The bank, named in a letter of credit (L/C) on which drafts are drawn, that has agreed to accept the draft.

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.

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.

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.

An appointment, call, task, mailing, or e-mail that is registered in LN and that can be linked to, for example, a contact, a business partner, or an opportunity. Optionally, tasks, appointments, and calls can be synchronized with desktop applications.

Part of a business process that depending on the type of activity requires a certain action by LN or an LN user:

• Manual activity

  A task that cannot be automated

• Business process

  A hierarchical expansion of the business process

• Application

  A program that can run on the client or server and is defined within a component release

• File-based (client)

  A file for which, based on the file extension, the associated application on the client is started

• Sending trigger

  An attached business process that is started without user interaction

The smallest part of the activity structure used for a time-scaled budget. An entity that is used to represent a part of a project in an activity structure.

LN distinguishes these activity types:

• WBS Element
• Control Account
• Work Package
• Planning Package
• Milestone

A step in a warehousing procedure. An activity corresponds with a session of the Warehousing package. For example, the inbound activity Generate Inbound Advice is performed using the Generate Inbound Advice (whinh3201m000) session.

The definition of a standard activity. As the data to be recorded can vary from one activity to another, you can link a separate attribute set to each activity template. An activity template can be used as a basis for creating tasks and mailings.

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.

The estimated freight costs set to Actual Cost Final for a load or a freight order cluster by the user, or the actual amount invoiced by a carrier to the shipping office to carry out the transportation of particular goods.

The sum of the late payment surcharges that were actually deducted.

The current date and time when the transaction took place. In contrast with the transaction date, the actual log date cannot be changed.

The scenario that contains the operational master plan or order plan, as opposed to scenarios used only for simulation, that is, what-if analysis.

The actual scenario is the only scenario from which you can transfer planned orders to the execution level.

Charges for extra services, such as extra packaging, insurance, and so on. Additional costs are added to the freight costs of a shipment, load, or a freight order cluster. They are levied for shipment lines or freight order cluster lines, which can be invoiced to the customer. This depends on the agreements made with the business partner.

User-defined fields of various field formats that can be added to various sessions, in which users can edit these fields. No functional logic is linked to the contents of these fields.

Additional information fields can be linked to database tables. When linked to a table, the fields are displayed in the sessions corresponding to the database tables. For example, a field defined for the whinh200 table is displayed as an extra field in the Warehousing Orders (whinh2100m000) session.

The contents of additional fields can be transferred between database tables. For example, the information specified by a user in additional information field A of the Warehousing Orders (whinh2100m000) session is transferred to additional information field A in the Shipments (whinh4130m000) session. For this purpose, additional information fields with identical field formats and field name A must be present for the whinh200 and the whinh430 tables (whinh430 corresponds to the Shipments (whinh4130m000) session).

A quantity by unit against which you can define freight rates. You can choose from the units defined in Common. Many freight rates are based on distance and weight. Additional quantities/units enable you to define rates that are based on other units, such as volume, or define rates that are based on combinations of distance, weight, and other units.

Example 1

Freight rate by additional quantity/unit:

Additional Rate Quantity: 1 pallet, Distance: 1000 km

Amount by Distance: 10

Example 2

Freight rates by combinations of units by distance/zone:

Weight: 10 kg

Additional Rate Quantity: 1 m³

Break Type: Minimum

In this example, freight rates are based on distance by weight and volume. Shipment SH0001, from Amsterdam to Rotterdam, includes the following details: Distance: 70 km, Weight: 50 kg, Volume: 7 m³

The freight costs for shipment SH0001 are:

10 * 70 (distance) + 5 * 50 (weight) + 5 * 7 (volume) = 985 

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.

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.

A warehouse order created specifically to adjust inventory where a variance has occurred. An adjustment order adjusts inventory and creates financial transactions.

A warehouse that offers a view of a warehouse that is managed by a business partner. An administrative warehouse corresponds with a physical warehouse controlled by the business partner's system. In that physical warehouse, the inbound and outbound processing takes place. The administrative warehouse mirrors the inventory levels present in the business partner's warehouse.

Administrative warehouses are used in situations such as the following:

• The warehouse is at your location, but a supplier manages and possibly owns the inventory until you use the items.
• The warehouse is at the customer's location. You own the inventory until the customer uses the items, but the customer manages the inventory.
• The warehouse is at the subcontractor's location. You own the unfinished goods present in the warehouse, but the subcontractor manages the inventory.

Administrative warehouse is not one of the warehouse types that you can define in LN, setting up an administrative warehouse requires various parameter settings.

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.

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.

The party that advises the bank guarantee based on the request raised by the guarantor. In a general scenario, the guarantor is the bank that issues the bank guarantee.

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.

The duration for which the MRO Service Provider can work on a task.

Inventory throughout all warehouses that is allocated to outbound order lines. After the inventory is shipped, that is, has left the warehouse, the allocation is deleted. Also referred to as standard allocation or soft allocation.

See also location allocated inventory

The reservation of inventory against a demand prior to the outbound process.

You can allocate a quantity of inventory to a business partner or a particular demand order.

Items that can serve as a substitute for the standard item if the standard item cannot be delivered or is being replaced.

A substitute for a BOM material that the system can select in case the standard material is out of stock.

An alternative material is supposed to meet the same specifications, but only in the context of a BOM for a specific main item.

A payment that is not entirely executed yet, or is on its way to be executed.

These anticipated payments can be created:

• Automatically, for example when a check is generated by the automatic payment procedure.
• Manually, for example, when a check is written.

The party indicated in the bank guarantee as having its obligation based on the relationship supported by the bank guarantee. In a general scenario, applicant and the instructing party are the same.

If the beneficiary of the bank guarantee is an external business partner, by default, the name or address of the own company of the applicant is selected.

An activity type that specifies an appointment scheduled for a contact, business partner, opportunity, or activity that you want to track through completion. An appointment has invited atttendees.

Dividing the fixed landed cost amount of the header into partial amounts on the related lines.

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.

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 actually built structure of a product including the serial numbers.

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.

An item with default supply source Assembly. The production of assembly items is controlled by an assembly order. Assembly orders are executed on an assembly line.

An order to assemble a product on one or more assembly lines.

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.

The messages linked to contacts, opportunities, attributes etc. that draw your attention to special events or circumstances.

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.

Used to record distinctive information on (potential) business partners, contacts, opportunities, or activities and to segment data when specifying a batch selection for generating activities, mail merge (letters), or flexible reports.

Example

The user's permission to use specific terminals or sessions.

An authorization policy is used to set up data authorization for a group of employees, irrespective of the roles.

An authorization role is used to set up data authorization for a set of employees with the same role.

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.

An unfilled customer order, or partial delivery at a later date. A demand for an item whose inventory is insufficient to satisfy demand.

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.

The costs a bank charges to process the transactions. The bank charges can depend on the type of transfer, for example, whether the transfer is between different banks or between branches of the same bank. In addition, the bank charges can vary for different ranges of transaction amounts.

An independent documentary undertaking by which a bank (or other legally qualified entity; the guarantor), issues an irrevocable guarantee to pay a sum of money to a third party, at the request of its customer, based on a complying demand/document(s).

An eleven-character, alphanumeric code that identifies a bank. In various countries, a bank identifier is used to denote the bank to which an account belongs. For payments, for example, the bank identifier is used on a remittance form to denote a banking relation or a pay-to business partner.

A unique number used by the banks to reference each invoice. The bank reference number can be a string of 20 or more digits, composed in such a way that a number check can be performed to check its validity.

In some countries, the bank reference number is a critical component of payment and receipt transactions, especially if payment slips are used. If bank reference numbers are used, the bank reference number must appear on the invoice document, on the payment slip if applicable, and on the payment document.

A bank account of your company. The bank relation definition includes details such as your bank account number, account type, the international bank account number, the bank's currency and whether other currencies are allowed, and whether the account is a blocked account.

A series of alternating bars and spaces printed on documents or products, representing encoded information that can be read by electronic scanners.

If quantities expressed in alternative units are used in calculations or formulas, these quantities are first converted to the base unit.

For each company, base units must be defined for weight, length, surface area, volume, and time.

A group of financial transactions processed together. If you finalize a batch, all the transactions are processed, or if an error occurs, no transactions are processed.

A way to group countries for the Belgian Balance of Payments report, which is part of the EU tax reporting.

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.

The party in whose favor, a bank guarantee is issued.

The time interval defined to generate billing statement for the contract.

The search structure by company for warehouses based on the numeric priorities assigned to the warehouses. 1 is the highest priority, and 999 the lowest.

The legal document used by the carrier that states what is transported (nature, quantity, weights, and so on) to what address.

A list of all parts, raw materials, and subassemblies that go into a manufactured item and show the quantity of each of the parts required to make the item. The BOM shows the single-level product structure of a manufactured item.

A warehousing order that is generated during the creation of a push schedule or a production schedule and that contains:

• A position number and sequence number of zero.
• An item as defined on the purchase schedule or production schedule.
• An order quantity equal to the quantity as defined on the purchase contract line. If based on a production schedule, the order quantity of the blanket order is based on the quantity specified in the Transfer Quantity field of the Work List (tirpt4602m000) session.
• An empty planned delivery date and planned receipt date.
• A lot selection defined as Any.

A special account for transferring money to the national tax authorities. The blocked account is used when subcontractors are contracted. They must deposit part of the invoice amount into the blocked account.

Indicates the stage at which the order process must be blocked or a signaling message must be displayed, with the associated reason.

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.

In the context of financial integration transaction processing, a business object is a logistic entity or event such as an item, a purchase order, a business partner, or a warehouse issue.

A business object is an object understandable by the business, 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 that are implemented simultaneously as one group during the development phase. A business object is identified by the combination of a package code, module code, and business object code.

A characteristic of the business object that can be used to map the integration transaction to specific ledger accounts and dimensions. For example, the Sales Order business object has the Series attribute and the Sales Order Type attribute, among others.

An XML message used to exchange data between enterprises or enterprise applications. The BOD is composed of a noun, which identifies the message content, and a verb, which identifies the action to be taken with the document. The unique combination of the Noun and the Verb forms the name of the BOD. For example, noun ReceiveDelivery combined with verb Sync results in BOD SyncReceiveDelivery.

The unique code that identifies a specific business object. For example, the business object ID of a Purchase Order business object is the purchase order number.

A transaction identification more detailed than the business object, for example, a receipt number or an order number. You can use the reference during reconciliation to match transactions if the business object alone does not provide enough information, for example, during GRNI reconciliation.

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.

The employee or department of the business partner that is used as the contact to your own company or department in case of problems or questions.

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

A user-defined group of business partners.

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.

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

An area of commercial endeavor. Projects can be categorized according to the business sector to which they refer.

The employee of your company who is the contact to the concerned buy-from business partner. The buyer is also known as the purchasing agent.

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.

Abbreviation of Commercial And Government Entity. A unique identifier assigned to suppliers to various government or defense agencies, as well as to government agencies themselves and also various organizations. CAGE codes are used internationally as part of the NATO Codification System (NCS), where they are sometimes called NCAGE codes.

A work center of the type Costing that is used to determine the enterprise unit for a project, or production order and also has an administrative function.

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.

A list of workable days, that is used to build a calendar.

The horizontal lines in a calendar table, which group planning data by date.

An activity type that specifies a call scheduled for a contact, business partner, opportunity, or activity that you want to track through completion. A call has invited attendees.

A question, complaint, or malfunction that is communicated to the party responsible for the service or maintenance of the item concerned.

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 indication of the kind of cash transaction. Transactions to which you link a reason code of the Cash Flow type are included in the cash flow statement, sorted by cash flow reason.

A report of the cash transactions history in a financial period. The report provides an overview of the sources and uses for cash. In some countries, a cash flow statement must be submitted to the authorities periodically.

A user-definable classification for projects.

A classification or division of items. The classification can be by form, fit, or function.

A division within a system of classification for enterprise units or enterprise unit relationships.

The company in which all LN Enterprise Modeler model item data is stored. Central storage facilitates the retrieval of enterprise modeler data.

Orders that are used to record, approve, and carry through all kinds of changes.

For example, a change order can be related to engineering matters or to business processes.

A change document that includes a proposal for the adjustment of an actual document. The change request is copied from and linked to the actual document. Changes are applied to the actual document after the change request is approved and processed.

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.

A user, program or system that requests the execution of a specific task from another program or system. See also server.

A schedule for the generation of monthly billing invoices. For example, you can define a closing method to generate two monthly billing invoices each month: one on the 15th day of the month and one at the end of the month.

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.

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.

A set of items that is grouped and then linked to an agreement.

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.

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

An item that is sold, and invoiced in combination with other items as part of a kit.

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.

A group of items configured by the CPQ Configurator that have the same settings. The items are part of the same configuration model family.

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.

The part of the total forecast which the customer definitely expects to consume.

If the customer sends the forecast by period to the supplier that plans the supply, the customer can differentiate between confirmed and unconfirmed forecast.

Typically, confirmed forecast of a component is derived from actual sales orders and sales schedules of end item. The user can use various methods to determine how much of the forecast is confirmed forecast.

See also unconfirmed forecast.

Quantity of the item the supplier has confirmed will be delivered to the customer on the planned delivery date.

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.

The goods owned by a third party and that are stored in a warehouse belonging to another party.

Two types of consignment inventory exist:

• Owned consignment inventory

  Goods your company owns and stores in a customer's warehouse without receiving payment until the goods are used or sold. You do not register the goods as consignment inventory, because the goods are still part of your inventory.

• Not-owned consignment inventory

  Goods a supplier owns, but that are stored in your warehouse without being paid for until the goods are used or sold. You register the goods as consignment inventory.

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.

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.

In LN, a means to check, restrict, or compel to avoid or perform some action.

In the Product Configuration module, a constraint is every possible decision rule or calculation conceivable that can be carried out during the definition of the product variants. You can use constraints in the product model for product features, generic BOMs, routings, price lists, and item data. You can use a constraint editor to define constraints.

Among other things, constraints allow you to indicate under which conditions certain combinations of options are acceptable, mandatory, or not acceptable for product features. You can also indicate which bill of material components and/or operations must be included or excluded, what the purchase or sales price structure for a product variant is, and so on.

In the Product Classification module, a constraint consists of one or more constraint lines that define the conditions under which certain return values or calculation results are included in the classification code during item classification.

The issue from the warehouse of consigned items by or on behalf of the customer. The customer's purpose is to use these items for sale, production, and so on. After the items are issued, the customer becomes the owner of the items and the customer must pay the supplier.

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.

A user-definable classification of contacts.

A vessel used to store or move material.

An agreement between two parties to purchase or sell an unspecified quantity of material over a certain period of time. A contract can be linked to one or more orders or schedules.

An agreement with the business partner that defines the terms and conditions like deliverables, billing plan, payment terms and so on. A contract can be linked to one or more projects.

An agreement of one customer with one supplier, about both commercial and logistic conditions, related to the supply of one item, during a period of time.

A quote to a business partner for the provision of a service contract.

A way of categorizing contracts based on similarities and shared characteristics.

Each contract type is identified by an alphanumeric code of up to three characters.

A cluster of financial companies linked to enterprise units of logistic companies which are, for conversion, considered as one logical unit of companies.

A group of companies and/or currencies to be converted together with the conversion details such as the type of conversion to be processed.

The multiplication factor used to convert an alternative unit to the base unit. The conversion factor is calculated as follows: (alternative unit/base unit)

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 plan that details the actions performed to prevent recurrence of non-conformance or failure. The plan is based on the non-conformance material report (NCMR).

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.

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

A cost component is a collection of cost objects with a certain characteristic. A cost component does not depend on the cost type, therefore, for example, a project can be monitored from another dimension. For example, all the costs that refer to electrical work, for example, cable and installation work, are visible if the applicable cost objects are linked to the cost component Electrical work.

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.

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.

An unit to which costs can be linked.

A type of cost carrier for the resources used in your project.

These cost objects are available:

• Material
• Labor
• Equipment
• Subcontracting
• Sundry Costs
• Overhead

Cost objects can be standard or specific for a project. The cost object is related to a control code for cost controlling purposes.

Type in classification of budgeted or actual costs. Cost types are represented as ledger accounts.

A way of categorizing cost objects and control codes according to the nature of the costs that they represent.

LN Project distinguishes these cost types:

• Materials
• Labor
• Equipment
• Subcontracting
• Sundry Costs
• Overhead

Categories that are used to register the type of costs. Cost types enable you to have a more detailed view of the source of costs.

An undertaking given by the counter-guarantor to another party which names that party as the beneficiary to procure the issue by that other party of a local guarantee to be issued to the beneficiary in the underlying contract/relationship.

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.

A user-defined group of countries.

A classification of the activities and costs related to a call, according to the terms that have been defined in the contract.

A financial classification that indicates to what extent work is covered under warranty or contract, and what part of the activities can be charged.

An application, integrated with LN to configure an item. The integration can be used only as part of the web user interface.

One of your employees in charge of controlling and monitoring the credit that you give to an invoice-to business partner.

The company where (part of) the credit limit of the invoice-to business partner is insured.

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.

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.

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.

The year-to-date totals for quantities shipped, received, required, and invoiced.

Cumulatives are used as schedule statistics to track if its status is ahead or behind schedule compared to the demand.

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

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.

An item supplied by the customer being used as material in the production of an end-item for that same customer.

The number assigned to the order or contract by the sold-to business partner (for example, the sold-to business partner's purchase contract number). The customer order number can be used to identify a sales contract line.

A type of ownership behavior pertaining to goods in inventory or on order. Customer owned goods are goods whose ownership will not change during any of the inbound or outbound warehousing processes.

For example, a customer sent you some components that you, as a subcontractor, will use to manufacture a product for this customer. The customer owns the components while they are stored in your warehouse and throughout all the logistic and production processes involved in manufacturing and delivering the product to the customer.

See also: ownership

An item produced on a customer specification for a specific project. A customized item can have a customized BOM and/or a customized routing and is normally not available as a standard item. A customized item can, however, be derived from a standard item or a generic item.

The latest date for which transactions are processed. Transactions with a transaction date later than the cut-off date specified for a process are not included in the process.

The periodical count of the item inventory to verify if the system data is still accurate.

An order generated by LN to count the inventory by stock point at a particular frequency and to subsequently register the counted quantities. A cycle count order consists of an order number and a sequence number indicating the number of counts performed on this order. As a result of the count action, you can adjust the inventory.

Déclaration annuelle des salaries (Annual declaration of the wages/fees). A report of all payments made to third parties during a fiscal year, which must be submitted annually to the French government.

Abbreviation of DD Form 250 or Material Inspection and Receiving Report.

A schedule set with installment defaults used to generate installments on sales orders or project contracts.

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

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.

The actual address where goods must be delivered that you recorded for each supplier. In practice, this can be one of your warehouses.

A transport document that provides information on a consignment contained in one truck (or other vehicle) and refers to an order or a set of orders for one consignee at a delivery address. If the truck load contains shipments for various business partners, the load includes more than one delivery note. The information on a delivery note includes the delivery date and address, the customer's name, the contents of the consignment, and so on. In Italy, a delivery note is a legally required document, where it used to be called BAM (Bolla Accompagnamento Merci). Currently it is called DDT (Documento di Trasporto). In Portugal and Spain delivery notes are also used, but there they do not have the same legal status as in Italy.

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.

The agreements with the business partner, concerning the way the goods are delivered. Relevant information is printed on various order documents.

The terms or agreements concerning the delivery of goods.

The item quantity that is forecast to be required in a plan period. A demand forecast can be generated based on seasonal patterns or historical demand data.

The demand forecast is part of the demand plan for a plan item or channel.

A relationship between a planned order, or an actual supply order, and an item requirement that represents a definite commitment.

You can only use the demand pegged supply for the pegged requirement, unless either of these conditions applies:

• The peg is deleted.
• Parameters allow issuing unallocated inventory or inventory of a different specification for a demand-pegged outbound order.

• Pegged supply

  The pegged supply can be a purchase order, a planned purchase order, a production order, a planned production order, a warehousing order with transaction type transfer, or a planned distribution order.

• Pegged requirement

  The pegged requirement can be, among other things, a sales order line or a required component for a production order.

Related term: soft peg

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.

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.

Repair that is carried out in a repair shop.

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.

Analysis account for ledger accounts to get a vertical view on ledger accounts. Dimensions are used to specify ledger account information.

One of up to twelve available analysis account bases for ledger accounts.

The initiation of pay-by business partner receipts by means of sending requests to the bank for transfer of the amounts due from the customers bank account to the company's bank account.

The process in which a seller orders goods from a buy-from business partner, who must also deliver the goods directly to the sold-to business partner. By means of a purchase order that is linked to a sales order or a service order, the buy-from business partner delivers the goods directly to the sold-to business partner. The goods are not delivered from your own warehouse, so Warehousing is not involved.

In a Vendor Managed Inventory (VMI) setup, a direct delivery is achieved by creating a purchase order for the customer warehouse.

A seller can decide for a direct delivery because:

• There is a shortage of available stock.
• The ordered quantity cannot be delivered in time.
• The ordered quantity cannot be transported by your company.
• Costs and time are saved.

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.

An allowance of deduction granted by the seller to the buyer, usually when the buyer meets certain stipulated conditions that reduce the price of the goods purchased.

Three types of discounts exist:

• A quantity discount: an allowance determined by the quantity or value of the purchase.
• A cash discount: an allowance extended to encourage payment of an invoice on or before a stated date.
• A trade discount: a deduction from an established price for items or services made by the seller to those engaged in a certain business.

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

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.

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.

The price on the document line, which is the sum of the item price and the total material price.

Abbreviation of Department of Defense Activity Address Code. A six-position code that has been awarded by the US government to a party involved. When assigned outside the Department of Defense, the codes are usually referred to as AACs or FEDAACs.

Tax rates applied to transactions that for taxation purposes are considered as transactions within a single country.

Abbreviation of Defense Priorities and Allocation System. DPAS is used to provide priority ratings for contracts related to orders from the US Department of Defense. DPAS-rated orders have higher priority than unrated orders.

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.

A batch that converts a sequential file of electronic bank statements to Financials.

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.

The inventory that is available to be sold.

The first day on which a record or a setting is valid. The effective date often includes the effective time.

The date on which the validity of the materials or the operations is checked.

The application considers a material or operation to be valid, if this date is within the effective date and the expiry date range.

The effective dates are used in the explosion process to create demands for the correct items.

A code that represents a group of one or more effectivity units that applies to the same unit effective item.

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.

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.

The computer-to-computer transmission of a standard business document in a standard format. Internal EDI refers to the transmission of data between companies on the same internal company network (also referred to as multicompany). External EDI refers to the transmission of data between your company and external business partners.

The smallest part of an element structure. An element is used to define the (structure of the) work of the project, so that you can carry it out.

A general term used for entities defined in LN, such as items, business partners, currencies, and so on. The details of an element are registered in the database as a record. In an overview session each element or record is represented by a line.

An activity type that specifies an e-mail created for a contact, business partner, opportunity, or activity that you want to record in LN. E-mails can be created to send them, but also to manually register received e-mails. An e-mail has selected recipients.

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, lucy@narcia.com, where lucy is the username and narcia.com 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.

A human member of an organization model. Typically, employees are users who carry out activities with the Worklist Handler.

An organizational unit of employees. For example, sales department or purchase department.

The number that identifies an employee.

The number of regular hours that an employee works per defined period.

An item that is ready to be delivered to a warehouse. An end item is produced at the end of a dangle routing (co-products and by-products) or a main routing.

A link between a particular E-item revision and one or more standard or customized items. You can use the relationship to implement a design change incorporated in a new E-item revision by copying the E-item data to the item defined in the relationship.

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 Configuration 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.

In Assembly Planning, a system, or, in other words, a logical unit of assembly parts, that is typically not manufactured as a separate physical unit.

For example, the electrical system of a car is the logical unit of all parts required for the electrical system. It is, however, not manufactured as a separate physical unit, but integrated in the dashboard, doors, and so on.

An engineering module has no routings, assembly lines, options, and so on, and is for design and planning purposes only. In the bill of materials (BOM), the engineering module is the top layer of the nonconfigurable section of the BOM.

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.

A financially independent part of your organization that consists of 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, these are posted in the financial companies to which each enterprise unit is linked. The enterprise-structure models define the relationships between the enterprise units, and the goods transfer that can take place between the enterprise units. To use invoicing and pricing between enterprise units, you must link the enterprise units to internal business partners.

You can use enterprise units to perform separate financial accounting for parts of your business. For example, you can define enterprise units for separate parts of your organization that belong to one logistic company but which are located in different countries. The accounting of each enterprise unit is performed in each country's national currency and in the financial company linked to the enterprise unit.

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.

A separate and independent building block for a cluster and/or an enterprise unit. For example, warehouse, work center, employee, sales department, purchase department, project, customer, supplier, financial company.

An object (person, place, thing, or concept) for which you must record information.

LN provides the following entity types:

• Logical entity type: a meaning to the real world and is comprised of one or more physical entity types.
• Physical entity type: database tables in the LN application packages.
• Associative entity type: an entity type that is used to link other entity types.

The quantity of an item that is planned for use in a particular production order.

The estimated quantity is made up of the net quantity plus any additional quantities used to compensate for anticipated material losses.

A process where there is no invoice between the supplier and the customer. Payments are initiated by the customer and based on the deliveries done by the supplier. The payments to be made are recorded in advance by the customer in a remittance advice EDI message and are sent to the supplier who will subsequently be able to reconcile the relevant open entries.

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 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.

Inventory for which no demand is present. For example, excess inventory can result from fixed order quantities, when the received quantity exceeds the present demand.

Excess inventory can be:

• On hand

  Physically present in the warehouse

• On order

  Present on planned or scheduled receipts

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.

A way to group currency exchange rates. You can assign different currency exchange rates to different invoice-to business partners and/or to different types of transactions (purchase, sales, and so on).

An internal purchase cost that can be booked on a non-finalized project. The transaction costs are posted separately if direct delivery occurs. If a delivery is made through a project warehouse, the expense tax is included in the valuation price or fixed transfer price (FTP).

An indication of the type of payment, for example, fees, brokerage, or a reduction, of the payments on the DAS 2 report.

A change order that makes the effectivity unit inactive.

The date from which a record or a setting is no longer valid. The expiry date often includes the expiry time.

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.

The specific agreements within or in addition to the initial contract. An extension falls outside the initial contract with the sold-to business partner. Extensions can be assigned to the bottom-up budget.

LN distinguishes four extension types:

• Scope Change
• Provisional Amount
• Fluctuation Settlement
• Quantities to be Settled

The parts of projects for which special arrangements are have been made that concern invoicing, such as variations, provisional amounts, quantities to be settled, and fluctuation settlements. An extension can be attached to one or more budget lines.

The funding source for the company. The factor is usually a bank or a commercial finance company that purchases the accounts receivable (sales invoices) from the company.

A property of an item which is used when you classify items. For example, a frame and a wheel are features of the item bike.

Characteristics which can be combined and subsequently be linked to configurable items to compose a product variant. An example of a feature is color.

A group of business partners with common characteristics, for which you can define the creditors' account or the debitors' account and a set of additional control accounts such as control accounts for doubtful invoices, advance and anticipated payments or receipts, and realized and unrealized currency profit or loss. LN automatically uses these control accounts in business processes such as sales invoice registration, and the payment process.

A company that is used for posting financial data in Financials. You can link one or more enterprise units from multiple logistic companies to one financial company.

Part of an LN database in which you can store all data concerning financial transactions.

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.

A unit that consists of two or more financial business partner groups, which is used to link these business partners to ledger accounts.

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.

A separate period, or year for financial purposes.

Three financial period types exist:

• Fiscal, in which all transactions are recorded (for example, 12 months).
• Reporting, for management requirements (for example, 52 weeks).
• Tax, for tax regulations (for example, 4 quarters).

The transaction created to reflect a logistic event in Financials. The combination of a transaction origin (TROR) and the financial transaction (FITR) results in an integration document type.

A warehouse with warehouse type Financial. A financial warehouse is used to show the inventory levels and enable financial processing of owned inventory that is actually stored in a physical, that is, "real," warehouse belonging to another business unit or branch office within the same organization. The owning unit and the unit storing the inventory have their own p & l accountability.

A requirement that is handled as an actual order and that can be shipped.

Also known as hire date, the date on which the employee joins the organization.

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.

In Italy, a number used to identify natural persons or businesses.

A social security number that is issued to persons who are employed. It is used by fiscal authorities for tracking the financial transactions of employees.

A number used to identify corporate bodies as well as natural persons for income tax and social contribution registration.

Expenses that do not vary with the production volume. Examples of these costs are the depreciation costs of machines and buildings, rent, and property taxes. Operation rates and surcharges can be attributed to the variable costs or the fixed costs.

Antonym: variable costs

A specific date and time that you define as a firm and unchangeable time point on which goods must be delivered to you.

If you defined fixed delivery moments for a plan item, LN sets the unconstrained planned finish date back to the nearest fixed delivery moment.

You can define incidental fixed delivery moments, or define a pattern of recurring fixed delivery moments.

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.

The time between two activities, expressed in days.

Example

If activity A and activity B have a end-start relationship with a delay of three, the network planning shows that activity B starts three days after activity A has finished.

A classification of an item in terms of:

• Product density (pounds per square foot)
• Stowage (size, weight, and shape)
• Handling
• Liability (the item's value)

Freight classification is a criteria that is used to determine an item's transportation price. In LN, a freight class can also serve as a criterion that determines the planning group of order lines. Freight classes are mainly used in the U.S.

A commission to transport a particular number of goods. A freight order includes an order header and one or more order lines.

A freight order header includes some general information, such as the delivery date and the name and address of the customer who is to receive the goods listed on the freight order.

A freight order line includes an item to be transported and some details about the item, such as the quantity and the dimensions.

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 archiving data includes master data from all LN application packages, such as Sales, Warehousing, Manufacturing, and Common.

A user-defined task that does not contribute or relate to the costs of a specific order or project.

In LN, two types of general tasks exist:

• Indirect Task

  To be used for indirect hours, such as administration and general meetings, also called overhead.

• Absence Task

  To be used for absence hours, such as vacation, illness, or a doctor's visit.

An item that exists in multiple product variants. Before any manufacturing activities are performed on a generic item, the item must be configured to determine the desired product variant.

Example

Generic item: electric drill

Options:

• 3 power sources (batteries, 12 V or 220 V)
• 2 colors (blue, gray).

A total of 6 product variants can be produced with these options.

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.

Represents a ledger account and the corresponding dimensions. GL codes are used to represent ledger accounts to users who are not familiar with the structure of the chart of accounts.

To specific logistic transactions, you can link a GL code. Such integration transactions are mapped directly to the ledger account and dimensions of the GL code, they are not included in the mapping process.

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.

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.

The total amount from which taxes, rebates, discounts, and so on are to be deducted to reach the net amount. The gross amount is calculated by multiplying the order quantity with the (book) price.

The sales revenue minus all manufacturing costs, both fixed and variable.

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

The party that issues the bank guarantee. In a general scenario, the guarantor is the bank of the applicant or the instructing party.

A uniquely identifiable physical unit that consists of packaging and contents. A handling unit can contain items. A handling unit has a structure of packaging materials used to pack items, or is a part of such a structure.

A handling unit includes the following attributes:

• Identification code
• Packaging item (optional)
• Quantity of packaging items (optional)

If you link an item to a handling unit, the item is packed by means of the handling unit. The packaging item refers to the type of container or other packing material of which the handling unit consists. For example, by defining a packaging item such as Wooden Crate for a handling unit, you specify that the handling unit is a wooden crate.

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.

A reason for blocking an order or order line.

An order can be held for more than one reason at any point in the order procedure. For example, a sales order can be blocked due to credit checking (the order balance exceeds the customers credit limit) and due to margin control (the gross margin of the order is exceeded).

A code attached to a purchase invoice to block the payment of that invoice.

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:

• The local currency
• Two reporting currencies

A requirement that must be shipped as soon as possible.

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.

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.

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.

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).

An event-driven and XML-based messaging engine. This is the standard message bus. The message bus and its message standards provide the infrastructure for transporting messages to other application modules in a secure way.

Item price + material base prices.

This price does not include material price surcharges.

The level at which inspections are conducted.

The standards (Example ISO, DIN, MIL and so on) used to test one or more characteristics of a product, to determine if conformity is achieved for each characteristic.

A set of serialized items that have the same location and are owned by the same business partner. Grouping serialized items into an installation group enables you to maintain them collectively.

An incremental payment method used to spread invoice payments over a period of time. Installments enable you to send invoices for a sales order before or after the ordered goods are actually delivered.

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.

The party other than a counter-guarantor that gives instructions to issue a bank guarantee or a counter-guarantee.

Represents a type of Operations Management transaction for the purpose of mapping and posting the integration transactions to Financials and for financial reconciliation.

The integration document types supplied by LN each have the corresponding business object attached to them. For example, the integration document types for the various sales order transactions have the Sales Order business object linked to them.

A scheme that defines the ledger accounts and dimensions to which the integration transactions are posted.

A financial transaction that is generated through LN packages other than Financials. For each logistic transaction that must be reflected in Financials, LN generates an integration transaction, for example, Purchase/Receipt, Production/WIP Transfer, and Project/Costs of Goods Sold. LN posts the integration transaction to the ledger accounts and dimensions defined in the integration mapping scheme.

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.

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.

Example

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.

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.

Example

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

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.

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 financial company
• An enterprise unit
• An entity

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.

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.

Example

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.

The transactions created between financial companies which belong to the same financial group.

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.

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.

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.

Receiving and sending messages between LN (logistic) companies on the same computer system. There is no intervention from any EDI translator/communication package.

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.

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.

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).

The goods stored in a warehouse.

The reservation of inventory for an order without taking into account the physical storage of the goods within the warehouse. Previously referred to as hard allocation.

A classification that is used to indicate the type of inventory movement.

The following inventory transaction types are available:

• Issue

  From warehouse to other entity than warehouse.

• Receipt

  From other entity than warehouse to warehouse.

• Transfer

  From one warehouse to another.

• WIP Transfer

  From one costing work center to another.

The unit of measure in which the inventory of an item is recorded, such as piece, kilogram, box of 12, or meter.

The inventory unit is also used as the base unit in measure conversions, especially for conversions that concern the order unit and the price unit on a purchase order or a sales order. These conversions always use the inventory unit as the base unit. An inventory unit therefore applies to all item types, also to item types that cannot be kept in stock.

A document stating a list of prices of delivered goods and services that must be paid under certain conditions.

The total unpaid invoice amount.

The amount charged to a business partner.

The date on which the invoice is printed.

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.

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.

The identification of an invoice, which consists of the transaction-type code and the first free number in the series used for invoices for the order type.

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.

Selects the order types and orders to be invoiced. If you process an invoicing batch, LN selects the invoicing data and generates the invoices for the order types and orders selected through the invoicing batch.

A set of parameters that defines, among other things, the types of orders and orders lines that can be combined on an invoice, and the type of invoice to be generated and the costs to be aggregated on Project invoices and Service invoices. You can define different invoicing methods for your invoice-to business partners.

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.

The Internal Revenue Service (IRS) is the government agency responsible for enforcing the regulations of the US tax code. 1099-MISC income is one of the types of revenue included, and certain supplier payments are subject to reporting under these regulations.

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.

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)

A standard maintenance item.

Identification code for an item (product, component, or part). The item code can consist of multiple fields or segments.

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.

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.

A list of the lot codes and/or serial numbers of an item listed on an object such as a sales order line. The item identification set can be used in invoicing or after-sales service.

An item-specific, overall logistic plan that contains planning data and logistic targets for sales, internal and external supply, and inventory. All planning data in the item master plan is specified by plan period. Enterprise Planning uses this data to carry out master-planning simulations.

Within the item master plan, you can distinguish the following subplans:

• demand plan
• supply plan
• inventory plan

In addition, an item's master plan contains information about actual demand, actual supply, planned supply in the form of planned orders, and expected inventory.

If an item has a master plan and channels have been defined for this item, each channel usually has its own channel master plan. A channel master plan contains channel-specific information only, that is, demand data and information about sales restrictions.

Item master plans and channel master plans are defined within the context of a scenario. These scenarios can be used for what-if analyses. One of the scenarios is the actual plan.

The quantity of a material that is part of an item.

The entire production process of an item is outsourced to a subcontractor.

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.

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.

The names of functions or titles of employees in an organization, for example sales manager, financial director, or accountant.

A demand-pull system of just-in-time production that regulates the supply of items to shop floor warehouses.

Kanban uses standard containers or lot sizes (also called bins) to deliver items to shop floor warehouses. In the shop floor warehouse, two or more bins are available with the same items. Items are only taken from one bin. Typically, if a bin is empty, a new bin is ordered and the items are taken from the (second) full bin. To each bin a label is attached. The line stations use the label to order a full bin with the required items.

Sometimes, not every bin is provided with a label. For example, a label is attached to every second bin. When both bins are empty, the user scans the label of the second empty bin to generate a supply order for both empty bins.

A predefined list of items to be delivered together when ordered by the customer.

You can define kits to facilitate order entry. A kit includes a list of components and is ordered and priced as a single item. On the sales order line, the components are linked. The standard cost of the kit is the sum of the components' standard cost.

Example: The components of a PC kit usually include the main cabinet, a monitor, a keyboard, and a mouse. In the Do-It-Yourself market, a toolshed kit can contain the parts for the walls and the roof, a door with hinges, a door handle, and a lock.

The labor rate code, defined in the Labor Rate Codes (tcppl0190m000) session in People. A sales rate and cost rate can be specified in this labor rate code.

You can assign labor rates on a wider scale to, for example,

• A service department, for all work done by the service department.
• An installation group, for all work carried out on the installation group.

In the Service Order Parameters (tssoc0100m000) session, default labor rate search paths can be set for the following:

• Estimated sales rate
• Estimated cost rate
• Actual sales rate
• Actual cost rate

The classification of work performed, and the time of day at which the work is performed (either normal working hours or overtime). Based on the kind of work and the hour type, you can use labor types to specify surcharges so that LN can calculate the actual labor costs in People.

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.

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.

A code that identifies landed costs.

A set of conditions used to determine a logistic transaction's landed costs. Each scenario is linked to a 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.

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.

Also known as termination date, the date on which the employee leaves the organization.

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.

The time between the production start date and the delivery date. The lead time can include order preparation time, transportation time, and inspection time.

The cumulative lead time of the production process, calculated from the production stage where the relevant critical material or critical capacity is required to the final stage of the production process. The lead-time offset is a factor in determining the start date of the critical material or critical capacity requirement.

The lead-time offset can be expressed in days or hours.

The unit in which lead time is expressed.

The following lead-time units are available:

• Hour
• Day
• Week
• Month

The general memoranda mailed to relations and contacts (whether within the framework of an opportunity or not) that can be printed and composed by using variables.

A means to validate the system configuration request of the customer.

A number that determines the sequence in which records are displayed in an overview session.

A group of customers, suppliers, or employees that work in the same business sector.

Lines of business can be used as selection criteria when generating reports or inquiries of statistical and historical data.

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.

A work center that is part of an assembly line. A line station is used in the production of FAS (final assembly schedule) items. A line station can have multiple positions, which enables more than one item to be present in one line station.

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.

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.

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

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.

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.

Part of an ERP database in which you can store data concerning logistic transactions.

The identification code for the LN user. This code is used for system security.

A number of items produced and stored together that are identified by a (lot) code. Lots identify goods.

In LN, a mechanical object on which operations can be carried out to produce items.

Machines are linked to operation rates. The operation rate and the labor rate together form the basis for the actual costing of production orders.

An activity type that specifies a standard letter printed for a contact, business partner, opportunity, or activity with specific business object information merged in. A mailing is always generated from an activity template.

The end result of a production order.

A main item is either be changed to an end item (for delivery to a warehouse), or delivered directly to the customer in bulk.

A notification that is generated based on a measurement and a related maintenance trigger.

Orders that are used to plan, carry out, and control the maintenance on customer-owned components, products and the logistic handling of spare parts.

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.

An invoice without a related sales order or goods receipt and which is directly created in Invoicing.

A supplier of finished goods. User-definable item grouping data used for sorting and selecting.

The unique identification of a manufacturer's item code, which is used in the item ordering and identification process.

Abbreviation of Military Assistance Program Address Code.

A property of a logistic transaction that you can use to define the ledger account and dimensions for an integration transaction. You can post the transactions with specific values of the mapping elements to specific ledger accounts. A mapping element consists of the combination of a business object and a business object attribute. For example, the Item Group/ Item mapping element represents the Item Group business object attribute of the Item business object.

Example

Some examples of the mapping elements of a warehouse receipt transaction are: item, item group, warehouse, and cost component.

A template that specifies the structure of an identification code. A mask is used to generate the identifiers for objects such as serial numbers, handling units, or shifts.

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.

A planning concept in which all planning data is accumulated into time buckets with predefined lengths.

In master planning, all demand, supply, and inventory data is handled in terms of these time buckets, and is stored in master plans.

In master planning, supply is planned in the form of a supply plan. This supply plan is calculated on the basis of demand forecasts, actual orders, and other information. For production planning, this planning method only considers critical requirements, as recorded in an item's bill of critical materials and bill of critical capacities.

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.

A generated code used to group matched transactions.

A series of maximum four digits that is used to identify the transaction generated during the general ledger matching process.

The substance of which an item is composed, such as wood, nylon, copper, and gold.

The raw materials, components, and subassemblies used to manufacture an item. A cost item, for example, electricity, can also be treated as a material.

The real price of a material from a material exchange for a specific date.

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.

Example

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.

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).

The price of a material, which can be the following:

• The material base price, if material actual prices are not applicable (yet)
• The sum of these components: material base price + material price surcharge+ material price surcharge costs, if material actual prices are applicable

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.

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.

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.

Example

• 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)

An entity in which you can define the attributes of a plan matrix.

Defines the group of elements (matrix attributes) that a Pricing matrix uses to determine a price, discount, promotion, or freight rate.

Imagine you are a furniture vendor and you decide to maintain your sales prices based on two elements:

• The specific item you sell.
• The way to handle payments.

In this case, the matrix type is Sales Price, the matrix definition is Furni (this name is user-definable), and the matrix attributes are Item and Payment Method.

For a matrix type, the order in which matrix definitions are searched for.

The maximum inventory quantity that can be available in a warehouse.

The maximum quantity of items to be purchased or produced at once.

When planned orders are generated, the quantity of items to be purchased or produced at once is never more than the maximum order quantity. The maximum order quantity prevents the purchase or production of an item in quantities that are too large.

A type of item that consists of a group of items with similar characteristics that are classified under one generic item to facilitate order entry. The items in the group can be selected separately.

Example

A monitor, a computer mouse and a CD player are defined as related items used to configure a personal computer. But, you can also select a computer mouse as a separate item.

The minimum inventory quantity that must be available in a warehouse.

The minimum quantity of items to be purchased or produced. When planned orders are generated, the quantity of items to be purchased or produced is never less than the minimum order quantity. The minimum order quantity prevents the purchase or production of this item in quantities that are too small.

A part of a package consisting of a number of related software components, such as sessions, tables, program scripts, reports, forms and menus. For example, the General Ledger module in Financials.

A module code consists of three characters. For example, the General Ledger has the code "gld".

A GL account that is used to record any amount of money stated as a fixed sum, for example, cash, accounts receivable, or accounts payable.

A monthly statement of the open sales invoices that you send to an invoice-to business partner. The business partner generates self-billed invoices and uses the monthly billing invoice for reference.

A tax code for a type of tax which consists of several percentages levied by various tax authorities.

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.

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.

The gross amount minus discounts. The net value is always stated in the transactional currency.

If multiple discount levels are used, the net amount is calculated from the gross amount minus discounts at previous levels.

A GL account that is valued at historical rates, for example, inventory account, fixed assets account, or WIP account.

A text comment with log information, which can be linked to an object.

Multiple notes can be linked to an object.

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.

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.

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.

One of a series of steps in a routing that are carried out successively to produce an item.

The following data is collected during a routing operation:

• The task. For example, sawing.
• The machine used to carry out the task (optional). For example, sawing machine.
• The place where the task is carried out (work center). For example, woodwork.
• The number of employees required to carry out the task.

This data is used to compute order lead times, to plan production orders and to calculate standard cost.

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 collective name for the non-financial LN packages. Operations Management represents all the logistic LN packages.

The work on one or more operations in an item's production process is outsourced to a subcontractor.

Used by a sales person to record and monitor sales information related to a business partner with the purpose of selling a product or service to this business partner.

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.

A generic item type that differs from other similar items by one or two features. For example, a group of chairs with similar main characteristics can differ in size and color.

Options per product feature are aspects that specify the product feature. For instance 'red' can be an option of the feature 'color'.

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.

The identification of the options and features for a configured item. The ID is used in the item specification to match supply and demand.

A group of possible values of a characteristic. For each value (option) you can indicate whether it is acceptable or not.

The options blue and red form an option set

Example

A general term that covers all types of orders, such as:

• Purchase orders
• Sales orders
• Warehouse orders
• Production orders
• Subcontracting orders
• Freight orders
• Service orders

The balance of outstanding orders.

A group of production orders that have the same setup states and are produced on the same machine.

Production orders with the same setup states can be executed on a machine without changing the machine’s setup.

The (administrative) costs for placing an order. Order costs include the handling and transportation costs. The costs of the purchasing department, production planning department, and control department incurred by a production order or a purchase order.

The date on which the order is manually specified or is automatically generated.

The quantity that must be delivered according to the terms on the order line. The quantity is expressed in the purchase unit or the sales unit of the item.

The number of workdays or working hours for which all the requirements of a specific item are bundled in one (planned) order, during an order planning run. LN calculates the order interval from the day when the first requirement occurs. Order intervals are used to prevent an excessive number of planned orders in one time period.

An order entry. It includes information about an item on an order.

The order parameter that controls the ordered quantities of recommended purchase and production orders.

Options:

• Lot-for-lot
• Economic order quantity
• Fixed order quantity
• Replenish to maximum quantity

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.

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).

The order set groups order lines of the same order.

The order lines are grouped if the following attributes match:

• Ship-from partner
• Ship-to partner
• Ship-from address
• Ship-to address
• Carrier
• Shipping date
• Original company

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

Options:

• FAS (final assembly scheduling).
• SIC (statistical inventory control).
• Planned (schedule-based and order-based planning).
• Manual (manual reordering).

A group of orders that are processed according to the same procedure (series of order steps = sessions). In addition, these orders share a number of other characteristics (return order y/n, collect order y/n, subcontracting order y/n, and so on).

The intercompany trade order created for the originating order of a backorder or a return order.

The order from which an order is created. For example, if a warehousing order is created from a sales order, the sales order is the originating order of the warehousing order.

Goods transfer within your own enterprise, for example, between warehouses and/or work centers.

A combination of several different packages with specific VRCs. A package combination represents a complete usable version of LN.

In the User Data (ttaad2500m000) session, each user is linked to a package combination, that determines which version of the software the user can use. In the Companies (ttaad1100m000) session, each company is linked to a package combination, to indicate which version of LN is appropriate to handle the data in that company.

A particular configuration of items and their packaging. A package definition for an item can, for example, be the following: a pallet contains 12 boxes and each box contains 4 pieces.

A document that shows all shipments of a load.

An order document that shows in detail the contents of a particular package for shipment. The details include a description of the items, the shippers or customers item number, the quantity shipped, and the inventory unit of the shipped items.

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.

A tool that you can use to group the parameters for specific localized LN functions and to set the parameters to specific values.

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.

A calendar linked to a child calendar, one level higher in the derivation hierarchy, and from which the child calendar inherits the properties.

A scheme on which you can define the day of the week, day of the month, or day of the year, and the time of the day you want an activity, such as a release or a delivery, to be carried out.

The code used to identify the pattern for your activities. The pattern defines the date and time, such as the month or the day of the month, on which you want to carry out the activity.

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.

A particular time on a particular date, defined by using patterns, times of day, and exceptions.

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.

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.

A way to define how invoice amounts must be paid. This includes the payment methods that apply to various parts of the invoice amount, and the payment currency.

For example, you can define a payment agreement to pay the first part of the invoice amount through the bank according to payment method PM1, 40 percent of the remaining amount, according to payment method PM2, and the other 60 percent according to payment method PM3, which can be a trade note payable.

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.

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

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.

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.

A number to identify a period in a year.

A table that consists of any number of time units, for example, months or weeks.

A period is used to define the time horizon during which, for example, a schedule is valid.

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.

An assembly that is produced as part of a manufactured item, and that can have its own routing.

A phantom is usually not held in inventory, although occasionally some inventory can exist. The planning system does not create material requirements for a phantom, but drives the requirements straight through the phantom item to its components. Phantoms are mainly defined to create a modular product structure.

Example

The door of a refrigerator is defined as a phantom item in the bill of material of a refrigerator. The materials of the door are listed on the production order's material list for the refrigerator.

The identification of a stage or phase in the sales process. For example, analysis, proposal, negotiation, and so on.

In Project, a user-defined project subdivision. Typically, a phase consists of a number of project activities leading to a deliverable.

The dimension of the unit. For example, the dimension of kilometer is length, and the dimension of liter is volume.

A document that lists the material to be picked for manufacturing or shipping orders. This document is used by operating personnel to pick manufacturing or shipping orders.

A list of items to be picked-up at the supplier’s location by a specific carrier for transport to the customer on a specific day.

A group of work cells designated for the same type of production. Plan groups are used in the repetitive scheduling process.

An item with the order system Planned.

The production, distribution, or purchase of these items is planned in Enterprise Planning based on the forecast or the actual demand.

You can plan these items by means of the following:

• Master-based planning, which is similar to master production scheduling techniques.
• Order-based planning, which is similar to material-requirements planning techniques.
• A combination of master-based planning and order-based planning.

Plan items can be one of the following:

• An actual manufactured or purchased item.
• A product family.
• A basic model, that is, a defined product variant of a generic item.

A group of similar plan items or families is called a product family. The items are aggregated to give a more general plan than the one devised for individual items. A code displayed by the item code's cluster segment shows that the plan item is a clustered item that is used for distribution planning.

The planned date on which the items on the order/schedule line must be delivered. The planned delivery date cannot occur before the order date/schedule generation date.

The date for which delivery of a shipment is planned.

An order in Enterprise Planning for an internal supplier or sister company to deliver a quantity of an item.

A supply order in Enterprise Planning that is created for planning purposes, but which is not an actual order yet.

Enterprise Planning works with planned orders of the following types:

• planned production order
• planned purchase order
• planned distribution order

Planned orders are generated in the context of a particular scenario. The planned orders of the actual scenario can be transferred to the execution level, where they become actual supply orders.

The production or purchase of planned items is based on the expected demand. Planned items are planned in Enterprise Planning.

The date on which the goods are expected to arrive in the destination warehouse.

An order created in Sales that forms the basis for most schedule-related processes. Planned warehouse orders, which are created during sales schedule approval, decouple schedule updates and revisions from warehouse orders. They serve as the interface between Sales on one hand and Warehousing and Invoicing on the other hand.

The employee or department responsible for planning the production, purchase and distribution of items. The planner takes into account the inventory levels, availability of materials, and capacities of resources, and reacts on signals such as rescheduling messages that LN generates.

Used to define the layout, colors and font of the graphical planning board.

The smallest controllable unit on the planning board. Its physical length depends on the technical display possibilities.

An object used to group warehouses for which the inbound and outbound flow of goods and materials is planned collectively. For this purpose, the demand and supply of the warehouses of the planning cluster is aggregated. Within a planning cluster one supply source is used, such as production, purchasing or distribution.

If multisite is implemented, a planning cluster must include one or more sites. The site or sites include the warehouses for which the planning processes are performed. A site is linked to one planning cluster.

An entity that is used to group freight order lines into shipments and loads or freight order clusters.

Each freight order line is allocated to a planning group. Freight order lines with different planning groups cannot be in the same shipment, load, or freight order cluster. For example, all goods destined for Belgium are subdivided into planning group Belgium.

From a hierarchical perspective, the planning group is one level below the shipping office. A shipping office has one or more planning groups. Freight orders are grouped into shipping offices, the underlying freight order lines are grouped into the planning groups of the shipping office.

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.

The point at which the legal ownership changes. At this point, the risk passes from the seller to the buyer.

The number used to identify the position of the order line on the sales or purchase order.

A method that shows how the order data must be posted.

A person who makes a presentation as or on behalf of the beneficiary or the applicant. When the beneficiary presents a demand directly to the guarantor, the beneficiary becomes the presenter.

The agreement that concerns the prices and allowances of specific goods/services.

An entity in which you can store price information that is valid for a given period of time.

A price book includes the following elements:

• A price book header, which contains the code, type, and use of the price book.
• One or more price book lines, which contain the items.

A quantity or value break discount schedule can be linked to a price book.

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.

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.

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.

Example

The unit to which the (sales/purchase) price applies.

A source or symptom of malfunction or disturbance.

A setting or an input value related to a machine, a tool, or to process quality that is relevant to carry out an operation or an operation step. For example, cutting depth, cutting speed, and temperature.

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.

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.

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.

A group of production resources, work centers and work cells, physically related to each other. For example, a production hall is a production department.

An order to produce a specified quantity of an item on a specified delivery date.

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.

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.

The sequence of steps by which components are put together to form subassemblies, until the finished product is produced.

The product structure is defined by a multilevel bill of materials, sometimes in combination with routing data.

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.

A unique configuration of a configurable item. The variant results from the configuration process and includes information such as feature options, components, and operations.

Example

Configurable item: electric drill

Options:

• 3 power sources (batteries, 12 V or 220 V)
• 2 colors (blue, gray).

A total of 6 product variants can be produced with these options.

An invoice sent to the buyer who must pay for the goods before they are sent to that buyer.

A group of related projects managed in a coordinated way to obtain more benefits and control.

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.

A collection of manufacturing and purchasing actions that are performed for a particular customer order. A project is initiated to plan and coordinate the production of the to be manufactured items.

For a standard-to-order production, the project is only used to link the item with the customer order. A project can also include these:

• Customized item data (BOMs and routings)
• Project planning (activity planning)

An endeavor with a specific objective to be met within the prescribed time and financial limitation, and that has been assigned for definition or execution.

An activity that is relevant for the (rough) planning of a project. Activities are used to plan the rough material and capacity requirements of the project. Activities are also used to control the (final) assembly planning of the project.

An item that is produced or purchased for a particular sales order. The item's project provides a link with the sales order.

A project item can be recognized by its item code. If a code has been entered in the project segment, the item is a project item.

A project item can be customized to the specifications of a customer, but it can also be a standard-to-order item.

You can use the project management office (PMO) to group projects by department or to link employees to the department.

A separate part of the project structure that is linked to a project. A project part is the basis that is used in order to determine the estimated costs of a project. Not to be confused with a subproject.

The project structure indicates the subprojects that belong to the main project. Project structures are especially important where there are extensive projects in an engineer-to-order situation.

Project structures can be important for network planning. This is because the start dates and finish dates of subprojects can depend on the computed start dates and finish dates of the main project's activities.

The costs of subprojects are aggregated to the relevant main project in the project calculation.

The project structure only applies to a project with a type other than Budget.

You can only delete a project structure if the main project has the Free or Archived status.

A warehouse at which logistical transactions occur, but on which no integrations are logged. In project terms, it is as good as a project site in financial terms. In Warehousing, the warehouse type must be Project and the Project WIP Warehouse field must be selected.

The application of an additional discount, value off, or premium to a sales order based on predefined order levels of selected items. Two basic types of promotions exist: order level and line level.

Two types of pull schedules exist:

• Pull forecast schedules

  A list of time-phased planned requirements, generated by Enterprise Planning, that are sent to the supplier. Pull forecast schedules are only used for forecasting purposes. To actually order the items, a pull call-off schedule must be generated.

• Pull call-off schedules

  A list of time-phased specific requirements of purchased items, triggered from Assembly Control, or Warehousing (KANBAN, Time-phased order point).

Purchase contracts are used to register specific agreements with a buy-from business partner that concern the delivery of specific goods.

A contract is comprised of:

• A purchase contract header with general business partner data, and optionally, a linked terms and conditions agreement.
• One or more purchase contract lines with (central) price agreements, logistic agreements, and quantity information that apply to an item or price group.
• Purchase contract line details with logistic agreements and quantity information that apply to an item or price group for a specific location (warehouse) of a multicompany corporation. Contract line details can exist only for corporate purchase contracts.

An agreement with a supplier for the supply of goods or services.

The agreement with a supplier about a certain item. A purchase contract line contains both commercial and logistic conditions related to the supply of one item, during a period of time.

In case of a corporate purchase contract, the purchase contract line is a Total line, because it has linked purchase contract line details.

The monetary unit in which the purchase price is expressed.

Purchased goods that are received, inspected (if required), and posted to inventory are placed on a purchase invoice. You must pay the buy-from business partner for the quantity on the invoice.

The buy-from business partner, order, item data, prices, and discounts are printed on the invoice. You can compare the data on the invoice to the invoice you receive from the buy-from business partner.

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.

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.

An agreement that indicates which items are delivered by a buy-from business partner according to certain terms and conditions.

A purchase order contains:

• A header with general order data, buy-from business partner data, payment terms, and delivery terms
• One or more order lines with more detailed information about the actual items to be delivered

The lines on purchase orders that record detailed information about, for example:

• The ordered items
• The price agreements
• The delivery dates
• Shipping
• Invoicing

You can have one or more lines on a purchase order.

The order type determines which sessions are part of the order procedure and how and in which sequence this procedure is executed.

The item unit in which an item's purchase price is expressed. This unit can differ from the item's inventory unit.

A request by a user to obtain authorization for the procurement of goods and services.

A purchase requisition includes both standard and nonstandard material, cost, or service requirements. Information on a purchase requisition includes name, department, location, purchase office, and approver in the header section. The requisition line detail includes item, supplier, quantity, price, and amount.

A purchase requisition can be converted to one of the following:

• Purchase order
• Request for quotation (RFQ)

A timetable of planned supply of materials. Purchase schedules support long-term purchasing with frequent deliveries and are usually backed by a purchase contract. All requirements for the same item, buy-from business partner, ship-from business partner, purchase office, and warehouse are stored in one schedule.

A purchase order property that enables you to identify the kind of purchase made and in this way, the kind of payable. This property is used to post the purchase to the correct Accounts Payable account when the invoice is created. To post a purchase invoice, LN retrieves the control account from the purchase type linked to the purchase order line.

A list of time-phased requirements, generated by a central planning system, such as Enterprise Planning or Project, that are sent to the supplier. Push schedules contain both a forecast for the longer term and actual orders for the short term.

A push schedule can use one of the following release types:

• Material Release: only material releases are sent. Shipping is performed based on the Firm and Immediate requirements in the material release.
• Shipping Schedule: both material releases and shipping schedules are sent. Shipping is carried out based on the Firm and Immediate requirements in the shipping schedule. The material release only sends forecasting data.
• Shipping Schedule Only: only shipping schedules are sent. Shipping is carried out based on the Firm and Immediate requirements in the shipping schedule. No forecasting data is sent to the supplier.

A written proposal that offers goods or services for a certain price and terms of sale to a prospective purchaser upon request.

A charge or payment fixed according to a standard scale, for example, the currency rate of the transaction.

The exchange rate (purchase or sales) of currencies.

The method to decide which date is used to determine the exchange rates.

During the composing process, all amounts in foreign currencies are converted to the home currency, based on the determined exchange rate.

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.

A user-defined description that is based on a transaction and its type. Reason codes assist in selecting data for inquiry and for reporting.

• A code linked to a foreign buy-from business partner's purchase invoice to indicate why it is being paid.
• A code used for IRS 1099-MISC reporting purposes.

The method used to group reasons for payment on the Z4 report. A subtotal is printed for each reason for payment group.

The reason why received goods did not pass the inspection.

The physical acceptance of an item into a warehouse. A receipt registers: received quantity, receipt date, packing-slip data, inspection data, and so on.

The date on which the items are actually received in the destination warehouse.

The sequence number assigned to every individual receipt of goods.

A general area on which you can perform reconciliation, for example, Inventory, Production Order WIP, Interim Costs, and Invoice Accrual. The reconciliation area and subarea together form a reconciliation group which represents a group of integration ledger accounts.

A property of a logistic transaction that you can use to trace the transaction for reconciliation. The reconciliation elements correspond with the mapping elements of the business objects.

Represents a group of integration ledger accounts on which you can perform reconciliation. A reconciliation group consists of the combination of a reconciliation area and a subarea, for example, Invoice Accrual/ Purchase Order WIP.

A further division of a reconciliation area into the kinds of origins of the transactions. For example, the Interim Costs and Invoice Accrual reconciliation areas are divided into many subareas such as Sales Order, Purchase Order, and Service Order. The reconciliation area and subarea together form a reconciliation group which represents a group of integration ledger accounts.

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

Example

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”.

Any informative description field used to refer to, for example:

• The person or department with authorization to perform a specific task.
• The business partner's contact.
• The original invoice number.

The first extra reference by which the order or request for quotation can be identified. This reference is printed on various order documents and lists.

The smallest unit of work that is required to carry out maintenance.

The second extra reference field that you can fill with extra information. This reference is printed on the order documents and lists.

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.

Indicates the location to insert a component on an item, for example, where to mount an electronic component on a Printed Circuit Board. Reference designators are often used in electronics, and can originate from a Computer-Aided Design (CAD) station.

A schedule that contains lines with reference numbers. When goods are shipped, received, and invoiced, the reference numbers are used to communicate with suppliers and other LN packages.

A generated code that is attached to the debit posting and the credit posting of an integration transaction. You can use the reference link to match the postings on interim accounts that you cannot match business object ID because they belong to different business objects, for example, a Purchase Receipt and an Inventory Transaction.

An operation is an activity performed by a machine. A list of reference operations is a library of available operations for job shop production orders.

A reference operation may be defined on multiple levels:

• Operation Code

  The reference operation can be executed on all sites, in all work centers and on all machines linked to the company.

• Operation Code + Machine Type

  The reference operation can be executed on all sites that have one or more machines of the specified machine type.

• Operation Code + Site

  The reference operation can be used in all work centers and all machines linked to the specified site. Note: Recommended if a site has its own setup logic for specific operations. This type of reference operation can be used in a work center without machines.

• Operation Code + Machine Type + Site

  The reference operation can be used on all machines of a specific machine type and in all work centers and all sites which have the machine type present. Note: Recommended if the machine type has its own setup for specific operations.

• Operation Code + Site + Work Center

  The reference operation can be used for specific work center and site combination. Note: this operation can only for work centers without machines.

• Reference Operation + Machine Type + Site + Work Center

  The reference operation can only be used for one specific machine type on one work center/site combination.

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.

The Remaining Turnaround Time is the remaining time available for you to complete the item maintenance within the Agreed Turnaround Time.

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.

A set inventory level where, if the total stock on-hand plus total on-order falls below that point, action is taken to replenish the stock.

A price book that is used to store internal fixed repair prices.

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

The procedure in which inventory is transferred from one (location in the) warehouse to another because insufficient inventory is available at the destination (location of the) warehouse.

The (re)order quantity for replenishment equals the maximum inventory minus current inventory.

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

A purchasing document that is used as a request to bidders to submit their terms, such as price, discount, delivery time, and payment terms for delivering a (quantity of a) product.

You can send the RFQ to several bidders. A bidder can submit an RFQ response for the specified items.

You can record the responses, negotiate, and compare the prices and discounts that are offered by different bidders.

An accepted response can be copied to a contract, an order, or a price book.

The lines that include the item details in a request for quotation (RFQ), such as required quantity, time to be delivered, delivery warehouse and so on.

The item lines are sent to the bidder. The bidder can respond to each item individually and also offer alternatives for the required item.

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.

A response time defines, from the time a call is registered, the period of time within which: The service provider must react to the call; A solution to the call's problem must be started; A solution to the call's problem must be finished.

A purchase or sales order on which returned shipments are reported. A return order can only contain negative amounts.

The reason why the delivered goods are rejected and returned.

The amount received or gained, usually measured in money.

A way to categorize invoiced amounts of the same invoice type in order to analyze revenue history.

A version or revised version of an engineering item (E-item) or a revision-controlled item, that is, an item linked to an E-item. Several revisions of an E-item can exist.

Example

E-item: Mountain bike E-MB01

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.

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.

Example

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.

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.

The sequence of operations required to manufacture an item.

For each operation, the reference operation, machine, and work center are specified, as well as information about setup time and cycle time.

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.

The buffer inventory necessary to meet fluctuations in demand and delivery lead time. In general, safety stock is a quantity of inventory planned to be in inventory to protect against fluctuations in demand or supply. In the context of master production scheduling, safety stock is the additional inventory and capacity planned as protection against forecast errors and short-term changes in the backlog.

The time that you can add to the normal lead time to protect delivery of goods against fluctuations in the lead time so that an order can be completed before the order's real need date.

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 contracts are used to register agreements about the delivery of goods with a sold-to business partner .

A contract is comprised of the following:

• A sales contract header with general business partner data, and optionally, a linked terms and conditions agreement.
• One or more sales contract lines with price/discount agreements and quantity information that apply to an item or price group.

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.

A department that is identified in the company business model to manage the business partner's sales relations. The sales office is used to identify the locations that are responsible for the organization's sales activities.

An agreement that is used to sell items or services to a business partner according to certain terms and conditions. A sales order consists of a header and one or more order lines.

The general order data such as business partner data, payment terms, and delivery terms are stored in the header. The data about the actual items to be supplied, such as price agreements and delivery dates, is entered on the order lines.

An order that is not paid for immediately but in partial amounts or percentages of the total net amount.

You can send invoices for a percentage of the total net amount on the sales order, before or after the ordered goods are actually delivered. In this case, a number of installment lines is added to the sales order. An installment line consists of an amount and a number of additional details.

Billed installments are settled (subtracted from the goods amount) when the goods are delivered and invoiced.

A unique control number assigned to each new customer order, usually during order entry. A sales order number is often used by order promising, master scheduling, cost accounting, invoicing, etc. For some make-to-order products, a sales order number can also be used as an end item part number and is considered the control number that is scheduled through the finishing operations.

The order type, which determines the sessions that are part of the order procedure and how and in which sequence this procedure is executed.

The highest level used to record prices and discounts for a group of customers and/or suppliers. The price and discount can be determined by linking a price list code to a sales order.

A standard sales methodology that must be followed when working on an opportunity. A sales process is split up in phases.

A statement of price, the terms of sale, and a description of goods or services offered by a supplier to a prospective purchaser; a bid. The customer data, payment terms, and delivery terms are contained in the header; the data about the actual items is entered on the quotation lines. When given in response to a request for quotation, a bid is usually considered an offer to sell.

Identifies, by one release number, those sales schedules that share the following common characteristics:

• Sold-to business partner
• Ship-to business partner
• Ship-to address
• Release type (material release/ shipping schedule/ sequence shipping schedule/ pick-up sheet)
• Shipment based schedule/ receipt based schedule
• Schedule quantity qualifier
• Forecast horizon start and end
• Sales release origin
• Customer release
• (Customer order)
• Customer contract reference

An employee of your company who maintains contact with the sold-to business partner. The employee number of the sales representative is also used as a sorting criterion in the sales statistics.

A timetable of planned supply of materials. Sales schedules support long-term sales with frequent deliveries. All requirements for the same item, sold-to business partner, ship-to business partner, and delivery parameter are stored in the same sales schedule.

A number that uniquely identifies the revision of the sales schedule. The sales schedule revision number indicates the sales schedule updates that are sent by your business partner.

A code used to classify sold-to business partners by sales region.

A sales order property that allows you to identify the kind of sale made and the kind of receivable. This property is used to post the sales to the correct Accounts Receivable account when the invoice is created. To post a sales invoice, LN retrieves the control account from the sales type linked to the sales order line, project contract, and so on.

The phrase used to address the recipient of a letter. For instance: Dear Sir, Miss, or To the Board of Directors.

The rules that are based on sampling plans. The rules define how and when samples are taken and the sample and accept/reject criteria.

The location where all separate requirements of one specific item delivered by a combination of the same buy-from business partner and ship-from business partner, ordered from a single purchase office, are located.

The number of the schedule line. This number uniquely identifies each requirement of an item that a specified business partner must supply at a specific date and time.

An alternative form of a description used for convenience during searching. Typically, it is an abbreviation, an acronym, or a mnemonic alternative to a full description.

Search priorities are used to find a valid agreement for the entered search combination or search level.

If a valid agreement is found for the first priority, the agreement will be used. If not, LN searches for a valid agreement for the second priority and so on.

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 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.

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

User-definable item grouping data. Use selection codes to select items by color, diameter, product expiry date, and so on.

The specific data part of an incoming, electronically received, self-billed invoice. This data includes sales order, shipment, delivered quantity, and price.

The periodic creation, matching, and approval of invoices based on receipts or consumption of goods by an agreement between business partners. The sold-to business partner pays for the goods without having to wait for an invoice from the buy-from business partner.

The Single Euro Payments Area (SEPA) initiative for the European financial infrastructure involves the creation of a zone for the Euro in which all electronic payments are considered domestic, and where a difference between national and intra-European cross border payments does not exist. SEPA will enable customers to make cashless Euro payments to anyone located anywhere in the area using only a single bank account and a single set of payment instruments.

The character used to separate the segments of the serial number.

A number that determines the sequence.

A number that determines the sequence in which:

• records are displayed in an overview session or list box
• components such as features are shown in the user menu (user dialog).

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.

The number used to identify in detail the position number of a sales order (delivery) line or a purchase order line (detail).

A number that determines the sequence in which records are displayed in an overview session or list box.

The sequence number of the warehousing order line.

A shipping schedule with precise information about the production or deliveries of the requirements. This schedule can include the production or delivery sequence, and the order, the place, and the time of unloading after shipment.

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).

An item that is uniquely identified by the item code (manufacturer part number) in combination with the serial number.

A group of serialized items with similar features.

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 number that, together with the item code or manufacturer part number, uniquely identifies a component, an item, a machine, or an installation.

This serial number is usually shown together with the manufacturer part number and other identification data on an identification plate that is attached to the item.

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).

A program or system that performs a predefined task at request of a user or another program or system. See also client.

An activity with tasks and cost lines linked to it. This activity can be also be a linked to a coverage type.

A price list, used to define the contract price or the price of individual service orders. Service costs are calculated on the basis of standard price lists. In a price list, both the standard cost and the sales price can be recorded for an item, a reference activity, a service type, or a combination of these elements.

A specific geographic area that is covered by one or more service engineers (employees). A service area can be linked to a service center.

Means of transport, linked to a service employee, for transportation from and to the customers work location.

A sales agreement between a service organization and a customer for a specific period, that states the configurations (installation groups or serialized items) to be maintained, the coverage terms, and the agreed price.

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.

A department that consists of one or more persons and/or machines with identical capabilities, that can be considered as one unit for the purposes of service and maintenance planning.

A standard item that represents services instead of goods.

A product that serves as a repository when you define serialized items and service contract terms.

In Service, the items are specified by the item code. Item codes enable you to the use the LN functionality for purchase and inventory control. For service and maintenance applications, you must separately identify the various states in which items can occur in the process. For example, you must be able to identify defect items and repaired items.

Groups of service items with common characteristics that are used in Service.

Service item groups can be used to define the material terms for a group of items. The material terms are used in service-contract templates, service-contract quotes, service contracts, service-order quotes, and warranties.

The level of service offered by a carrier in connection with goods transports, such as speedy delivery, delivery within twelve hours, and so on. Usually, a service level is related to the freight rates that a carrier uses to calculate prices for transportation services.

A department clearly identified within the company business model to manage the services provided to a customer. The service office is used to identify the locations that are responsible for the service activities within the organization.

Orders that are used to plan, carry out, and control all repair and maintenance on configurations as present on customer locations or as present with the company.

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.

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.

The service classification that service providers offer. The service type determines which availability type applies to a service order header, and provides a default order procedure and coverage type.

A type of item characteristic that indicates how a machine must be set up to produce the item. The setup class determines the changeover time for a machine or a tool between two operations. A setup class consists of a series of setup states.

Example

Examples of setup classes are color and thickness. If your setup class is color, the setup states can be red, green, white, black, and so on.

An item's characteristic that is linked to an operation. Depending on the setup states of two successive operations, a machine's changeover takes longer or less long. A series of setup states form a setup class.

Example

If your setup class is color, examples of setup states are red, green, white, black, and so on.

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.

All goods that are transported to a specific address on a specific date and time by using a specific route. An identifiable part of a load.

An individual line of detail in a shipment.

A procedure that is carried out when a warehouse order or a shipment is processed for transportation. In a shipment procedure, you can specify which transport documents (packing list, packing slip, or Bill of Lading) must be printed when the shipment is transported. For each shipment, a shipment procedure is defined. If a shipment obtains the Confirmed status, the documents specified in the shipment procedure are printed.

Identifies a group of items that are called off at the same time.

A shipping document that describes the content of the shipping structure consisting of loads, shipments, and, if implemented, containers, created for a warehousing order or order set. The shipping structure can contain separate items or items included in BOM or kit structures.

A department that is responsible for the organization of transportation for one or more warehouses. When goods are moved from or to a warehouse, the responsible shipping office plans the transportation of these goods or subcontracts the transportation of the goods. In direct delivery scenarios, the shipping office provides planning or transport subcontracting services for external suppliers or customers.

In Freight, a shipping office plays a key role in load building and freight order clustering. Freight orders are grouped by shipping office. The groups of freight orders by shipping office are used by the load building engine to build shipments and loads, or by the freight order clustering engine to build freight order clusters.

The person responsible for printing, (re)scheduling and releasing production orders and managing workloads.

A warehouse that stores intermediate inventory in order to supply work centers. A shop floor warehouse is linked to an individual work cell, an assembly line, or one or more work centers. A shop floor warehouse can be supplied with goods using replenishment orders, or by pull-based material supply.

The pull-based material supply methods are:

• Order Controlled/Batch (only applicable in Assembly Control).
• Order Controlled/SILS (only applicable in Assembly Control).
• Order Controlled/Single (only applicable in Job Shop Control).
• Kanban.
• Time-Phased Order Point.

The items stored in the shop-floor warehouse are not part of the work in process (WIP). When items leave the shop floor warehouse for use in production, their value is added to the WIP.

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.

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.

Système Information et Répertoire des Entreprises (Corporate Information and Directory System). An organizaton's identification used in France mainly for the official registration in the Trade Register and in communications of the authorities with or about the organizations.

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.

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.

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.

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

The places, events, or methods where or through which business partners come in contact with your company (for example, a trade fair or an advertisement).

The subdivision of the planned supply of a plan item over the following sources:

• Job Shop
• Purchase
• Distribution

Sourcing strategies are defined within the context of a scenario.

You can define sourcing strategies for planning cluster, item groups, and plan items.

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

The delivery of several components of a complete product at different times. Staggered consignments are not declared until the last consignment is delivered.

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.

A unique code to identify transportation companies, used to facilitate automatic processing in the transportation industry.

The sum of the following item costs as calculated by the standard cost calculation code:

• Material costs
• Operational costs
• Surcharges

Prices that are calculated against other price simulation codes are simulated prices. The standard cost is used for simulation purposes and in transactions when no actual price is available.

Standard cost is also an inventory valuation method for accounting purposes.

standard cost

The standard cost including any surcharges or discounts, is used as the firm value against which an item is valuated in the inventory. Standard cost is also an inventory valuation method for accounting purposes.

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.

A purchased item, material, subassembly, or finished product that is normally available.

All items that are not built according to customer specification for a specific project are defined as standard items. Opposite term is customized item.

The production of non-customized items after receiving a customer order.

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.

An order to which no invoices are linked, for example, recurring payments.

The date and time the activity started.

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.

A report that gives information about the account status of an agreement between business partners.

A statement of account can include:

• The unpaid balance due
• Any invoices that were changed since the statement was last printed

A group of items for which statistical information is collected and represented.

The unit in which the quantity of goods stored is expressed.

Example

Storage unit: box

Inventory unit: liter

A data structure that contains a number of characters that represent readable text.

An intermediary product in a production process that is not stored or sold as an end product, but that is passed on to the next operation.

For subcontracting purposes, a manufacturer can send a subassembly to a subcontractor to carry out work on the subassembly. This subassembly has its own item code defined in the Item Base Data.

After work is finished, the subcontractor sends the subassembly back to the manufacturer. Also this reworked subassembly has its own item code defined in the Item Base Data.

Hiring certain services from another party, for example the execution of a part of a project or an operation of a production order.

Allowing another company (the subcontractor) to carry out work on an item. This work can concern the entire production process, or only one or more operations in the production process.

A business partner that is hired to perform certain services, such as the execution of a part of a project or production order. The services are delivered via a purchase order.

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).

Indirect cost and costs that do not belong to other cost types are booked as sundry costs, for example, insurance costs or expenses by employees such as meals and hotel costs.

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.

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.

A distribution link between a supplying planning cluster and a receiving planning cluster. The planning clusters involved can be in the same company, or in different companies.

Enterprise Planning uses supplying relationships for distribution planning: the supplying relationships represent valid supply paths for particular items or groups of items. You can specify supplying relationships at the level of individual items, but also at more general levels.

The supplying relationships also determine the costs of supply, lot size rules, and other parameters.

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.

An activity type that specifies an action to be executed for a contact, business partner, opportunity, or activity that you want to track through completion.

An activity to manufacture or repair an item. For example, sawing, drilling, or painting.

A task is carried out on a work center, and can be related to a machine.

A specification of the type of work that is carried out by a service employee. You can use tasks to specify the labor required to carry out an activity. A specific labor rate can be linked to a task.

The TAT terms contains the agreed TAT information for a specific item or a business partner.

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.

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.

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.

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

A code that indentifies the tax rate and which determines how LN calculates and registers tax amounts.

A code that identifies the tax rate and which determines how LN calculates and registers tax amounts.

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.

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.

The country in which the tax must be paid.

The country in which you must pay/report the value-added tax (VAT). The tax country can be different from the country where services or goods are delivered.

A group of countries that have the same tax relation to the company's home country.

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.

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.

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.

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.

A third party application that facilitates the calculation of taxes.

The tax percentage for each tax code.

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.

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.

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).

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.

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.

Groups the detailed terms and conditions about orders, schedules, planning, logistics, invoicing, or demand pegging for the 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.

An element (field) selected on the terms and conditions search level and specified and searched for on the terms and conditions line.

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.

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.

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.

Categories used to group costs. Term types enable you to have a more detailed view of the source of costs.

The Contract Management module in Service distinguishes the following term types:

• Material
• Labor
• Tooling
• Traveling
• Subcontracting
• Help Desk
• Other
• Uptime
• All

An examination or check done on a characteristic. You can link one or more tests to a characteristic.

A person or organization with an indirect or non-contractual interest in a project, for example, a government body or regulatory agency.

The date until which an item's supply plan and planned orders are frozen.

The time fence is expressed as a number of working days or working hours from the date you carry out the simulation.

As a rule, Enterprise Planning does not regenerate the supply plan or the planned orders within the time fence. However, you can overrule this behavior when you run a master-plan simulation or order simulation.

The time fence is meant to prevent:

• Disturbance of orders that have already started (at the shop-floor level).
• Generation of planned orders with start dates in the past (that is, orders that are late).

Usually, the lead time of an item's production process is a reasonable value for the time fence.

The unit that is used to specify the physical quantity time.

A code that indicates the time zone that applies to the specified date and time in the message, such as the supplier's time zone.

An expression used to address persons and/or companies. The title is printed on documents over the address data.

A reusable resource, manual or mechanical, that is used to perform manufacturing and/or service tasks. When you have finished with the tool, it is returned to inventory to be used for the next requirement. The tool's life is reduced each time you use it. A tool can be identified in LN as a unique combination of tool type and tool serial number.

Example

• Hand tools

  A saw or power drill.

• Machine tooling

  A jig, mould, pattern or cutting tools.

• Instruments

  A durometer or gauge.

• Equipment

  A shovel.

The tool type is the first level that is used to identify the tool in the coding system for tools.

Some examples of tool types are:

• Hammer
• Screwdriver
• Wheelbarrows

Hammer 1, screwdriver 2 and wheelbarrow 3 are examples of tool types in combination with a tool serial number, and represent unique tools.

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.

A group of resources with common skills that can be used for a particular labor cost object. If you cannot yet make detailed assignments for employees, you can use trade groups for scheduling.

Generic term for payment instruments such as bank drafts, checks, promissory notes, and bills of exchange. Trade notes can be used instead of cash payments if credit is extended to the customer. A trade note can replace the invoice. Because trade notes are negotiable, they can also be used as a credit instrument, for example, for discounting and endorsing.

Trade notes can exist on paper and on magnetic supports, according to local business practices and banking standards.

The currency used in the transaction document.

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

The date and time on which a transaction was processed. In case of backdating, the transaction date precedes the actual log date.

For example, you can backdate a receipt. The receipt has receipt date July 12. If you confirm the receipt on July 15, the transaction date of the receipt is July 12 and the creation date or actual log date is July 15. The financial entries for the receipt are booked on the transaction date.

The date and time when the document (line) is changed and/or written to the history file.

The date you enter when you create the batch. Usually the transaction entry date is the current date. Only for backdated and antedated transactions, the transaction entry date differs from the current date. Internally, the transaction entry date is registered in local time.

The definition of the (logistic) origin of an integration transaction. The combination of a transaction origin (TROR) and the financial transaction (FITR) results in an integration document type.

A user-defined description of the transaction.

The logistic entity type to which an employee's hours are allocated and to which the employee costs must be posted.

In LN, hours can be allocated to the following transaction types:

• General Tasks
• Project
• Project (PCS)
• Production
• Assembly
• Service Order
• Depot Repair

A transaction can be an issue or a receipt.

The following transaction types are available:

• material requirement
• planned receipt

A user-defined three-position code used to identify documents. The series linked to the transaction type give documents the sequence number.

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.

Bank that credits the transferee's account because of a funds transfer.

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.

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.

A combined means of transport that consists of various vehicle types and/or means of transport which jointly transport a load. If a transport means combination includes more than one means of transport, Freight can perform load building for more than one means of transport per load. Transport means combinations are also used in freight order clustering. A transport means combination shows the combined means of transport that is to transport the goods listed on a freight order cluster.

A classification used to group means of transport, such as:

• Vans
• Trucks
• Container ships
• Cargo aircraft

For each group, properties are defined, such as:

• The average speed
• The loading capacity

Each means of transport defined in Freight belongs to a transport means group. For example, transport means group: Vans, means of transport: van with licence number XX333444 .

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.

The annual sales volume.

The part of the total forecast for which the customer desires a supply in addition to the confirmed forecast. Possibly, the customer is unsure whether this quantity will be needed.

The sum of the confirmed forecast and the unconfirmed forecast is the total forecast.

Typically, the total forecast includes not only the demand based on actual sales orders for the customer's end products, but also forecast demand based on estimated future sales of the customer's end products.

See also confirmed forecast.

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.

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.

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

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.

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.

Usage classes categorize the use of an installation group, configuration, or (serialized) item, based on environmental factors or frequency of use.

You can use usage classes to predict the maintenance required for a installation group, configuration, or (serialized) item, based on the usage.

Example

The usage class of a truck can be national or international. The required maintenance for national use is different than that for international use, for example:

• Difference in number of kilometers
• Difference in climate

A material that has been replaced by another item in all BOMs.

After the use-up material's last allowed order date elapses, any remaining stock is used up; then, the replacement material will be used.

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.

The actual price of an item, which is used in all financial transactions that involve the item.

The transactions include:

• Standard cost of goods sold
• Inventory transfer
• Issue to work-in-process value

The actual cost is calculated by using one of the actual costing methods (LIFO, FIFO, MAUC and Lot costing), or by using a standard cost valuation method.

Acronym for value-added tax; the indirect percentage tax levied on products or services at various stages of production and distribution.

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.

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.

An inventory management method according to which the supplier usually manages the inventory of his customer or subcontractor. Sometimes, the supplier manages the supply planning as well. Alternatively, the customer manages the inventory but the supplier is responsible for supply planning. Inventory management or inventory planning can also be subcontracted to a logistics service provider (LSP).

The supplier or the customer may own the inventory delivered by the supplier. Often, the ownership of the inventory changes from the supplier to the customer when the customer consumes the inventory, but other ownership transfer moments occur, which are laid down by contract.

Vendor-managed inventory reduces internal costs associated with planning and procuring materials and enables the vendor to better manage his inventory through higher visibility to the supply chain.

A classification of a supplier based on certain criteria. These criteria can be based on deliveries (on time, sufficient quality) and on other factors.

A warehouse for which the supplier of the stored goods performs one or both of the following tasks: manage the warehouse, including activities surrounding inbound and outbound processes, or plan the supply of the goods in the warehouse. The supplier may also be the owner of the inventory in the warehouse. The warehouse is usually located at the customer's premises.

A place for storing goods. For each warehouse, you can enter address data and data relating to its type.

A group of warehouses with similar characteristics. A warehouse can belong to one particular warehouse set.

A warehousing order to move an item between warehouses.

A warehouse transfer consists of a warehousing order of inventory transaction type Transfer.

All actions related to the receipt, storage, treatment, and issuing of goods within a warehouse.

The Warehousing package coordinates all transactions of goods in the warehouses by using warehousing orders. This relates to inbound and outbound of goods, transfer of goods, cycle counting of goods, ABC analysis, inventory commitments, and various kinds of inventory reporting.

The code of the warehousing order. LN uses the series specified in the Series field of the Warehousing Orders (whinh2100m000) session to generate the order number. If the warehousing order is generated for an order from a package other than Warehousing, this number corresponds to the original order number and is not based on the series specified in the Series field.

A procedure to handle warehousing orders and handling units. A warehousing procedure comprises various steps, also called activities, that a warehousing order or a handling unit must take to be received, stored, inspected, or issued. A warehousing procedure is linked to a warehousing order type, which in turn is allocated to warehousing orders.

A guarantee that a component is repaired free of charge or at reduced costs if it does not work according to the agreed specifications within a warranty period.

The warranty specifications for an item when the item is sold to the customer. They can include a period or a number of operating hours that the warranty is valid, or the response times on a service call.

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.

Any action that affects the work in process (WIP) of a production order or work center.

WIP transactions can be any of the following:

• Issue of materials for a production order.
• Booking of hours on a production order.
• Delivery into inventory of finished products.
• WIP transfers between work centers.
• Application of a surcharge.

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.

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.

A production unit consisting of one or more work stations in a fixed sequence.

A work cell is used in repetitive manufacturing for the production of a repetitive item.

A specific production area consisting of one or more people and/or machines with identical capabilities, that can be considered as one unit for purposes of the capacity requirement planning and detailed scheduling.

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.

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.

A schedule used to define the number of working hours per day and distribute these hours according to different labor types. As a result, different labor rates can be used for regular time and overtime.

Orders that are used to plan, carry out, and control all maintenance on items in a maintenance shop or in a repair shop. A work order consists of at least one work order header, and can have a number of activities that must be carried out on a repairable service item.

The seven days of the week, for which the available and non-available hours are defined.

A report that is required by the Bundesbank, the German central bank. A Z4 report lists inbound and outbound foreign payments.

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.

A distance or a geographical area. Zones are used to define freight rates. To define a freight rate, the geographical area defined by the zone is linked to a freight amount in Pricing. Thus the freight rate is used to calculate the transportation costs of goods transports that take place in the area defined by the zone. In other words, all goods transports within the area go for the same rate, provided that the other factors that make up the rate, such as basic weight or carrier, apply.

The following types of zones are available:

• ZIP
• City
• Distance
• Not Applicable
• Note: The Zone type is not used to define freight rates in Pricing.