The statement account defined as the denominator when calculating percentages.

To depreciate an asset by an extra amount in a specific year. Accelerated depreciation reduces the depreciation time.

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 scheme of accounts to which the results of certain events are posted. The accounting scheme consists of ledger accounts, structured in a parent-child hierarchy.

The base to calculate surcharges. In Cost Accounting, both the full cost and variable cost can be charged.

A company-specific set of authorization restrictions that can be linked to account matching users.

A company-specific set of properties with matching information linked to a ledger account.

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.

The total depreciation recognized and recorded for an asset since its acquisition. Accumulated depreciation is subtracted from the original cost of the asset to provide the net book value.

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

• A cost-allocation process that uses multiple cost drivers to predict and allocate costs to products and service.
• An accounting system that collects financial and operational data on the basis of the nature and extent of business activities.

The sum of all the discounts actually deducted during a certain period.

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

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.

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 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.

An identifier for an asset that belongs in an Adjusted Current Earnings (ACE) Federal Tax Book. ACE is the recalculation of income for purposes of computing an adjustment to Alternative Minimum Tax (AMT) as required by United States federal tax code for assets placed in service after 1989.

A modification to an actual budget that has the Final status. Adjustments are associated with the budget as a whole and not with any individual budget line. Unlike extensions, where any additional costs can be passed to the project customer, adjustment costs are absorbed by the project company and do not affect customer invoicing.

A modification to a purchase invoice transaction that was posted to the General Ledger. An adjustment is included in a correction document.

Correction entries to be made on financial statement values.

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 classification of open entries based on aging periods and period types.

Advanced General Ledger

An expression that is used to compute a characteristic by means of other variables or fixed characteristics.

The indirect costs incurred in the purchase of an asset. For example, when you buy a car, the price of the car, the license, and the insurance are direct costs. The costs you incurred while shopping for the car and taking time off to collect it are indirect costs. In some cases, the government requires you to capitalize these indirect costs for tax purposes.

A key that specifies a set of dimensions and percentages, serving as destination for percentage allocation relations. The key can be applied for a defined allocation source, to create allocation relations.

A relation by means of which a budgeted or actual amount is charged to, for example, another department.

A set that offers various possibilities to build the allocation relation. You can build allocation relations by using allocation keys, default allocation relations or consumption rules.

A flexible cost budget per cost center and reference unit, that depends on the actual output performance of the reference unit. This applies to a performance-dependent planning: In case of a performance-independent planning without reference units the allowed costs are the same as the planned fixed costs.

An account to which you can transfer amounts with a different sign (debit/credit value) compared to the linked statement account.

Example

The Short Term Debts statement account, defined as a credit account, was set up as the alternate account for Cash, which was defined as a debit account. The total value of the ledger accounts linked to the Short Term Debts statement account is 10000.

The types of depreciable property are identified for which depreciation should be recalculated to compute a taxpayer's Alternative Minimum Tax (AMT), which will reduce the tax advantages available under regular tax rules for depreciation. The difference between the standard tax depreciation amount and the AMT depreciation amount is the amount of the AMT adjustment. AMT rules have been devised to ensure that at least a minimum amount of income tax is paid by corporate and high income non-corporate taxpayers, essentially a recapture mechanism to reclaim some of the tax breaks primarily available to high income taxpayers in an attempt to maintain tax equity.

The systematic reduction or writing off of an amount, such as an account balance, over a specific number of time periods. Amortization is a form of depreciation. Amortization is the recovery of certain capital expenditures, including goodwill and other intangible assets. Amortization is not available for expenditures for which a current business deduction may be claimed, or those which are capitalized and depreciated.

The total amount actually received or paid during a certain period. The amount does not include any anticipated amounts.

A special depreciation method based on an annual instalment calculation formula. Annuity only applies to a calculatory book (it does impact the asset's value).

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.

A receipt that is not completed yet.

Anticipated receipts can be created:

• Automatically, for example, in case of direct debit.
• Manually, for example, when a check is entered.

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.

The number of delivered items that is approved.

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 actual pieces of property, plant, or equipment that are uniquely utilised and used by an organization for a defined life time.

The process of recognizing an asset. When an asset is acquired it has been fully invoiced, paid, and received. Acquired assets can be depreciated. An acquired asset has already been capitalized.

A transaction that makes changes to asset values that can no longer be directly changed after the asset is capitalized. Adjustments are typically used to correct clerical errors or to reclassify the asset's life, depreciation method, or cost. You can adjust an asset at any point in the asset's life cycle as long as it is not disposed or removed from capitalization.

A book that has been attached to an asset. You use books to record depreciation and other transactional data for your organization's assets. For each book you create, you specify whether assets associated with the book will depreciate or not. An asset can be associated with several books, and depreciate differently or not at all in each book.

A way to recognize that an asset is in service and is eligible to depreciate. In order for an asset to be capitalized, it must first be acquired.

The ability to recover, over time, the expense or cost of an asset that is in use. Depreciation permits you to either match expenses with revenues or reduce tax liabilities by using a mathematical formula defined as a depreciation method. An asset can be depreciated on the asset or asset book level. During asset depreciation LN depreciates the asset or asset book you specify according to the accounts indicated in the asset distribution. Asset depreciation is run on a book by book or asset by asset basis. Mass depreciation occurs on a book or company for a group of assets or group of assets or asset books, while single depreciation occurs one asset or asset book at a time.

A series of depreciation regulations defined by the United States IRS applied to certain assets placed in service after 1970 but prior to 1981. The ADR does not apply to assets first placed in service before 1971, or to property placed in service after 1980 if depreciable under ACRS or MACRS, or in a year in which an ADR election was not made. ADR is one of several different types of mutually exclusive regulations that can apply to an asset. The primary characteristic is that upper and lower limits are set by the United States IRS for asset lives. A depreciation period used initially in the election year cannot be changed by either the United States IRS or the taxpayer during the remaining period of use of the asset.

A transaction that is applied to remove the values stored on an asset's related books. A disposed asset remains in Fixed Assets until the specified retention period, but it will not depreciate. There are several types of asset disposals that can be recorded against an asset (such as sale, donation, etc.). The impact on reporting varies according to the type of disposal.

An asset's distribution indicates the depreciation expense to specific companies and expense accounts, and their related dimensions. Distributions also store related location(s), accounts through either the integration mapping scheme or the transaction template, and the quantities or percentage costs for the distribution line.

A broader level of grouping than an asset category. Used to classify your organization's assets for reporting and inquiry.

An asset's expected useful life; this determines how long the asset will be depreciated.

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

A record generated to record an event for an asset, its related books, and distributions. Transactions are stored for assets that are adjusted, capitalized, depreciated, disposed, and transferred.

A transaction that is applied to move part or all of the values stored on an asset's related books as a result of a change in owner, location, or responsibility.

The person or department that is responsible for removing a hold reason from a registered invoice and release the invoice for further processing.

A list of fields that determines the matching criteria, including a priority sequence in order to match on different combinations of fields.

A company-specific set of priorities with matching criteria that can be linked to an account matching priority to enable automatic matching.

An indication of the type of activity for which a resource is available. With availability types, you can define multiple sets of working times for a single calendar.

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

The sum of the outstanding amounts each one multiplied by the number of days between the invoice date and the end date of a period, divided by the total outstanding amount.

The sum of all the amounts received or paid, each one multiplied by the number of days between the due date and the receipt date or payment date, divided by the total amount received or paid in a certain period.

The sum of all the amounts received or paid, each one multiplied by the number of days between the invoice date and the receipt date or payment date, divided by the total amount received or paid in a certain period.

A way to determine the beginning and end of an asset's recovery period. The recovery period determines how much an asset depreciates (and indicates the respective tax deduction) in the first and last year of service.

The sum required to make one side of an account equal to the other side. In other words, the difference between the total of all the debit entries and the total of all the credit entries in an account. Whether it is a debit or a credit, this amount expresses the financial position of the particular account at the time the balance is struck.

A statement of assets, liabilities, and equity at a given date.

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.

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 financial company or a financial and logistic company that is used to book the transactions between financial companies that belong to different group companies.

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.

An identification assigned to a homogeneous quantity of material.

The automatic generation of invoices between two financial companies as a result of goods transfer between warehouses of enterprise units linked to these financial companies.

A list of activities used in activity-based costing (ABC).

BIRT is an open source reporting system for web applications, especially those based on Java and J2EE.

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.

An instance of an asset. Books are attached to assets, and are designed to capture values for an asset. Each asset may have many books attached to it for reporting or calculation requirements. Books defined with particular types ( Calculatory, Financial, etc.) are dedicated to specific calculations.

Identifies the book associated with the asset. Book codes permit you to define the books used by assets to record transactional data. Each asset must have at least one asset-book relationship.

The purchase value of an asset added with all revaluations and subtracted with all depreciations, adjustments, and reductions to the purchase value. The book value can be used as a base for the depreciation calculations.

An entity used to specify how breaks between ranges of entities such as distances, amounts, or ordered quantities of items are defined. A break, in this case, is the first or the last number of a range. A break type has either of the following values:

Minimum The break is the lowest number of a range.

Example

In this case, the breaks are 10 and 50. Ordered quantities >= 10 and < 50 get a 3% discount. Ordered quantities of 50 and more get a 5% discount.

Up To The break is the highest number of a range.

Example

In this case, the breaks are 100 and 1000. For distances <= 100, the rate is 10. For distances > 100 and <= 1000, the rate is 50.

A plan that includes the budgeted quantities and/or amounts by period for the sorts selected; the budgeted or expected sales or purchase figures.

A plan of units or amounts allowed to be spent on certain objects such as departments, cost centers, items, or item groups.

This plan can be evaluated with the actual figures afterwards, and it can be compared with other budgets. In addition, you can simulate different scenarios.

A budget account generally covers an organized set of activities, programs, or services directed toward a common purpose or goal. Budget accounts are the basic building block of the budget levels in the master budget hierarchy.

The process of amending the budget by moving funds from one category or line item to another.

The budget balances that must be updated for a transaction such as budget check, release, amendment and budget transfer.

The types of budget balances are:

• Budget
• Allotment
• Commitment
• Encumbrance
• Receipt Expense
• Expense

A person, who is responsible for all the budget management functions in the company.

A company's organizational unit whose budget allocations are monitored using the budget control process.

A budget entity can be one of these types:

• Purchase Office
• Service Department
• Work Center
• Warehouse
• Accounting Office

The level of a budget within a company or within a group of companies.

A person, who is responsible for his own budget which is a part of the company's budget.

A period of time for which the budget is applicable or active.

The policy defined for a budget, which defines the way the budget must perform.

The hierarchy which contains all roll-up structures and budget accounts.

A graphical display of all levels in the budget structure, by clicking on each branch the underlying levels are displayed until the lowest level 1 is reached. By selecting a branch all other panes are adjusted so the relevant amounts, balances and exceptions are displayed.

The fiscal year for which the policy is applicable.

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 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 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 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 set of financial companies that indicates the currency that must be used for each company in financial statements.

The currency can be one of these:

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

A book type that permits methods of depreciation specific to European requirements (as in annuity method).

A transaction that is used to enable asset-related books to be depreciated. Capitalization is the point in time that an asset is used. This point is recorded in specific balance sheet accounts to reflect this change in status from Entered to Acquired.

The amount you saved by funding a large material project yourself, instead of borrowing from the bank. It is recognized as a credit to interest income, and a debit to assets. This is a non-cash entry.

All money handled through bank accounts, cash boxes, including documents representing a monetary value such as checks and trade notes, that are used in payment/receipt procedures.

The ledger accounts which are setup as cash accounts in the Transaction Types (tfgld0511m000) session, where the Transaction Category is set to Cash and the Transaction Subcategory is set to Bank Transaction, Assign Advance/Unallocated Payment or Assign Advance/Unallocated Receipt.

The assignment of received payments to open entries.

An alphanumeric user defined code with six characters. This code enables a company to report the cash flow at a detailed level, for example for each expense type.

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 way to group cash flow reasons on the cash flow statement. On the cash flow statement, LN prints the subtotals for each cash flow reason group.

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.

The expected cash position at a future date. The current cash amount is increased by the amounts to be received and reduced by the amounts to be paid, in all periods in between.

A cash transaction is:

• A transaction posted in the Transaction Types (tfgld0511m000) session, where the Transaction Category is set to Cash and the Transaction Subcategory is set to Bank Transaction, Assign Advance/Unallocated Payment or Assign Advance/Unallocated Receipt.
• A ‘non-cash transaction’ posted on a cash account.
• An intercompany transaction that is generated because of an intercompany cash transaction.

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

Used to classify an asset and provide data entry defaults during asset entry. Categories have associated subcategories, which are assigned by default.

A hierarchical structure of ledger accounts and dimensions.

To support dual accounting, the chart of accounts can consist of a structure of statutory accounts for fiscal reporting purposes and complementary accounts used for management reporting.

A written order directing a bank to pay money as instructed.

A function in which checks can be prenumbered. The prenumbered checks can be used later on in the payment process.

Part of a parent budget; the budget for an autonomous part of the company, such as a department.

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 security to secure a loan from the bank.

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 collective asset is used to collect the invoices and discounts of multiple invoices on one fixed asset. For example: If multiple small amount invoices are generated for an asset, the invoices are collected on one asset instead of creating a new asset for each new invoice.

Column layouts determine the general presentation of columns in financial statements. This includes the number and position of columns, format, and alignment. This data is used to define the statement columns in a financial statement. LN will order the column data according to the parameters corresponding with the layout code selected.

The data linked to a financial statement column that allows to calculate the column values.

Used in countries other than the United States to record data that is not subject to tax reporting regulations, such as general ledger data.

The amount of money to be paid to an employee (sales representative) or buy-from business partner (agent) for closing a sales order.

Represents the start of a spending process through the generation of a purchase requisition. A commitment sets aside an estimate amount from the budget. This prevents other commitments that could exceed the budget. A commitment is not a legal obligation.

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

A ledger account that you can use for the amounts that are complementary to the amounts in the statutory accounts. For example, you can link a statutory account and a complementary account to a parent account. If you print the Management report based on the parent accounts, on the report LN adds the amounts in the complementary account to the amount in the statutory accounts.

Rules that allow you to generate outgoing budget and actual allocation relations from a retrograde source.

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 general ledger account which reduces or offsets the value of a related account. A contra account's balance is opposite of the related account. If a debit is recorded in a related account, the contra account records a credit.

The agreed upon price in a sales contract, purchase contract, or request for quotation (RFQ).

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 document that includes the adjustments made to the original purchase invoice.

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 set of cost types, represented as ledger accounts. In cost/budget allocation you can restrict the amounts to be allocated to a cost category, a subset, of all cost types.

An organizational unit to which costs can be allocated. Cost centers are represented as dimensions.

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 purchase invoice for which no related purchase order exists.

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 part of the cost pie. In Cost Accounting different portions can be distinguished which can be posted to different cost centers (dimensions) and cost types (accounts).

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

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.

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.

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 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 user-defined rule that allows you to indicate which combinations of GL accounts and dimension values are valid. A cross validation rule requires at least one rule element. Cross validation rules are applied to all transactions registered in the General Ledger. In case of multiple financial companies, validation rules can be either company-specific or applicable across all companies.

A generally accepted medium of exchange such as coins, treasury notes, and banknotes.

The following currency types are available in LN:

• Home currency, which is used internally by companies to calculate costs, record budgets, and register tax amounts
• Transaction currency, which is used in transactions with business partners, such as orders and invoices

Currency result caused by fluctuations in the exchange rate, for example, if the exchange rate between the invoice currency and your home currency differs between the invoice date and the payment date.

A free definable method based on depreciation percentages. Percentages can be defined for the years in service, or alternatively for each period of a year in service. In the first period of depreciation, the corresponding percentage is selected, and is used for calculation throughout the total life of the asset.

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.

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.

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 order of the numeric characters that specifies the way the system date is presented. This concerns the day of the month and year as they appear on documents, for example, 15/09/78 (in Britain) and 7/22/78 (in the U.S.A.).

The print status the debit note has reached:

1. Not Printed--> Draft, if the debit note is printed for the first time.
2. Draft--> Draft, if Print Original Debit Note has not been selected when printing.
3. Draft--> Original, if Print Original Debit Note has been selected when printing.
4. Original--> Copy, if a copy of the debit note is printed for the first time.
5. Copy--> Copy, if another copy of the credit note is printed.

In declining balance, the system calculates each year's total depreciation by applying a constant percentage to the asset's net book value. This leads to continuously decreasing depreciation amounts. A declining balance does not depreciate the asset to its salvage value. If you want to depreciate the asset to its salvage value, you must use the declining balance with a switch to straight line formula.

The sum of the late payment surcharges that were not due because the invoices were paid in time.

An estimated amount of future income taxes that may become payable because of income that has already been earned but has not yet been recognized for tax reporting purposes. It is not an actual liability or present obligation but instead represents an attempt to compensate for timing differences in the recognition of certain income and expense items for tax reporting and for financial reporting purposes.

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

A company's organizational unit that carries out a specific set of tasks, for example, a sales office or a purchase office. Departments are assigned number groups for the orders they issue. The department's enterprise unit determines the financial company to which the financial transactions that the department generates are posted.

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.

Generally depreciation cost is the cost of the asset minus its salvage value minus accumulated depreciation.

The decrease in value of fixed assets. The depreciation amount is calculated as the result of the combination of a depreciation method on the book or purchase value of a fixed asset. The depreciation amount is the amount that is deducted from the purchase value to calculate the book value.

The depreciation system according to which depreciation, value reduction, revaluation, and so on are calculated.

An amount deducted from revenue in determining income, based on an allocation of a long-lived asset's original cost over the years of its useful life.

A way to determine how often depreciation is recorded. It also determines whether a particular period is suspended.

The depreciation method used for an asset determines the formula for calculating the amount of depreciation taken on an asset. Depreciation methods are case-sensitive.

These depreciation methods are available:

• straight line depreciation
• declining-balance method
• sum of years digits depreciation
• first period depreciation
• annuity depreciation
• custom method
• units of production depreciation
• fixed amount depreciation
• net book value oriented depreciation

The way in which the depreciation of a fixed asset is spread out over the years.

Currency result caused by different results when the transaction currency is converted to the various home currencies. Destination gain and loss can only occur in an independent currency system.

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.

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.

An order to a bank to accept charges to an account from another named account at regular times.

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.

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.

• The sale of an asset.
• From disinvestment, to cancel the investment in the fixed asset by, for example, selling the asset and posting the sales amount to the General Ledger.

The sales revenue is recorded in order to post book profits or losses.

Indicates the reason why a fixed asset is disposed of.

A method for spreading out budgeted or actual year totals to a number of periods. Both quantities and amounts can be spread out.

Includes the transaction template or integration mapping scheme that will determine the distribution account for that particular part of the asset, the physical location of the asset, and the quantify or percentage of the asset which is to be distributed to the indicated location and distribution account. Also the company that the depreciation expense should be recorded.

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

Displays identification, document type, title, creator, role responsibility, and revision information. You can store the document information in electronic computer files (physical files) or on a non-electronic medium, such as paper (hard copies). Access to this information is always from the document, which is the unit of control for the user. If no file or hard copy is attached to a document, the document is a purely logical entity, generally used for grouping documents.

The transaction date in Financials. The document date is always registered in local time. Usually the document date is the same date as the transaction date, except if you manually enter a different transaction date in Financials or if the UTC time and the local time differ by a day.

An invoice that probably cannot be collected.

Datentraeger Auslandszahlungsverker, German for international disc clearing payments. These are payments from German bank relations to recipients outside Germany. Each DTAZV file consists of a payment advice and, if the amount exceeds a defined limit, Z1 report data.

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

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

Allows depreciation to continue to occur after a fixed asset is fully depreciated. The depreciation is posted to an economic recapture account.

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

The point-in-time of an asset's life on which the transaction takes place. The effective date of a transaction may be any point from the in-service date to the date the asset is fully disposed in all its related books.

The difference between the actual and the allowed costs.

• A system for automatic processing of electronic bank statements received from the bank on disk, tape, over the Internet, or by modem.
• The electronic bank statement files.

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 selection of mapping elements used to define a mapping. To map the integration document types, you must link one or more element groups to the integration document types. An element group must contain at least one mapping element and can contain up to 15 mapping elements.

Transactions used to remove double entries resulting from intercompany transactions (intercompany holdings, intercompany balances), so that these values will not be printed in the consolidated statement.

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.

An obligation in the form of a purchase order, contract or salary commitment that is chargeable to an appropriation, and for which part of an appropriation is reserved.

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 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.

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.

Currency result caused by the use of different exchange rate types, for example, the Sales rate type and the Internal rate type, or if by means of the rate determiner you have changed the exchange rate for a transaction during the order handling procedure.

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.

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

An invoice automatically created in LN, triggered by and based on data from an integrated external application, for example, E-Procurement.

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.

Absolute figure by which the values of a specific consolidated statement column are multiplied. This may, for example, give you insight into expected financial figures. Factors can also be used to express statement values in other currencies.

The money the factor sends to the company in advance, after the verification process is complete, and before the factor receives payment from the company's customer.

The fee that the factor charges for collecting the company's accounts receivable. This fee can also include the interest on the advance paid to the company.

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 guideline about currency translation problems from the Financial Accounting Standards Board (FASB).

Used to record data that is subject to United States IRS tax reporting regulations. IRS regulations dictate specific depreciation methods which are used for varying circumstances, such as adjusted current earnings and alternative minimum tax. You may specify whether the book records data for alternative minimum tax (AMT) reporting and adjusted current earnings (ACE) tax reporting. You can define three separate federal tax books: Standard, ACE, or AMT. They are separate books; therefore, one, two, or all of them can be attached to the same asset and depreciate independently of each other.

The process by which batches that contain transactions are committed to actual data and committed to ledger accounts and dimensions. After finalization, you can no longer modify batches. Finalization includes updating the ledger account history and dimension history.

To freeze booked transactions after checking for completeness and validity of all transaction lines. Changes to these transactions can only made by means of adjustment transactions.

The final action when you actually copy data from engineering bills of material (EBOMs) to production bills of material.

To copy data, you can either use mass BOM changes (MBCs), or manually copy the BOM lines.

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 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).

An account structure that can consist of child statement accounts and parent statement accounts. At the child level, the statement accounts are linked to ledger accounts and dimensions. With a financial statement, you can collect the desired financial values from the General Ledger and Financial Budgeting System modules, and use this data for internal and external financial reporting and analysis.

Used to record data that is not subject to tax reporting regulations, such as general ledger data.

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 some countries, assets of a lower value (net price purchase price below a specified limit) can be depreciated completely and immediately, even if the asset must be recorded for a given number of years.

Constant or nonvarying amount that is used as a depreciation amount during depreciation.

Costs that are independent of the output performance of a cost center for a certain period.

The difference between the planned fixed costs and the actual charged part of fixed costs. This deviation only applies to full cost accounting systems.

A budget that is based on the performance of a cost center (dimension).

A code that identifies a list of fields that must be included in a customized integration or tax report. The code determines what fields must be selected, and in which order they must appear in the output file.

A payment to a foreign business partner.

Indicates how the values of the statement column must be calculated. The formula contains variables that are linked to statement account values.

Example

a + b - c

Where:

A freight order cluster is a group of freight order lines with matching properties, such as shipping offices, planning groups, overlapping time windows, transport means groups, and so on, that is subcontracted to a carrier. The carrier will plan and carry out the transportation of the goods listed on the freight order lines according to the subcontracting order.

Abbreviation of GST Audit File. In Malaysia this file is used to audit the official GST-03 tax declaration.

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.

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.

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 financial company to which a number of other financial companies is linked.

A group company is used to centrally:

• Process the corporate and administrative accounting
• Accumulate data for consolidated financial reporting from the group's financial companies
• Perform central cash management processes such as payments and direct debit

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

A convention code that says that one half of the depreciation for the first year of the assets recovery period can be taking in the tax year in which the asset is first placed into service, regardless of when the property is actually placed into service.

A parent-child structure for ledger accounts and dimensions, separate from the standard parent-child structure within the General Ledger. Amounts can be analyzed according to the level of accumulation in a hierarchy.

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 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 value of one period relative to another. One period is the base index (100%) and the other periods can be expressed as a percentage of that index value.

Within Financials it is used for revaluations of fixed assets.

A public body responsible for collecting, administering, and making social security payments. In a subcontracting invoice, you must transfer a partial amount of the invoice to the Industrial Assurance Board (IAB).

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.

The principle method of viewing information in Fixed Assets.

The date the asset is ready to be placed into service. Assets can begin depreciating after their in-service date. The in-service date can be the same as the purchase date. If the asset requires preparation before use, the in-service date can be later. An asset cannot be capitalized before its in-service date.

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 way to group integration document types for reporting purposes.

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.

A way to group users who create financial integration transactions and users who post financial integration transactions.

An integration user group can be used:

• To allow employees to post the financial integration transactions.
• To optionally group the employees who create transactions in Operations Management. For mapping and posting, you can select the integration transactions of a range of integration user groups.

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.

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.

An account between two actions or events containing costs or amounts that must be transferred to another account.

The government agency responsible for enforcement of income tax regulations in the United States.

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 sum of money invested in a fixed asset. An investment can relate to a new fixed asset or an increase in value of a current fixed asset. LN uses investment amounts to determine the purchase value of fixed assets.

An incentive provided by U.S. tax law designed to stimulate investment in the economy by allowing a percentage tax credit for the purchase of eligible property.

Indicates whether an asset is eligible for an investment tax credit (ITC), and how that credit should be applied.

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 currency in which the invoice amount is expressed.

The date on which the invoice is printed.

The number of items actually billed.

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 stage the invoice has reached in the matching/approval process.

The invoice status reflects the various stages of the process, and can change as follows:

1. Draft--> Registered
2. Registered--> Matched
3. Matched--> Approved
4. Approved--> Matched if you unapprove the invoice

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.

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.

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.

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)

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 report of all financial transactions in date sequence, which in some countries you must periodically submit to the authorities. The journal book is used for internal and external audits, during lawsuits, and so on. Both a detailed report and a summary report are required. The report pages and the transaction lines must be numbered sequentially.

A part of the journal book that contains one or more specific categories of transactions. For example, you can define a journal book section for sales invoices, for bank transactions, or for the transactions created at a specific branch office.

The medium for entering the details of a transaction or event into an accounting system.

A transaction for which no subledger (invoice) document is available. Journal vouchers can be posted to the General Ledger.

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.

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.

The most recent date on which a shipment, related to the specific schedule number and position number, is received.

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 set of ledger accounts for which a user can perform account matching.

Matching the credit and debit entries of multiple transactions on the same ledger account to each other. A matching transaction can be generated to solve differences that are within the specified tolerances.

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.

The largest consignment for which Freight plans transportation. A load contains a number of goods that are transported by a means of transport that belongs to a transport means group travelling to a given destination on a given date/time via a specific route. A load can contain more than one shipment, for example if the consolidation planning algorithm is used.

In LN, all goods and/or shipments carried by one means of transport on a specific date and time and using a specific route.

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 home currency that is the legal currency of the country in which the company is established. Tax reporting must usually be done in the local home currency.

A location defines the physical site of an asset. A location consists of up to eight segments, each of which further defines the precise site of an asset.

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.

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.

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.

An account analysis technique in which you link through the same reference, for a given account, a series of accounting movements that balance each other out.

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.

A convention code that says that one-half month of depreciation is allowed for the month that an asset is placed in service and for the month of disposition if the property is disposed before the end of the recovery period. Applies to residential rental property, nonresidential real property, and railroad grading and tunnel bores. Used in United States tax methods.

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.

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.

The value of an asset calculated by subtracting accumulated depreciation from its current cost, as stored on the asset's related book(s). Net book value changes for each asset's related books when depreciation is calculated and updated, or when an adjustment is made to either cost or accumulated depreciation. If the book type is Federal Tax, the Section 179 value is also subtracted from the above calculation.

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.

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.

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

The variance between the expected (planned, budgeted) costs and the actual costs which can consist of these elements:

• Efficiency variance
• Fixed overhead volume variance
• Political price variance

A rate that is determined by labor costs, machine costs, or overhead costs. The operation rate can be linked to work centers or tasks by an operation rate code.

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

The balance of outstanding orders.

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

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

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).

A classification of sales and/or purchase orders with similar work flows.

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

The document that includes the transactions for the finalized and approved purchase invoice. The original document does not include adjustments.

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

Used to record data that is subject to tax reporting regulations other than federal, such as state tax or insurance replacement.

The sum of all the unpaid amounts that refer to invoices and credit notes or debit notes.

The invoice that has been left unpaid too long.

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.

Generic term to indicate parent and child elements in any multilevel structure. For example, this relationship is used for companies, financial accounts, dimensions, product families, customers, suppliers.

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.

The parent code used to create a parent-child hierarchical structure.

Allowed values

• A sublevel higher than zero (0)

A hierarchical structure for dimensions and accounts. Multiple child elements can be linked to a parent element. It is used for subtotaling and reports and inquiries. To determine the level in the hierarchy, dimensions and accounts have a sublevel.

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.

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 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.

A batch that contains selected invoices to be paid. After you have checked this batch, LN can carry out the payment run and generate the payment documents.

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.

Supplier reconciliation handles the matching of actual payments on a bank statement with anticipated payments. These payments were anticipated at the time checks, automatic payments or other similar transfer orders were sent to the bank.

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 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.

A code used to record (by organization) types of time periods and their associated description. For example: days, weeks, and quarters.

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.

The identification of a period table. The different periods of a year, including the period number, start date and end date are linked to the period-table code.

Closes and increments the accounting period for selected companies and purges history based upon the specified history retention rules. Running Period-End at year end purges history year end data and resets year to date depreciation to zero.

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.

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 the policy was modified.

This deviation only occurs, if the effective rates/surcharges differ from the calculated values. It is the difference between the two rates/surcharges, multiplied by the actual performance.

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

In the United States, a file of issued and voided checks that is sent to the bank for verification purposes.

The source book from which journal entries are sent to the company's General Ledger.

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

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.

A difference between the invoice amount and the order amount or the goods received amount which is caused by a difference between the price per unit on the order and the price per unit on the invoice.

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

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.

A classification of fixed assets for United States legal tax depreciation requirements.

A classification of fixed assets for United States legal tax depreciation requirements.

An invoice that is related to a purchase in an EU country (other than Bulgaria) and subject to protocol reporting.

A unique sequence number for each document.

In some countries, for example Italy, it is required to report in a fixed sequence to the local authorities.

Predefined protocol numbers can be automatically assigned to finalized transactions.

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.

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 price you pay for an item, expressed in the purchase currency.

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 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.

The unit in which you purchase an item, also referred to as the purchase quantity unit.

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 rate determined in Cost Accounting (CAT) which states the price for one reference unit (operation unit) in a certain cost center (work center, task).

Represents the proportion of two values, based on a specified formula that uses the data included in a financial statement. Examples are the current ratio and the quick ratio, which represent the liquidity position of the company.

Ratios are used to:

• Calculate values for financial statement accounts, consolidated statement accounts, and annexures.
• Define formula variables used to calculate ratio values.

The elements included in the formula used to calculate the statement column values. They correspond with the statement account values.

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.

Received payment.

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.

The matching of actual receipts on a bank statement with anticipated receipts. These receipts were anticipated at the time the received checks, direct debit orders, or other similar transfer orders were sent to the bank.

A method to make payments or receipts separately for the approved quantity of each shipment rather than for the invoice that covers the complete order.

A received invoice for which no open entries have been created yet. Such an invoice is registered to show that it has been received.

The quantity delivered by the supplier identified in the purchase unit or the inventory unit.

A special form of duty tax, for example, in Spain. If you use multiple tax lines, you can use a sequence number for special additional taxes. In a printed report, the sequence number for recharge is then kept separate from the normal tax amounts.

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 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.

The entire time an asset may depreciate. The period in which you are currently depreciating is the current recovery period.

A periodic sales invoice generated on the basis of another sales invoice that is originally registered in Accounts Receivable. You can use this invoice type to create identical, recurring invoices.

A transaction that is entered for defined number of periods, and which automatically creates a journal entry. In addition, recurring transactions for the current period must be generated before you can close the period.

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 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.

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.

A performance measure of a cost center and a calculation base to determine rates and surcharges.

The number of delivered items that is rejected.

A financial letter, urging a business partner to pay.

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 subcontracting document that contains agreements about how the payment for a project will take place. For example, the remittance agreement states that part of the invoice amount must be paid to the subcontractor's industrial assurance board (IAB) and to the tax authorities.

The code used to identify the remittance advice.

The shipment reference, packing slip number, external packing slip number, or customer order number recorded in the EDI message that was received from the customer.

In Financial Statements, the currency in which the report values are expressed.

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

In an environment with multiple financial companies, a code that defines the common home currency to be used in reporting and viewing data for those companies that are linked to that code.

A reference number that you can use to identify purchase requisitions on the statements that you receive from a procurement card company.

The reason why the delivered goods are rejected and returned.

An update of the current value of a fixed asset to market prices. In Financials, you can revaluate a fixed asset based on an index or enter the amount manually.

A current value update of a fixed asset to market values. You can use a revaluation index to set a new value for the asset cost in reference to the index increase or decrease for a given year. The revaluation index is unique and it is linked to an asset-book combination.

A transaction that reverses the original posting on a predefined date or on dates based on user-defined settings.

These types of reversal exist:

• Accrual
• Reversal
• No Reversal

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

In a cross validation rule, a range of GL accounts and dimension values to be either included or excluded.

A code assigned to a selection range. Run numbers are used to reuse selection ranges in these processes:

• Generate outbound advice
• Release outbound advice
• Generate inbound advice
• Put away inbound advice
• Generate storage lists
• Put away storage lists
• Generate picking lists
• Pick picking lists

For example, when a run number is assigned to a selection range that is used to generate outbound advice, this selection range can be reused if you specify the corresponding run number when releasing outbound advice.

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.

The amount the customer is charged with in exchange for the delivery of the ordered goods.

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.

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.

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.

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 amount expected to be recaptured when a fixed asset is disposed at the end of its useful life.

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.

A deduction available to certain types of property as specified by the Internal Revenue Service. This allows taxpayers other than estates, trusts, and certain non-corporate lessors to claim a current deduction for a specified amount of the cost of qualified property placed in service during the tax year.

One of up to eight components that define an asset's location.

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

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.

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

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 selected asset's identifying number to distinguish it from other products in a similar line.

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).

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

The rate that accounts for an asset's use beyond a regularly scheduled work period. The value of the shift factor cannot be less than one.

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.

The code of the shipment created by Warehousing during the advance shipment notice (ASN) process when goods are received based on a supplier's ASN.

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

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

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.

A nonexistent asset that can be used to project the depreciation expense.

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.

Social contributions on behalf of your suppliers but for which you are liable. You must pay the social contributions directly to the collection office. You can register this type of tax as expensed purchase tax.

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 value used to sort the financial transactions within a business object. For every business object, LN generates the sort position from the values of some of the business object properties. For example, for a freight order cluster the sort position is the cluster line, and for an inventory transaction the sort position is the inventory transaction sequence.

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

A book type for non-U.S. countries that permits specific depreciation method (either custom or excess depreciation to what is normal) to be posted. It supplements Commercial or Statutory depreciation.

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.

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.

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

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 separate code which is assigned to each remittance letter.

Statement layouts determine the general presentation of financial statements. This includes margins, header data of columns and accounts, header and footer texts, etc. This data is used to create financial statements. LN will order the statement data according to the parameters corresponding with the layout code selected.

The method LN follows to create account statements. The method determines when, at which interval, and to which business partner the account statement is sent.

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.

A ledger account used for official accounting purposes according to legal requirements.

A tax book for non-U.S. countries that permits you to report depreciation for tax reporting purposes for Calculatory, Commercial, and Special book types.

Method of calculating depreciation of an asset that assumes the asset will lose value in an equal amount per year which is calculated by the formula: .

100 / years = percentage

Subcategories provide additional classification of assets within a category. For each category, you enter one or multiple subcategories.

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 number that indicates the level of a ledger account or a dimension in the hierarchical structure of accounts and dimensions. A low number corresponds with a low sublevel. Ledger accounts can have sublevels 0 through 99. Dimensions can have levels 0 through 9.

Transactions can only be posted to accounts and dimensions which have a sublevel zero. All amounts and quantities on the sublevels 1 and higher are aggregated from lower sublevels.

The number of years to retain asset summary data.

The depreciation amount is calculated by means of a fraction. It is a form of accelerated depreciation, whereby each year a part of an asset's depreciation costs will be written down from its balance sheet value. The fraction consists of the current year (years are numbered in descending order) divided by the sum of the number of years that the asset is in use.

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.

The process of discontinuing an asset's ability to depreciate during a specified period.

An account that records operations that cannot be posted definitely to an account.

However, such accounts must not appear on the balance sheet. For example:

• When bank reconciliations bring the balance of the company's account into line with that of the bank, the unidentified movements listed on the bank statements are posted to a suspense account

Note: Unidentified movements can, for example, be customer receipts.

An identification number for an asset.

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.

Ledger account to which you can post tax amounts.

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.

Definition of the country-specific tax data, for example, the type of tax (single or multiple), the collection office, the tax rates, and any text that must be printed on invoices to which a specific kind of tax applies.

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.

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

A generated number that identifies each tax declaration.

The tax declaration number contains the following parts:

• The tax year
• The tax period
• The correction number
• The tax declaration type
• The collection office
• The tax category, if present

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.

Taxonomy is a science of classification based on a predetermined system. The taxonomy classification considers the importance of separating elements of a group into subgroups that are mutually exclusive and unambiguous. In LN, to add additional reporting structure (taxonomies), you can define different taxonomies such as IFRS, GAAP, or a company specific taxonomy.

Represents a box on the tax declaration form. To link the tax codes that contribute to the amount in a box to its tax position, you define relations by tax position. To add the box to the tax declaration, link the tax position to the declaration master.

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.

Indicates whether the tax is payable at invoice creation or after the invoice has been paid.

A form of accounts receivable financing that consists of the sale of a company's trade notes receivable to a third party (usually a bank), in order to obtain funding. The purchase is made at a discount from the trade note's value and the net amount of discounting charges and commission is remitted to the company.

Customers remit to the discounter either directly or indirectly through the company. Discounting can be with or without recourse. For discounting with recourse, the risk of customer non-payment remains with the company.

To transfer a trade note receivable to your supplier to settle purchase invoices. The transfer is achieved by putting the signature of the authorized signatory and the company stamp on the trade note.

The amount by which a value is allowed to differ from the intended value.

The percentage by which a value is allowed to differ from the intended value.

The tolerated discount amount is determined for all outstanding amounts of a certain business partner. LN determines the first, the second, or the third cash discount that must be deducted according to the payment terms that apply to the transaction. This amount will be maintained per period, per business partner.

The price difference levels, defined by the employee ( LN user), that are tolerated when matching purchase invoices with receipts.

When a trade note matures, the payment is due.

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.

A way to categorize transaction types, for example journal vouchers, recurring/reverse journals, purchase invoices, and sales invoices. The category defines how to process a transaction linked to the selected transaction type.

The price you pay for an asset, expressed in the purchase currency.

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 you enter when you create the transaction such as a sales order or a warehouse receipt. Usually the transaction date is the current date. Only for backdated and antedated transactions, the transaction date differs from the current date. Internally, the transaction date is registered in UTC time.

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.

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.

Before reporting in a currency other than the reporting currency, the amounts in the local currency have to be translated with the proper currency rate according to FASB 52 guidelines.

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.

A payment/receipt, appearing on a bank statement, which cannot be allocated to an invoice or other document. This payment can be registered as unallocated. An unallocated payment/receipt can be allocated to invoices later.

The document for which the cash was received or paid.

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.

The default unit price calculated by multiplying the price factor by the base price from the most current price book of the price matrix.

A method of determining the periodic depreciation charge based on projected number of units to be produced by an asset instead of the asset's useful life. The calculation is made by multiplying the depreciable amount (original cost - salvage value) by the percentage of the asset's expected total output that was produced during the period.

The person that works with an application software package.

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.

An activity that adds value to the company's profit. For example, invoicing is non-value adding, whereas manufacturing is value adding.

Costs that are directly dependent of the output performance of a cost center. An increase of the performance will cause a proportional increase of the total variable costs.

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.

A report that shows the net VAT amount due to the tax authorities for the report period.

The liquidated VAT amount is the result of the VAT on purchases minus the VAT on sales. If the result is a negative amount, the amount must be paid to the tax authorities. If the result is a positive amount, the amount is carried over as a credit amount to the next VAT book period.

In some countries, the VAT liquidation report replaces the VAT declaration.

You use vintage or group accounts to associate and maximize the United States tax deduction for assets subject to asset depreciation range (ADR) and modified accelerated cost recovery system (MACRS) group depreciation. You can create either a MACRS group account, for any MACRS asset placed into service after 1994, or an ADR Vintage account, for assets placed into service prior to 1980. Assets in a vintage or group account are depreciated as a group, and are subject to different disposal rules than assets that are not part of an account.

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

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.

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.

Abbreviation of eXtensible Business Report Language. XBRL is an XML-based computer language for the electronic transmission of business and financial data.

The accumulated depreciation for the current year. The time frame for this type of depreciation ranges from the beginning of the current year up to the current date. Year-to-date amounts are stored in the asset books ( Fixed Assets).

The budget amount accumulated in a budget account from previous periods till date, and can be carried forward and used for next budget period. A budget manager is responsible for his own budget(s) as part of the company budget.

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