Financial Glossary - Important Terminology Used In Sage X3

Question 1

A/P - ACCOUNTS PAYABLE:

Answer 1

• Where the company must pay money to Vendors for the purchase of Services or Goods.

Question 2

A/R - ACCOUNTS RECEIVABLE:

Answer 2

• Records any money that a Company is owed because of the sale of goods or services.

Question 3

ACCOUNT:

Answer 3

• Can be addresses, leads, customers, suppliers or employees or other business partners (such as Lawyers or Accountants)
• In Financials we use Accounts to create Sales Invoices for Customers or Purchase Orders for Suppliers and to follow Activities, Actions, Revenue, Expenses, Payments and all other kinds of Contacts.

Question 4

ACCOUNT PYRAMIDS:

Answer 4

Define a Hierachy of Accounts that are used for Reporting Purposes and Created to Determine how much Detail is provided based on the Level used in the Defined Pyramid.

Question 5

ALLOCATION:

Answer 5

• In Relation to Stock Management refers to the splitting of Stock Items between different Locations, for example, a Company may have 1000 count of an item, Allocated 50:30:20
  over 3 Warehouses (Locations).

Question 6

BANK RECONCILIATION:

Answer 6

• The process of matching the balances in an Entity’s Accounting Records for a Cash Account to the Corresponding Bank Statement or Information.

Question 7

BIC CODE - BANK INDENTIFIER CODE:

Answer 7

• An International Bank Code that Identifies particular Banks Worldwide.

Question 8

BI - BUSINESS INTELLIGENCE:

Answer 8

A Technology-driven process for Analyzing Data and Presenting actionable information to help make informed business decisions.

Question 9

BPs - BUSINESS PARTNERS:

Answer 9

• A Business Partner is an Entity that can be a Supplier, Customer, Sales Reps, Carrier, etc.

Question 10

CHART OF ACCOUNTS:

Answer 10

A Financial Organizational Tool that provides a complete listing of every Account in an Accounting System.

Question 11

CONTROL ACCOUNTS:

Answer 11

• A Control Account is a Collective Account used for Accrual Accounting ( For Accounts Payable and Accounts Receivable Accounts)

Question 12

CREDIT:

Answer 12

• An entry recording a sum received,
  Listed on the right hand side or column of an Account.

Question 13

CUSTOMERS:

Answer 13

• A person or Organization that buys goods or services from a store or business.

Question 14

DEBIT:

Answer 14

• An entry recording an Amount owed, listed on the left hand side or column of an Account.

Question 15

DIMENSIONS:

Answer 15

Financials uses Dimensional Accounting by utilizing Dimensions and Tags in the Accounting Engine.
- Simply put, Dimensions are Packages of related Records and Tags are the Records inside.

Question 16

DOCUMENT TYPE (ENTRY TYPE):

Answer 16

• Defines the various types of Journal that are used in Accounting.

Question 17

G/L - GENERAL LEDGER:

Answer 17

• A Ledger that contains all Assets, Liabilities, and Owner’s Equity Accounts.

Question 18

GAAP- GENERALLY ACCEPTED ACCOUNTING PRINCIPLES:

Answer 18

• A common set of rules and procedures that indicate how to report economic events.

Question 19

JOURNAL CODE:

Answer 19

• Defines the source Journal for Journal entries.

Question 20

JOURNAL ENTRY TRANSACTION:

Answer 20

Defines the layout of the data entry screen and fields displayed or hidden.

Question 21

JOURNAL:

Answer 21

• Where business transactions are recorded first in an Accounting System.

Question 22

ĹEDGERS:

Answer 22

• A book or other collection of financial Accounts of a particular type.

Question 23

NA:

Answer 23

• North America

Question 24

SDD MANAGEMENT- SEPA DIRECT DEBITS:

Answer 24

• The Standard across Europe for the collection of funds between a debtor (payer) and the creditor (payee).

Question 25

SIMULATIONS:

Answer 25

• Attempt to represent a real life system with a Model to determine how a change in one or more variables affects the rest of the System, also called What if Analysis.

Question 26

SUPPLIERS

Answer 26

• Those business Partners from which you purchase Products.

Question 27

VAT - VALUE ADDED TAX:

Answer 27

A type of Tax that is assessed incrementally, based on the Increase in Value of a Product or Service at each stage of Production or distribution.