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 step that you must carry out for the purchase/sales order type. An activity represents the sessions or the manual action that you must carry our for the purchase/sales order type.

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.

The process of performing a specific task in a company. Activities are used for the allocation of cost amounts, quantities, or percentages to a cost object. In LN the activities are the dimensions of one dimension type.

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

Extra costs charged by the invoice-from business partner which create a difference between the invoice amount and the order amount or the goods received amount. For example, storage costs, freight costs, and insurance costs.

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 way to efficiently manage your cash flow by requesting to pay an agreed amount before the project or a specific part of the project starts. The advance payment will be settled with the final invoice. For example, you can select a project and request an advance payment for certain project materials. The advance can be linked to an installment. For unit rate and cost-plus invoices, the advance payment request is settled with the next invoice(s).

A paid or received amount, which cannot be allocated to an invoice or any other document. After an invoice has been created, the advance payment or receipt can be allocated to it. Unlike an unallocated payment/receipt, you can calculate tax on a advance payment/receipt.

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.

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 asset number and asset extension create a unique identifier for the asset in the selected company.

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.

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 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.

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

The estimated cost that will be incurred while servicing items. The amount is expressed in the home currency.

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.

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.

The reference of a document, which includes detailed information such as document number, line number, and sequence number.

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 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.

The way in which tax amounts are calculated.

Two methods exist:

• Parallel

  Each tax rate is added to the previous tax rate.

  Example

  Tax rate for sequence number 1: 10%

  Tax rate for sequence number 2:  5%

  Total tax rate: (10+5)% = 15%

• Cumulative

  Each tax rate is a percentage of the preceding total tax rate.

  Example

  Tax rate for sequence number 1: 10%

  Tax rate for sequence number 2:  5%

  Total tax rate: 10% + 5% + (10% / 100% * 5%) = 15.5%

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

The type of delivery covered by an invoice line.

These charge types exist:

• Costs
• Goods
• Service

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.

The identification number the bank assigns to your organization for the electronic processing of bank files.

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

An installation group of items that share the same location or customer.

For example, a configuration could consist of all items that are controlled for a specific customer, or all items that are in the same location.

Grouping items into a configuration enables you to maintain them collectively.

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.

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.

A contract deliverable is a tangible or intangible item that is produced or purchased as a result of a contract.

An amount that is paid as an award or an incentive to the contractor, based on the terms and conditions of the contract.

Period over which the contract revenues (installment amounts) and the forecast contract costs are distributed. Contract installments are defined by year and contract.

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 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 ledger account used to reflect the balance of a number of related subsidiary accounts.

In LN, 'control account' usually refers to the creditors' account or the debitors' account defined for the financial business partner groups in Accounts Payable and Accounts Receivable.

In addition to the creditors' account and the debitors' account, you can define a number of specific control accounts for a business partner group, such as control accounts for doubtful invoices, advance and anticipated payments or receipts, and realized and unrealized currency profit or loss.

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

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 contract based on calculation of time and material after parts of the project are finished. Agreement on prices and labor is made before the project starts.

A contract that is carried out based on cost reimbursement and a profit percentage.

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

Lines that store the information on the costs incurred, amounts to be invoiced, and the amounts covered by the applicable contract and/or warranty. Most coverage lines are added through the maintenance sales order process, but can also be manually entered.

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

The correction form for a (partly) returned purchase or sales order. The credit note states the quantity and value of the goods concerned and the reason for the credit.

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

The identifier of the item's model, part, or year with the sold-to business partner. This reference is used to identify a sales contract line.

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.

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.

Defines a set of values and the allowable operations on those values.

For mapping XML elements to LN records, these data types exist:

• Attribute
• Boolean
• Date
• Decimal Number
• Node
• String
• UTC Date

The quantity of goods expressed in the sales unit or the inventory unit, which is delivered to the sold-to business partner.

The date on which the goods or services are delivered.

On the billable line (status On Hold), the delivery date can be changed for all origins.

The delivery date influences the following:

• Rate, if the rate determiner is set to Delivery Date.
• Tax date, if this date is set to Delivery Date in the Invoicing Parameters (cisli0100m000) session.
• Year and period, if Fiscal Period Derived From or Tax Period Derived From is set to Delivery Date in the Invoicing Parameters (cisli0100m000) session.

The date on which the inventory is issued from the replenishment warehouse and transported to the destination warehouse.

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 dates and quantities of an item that can be promised to a customer.

With this report you can determine how much volume can be delivered on time and how much is delivered late.

According to the item master plan, more chairs will be completed later that month. Some of those newly produced chairs have already been promised to other customers.

Example

A customer wants to order 80 office chairs, to be delivered on May 1. However, the CTP quantity on that day is only 30 chairs.

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.

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 unit of measurement, which together with a norm value (and start value) determines when maintenance activities must be carried out.

The output device selected for the report such as a printer, a screen (device: display), an ASCII file, and so on.

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 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.

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.

The discount given to a business partner, calculated by unit and expressed as a value. For instance, 3 euro.

A code that indicates the way in which discounts are calculated if multiple discount levels are used.

Discounts are calculated according to one of the following amounts:

• Gross: the discount is calculated over the gross amount
• Net: the discount is calculated over the net amount. The net amount is calculated from the gross amount minus discounts at previous levels

The percentage that you can subtract from the gross sales price or purchase price.

The percentage that you can subtract from the gross sales price or purchase price.

A generic term for objects, such as orders or order lines. Also used to refer to printed matter, such as reports, shipping documents, order documents, or user documentation.

The identification of a transaction.

The document code is a combination of:

• Transaction-type code
• Series number
• Sequence number

In LN, the date that a payment or receipt is required.

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 person who works at your company who has a specific function such as sales representative, production planner, buyer, or credit analyst.

Reusable items used to produce or to ship goods for a project. Equipment is not consumed while the project is carried out. Equipment can be internally owned or externally rented. Equipment items can range from tools such as electric drills and wheelbarrows, to machines, large cranes, trucks, tug boats, and so on.

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).

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.

A form of accounts receivable financing that consists of the sale of a company's accounts receivable to a third party (the factor), in order to obtain funding. The sale is made at a discount from the account's value.

Customers remit to the factor either directly or indirectly through the seller. Factoring can be with or without recourse. For factoring with recourse, the risk of customer non-payment remains with the company.

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.

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 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.

A long-term (longer than one year) production means which is activated on the company's balance sheet in order to calculate depreciations. A fixed asset is, for example, a manufacturing plant.

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.

A financial resource to pay for budgeted activities within project/programs/organizations. A fund can be a subsidy, grant, endowment, etc.

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

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.

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.

A percentage amount that the customer withholds from the contract amount. This serves as a guarantee that all activities are performed, and that contractual obligations are met. In other words the holdback amount is paid after the project activities have been satisfactorily performed.

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 set of measurements that you must carry out on items during an inspection. Inspection templates include the norm values that trigger the reference activities. If an inspection is carried out and the norm value that is defined for the dependent variable is exceeded, one or more reference activities must be performed.

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.

The amount invoiced to the customer when a project completes its corresponding element/activity or reaches a milestone or progress of elements/activities.

A ledger account used for integration transactions. You can use the account for other transaction types, such as manual transactions, only if you specify exceptions.

To maintain data integrity for reconciliation purposes, by default, you cannot manually enter transactions on an integration account.

To correct postings on integration accounts, two methods are available:

• To enable manual posting for several domain-specific sessions, use the Manual Posting Exceptions (tfgld0148m000) session.
• Enter the correction entries on another ledger account with the same parent as the integration ledger account. The results will then appear in the parent account.

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 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.

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 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.

An invoice to charge interest.

You can create interest invoices for:

• Unpaid overdue invoices.
• Invoices that were paid or partially paid later than their due dates.

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 currency in which the invoice amount is expressed.

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 number of items actually billed.

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.

The kind of invoice. Each Operations Management package has its own types of invoices.

The way to calculate project invoices for a given contract type. The invoice type determines when to issue invoices to the sold-to business partner.

LN distinguishes these invoice types:

• Cost-Plus

  The amount is based on the financial amounts entered at cost object level plus a profit. This method is only available if the contract type is Time & Materials or Cost Reimbursement.

• Unit Rate

  The amount is based on the financial amounts per unit entered at element or activity level. Unit-rate invoicing applies to both Fixed Price and Time & Materials contract types.

• Installment

  The invoice amount is a subdivision of the value. This method is only available if the contract type is Fixed Price.

• Progress Invoice

  The invoice amount is based on progress for element or activity. Two types of elements are allowed: direct and indirect. The calculated amount of the direct elements depends on their own progress. The calculated amount of the indirect elements is based on the progress of the project as a whole and can never be more than 100%.

• Delivery Based

  Invoicing is based on the sales amounts of the contract deliverables that are linked to the contract shipments.

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.

Defines the type and number of orders that you can select through the invoicing batch. For example, the types of orders can be Sales, Freight, Projects, or Service, and the number of orders of each type can be None, One, or Several.

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.

This method is only used for contract projects to invoice to Financials.

Capital projects have no invoicing. Sales order projects use Invoicing for invoicing.

Define the text and the layout of the printed invoices and whether or not you can overwrite the default transaction types and series used for the invoice document numbering.

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)

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

A sales order or warehousing order created using the extended kit handling functionality.

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 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.

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.

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

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.

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.

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

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

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 set of operations that can be carried out. The reference activities based on which operations are added to a master routing, must have the same characteristics, such as item, functional element, and service department.

Example

All the inspections, tests, cleaning activities, assembly activities, disassembly activities, and repair activities that you can carry out on an engine.

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 number that identifies a set of matched (customer) self-billed invoice lines with billable lines.

A standard measurement that consists of a measuring quantity and a measuring characteristic. The determination of the value of a certain dependent measuring quantity of an item in a specific situation.

A particular measurement that is used to determine the value of an item's variable (measuring quantity) in a specific situation. Example: Tire tread depth.

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.

These rates consist of multiple percentages.

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.

An unpaid transaction, for example a purchase or sales invoice.

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.

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 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

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 pay-by business partner that is linked to the invoice-to business partner of the order.

Overhead expenses are indirect costs (for example, electricity) that impact all manufacturing costs, except for direct labor and direct material that change depending on production volume.

allows you to define three types of overhead costs:

• Indirect materials

  These are costs that indirectly add up to the total cost of an item, such as light, heat, supervision, and maintenance.

• Indirect labor

  Indirect costs such as an hour of labor, administration and general meetings.

• Miscellaneous expenses

  Taxes, insurance, depreciation, repairs and so on.

The costs which are not linked to cost objects, but are planned and controlled in cost centers.

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.

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.

A difference between the invoice amount and the payment amount. If the payment difference falls within the user-defined margins, it can be accepted and written off automatically.

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.

The method used to create a payment (purchase invoice) or a receipt (sales invoice).

The payment method defines details such as:

• The maximum amount
• The due date
• Allowance of foreign currencies and other details which must be printed on the report

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

Optically readable document attached to an invoice, which can be sent to the bank to make the payments for the invoice. The supplier's bank account number, the invoice amount, and an invoice reference number are preprinted on the payment slip. If a payment slip is attached to an invoice, the payment slip is created and printed together with the invoice.

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 conditions of payment for a transaction between business partners.

An amount paid to the business partner by the contractor, in case the terms of the contractual agreement are not met.

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

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

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.

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.

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

Progress payments requests are created based on the cost incurred by the business partner as the work progresses for a contract.

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.

The unique code of a main project, a subproject or a single project. By means of a project code, the complete production can be managed on the basis of customer orders.

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.

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

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

The amount of money to be paid to a sold-to business partner as a kind of discount for closing a sales order.

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.

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 type of factoring or trade note discounting for which the risk of customer non-payment remains with the company. If the company's customer is financially unable to pay the amount due, the factor or bank has recourse against the company for that amount.

A set of one or more invoicing batches set up for recurring processing. If you process a recurring invoicing batch, LN selects the invoicing data according to the invoicing batches.

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

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

A shortened term for trade relation. Relation is a collective term for an employee or buy-from business partner that is entitled to a commission, and a sold-to business partner entitled to a rebate. Relations can be grouped in a relation team for the purpose of assigning the same agreement structure.

The code used to identify the remittance advice.

The company used to process and post the remittance advices.

One of the companies' home currencies that you, for example, use to report financial results to management.

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

• The company's local currency
• Reporting currency 1
• Reporting currency 2

The 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.

For a given contract, revenue recognition is the process that leads to the calculation (and subsequent posting to the General Ledger) of the total revenue that is estimated to have been earned, on the basis of the progress of the contract.

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

The revision-controlled items are items in continuous development. To identify the item's version, add a revision number to the item code.

If a revision-controlled item is selected, the current version is used. The obsolete versions are no longer manufactured and prototypes are not sold yet.

The date when the risk of loss or damage to the goods passes from the seller to the buyer. Unless agreed upon otherwise between both parties, the risk transfer date matches the invoice date.

The risk transfer date is required for revenue recognition in compliance with IFRS (IAS 18.14).

Small differences between related debit and credit postings resulting from the rounding of calculated amounts.

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.

A subset of master routing. A predefined set of operations that can be carried out. Each operation is identified by a unique sequence number.

A bill that relates to the sale of goods or services. A sales invoice is a document, sent by the seller to the buyer, for each sale containing details on the goods sold.

A document transaction entered in Invoicing. When an asset account is affected, a disposal transaction is generated from Invoicing in Fixed Assets to process this event based on the general ledger account definition.

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.

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 price for which an item is sold.

Gives insight into the structure and composition of the sales prices for product variants.

The sales price structure:

• Is used when calculating the sales price for a product variant on a sales order or sales quotation.
• Provides insight into the price structure and can be displayed in the Product Variant Sales Price Structure (tipcf5530m000) session. In addition to or instead of the product variant options, it can be printed on sales order documents.

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.

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 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 unit in which an item is sold.

An automatically generated and unique character string that identifies the schedule. This number is used as long as the requirement or the contract exists.

If schedule regeneration takes place, the schedule lines that are affected by the regeneration are copied to a new schedule revision number.

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.

Information about an enterprise’s different types of products and services and its operations in different geographical areas, required by IFRS.

The common data part of an incoming, electronically received, self-billed invoice.

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 sequence number of the inspection order on the basis of which characteristics are tested on different samples.

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.

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

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

Serial numbers can be generated for items and for tools.

A 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).

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

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 standard item that represents services instead of goods.

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.

The smallest unit of activity that can be carried out for a service order. Multiple activities can be defined per service order. This can be useful, for example, to combine calls with planned maintenance activities.

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.

This functionality allows for tax recognition without including the tax amount in the receivables.

The smallest consignment for which Freight plans transportation. A shipment is an identifiable part of a load, and contains a number of goods that are transported to a given destination on a given date/time via a specific route.

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 entity that provides information about one of the items listed on a shipment, such as the weight, the quantity, or the additional costs.

An individual line of detail in a shipment.

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

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.

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

Codes on calls and service orders that enable you to analyze the orders.

In multisite control, this is the LN company in which the source batch is stored. The source company resides in the source environment.

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.

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.

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

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.

A quantity of one or more shipped components that makes an incomplete kit. The remaining components must still be delivered, unless completion of the sales order line is impossible for some reason.

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.

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.

A way to group tax authorities. You can use the tax authority groups when you select or sort tax information for 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.

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.

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 tax rates that are valid on this date are used to calculate the tax amounts.

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 unit that is used to specify the physical quantity time.

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

A number to identify a tool. The combination of a tool type, for example, hammer, and a tool serial number, for example, 1, is unique, and identifies a tool in LN.

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 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.

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.

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 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.

An invoicing method based on the progress and element or activity sales rate per unit. Invoices are booked against the contract amount with installments.

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 code that identifies the warehouse address for a business partner.

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