: London Metal Exchange (LME), Deutsche Elektrolyt-Kupfer-Notierung für Leitmaterial (DEL), and Singapore Metal Exchange (SIME).

material price
The price of a material, which can be the following:
material price agreement
A general arrangement by price list or business partner(s) and item or item group that includes the dates and preconditions used to retrieve materials and calculate material prices.
material price surcharge
A surcharge on top of the material base price, which is calculated by subtracting the material base price from the material actual price. Because material actual prices fluctuate, material price surcharges vary.
material price surcharge costs
Costs to cover for additional material costs, such as administration costs. These surcharge costs are calculated by multiplying the material price surcharge by a surcharge factor.
  • Material price surcharge = €0.432
  • Material price surcharge factor = 1.5

The material price will be increased with material price surcharge costs of €0.648 (€0.432 * 1.5)

maximum inventory level
The maximum inventory quantity that can be available in a warehouse.
minimum inventory level
The minimum inventory quantity that must be available in a warehouse.
From a logistical point of view, multicompany relates to the flow of goods or information between multiple locations, which are implemented in different logistic companies. Typically, these locations are situated in various regions or countries.

From a financial point of view, multicompany relates to the financial flow between financial entities, represented by departments and warehouses, which are implemented in different financial companies. Typically, these warehouses and departments are located in various countries or belong to different business units.

multiple tax code
A tax code for a type of tax which consists of several percentages levied by various tax authorities.
multiple tax rates
These rates consist of multiple percentages.
Refers to the management of multiple sites within a single (logistic) company.

In a multicompany structure, which includes several companies, multisite applies to each of the logistic companies.

negotiating bank
The bank that reviews the documents required by the letter of credit (L/C) and remits payment to the seller if the documents are compliant with the terms of the L/C. The bank can be specifically named in the L/C, or can be a bank chosen by the seller.
nonconsecutive record selection (NCRS)
A method to select nonconsecutive records across multiple screens, after which specific actions can be taken on the marked records.

To select nonconsecutive records, click the first record, and then hold down CTRL and click additional records.

Acronym: NCRS
number group
A group of first free number series that you can assign to a specific use.

For example, you can assign a number group to:

  • Business partner codes
  • Purchase contracts
  • Sales orders
  • Production orders
  • Service orders
  • Warehousing orders
  • Freight orders

Within a number group you can define multiple series. Each series is identified by the series code. The series numbers that LN generates consist of the series code followed by the first free number in the series. Series codes of the same number group have the same length.

number of times used
Test instruments can be calibrated on the basis of periodic intervals (time) or on the basis of the number of times they have been used.
object type
Defines a business object or business document, such as a sales order or a contract, in the context of document authorization.

An object type includes one or more tables and specifies this information:

  • How the tables of the object type relate to each other.
  • The actions to generate a request for document authorization, which will be processed in ION Workflow.
  • What data of the object type must be sent to ION Workflow to perform the actual document authorization.
one-time business partner
A business partner that represents temporary contacts. For example, if you occasionally sell goods to individuals with whom you do not have a permanent business relationship, you can define them as a one-time business partners.
operational company
The company to which a department, warehouse, or project belongs. In most cases, this is the logistic company in which the department, warehouse, or project was created. Logistic transactions originating from a department, warehouse, or project can only be created in their operational company.
A possible value of a characteristic. Options can be grouped in option sets. For each option, you can indicate whether it is acceptable.
A way to group related topics. For example, for the Country aspect you can define the various countries for which you want to implement specific functionality as options.
option group
A way to group the options on a high level. For example, for the Country aspect you can group the various countries into areas such as Nordic, Latin America, and Central Europe.
option list ID
The identification of the options and features for a configured item. The ID is used in the item specification to match supply and demand.
order balance
The balance of outstanding orders.
order lead time
The production time of an item expressed in hours or days, based on the lead time elements as defined in the routing operations.
order method
The order parameter that controls the ordered quantities of recommended purchase and production orders.
order policy
The order parameter that controls the way an item is produced or ordered.

This can be:

  • Anonymous, the item is produced or purchased independent of customer orders.
  • To order, the item is produced or purchased only if customer orders exist for the item.
order quantity
The quantity for which the inspection is required. Consequently, the result of the inspection order concerns the quality of this quantity.
order series
A group of order numbers or document numbers starting with the same series code. The numbers consist of 9 characters.

Series identify orders with certain characteristics, for example, all sales orders handled by the large accounts department start with LA (LA0000001, LA0000002, LA0000003, and so on).

order system
The order parameter that controls the way by which recommended purchase and production orders are generated.


  • FAS (final assembly scheduling).
  • SIC (statistical inventory control).
  • Planned (schedule-based and order-based planning).
  • Manual (manual reordering).
order types
A classification of sales and/or purchase orders with similar work flows.

Order types determine the character or function of an order and, consequently, of the message. Order types prescribe the chronological order of the sessions (order steps) in the order procedure. The main point is, that you must carry out order steps successively to process a purchase or sales order.

outstanding order
An order that is already entered into LN, but it has yet to be supplied.
overdue invoice
The invoice that has been left unpaid too long.
Time worked beyond the regular working hours.

You can use overtime for the following purposes:

  • For maintenance activities on objects not available for maintenance during regular working hours.
  • To increase production capacity.
overview session
A session that lists the available elements or records of one type, and some of their details (fields). You can use an overview session to view, sort, add, change, copy, and remove records.
own goods movement
Goods transfer within your own enterprise, for example, between warehouses and/or work centers.
Data that influences the way a package or module operates. You define parameters in the Parameters session of a package or module to adapt the parameter to the specific requirements of your organization.
Parameter Wizard
A tool that you can use to group the parameters for specific localized LN functions and to set the parameters to specific values.
parent/child relation
Generic term to indicate parent and child elements in any multilevel structure. For example, this relationship is used for companies, financial accounts, dimensions, product families, customers, suppliers.
parent business partner
The business partner that links the various business-partners with different roles in a distributed business partner organization.

If you define branches of one company as different business partners, the business partners must all have the same parent business partner.

parent calendar
A calendar linked to a child calendar, one level higher in the derivation hierarchy, and from which the child calendar inherits the properties.
pattern exception
Dates on which some action is defined as possible or impossible in deviation from the regular pattern.

You can define pattern exceptions to exclude particular dates from a pattern, such as to exclude holidays from a working calendar.

pattern moment
A particular time on a particular date, defined by using patterns, times of day, and exceptions.
pay-by business partner
The business partner from whom you receive payments. This usually represents a customer's accounts payable department. The definition includes the default currency and exchange rate, the customer's bank relation, the type of reminders you send to the business partner, and the frequency of sending reminders.
paying bank
The bank that effects payment of documents negotiated under a letter of credit (L/C). Customarily, the buyer's bank. It can also be the negotiating bank, unless the L/C allows another bank to negotiate or the paying bank is unable to negotiate.
payment method
The way in which the payment (purchase invoice) or the direct debit (sales invoice) takes place. The payment method defines details such as, the maximum amount, the type of due date, if foreign currencies are allowed, and which details must be printed on the report.

These details are default values that you can change on the order or invoice as necessary.

payment period
A number of days or months added to the invoice date. If no other due date calculations apply, the invoice must be paid within this period.
payment schedule
Agreements about the amounts that must be paid by payment period. You can link a payment schedule to the payment terms and, in this way, to sales invoices and purchase invoices.

Each line of the payment schedule defines a part of the invoice amount that must be paid within a specific period, the payment method used for the payment, and the discount conditions that apply to the payment.


In many sessions, 'payment schedule' refers to a payment schedule line.

If you use receipts against shipments, 'payment schedule' refers to a shipment.

Synonym: receipt schedule
payment terms
Agreements about the way in which invoices are paid.

The payment terms include:

  • The period within which invoices must be paid.
  • The discount granted if an invoice is paid within a given period

The payment terms allow you to calculate:

  • The date on which the payment is due
  • The date on which the discount periods expire
  • The discount amount
pay-to business partner
The business partner to whom you pay invoices. This usually represents a supplier's accounts receivable department. The definition includes the default currency and exchange rate, the supplier's bank relation, the number of days within which you must pay the invoices, and if the business partner uses a factoring company.
A combination of project/budget, element and/or activity, which is used to identify costs, demand, and supply for a project.
percentage of invoice amount
The percentage of the total amount to be paid within the specified period. The total of all percentages must be 100.
performance boosters
Specific settings that can increase the performance (processing speed) of sessions.
Periods divide a year into regular intervals, such as weeks, months, or quarters, that can be used for statistical, hours accounting, planning, and cost controlling purposes.
period code
The identification of a period table. The different periods of a year, including the period number, start date and end date are linked to the period-table code.
period number
A number to identify a period in a year.
period-table code
An alphanumeric code that identifies a group of defined time intervals.
Permissions are the authorization roles, rules, and policies for a specific business process. The permissions are assigned to employees. The permissions are used to specify the authorization level, that is, if an employee can view, edit, or modify the data of a business process. For example, you can access the projects of a specific Enterprise Unit in a Project session. However, based on the permissions you can only view, but cannot modify the project data.
physical quantity
The dimension of the unit. For example, the dimension of kilometer is length, and the dimension of liter is volume.
planned order system
The production or purchase of planned items is based on the expected demand. Planned items are planned in Enterprise Planning.
planning board groups
Used to define the layout, colors and font of the graphical planning board.
planning board unit
The smallest controllable unit on the planning board. Its physical length depends on the technical display possibilities.
planning group
A planning group is used for segregation in planning for project specific demand and supply. Commingling rules and cost transfer rules can be defined at planning group level to control supply planning behavior of project pegged items within the planning group as well as with other planning groups.

A project can only be assigned to one planning group.

plan time unit
The time unit used to express the availability of a resource in order to plan the resource. This unit can be expressed by day, day percentage, or the actual time of availability.
point of title passage
The point at which the legal ownership changes. At this point, the risk passes from the seller to the buyer.
postal address
The address all mail (for example, order acknowledgement, invoices) is sent to as defined for customers or suppliers. You can also record extra order-specific addresses.
A title used before a person's name, such as Mr., Dr.
price group
Group of items with the same prices and discounts. Price groups for customers are linked to items in Item Sales Data. Price groups for suppliers are linked to items in Item Purchase Data. The price groups are used in price and discount matrices.
price list
List of default prices and discounts for customers and suppliers. You can link price lists to items and item groups, and to sold-to and buy-from business partners.
price stage
A categorization of the price based on the phase of the price negotiation process. Using price stages, companies can negotiate the price while continuing the order process with restrictions. The order processing restrictions that apply to the price stage are specified in the linked blocking definition.
Price StageTypeBlocking Definition
PS1Price stage estimatedPurchase004Block on release
PS2Price stage provisionalPurchase005Block on receipt
PS3Price stage finalPurchase--
PS5Price stage estimatedSales010Signal on order entry


prime cost
The actual cost of producing an article, as opposed to money spent on selling it, on renting factories, and so on.
An item that is purchased, subcontracted, manufactured, or assembled.
product category
Group of goods or services to which the same tax rules and calculations apply. Product categories are used by tax provider software to calculate the sales tax.
product category matrix
A matrix used to map the LN product relation types to the product categories recognized by the tax provider. The tax provider program uses the product categories to calculate the sales tax.
product class
User-definable item grouping data that is used to distinguish between different groups of items in a product line. The product class is mainly used as a selection criterion for reporting.
product group
A group of items with similar characteristics for a site. Each item used at a site belongs to a particular product group. The product group can be used as a selection criterion for reporting and for financial mapping.
product line
A group of products made by the same producer, that are similar but differ in details such as, size, shape, color, and so on. User-definable item grouping data, mainly used as an item selection criterion for reporting.
product relation
The method used to identify the product category within LN. The product-relation type identifies the appropriate product category for each transaction in LN.
  • Sales orders, purchase orders and service orders use the item or item-group product relations
  • Service contracts use the contract-type product relations
  • Finance transactions use the account-number product relations.
product relation type
Type of LN data which you can link to a product category for determining the correct taxability with the tax provider. Product relation types include items, ledger accounts, service contract types, projects, and so on.
product type
User-definable item grouping data that is used as a sorting and selecting criterion. The product type is intended for classifying items with similar characteristics for production purposes.
An endeavour with a special objective to be met within the prescribed time and money limitations and that has been assigned for definition or execution.
project management office
You can use the project management office (PMO) to group projects by department or to link employees to the department.
The name LN displays for a field. The prompt indicates the type of information you must enter in the field.
purchase catalog
Identifies purchasable items. A purchase catalog is defined as a main category and as a purchase category.
purchase category
A category that can only be used in purchase catalogs. Purchase categories can only be members of higher-level categories that are also purchase categories. A purchase category that is also a main category is called a purchase catalog.
purchase-invoice-matching company
A financial company that you link to an enterprise unit to match and approve purchase invoices. An invoice-matching company can be a different financial company than the one that is used to carry out the enterprise unit's financial accounting. In a multifinancial company structure, you can carry out centralized purchase-invoice-matching by linking a purchase-invoice-matching company to multiple enterprise units.
purchase listing
List with information about the origin, value, etc., of intracommunity purchase invoices.

Companies established in Spain are obliged to use this information, along with the information contained in the sales listing, to make a tax declaration for their goods and services transactions within the EU.

See: sales listing
purchase office
A department in your organization that is responsible for buying the materials and services required by your organization. You assign number groups to the purchase office.
purchase rate
The factor by which purchase transaction amounts in a foreign currency are multiplied to produce the amounts in the home currency.
quality group
A group of items with similar quality characteristics. The data defined for the quality group are used as defaults for all items of that quality group.
A charge or payment fixed according to a standard scale, for example, the currency rate of the transaction.
rate factor
The factor by which the amount in the transaction currency or the invoice currency is divided before LN converts it to a home currency. A rate factor is often used for currencies that have a relatively low price, for example, Korean Won.
A user-defined standardized description of the reason for a particular decision or choice. A reason's type determines for which purpose you can use that reason.

To include additional information about an action, you can select and enter a reason from a list. LN can also print the reason in the relevant report.

receipt schedule
A set of recurring dates for which exceptions are defined per calendar code/ availability type combination.

Every last Friday of the month is a non-working day. This exception is used in the Update Calendar Working Hours (tcccp0226m000) session to generate calendar working hours.

A repetition of dates, such as “Biweekly on Mondays and Fridays”, “The 27th of each month”, or “The first Monday in June of every 5th year”.
reference currency
The currency in which balances of entities shared by all the companies of a financial company group are expressed. For example, LN uses the reference currency for business partner balances.
  • The reference currency is the common base currency of the companies in a multicompany structure.
  • For currency systems other than the standard currency system, the reference currency is a company's base currency for all calculations with currencies.
reimbursing bank
Bank authorized by the sender, the issuing bank, to reimburse drawings in accordance with the letter of credit (L/C). This can be a branch of the sender or the receiver, the advising bank, or an entirely different bank.
A relationship that carries information between two enterprise units or between two entities, for example, an intercompany trade agreement.
remaining turnaround time
The Remaining Turnaround Time is the remaining time available for you to complete the item maintenance within the Agreed Turnaround Time.
reminder method
The way in which the invoice-to business partner is reminded. This information includes the frequency of the reminders, if the reminders must be sent to the invoice-to or pay-by business partner or to their parent business partner, and if you charge interest over the amount.
repair price book
A price book that is used to store internal fixed repair prices.

You can make a repair price book distinctive by its description.

replenish to maximum inventory
The (re)order quantity for replenishment equals the maximum inventory minus current inventory.
In LN, a general term for the output of a print session.
reporting currency
One of the companies' home currencies that you, for example, use to report financial results to management.

In a multicurrency situation, you can use three home currencies. You can define the following three home currencies for a company:

  • The company's local currency
  • Reporting currency 1
  • Reporting currency 2
The business reason that you define to describe exceptions used in unit effectivity. A requirement can be, for example, a specific market, model, or customer.
An entity such as employee, work center, or machine.
revolving letter of credit
A single letter of credit (L/C) that can be used several times over a long period of time. Either a fixed amount is available which is replenished when exhausted or an amount is available in fixed installments over a period such as week, month, or year.
A standards organization that develops and publishes XML-based standards for electronic messaging in the areas of supply chain management, manufacturing, and so on.
rounding code
Set of up to six ranges of values and their rounding values. Rounding codes can be linked to quantities and amounts. They are used when you calculate, for example, purchase prices and discounts, sales prices and discounts, and warehousing rates.

A rounding code can define the following ranges with their rounding values:

  • Up to 100: round to whole numbers
  • From 100 to 100,000: round to a multiple of 5
  • From 100,000 onward: round to a multiple of 100.
rounding factor
Indicates how LN rounds off entered and calculated amounts or quantities. The quantities and amounts are rounded off to the nearest multiple of the rounding factor. For example, if the rounding factor is 0.030000, a quantity of 2,11 is rounded off to 2,10 (= 70 * 0.030000). A quantity of 2,12 is rounded off to 2,13 (= 71 * 0.030000).

The following differences exist between rounding factors for currencies and for units:

  • LN applies the rounding factor for units immediately when the users enter the data. LN applies the rounding factor for currencies not to the amounts entered, but after performing the applicable calculations.
  • In some cases, you can change rounding factors for units, but you cannot do this for currencies.
Line of travel from your warehouses to the ship-to or ship-from business partner's warehouse and vice versa. Use routes to group business partners that are located in the same area or along one convenient route.

You can arrange addresses by routes to print picking lists and shipping notes sorted by route.

routing group
A group of items with similar routing attributes, for example, the same work center, routing operation, BOM, and so on. A routing group is defined by the user as a selection criterion for production orders.
sales catalog
Identifies salable items. Only sales categories or items defined in the Items - Sales (tdisa0501m000) session can be included in sales catalogs. A sales catalog is defined as a main category and as a sales category.
sales category
A category that can only be used in sales catalogs. Sales categories can only be members of higher level categories that are also sales categories. A sales category that is also a main category is referred to as a sales catalog.
sales invoice amount
The amount the customer is charged with in exchange for the delivery of the ordered goods.
sales listing
A list with information about the origin, value, etc., of invoices.

Companies established in European Union (EU) countries are obliged to use this document to make a tax declaration for their goods transactions within the EU.

LN bases the sales listing on the financial transactions that result from export transactions when the related invoices are processed.

sales territory
A code used to classify sold-to business partners by sales region.
A small quantity that is drawn from the total (order) quantity and which represents the order quantity's quality.
sample quantity
When you draw a sample of a specific order quantity, you often do not want to test all the pieces at once. A sample quantity is the actual quantity that is drawn from the total sample size, and that is tested at once.
sample size
The total quantity of samples from the order quantity to be tested, expressed in the unit of the sample size. The sample size can be entered as a fixed quantity or as a percentage of either the order quantity or the frequency (if you selected Continuous Sampling as test type).
seasonal factor
Indicates the deviation from the standard quantity.

The quantity on demand, in stock, and so on, during a specific period of the seasonal pattern is the standard quantity multiplied by the seasonal factor for the period. This information is used for forecast and advice.

If the quantity for this period is normal, the factor is 1.0.

If the quantity for this period is more than the standard quantity, the factor is >1.0.

If the quantity for this period is less than the standard quantity, the factor is <1.0.

seasonal pattern
Seasonal patterns define the fluctuation of certain values, such as the expected usage or demand of an item in the course of a year. These values serve as parameters in forecast and advice.
Secondary Attributes
The attributes (such as item group, product type, selection code, and others) linked to entities (item, and business partners) that are used to set data permissions for an employee.
A subdivision of the item code in different logical parts, called segments.

These segments are visible in the sessions as separate fields. Examples of segments are:

  • Project segment
  • Cluster segment
  • Item identification
selection code
User-definable item grouping data. Use selection codes to select items by color, diameter, product expiry date, and so on.

Selection codes are used for information purposes only.

The character used to separate the segments of the serial number.
sequence number
The number that identifies a data record or a step in a sequence of activities. Sequence numbers are used in many contexts. Usually LN generates the sequence number for the next item or step. Depending on the context, you can overwrite this number.
serialized item
A physical occurrence of a standard item that is given a unique lifetime serial number. This enables tracking of the individual item throughout its lifetime, for example, through the design, production, testing, installation, and maintenance phases. A serialized item can consist of other serialized components.

Examples of serialized items are cars (Vehicle Identification Number), airplanes (tail numbers), PCs, and other electronic equipment (serial numbers).

serial number
The unique identification of a single physical item. LN uses a mask to generate the serial number. The serial number can consist of multiple data segments that represent, for example, a date, model and color information, sequence number, and so on.

Serial numbers can be generated for items and for tools.

A group of order numbers or document numbers starting with the same series code.

Series identify orders with certain characteristics. For example, all sales orders handled by the large accounts department start with LA (LA0000001, LA0000002, LA0000003, and so on).

service customer-owned warehouse
A type of warehouse that you use exclusively to store items that are owned by the customers and that have been sent to the depot to be repaired or serviced. Receipt and issue of items does not affect the value of the warehouse inventory because the items are owned by the customers. Therefore, receipt and issue of items does not result in financial transactions.
service reject warehouse
A type of warehouse that you use to store items which after inspection are rejected.

The items in a service reject warehouse can be:

  • Repaired on a work order.
  • Scrapped via a warehouse procedure.
  • Returned to the owner.
service subcontracting
Allot the service related work of an item to another company. The entire maintenance or repair process, or only a part of the same, can be allotted. Service subcontracting can be used with or without material flow support.
An elementary part of LN the user can start to run an application's functionality. Usually, a session is linked to a main database table and a program script. In addition, a session uses zero or more forms, reports, and charts.

The code of a session consists of a package code, a module code, four digits that indicate the main table number and the session type, an m or an s, and three additional digits, for example, Countries (tcmcs0510m000).

The production work force can be organized in shifts. The most common models are one, two or three shifts models, but more complicated models are possible with different shift divisions planned for various days of the week.

A shift has the following properties:

  • An unique key that identifies it.
  • The key is generated based on a mask.
  • The start and end dates and times are specified.
  • The shift net time is specified.

A shift with a start date and time in the past cannot be deleted.

ship-from business partner
The business partner who ships the ordered goods to your organization. This usually represents a supplier's distribution center or warehouse. The definition includes the default warehouse at which you want to receive the goods and if you want to inspect the goods, the carrier that takes care of the transport, and the related buy-from business partner.
Synonym: ship-from supplier
ship-from supplier
shipment complete
This advanced shipping constraint implies that all expected shipment lines will not be shipped until the entire scheduled quantity for the line has been allotted.
ship-to business partner
The business partner to whom you ship the ordered goods. This usually represents a customer's distribution center or warehouse. The definition includes the default warehouse from which you send the goods, the carrier who carries out the transport, and the related sold-to business partner.
Synonym: ship-to customer
ship-to customer
shop floor planner
The person responsible for printing, (re)scheduling and releasing production orders and managing workloads.
A warning message displayed if you enter or select an item to which a signal is linked. Item signals can also be used to block the issue and/or requisition of items.

Business-partner signal

A warning message displayed if you select a business partner to whom a signal is linked.

single currency system
A currency system in which a company uses only one home currency. This home currency is also the reference currency. This currency system is especially for use for companies that operate in a single country.
See: standard currency system
singular tax rates
Indication for a single tax rate, as opposed to multiple rates. In Canada and the U.S., multiple tax rates can apply on the federal, state, and municipal level. Singular tax rates consist of a single, flat percentage.
Abbreviation of Societe Internationale de Telecommunications Aeronautiques. Among other things, this society has defined a communications protocol that the airline businesses use for the communication between applications. The protocol guarantees delivery and messages delivered using this protocol are legally valid.
A business location of an enterprise that can maintain its own logistical data. It includes a collection of warehouses, departments and assembly lines at the same location. Sites are used to model the supply chain in a multisite environment.

These restrictions apply to sites:

  • A site cannot cross countries. The warehouses and departments of the site must be in the same country as the site.
  • A site is linked to one planning cluster. Consequently, all warehouses and work centers of a site must belong to the same planning cluster.
  • A site is linked to one logistic company.

You can link a site to an enterprise unit or an enterprise unit to a site.

If an enterprise unit is linked to a site, the entities of the site belong to the enterprise unit. Conversely, if a site is linked to an enterprise unit, the entities of the enterprise unit belong to the site.

site category
A classification providing information about the nature of a site.
The specific know-how or technical expertise that an employee must have to carry out activities. For example, knowledge of electricity, specific equipment, and so on.
Short Message Service, a messaging system for mobile phones.
social contributions (expense)
Social contributions on behalf of your suppliers but for which you are liable. You must pay the social contributions directly to the collection office. You can register this type of tax as expensed purchase tax.
sold-to business partner
sold-to business partner
The business partner who orders goods or services from your organization, who owns the configurations you maintain, or for whom you perform a project. Usually a customer's purchase department.

The agreement with the sold-to business partner can include:

  • Default price and discount agreements
  • Sales order defaults
  • Delivery terms
  • The related ship-to and invoice-to business partner
A collection of item-related data, for example, the business partner to whom the item is allocated or ownership details.

LN uses the specification to match supply and demand.

A specification can belong to one or more of the following:

  • An anticipated supply of a quantity of an item, such as a sales order or production order
  • A particular quantity of an item stored in a handling unit
  • A requirement for a particular quantity of an item, for example a sales order
specific category
A type of category.
staggered consignments
The delivery of several components of a complete product at different times. Staggered consignments are not declared until the last consignment is delivered.
stamp tax
A type of tax that is imposed on trade notes. Stamp tax consists of a fixed amount instead of a percentage. Depending on the country of your company, if you issue trade notes you can be obliged to pay stamp tax on the trade note.

In some countries, such as Spain and Japan, to pay the stamp tax, you must stick a stamp on the trade note document. In other countries, to pay the stamp tax, you must buy an official form for the trade note.

standard carrier alpha code
A unique code to identify transportation companies, used to facilitate automatic processing in the transportation industry.
standard currency system
A currency system in which foreign currency transactions are translated straight from the transaction currency to the local currency, without triangulation through the reference currency. By default, reporting currencies are directly translated from the transaction currency into the reporting currency; however, reporting currencies can also be translated from the local currency.
standby letter of credit
An L/C issued by a bank on behalf of the buyer and that guarantees that the seller, also called beneficiary, will receive payment upon the presentation of specified documents if the buyer fails to pay the beneficiary according to the terms of the contract between the buyer and the seller.

Difference between letter of credit and standby letter of credit

The letter of credit is a method of paying for goods. The standby letter of credit is a performance guarantee that the goods will be paid if the buyer defaults. As a performance guarantee, the main benefit of the standby letter of credit is that it usually involves less cost and is less cumbersome than the alternative forms of guarantees.

State codes are used in electronic filing of 1099-MISC Income. State codes are part of the address that is linked to the pay-to and pay-by business partners.
statistical inventory control
An order system in LN that generates planned purchase or production orders to replenish stock.

The reorder point is usually calculated by adding the safety stock and the forecasted requirements during the replenishment lead time.

SIC items are planned by Warehousing.

Abbreviation: SIC
statistics group
A group of items for which statistical information is collected and represented.
storage inspection
Inspections on items in inventory which require regular checkup. To carry out these checks or inspections, you must define the items and the reason for inspection. The selected items are blocked in inventory after which inspection orders are generated.
Defines lower levels (catalog pages) of a catalog structure. Subcategories can consist of items or other subcategories.
subcontracted service
The auxiliary item code for recording subcontracting operations. Items of this type also belong to the administrative items. These items are non-physical items which are used to record the subcontracting costs.

(Formerly called subcontracting item)

Hiring certain services from another party, for example the execution of a part of a project or an operation of a production order.
subcontracting item
Obsolete term for an item code used for a subcontracted service.
subcontracted service
A reference to an LN package, such as Manufacturing or Warehousing. For example, items by subentity refer to sessions such as Items - Planning (cprpd1100m000), or Item Data by Warehouse (whwmd2510m000). Similarly, site by subentity refers to site data by LN package, which is available in sessions such as Warehousing Settings by Site (whwmd2101m000) or Production Settings by Site (timfc0180m000).
supplementary unit
An extra unit in which the quantity of goods must be reported for the EU Intrastat declaration. The main reporting unit is kilogram in all cases. For some goods, a reporting unit must be used such as pairs (of shoes and so on), liters, head or pieces (for cattle), or square meters. Quantities of goods to which kilograms do not apply are only reported in the supplementary unit.
supplier stage payments
Spread payments that are made by customers to suppliers over a period of time. With stage payments, customers can make payments for an item before or after the item is actually received. An item's invoice flow is separated from its goods flow.
Abbreviation: SSP
supplier stage payment schedule
A schedule set with supplier stage payment defaults used to generate stage payment lines on purchase order lines or RFQ responses.

After specifying the desired schedule number, you can specify the defaults for a number of stage payment lines. The time fence between the order date and the invoice date, and the percentage of the total net amount are specified on a stage payment line.

SWIFT code
The international code for the bank, according to the rules of the Society for Worldwide Interbank Financial Telecommunications (SWIFT).
Synonym: International Bank ID
Copying the landed costs of the header to the related lines.
table boosters
A way to increase the speed of accessing a database table by loading the table or specific parts of it into memory on the server.
A TAT log is the information about the changes made to a TAT Document. The events that start or stop the TAT Timer are recorded in the Log.
TAT Terms
The TAT terms contains the agreed TAT information for a specific item or a business partner.
tax account
Ledger account to which you can post tax amounts.
tax account group
A group of ledger accounts to which the various tax amount types are posted.

A tax account group can contain the following accounts:

  • (Interim) purchase tax account
  • Sales tax account
  • Account for tax on advance payments
  • Account for tax on advance receipts
  • Contra account shifted tax purchase
  • Contra account shifted tax sales
  • Interim account for tax on payments
  • Interim account for tax on receipts
  • Sales ledger account

Instead of specifying the ledger account for each type of tax amount in the Tax Code by Country (tcmcs0136s000) session you can specify the ledger accounts at once by selecting a tax account group for the tax code by country combination.

tax authority
A government body with jurisdiction over the sales taxes in a specific area. You can set up tax authorities and tax authority groups for tax reporting purposes.
tax authority group
A way to group tax authorities. You can use the tax authority groups when you select or sort tax information for reporting purposes.
tax base value
The value that LN uses to calculate the tax amounts.

Usually, the tax base value is the net order amount or the net invoice amount. However, for types of tax such as social contributions that can be charged on a part of the invoice amount, the tax base value can be a percentage of the net amount.

tax category
A way to distinguish and/or group types of tax for inquiries, reporting, and tax payment selections. For example, for social contributions the categories Unemployment and Medical insurance can be required.
tax classification
An attribute of order headers and order lines that you can use to define tax exceptions for the transaction. LN retrieves the default tax classification from the invoice-from and invoice-to business partners.

For example, you can use the tax classification to indicate:

  • That payments to an invoice-from business partner are subject to withholding tax and social contributions
  • To group business partners who have the same tax aspects for your company, for example, subcontractors, or agents
  • That the tax must be paid in a country other than the sales office or service office's home country
tax code
A code that identifies the tax rate and which determines how LN calculates and registers tax amounts.
tax code exception
A set of transaction details for which you define a tax code and/or tax country and business partner tax country other than the values that result from the standard tax code derivation.
tax codes by country
Definition of the country-specific tax data, for example, the type of tax (single or multiple), the collection office, the tax rates, and any text that must be printed on invoices to which a specific kind of tax applies.
tax country
The country in which the tax must be paid or reported. The tax country can be different from the country where the goods are issued or delivered.
tax country group
A group of countries that have the same tax relation to the company's home country.
tax date
The tax rates that are valid on this date are used to calculate the tax amounts.
tax declaration number
A generated number that identifies each tax declaration.

The tax declaration number contains the following parts:

  • The tax year
  • The tax period
  • The correction number
  • The tax declaration type
  • The collection office
  • The tax category, if present
tax exemption
Being exempt from tax. Transactions with specific business partners, involving specific goods, and/or with their origin or destination in certain countries or areas, can be exempt from tax. Sales invoices for transactions that are exempt from tax must have zero tax amounts.

Some enterprises are exempt from sales tax within the jurisdiction of certain tax authorities. Invoices for sales to a customer with a valid tax exemption must have zero tax amounts. If you are exempt from sales tax, your suppliers must not include the tax amount on their invoices.

tax exemption certificate
A certificate issued by a tax authority to a specific business, exempting them from sales tax within the tax authority's jurisdiction. When you purchase goods or services, you must provide the certificate number to your supplier to authorize them not to collect the tax.
tax library
An algorithm LN uses to determine the tax code, the tax country, and other tax details of a transaction.

For more information, refer to Search Order Tax Defaults

tax number
A number used to identify legal persons or businesses. The tax authorities assign the tax numbers to the registered businesses. Your business partners must provide you with their tax number. Business partners without a tax number are considered to be private persons.
tax number
A number used to identify legal persons or businesses. The tax authorities assign the tax numbers to the registered businesses. Your business partners must provide you with their tax number. Business partners without a tax number are considered to be private persons.
tax number
A number used to identify legal persons or businesses. The tax authorities assign the tax numbers to the registered businesses. Your business partners must provide you with their tax number. Business partners without a tax number are considered to be private persons.
tax position
Represents a box on the tax declaration form. To link the tax codes that contribute to the amount in a box to its tax position, you define relations by tax position. To add the box to the tax declaration, link the tax position to the declaration master.
tax provider
A third party application that facilitates the calculation of taxes.
tax rate
The tax percentage for each tax code.
tax settlement
LN links a tax code of this kind to the reversal postings of the tax amounts on the interim accounts when you pay the tax, and to the tax payments you make to the collection office.
tax type
Indicates whether the tax is payable at invoice creation or after the invoice has been paid.
A way to group employees for planning and authorization purposes. If you assign roles to a team, all the employees assigned to the team have the authorizations that correspond to the roles.
technical coordinator
The employee who is responsible for maintaining the technical item specifications and the requirements for the manufacturer of the item. This employee is also responsible for maintaining the information concerning hazardous material and the risk classification in Warehousing.
In a Software as a Service (SaaS) software deployment environment, a tenant is the client organization that uses the software that is offered as a service.

No data is shared between tenants. The tenant is the top level container for all data.

In LN, the tenant is always a constant value for an LN installation.

Tenant is a mandatory field in Business Object Documents (BODs).

terms and conditions agreement
An agreement between business partners about the sale, purchase, or transfer of goods, in which you can define detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and demand pegging, and define the search mechanism to retrieve the correct terms and conditions.

The agreement includes the following:

  • A header with the type of agreement and the business partner(s).
  • Search levels with a search priority and a selection of search attributes (fields) and linked terms and conditions groups.
  • One or more lines with the values for the search levels’ search attributes.
  • Terms and conditions groups with detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and demand pegging for the lines.
terms and conditions attribute set
A set that groups search attributes of the same terms and conditions type for use on the terms and conditions search levels.

Search attributes not linked to the attribute set cannot be entered on the terms and conditions agreement for the terms and conditions type.

terms and conditions group
Groups the detailed terms and conditions about orders, schedules, planning, logistics, invoicing, or demand pegging for the terms and conditions line.
terms and conditions line
Holds the values for the search attributes of a terms and conditions search level. Therefore, it specifies the fields to which the detailed terms and conditions, as stored in the terms and conditions groups, apply.
terms and conditions search attribute
An element (field) selected on the terms and conditions search level and specified and searched for on the terms and conditions line.
terms and conditions search level
A priority level for searching and selecting a terms and conditions line. Search levels include a selection of search attributes (fields) and linked terms and conditions groups.
terms and conditions template
A default terms and conditions agreement, representing a business process, with no business partner linked to it. The level of detail of the template data is user-definable.

Based on a template, you can do the following:

  • Generate new terms and conditions agreements for business partners.
  • Update existing terms and conditions agreements.
  • Validate terms and conditions agreements.
terms and conditions type
Defines the type of terms and conditions agreement or template and is linked to a set of search attributes. Each terms and conditions type has its own search attributes.

The following terms and conditions types are available:

  • Purchase
    Purchase terms and conditions agreements can be linked to purchase contracts.
  • Sales
    Sales terms and conditions agreements can be linked to sales contracts.
  • Internal
    Internal terms and conditions agreements can be linked to enterprise unit relationships.
test areas
The physical location where tests take place.
test instruments
The tool that is used during a quality test to measure particular characteristics of items.
test quantity
The part of the sample quantity that is tested each time.

Explanation: A 5 kg sample will be tested by testing 1 kg at a time.

test unit
The unit that applies to the test. For example, meter, liter, or kilogram..
An expression used to address persons and/or companies. The title is printed on documents over the address data.
The amount by which a value is allowed to differ from the intended value.
tolerance percentage
The percentage by which a value is allowed to differ from the intended value.
tool type
Tool category.

Indicates if the tool:

  • Is ready for use (single-piece tool)
  • Must be assembled from components before use (multipiece tool)
  • Is part of a multipiece tool (tool component)
The function for which you want to define or set the parameters in the Parameter Wizard, such as Nordic Bank Files, the Belgian Balance of Payments report, the Intrastat report, and so on.
transaction currency
The currency used in the transaction document.
transaction date
The date on which the order is changed and/or written to the history file. For each change, LN inserts a new line and a new transaction date. This applies to any type of order.

Among other things, the transaction date is important for:

  • Scheduling
  • Statistics
  • Determining due dates and currency exchange rates
transaction type
A transaction can be an issue or a receipt.

The following transaction types are available:

  • material requirement
  • planned receipt
transferable letter of credit
A letter of credit (L/C) that the allows the beneficiary to transfer all or some of the rights and obligations specified in the L/C to a second beneficiary.

This is used if three parties are involved: buyer, seller, and supplier. The seller does not produce the goods, but outsources the goods to the supplier. If the supplier requests an L/C but the seller has insufficient working capital to have an L/C issued to the supplier, the seller can request a transferable L/C from the buyer. In this way, payment is transferred from the seller to the supplier. The seller is called the first beneficiary and the supplier is the second beneficiary.

A person to whom money or property is transferred.
transferee bank
Bank that credits the transferee's account because of a funds transfer.
transferring bank
The bank authorized by the issuing bank to transfer all or part of the letter of credit (L/C) to another party, a middleman or supplier, at the beneficiary’s request.
transition period
A period from 1 January 1999 until 1 July 2002 during which companies can do their accounting in European national currencies and in the euro.
translation table
A table to translate the actual data into the code required to form the serial number. For example, to translate the production date into the date code.
transport order
A document describing the transportation process of goods from a warehouse to the customer address. The document includes information on the items to be conveyed (for example, standard items, user-defined items), loading and unloading time intervals and addresses, rate data and invoice amounts, the physical distribution route, and the quantity types.
triangular invoicing
The generation of internal financial settlements if goods and the invoice for the goods are sent by or received by different entities. The entities can be departments, warehouses, and internal or external business partners. LN automatically generates the internal invoices or the settlement between the entities in the financial companies that are involved.
triangular trade
Within the Europan Union, triangular trade refers to supplies of goods involving three parties of which at least two reside in EU member states, if one party ships the goods to the customer and another party invoices the customer for the goods. The goods are usually delivered to the customer as a direct delivery.
Synonym: ABC transaction
A legal rule for the conversion Economic and Monetary Union (EMU) into euros. LN automatically applies triangulation when converting EMU currencies.

The exact text of this rule is: Monetary amounts to be converted from one national currency into another shall first be converted into a monetary amount expressed in the euro unit, which amount may be rounded to not less than three decimals and shall be converted into the other national currency unit. No alternative method of calculation may be used unless it produces the same results.

triangulation conversion
Changes the method for converting amounts in different currencies from regular to triangulation if EMU currencies are involved.
triangulation indicator
A code used on the European sales listing to indicate invoice amounts that result from triangular trade transactions for which no corresponding Intrastat transaction is logged. The code is prescribed by the government.
turnaround time document (TAT)
The TAT is an agreement maintained between the customer and a maintenance repair provider for the maintained items. This document provides the time period the Maintenance, Repair, Overhaul Service Provider is allowed to work on the item involved. The key performance indicators are utilized to compare between the agreed TAT with the actual TAT status.
Unemployed Employee
A employee is considered as unemployed, If People data is not maintained for the employee in the Employees - People (bpmdm0101m000) session
The physical quantity in which an item or good is managed. For example, a quantity of wood can be expressed as a length by using the unit of one meter, or as a volume by using the unit of one cubic meter.
unit effective item
An item for which an effectivity unit can be defined on the sales order line or the sales quotation line. The effectivity unit is used to model deviations for the unit effective item, and to peg purchase orders and production orders to a specific sales order line for the unit effective item.
unit effectivity
A means to control the validity of variations by effectivity units.

Unit effectivity enables you to model changes for the following entities:

  • Engineering bill of material
  • Production bill of material
  • Routing
  • Routing operations
  • Supplier selection
  • Sourcing strategies
unit set
A group of unit codes that can be linked to standard or customized items, or to item defaults. In a unit set, you can indicate the physical quantities that can be used for the item, in which modules, and for what purposes.
upgrade price
A price that is defined for a requirement in Unit Effectivity (UEF). If the requirement is used in an effectivity unit's configuration, the upgrade price is added to the effectivity unit's sales price.
upper margin
The upper margin is the percentage that the actual sales price is allowed to exceed the target price.
UTC time
The acronym for Universal Time Coordinated, the time system that is similar to Greenwich Mean Time (GMT). The UTC's reference point is Greenwich, England located at 0° longitude, the imaginary north-south line also known as the prime meridian. When it is noon at Greenwich, it is 12:00:00 UTC.
Acronym for value-added tax; the indirect percentage tax levied on products or services at various stages of production and distribution.
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.
verification date
Date on which the existence, correctness, or truth of something are checked, such as facts, accounts, statements, the contents of a list.
virtual machine
A place for storing goods. For each warehouse, you can enter address data and data relating to its type.
warehouse set
A group of warehouses with similar characteristics. A warehouse can belong to one particular warehouse set.
The weight of the goods delivered or received. The weight is calculated on the basis of the transaction quantity and the item's weight unit.
withholding income tax
Tax for which the supplier is liable and which the payer of a purchase invoice withholds on the payment and pays directly to the tax authorities.

The term "withholding tax" generally refers to withholding income tax and social contributions.

withholding social contributions
Social contributions for which the supplier is liable but which the payer of a purchase invoice withholds on the payment and pays directly to the tax authorities.
working hours
A defined period of time in a calendar for which a resource can be planned.

In LN, working hours types are user-defined time elements to structure a calendar.

working hours type
A type of time interval such as Monday morning, Wednesday afternoon, or service weekend. For a working hours type, you can define defaults for start time and end time.
working timetable
All working activities that are entered in a report showing working hours by day. These activities include start and end times and labor types.
The seven days of the week, for which the available and non-available hours are defined.
World Wide Web Consortium
An international organization for the development of standards used on Internet, and more specifically on the world wide web.
Acronym: W3C
year part
Any part of a year (flexible period).
year part type
To indicate how the calendar data is grouped.

For example, calendar data can be grouped by:

  • Day
  • Week
  • Month
  • Year
ZIP code
A number that identifies each postal delivery area.

ZIP codes are used:

  • To sort customer data by address/area.
  • To determine in which taxation jurisdiction the address is located.
  • To calculate the distances between delivery addresses.

ZIP codes are printed on forwarding documents on which no further address data is printed. The ZIP/postal code does not appear in the address lines on order documents.

zoom session
The session in which you can browse through the available records and select a record. A zoom session is an overview session in read-only mode.

You can use a zoom session to enter the code of an existing record (for example, an item, order type, or warehouse) in another session.