1099 report

A report to the U.S. Internal Revenue Service (IRS) on a 1099 form. A 1099 form is used to report non-employee income and is filed on a calendar year basis. The IRS produces various types of 1099 forms, including Dividend (1099-DIV), Interest (1099-INT), Miscellaneous (1099-MISC), and Retirement (1099-R).

21 CFR Part 11

A Food and Drug Administration (FDA) regulation, Title 21 of the Congressional Federal Record, Part 11. This regulation specifies the conditions and criteria for determining the validity and trustworthiness of electronic signatures and processes.

A2A integration

See Other Term: application-to-application (A2A) integration

ABC classification

A system for classifying items based on their relative importance, such as by decreasing currency value and volume. For example, 10% of class A items might account for 70% of the currency value, while 70% of class B items might account for 10% of the currency value. The tightest controls are applied to the highest priority items (class A), and the loosest controls are applied to the lowest priority items (class C).

ABC code

A code that indicates the importance of an inventory item according to the four methods for ABC classification: costs, margin, sales, and carrying costs.

ABC code carrying cost

The categorization of an inventory item based on the cost of stocking it (including interest), as compared to the other items in inventory transactions during the same period.

ABC code margin

The categorization of an inventory item based on its contribution margin compared to the other items in inventory transactions during the same period.

ABC code revenue

The categorization of an inventory item based on its sales compared to the other items in inventory transactions during the same period.

ABC code value

The categorization of an inventory item based on its value compared to the total inventory on hand.

Accelerated Cost Recovery System (ACRS)

A system of depreciation that assigns depreciation methods to different classes of assets. Created by the Economic Recovery Tax Act of 1981 for U.S. tax purposes and modified by the Tax Reform Act of 1986.


The type of record—asset, liability, revenue, expense, or owner's equity—traditionally used for recording individual transactions in an accounting system. Also, the identifying alphanumeric characters that are assigned to the record.

account reconciliation

The process of reviewing and adjusting the balance in an account to match the balance in an external statement or in another account.

account statement

A detailed report of the transactions and balance of an account.

account type

A code that identifies how an account is classified. For example, accounts might be classified as customer, vendor, or ledger.

account type

A code that identifies how an account is classified. For financial accounts, account type classifies ledger accounts based on how transactions or balances are handled in the chart of accounts and in the financial statement.


The process of recording, classifying, reporting, and interpreting financial information for a company or a business.

accounting period

A division of a fiscal year that is reflected on financial statements. Common accounting periods are days, months, quarters, or years.

accounts payable

A group of posting accounts that detail the amounts owed to suppliers or creditors for goods, supplies, or services purchased on credit.

accounts receivable

A group of posting accounts that show the amounts customers owe for services or sales made on credit.

accrual accounting

An accounting method in which expenses or income are posted in the period during which they are incurred, whether or not they are received or paid during that period.

accrued cost

A transaction that is recorded in a profit and loss account by an expense transaction.

accrued revenue

Revenue received during an accounting period that hasn't been recorded at the end of an accounting period. The revenue might be unbilled, or it might be unposted until some future condition is met. Accrued revenue is recorded by debiting an asset account and crediting a revenue account.

accumulated cost

The costs of inventory, overhead, materials, labor, and services that aggregate into one total cost.

accumulated depreciation

The sum of posted depreciations for all the periods in which a fixed asset has been in service.


Profits that are added to the capital of an organization instead of paid to investors as dividends.

acquisition date

The date that an asset is acquired.


A named entity made up of an XML document and an operation on that document. Web services can be generated from actions.

action type

A classification that describes what an action does. Examples of action types are SendDocument, SendDocumentList, ReceiveDocument, ReceiveDocumentList, QueryDocuments, and QueryEntityKeys.

actual cost

The cost of any component of company activity, such as items, employees, sales campaigns, or company units. The cost calculation includes overhead and other indirect costs.

actual demand

The total quantity of an item requested on all orders. In Microsoft Dynamics AX, actual demand is the quantity of items requested on all sales orders.

actual quantity

The amount used to assemble an item. This amount is usually higher than the design quantity due to scrap.

ad hoc reporting

The ability for end users to run queries and create custom reports without having to know the technicalities of the underlying database schema and query syntax. Ad hoc reporting in Microsoft Dynamics AX uses SQL Server 2005 Reporting Services and SQL Server Report Builder.


A software component that enables message exchange through a specific transport.

advance shipping notice (ASN)

An electronic notification sent by a supplier to a customer to specify the goods that are included in a shipment and the shipment's estimated arrival date.


To calculate the number of days that customer and supplier accounts have been outstanding. Each posted transaction is placed in the appropriate current or past-due aging category.


The process that determines an account's maturity, or the number of days the account has been outstanding. Aging places each posted transaction in the appropriate current or past-due aging category. Accounts can be aged either by invoice date or by due date.


See Other Term: Application Integration Framework (AIF)


An indication of a significant event. Alerts are defined by rules. In Microsoft Dynamics AX, alerts are based on user-defined rules. An alert might be an e-mail message or a pop-up message.

alert rule

A specification of the set of conditions that, when met, will trigger a notification.

Altstoff Recycling Austria AG notification

A report of packaging materials used for manufactured products, as required by Austrian regulation. Altstoff Recycling Austria AG is an Austrian waste management organization that collects and recycles packaging material.


To gradually reduce a liability in regular payments over a specified period of time. The payments must be enough to cover both principal and interest. Also, writing off an intangible asset investment over the projected life of the asset.


See Other Term: Application Object Tree (AOT)

Application Integration Framework (AIF)

A framework that enables companies to integrate and communicate electronically with other business processes and trading partners. The Application Integration Framework supports business-to-business (B2B) and application-to-application (A2A) integration scenarios.

Application Object Tree (AOT)

A tree-based object repository.

application-to-application (A2A) integration

The integration of independent software systems, usually within the same company. Also known as Enterprise Application Integration (EAI).

ARA notification

See Other Term: Altstoff Recycling Austria AG notification


See Other Term: advance shipping notice (ASN)

assessment principle

A rule that specifies when cost and revenue are recognized in a profit and loss statement.

See Also: completed percentage, completed contract


Anything owned or controlled by a business, tangible or intangible, that has monetary value and was acquired at a measurable cost.

asset book

Accounting records—ledgers or journals—for a specific reporting purpose, such as financial or taxes. All assets to be included for the reporting purpose would be included in the asset book.

asynchronous data exchange

A style of processing where an application posts a request for an event to occur and then continues without waiting for the event. A separate service will recognize the request and take responsibility for ensuring that the event occurs. In Microsoft Dynamics AX, asynchronous data exchange occurs when an application requests that a document be sent or received and then continues without waiting for it to actually happen.

audit trail

A series of permanent records used to track a transaction to the point where it was originally entered in the accounting system. The audit trail can be used to verify the accuracy of financial statements by outside accountants or auditors.


A third-party independent organization or individual who conducts formal examinations and verifies measurements through a process of reviews. An auditor examines accounting records to determine that a company follows accepted accounting practices and the accounting laws for its country or region.


A report of screen data that can be printed directly from any form.

AxBC class

A business component class that encapsulates business logic, including the provision of default values, validation of data, value mapping, and access to display fields.


The prefix used for document classes for the application programming interfaces (APIs).

B2B integration

See Other Term: business-to-business (B2B) integration

back order

An unfilled customer order or commitment. A back order is an immediate (or past due) demand against an item whose inventory is insufficient to satisfy the demand.

back payment

A payment made by a customer for a past due item.

backward scheduling

A method for determining a production schedule by beginning with the date the order is required to be ready and working backward to the date work must begin in order to meet the required due date. Also known as backward planning.

See Also: forward scheduling


See Other Term: Banks Automated Clearing System (BACS)


The difference between the debit amount and the credit amount on an account.

balance account

An account that records transactions about assets and liabilities and that is used in the preparation of the balance sheet.

balance due

The outstanding amount that a customer owes a creditor.

balance sheet

A financial statement that shows a company's financial position on a particular date, often the last day of the year. The balance sheet shows company assets (resources owned), liabilities (debts owed), and the owner's equity (the difference between assets and non-shareholder liabilities) at a given point in time.

bank account statement

A statement issued by a bank that itemizes the debit and credit transactions that occurred in a bank account during the specified period.

bank advice

An official notice of a bank transaction. Also known as credit advice or debit advice.

bank balance

The amount of funds in a bank account after adding all the deposits and subtracting all the withdrawals and charges.

bank fee

A charge made by a bank based on account status or activity, such as minimum balance, overdrafts, or non-sufficient funds.

bank giro

A bank service that allows account holders to transfer funds directly, as well as by check. This service is provided by many European banks.

bank payment

A payment for goods or services that a bank customer authorizes the bank to make on his behalf.

bank reconciliation

The process of making the cash balance shown on a bank statement and the cash balance recorded for a bank account match as of a certain date.

bank remittance

An amount of money sent to or from an account in a bank.

banker's order

A standing order for a bank to make a payment of a specified amount at regular intervals.

Banks Automated Clearing System (BACS)

An automated clearinghouse system for electronic financial transactions.

bar code

The special identification code printed as a set of vertical bars of differing widths on books, grocery products, and other merchandise. Used for rapid, error-free input in such facilities as libraries, hospitals, and grocery stores, bar codes represent binary information that can be read by an optical scanner. The coding can include numbers, letters, or a combination of the two; some codes include built-in error checking and can be read in either direction.


See Other Term: Business Activity Statement (BAS)

base amount

The amount of a transaction before taxes. Taxes are calculated on the base amount.


A group of transactions identified by a unique name or number. Batches are used to conveniently group transactions, both for identification purposes and to speed the posting process.


See Other Term: lot


A quantitative measure of performance that is used to compare the company's products, services, or processes to an external standard. Competitive benchmarks are based on industry best, and process benchmarks are based on best in class.


A contribution provided by the company that can be calculated on net, unit, or gross pay. Examples of benefits include insurance premiums and 401(k) contributions.

bill of exchange

A written or electronic order from a customer specifying that another party, usually a bank, pay a stated amount to the company.

bill of lading

A receipt given by a carrier to the shipper for goods to be transported. A bill of lading serves as a contract between the carrier and the shipper.

bill of materials

A list of components and subassemblies needed to build one unit of a finished good. The bill of materials also shows quantities for each component.


A physical storage unit that is used for storing items. A bin can be anything from a small box to an open space on a pallet rack and is the smallest unit of a warehouse logical structure.

blanket order

A purchase order with a specific supplier that covers a period of time rather than specific line items. A blanket order can be used to obtain recurring, short-term releases of goods or materials.


See Other Term: bill of materials (BOM)

BOM explosion

The process of identifying the components, and their quantities, that are required to produce an item.

BOM version

A specific configuration of a bill of material (BOM) to include an item. An item can be associated with a number of BOM versions.

bonus depreciation

Extra depreciation amounts that can be taken in the first year that an asset is placed in service and depreciated. Bonus depreciation is taken before any other depreciation is calculated and is available only for depreciation books.

book value

A calculation of the acquisition price plus or minus any adjustments - acquisition or value - minus any depreciation previously taken.


A location in a program at which execution is halted so that a programmer can examine the program's status, the contents of variables, and so on.

bridged transaction

A journal transaction that is posted to a bridging account.

bridging account

A ledger account into which transactions are entered as they await manual approval by the person who is specified in the journal line.

bridging posting

A type of posting in which a transaction is first posted to a bridging account and later posted to a different ledger account.


A tool used plan and control the use of resources. Budgets also are used to show the business's objectives for all or a group of accounts, reflecting company projections for sales, overall growth. Budgets commonly are based on past experience and can be adjusted for future expectations.

budget model

The structure used to define the elements that contribute to the balance of a ledger account in the budgeting process. A budget model can include one or more submodels.


A quantity of time or materials maintained in the work flow as a cushion against fluctuations in throughput.


The grouping of jobs in shop floor control so that multiple jobs can be started at one time.

Business Activity Statement (BAS)

A form that Australian businesses file to report and pay taxes.

business relation

Any organization, person, or other legal entity with which a company has significant interaction, such as sales or services.

business sector

A specific category of business within the classification of businesses by industry.

business view

A business data perspective. Designated fields and records are arranged in a designated sequence.

business-to-business (B2B) integration

The exchange of electronic documents between two companies, for example, for the purpose of trading.


See Other Term: cash on delivery

C.O.D. outstanding

See Other Term: cash on delivery outstanding


A marketing program that uses many communication vehicles, for example, ads and direct mail, to accomplish a specific result, such as increasing marketing share, introducing new products, or retaining customers.


The ability of a resource to produce an amount of output in a specified amount of time.

capacity load

The maximum amount of scheduled work (typically expressed in hours of work or number of product units) that a work center can accommodate while operating at the defined capacity level.

capacity planning

The process of forecasting system and environment utilization and workloads and then developing plans to ensure that the system and environment will be able to support anticipated performance demands.


The amount of owners' investment in a business plus retained earnings.


The conversion of funds into capital or treating them as capital rather than expenses.

capitalization of cost

The temporary treatment of the costs of hours, items, and expenses as capital until the revenue is posted.

carrying cost

The cost of retaining inventory, whether raw materials, components, or finished goods. Carrying cost typically is expressed as a percentage of inventory value per year or other time period.


A receptacle for holding goods to be stored or transported.


Ready money or its equivalent that a bank will accept at face value. Cash includes coins; paper money; certain deposited negotiable instruments such as checks, bank drafts and money orders; amounts in checking and savings accounts; and demand certificates of deposit.

cash discount

A discount that is offered to a purchaser for paying early or paying with cash.

cash flow

The amount of money coming into and going out of a company and the timing of these flows.

cash flow forecast

An estimate of future cash flow on particular dates, based on current data and/or budget data.

cash on delivery

Requiring goods to be paid in full, in cash or a cash equivalent, upon delivery.

cash on delivery outstanding

Undelivered and unpaid cash-on-delivery transaction.


A path through which information passes between two computers or devices. In Microsoft Dynamics AX, a channel is a named entity that specifies where and how to send and receive messages. A channel specifies an adapter with its associated configuration information and transport address.

Chapter 11

A U.S. bankruptcy statute that allows a debtor to continue to own a business and control its operations while reorganizing the business to achieve solvency.


A debit applied to a customer or vendor account for a service rendered in connection with the account, such as for invoice fees, freight, postage, or insurance.

chargeable transaction

A transaction that can be included on an invoice and charged to a customer. Chargeable transactions pertain to time and materials projects.

chart of accounts

A structured list of a company's general ledger accounts.


A written order on a bank to pay a sum of money from funds in an account. Checks show the name of the company or individual receiving payment, the signature and account number of the person issuing the check, the payment amount and the current date. Checks usually are numbered in sequence.


The United Kingdom (UK) variant of check.


To collect the funds for a check and pay them to the check holder. When a check clears, the money has been withdrawn from the bank account and paid to the recipient.


A tool used to view and manage certain types of computer jobs, such as data upgrade jobs during an upgrade to a new version of the program.


A format for reports from the electronic banking system that is used in Belgium.

collection expenses fee

A fee that is charged to a customer for the collection of a bill of exchange remittance.

collection letter

Correspondence sent to a debtor requesting payment for a past due account.

collection letter fee

A fee that is attached to a collection letter and charged to the delinquent debtor.


The amount, usually a percentage of the sales amount, paid to the salesperson making the sale.

commission offset

An interim method of recording commission until payment for the sale is actually collected and paid to the salesperson.

committed cost

A cost that is associated with items a company has committed to purchase from a vendor.


A product that can be bought and sold.

company chain

A group of companies that are under the same ownership and management.

completed contract

A type of assessment principle that specifies that revenue and costs are recognized when contract activity is completed.

completed percentage

A type of assessment principle that specifies that revenue and costs are recognized while work progresses.

complex network

A type of operations network in which simultaneous operations take place or in which operations overlap, are contingent on each other, or have other complex relationships.


Any raw material, ingredient, part or item used to assemble a subassembly, finished good, or used as part of a kit.

conditional sales tax

A sales tax that is reported to the tax authority when the invoice is paid, in contrast to normal sales tax, which is reported when the invoice is created.


The arrangement of parts, options, or features to produce a product that meets a specification, such as a customer order.

configuration control

The process of ensuring that the product sent to the customer is designed and arranged as the customer specified.

configuration group

The list of components in a bill of material (BOM) that are to be used together to produce a parent item.

configuration route

The sequence in which configuration groups are selected during the production process.

configuration rule

A rule that limits the items that can be combined to produce a manufactured product. A configuration rule applies to a configuration group.

confirmed receipt date

The date the selling company confirms that a customer or vendor will receive the goods.

confirmed ship date

The date the selling company confirms that the goods will ship to a customer or vendor.

constant consumption

Specification that the volume or quantity of a component used in a finished item is fixed, regardless of the number of items produced or reported as finished.

See Also: variable consumption

constant scrap

The quantity of a particular component that is expected to be scrapped during production regardless of the number of items produced.


A document property that restricts access to the business data within the document and specifies who can receive copies of the document.


The material and time resources that are used to process a production order. Material consumption is measured in item quantities, and time consumption is measured per work center.

consumption depreciation method

A method of depreciation based on the usage of the asset. Also known as the units of production.

consumption factor

A factor, specified as a quantity or percentage, that is used to calculate depreciation proposals for value models associated with depreciable fixed assets.

consumption statement

A report of the consumed cost for a project.

consumption unit

A unit that is used to enter unit price and calculate depreciation proposals for value models associated with depreciable fixed assets.

contact person

A person who acts as a connection to another organization or group, or who provides special information.


A receptacle holding items for storage or transport.

content management

The collection, storing, and sharing of information in a single system where many users can access it.

contract value

The price to be paid for a fixed-price project.


An individual or organization who performs work on contract for another individual or organization.

contribution margin

For each unit sold, the variable cost of producing the unit subtracted from the selling price.

cost accounting

The branch of accounting concerned with identifying and evaluating the cost of producing a product.

cost line

The part of a cost template that specifies one or more categories that form the basis of a cost estimate.

cost project

An internal project for which costs of hours, expenses, and items can be registered, but not capitalized.

cost template

A method for applying estimates on fixed-price projects and investment projects. The cost template defines the basis for estimates, such as by hour consumption or total cost.


To enter an amount that decreases the balance of an asset or expense account or increases a liability, owners' equity or revenue account; the right side of any T account.

credit card

A type of payment card where the supplier is paid by the card issuer. The card holder then pays the card issuer.

credit limit

A limit placed by the vendor on the monetary amount that a business or customer can charge.

credit limit check

A calculation to determine whether a customer's outstanding balance is within the maximum credit allowed for that customer.

credit note

An invoice with a negative amount.


See Other Term: customer relationship management (CRM)


A set of data that is organized and summarized into a multidimensional structure defined by a set of dimensions and measures.


Any form of money, including bills and coins, used as a medium of exchange.

currency code

A unique identifier for a particular currency. The International Organization for Standardization (ISO) publishes a list of internationally accepted currency codes. Companies set up currency codes for each currency in which they make transactions and often, but not always, use the internationally accepted currency code.

customer account

A business agreement between a seller and a buyer, under which the seller agrees to render goods or services and the buyer agrees to make payment.

customer group

A classification of customers that share key characteristics.

customer relationship management (CRM)

The process of building profitable customer relationships through the delivery of highly targeted interactions at all customer touch points by aligning marketing, sales, and service functions and systems.


The modification of, or additions to, hardware or software to fit the needs of a specific business or customer.

data policy

See Other Term: endpoint action data policy

DBA name

See Other Term: doing business as (DBA) name


To enter an amount that increases an asset or expense account, or decreases the balance of a liability, owners' equity or income account; the left side of any T account.

debit card

A type of bank card where the amount of purchase is immediately withdrawn from the user's bank account.


A statement in which information is provided to government authorities for an official purpose, such as Intrastat reporting or tax reporting.

delivery address

The location to which goods are to be sent.


Funds added to an account.


An allocation of part of the original value of a fixed asset to current income during a specific period. Depreciation represents the declining value of the fixed asset as a cost of the specified period.

depreciation book

A specific book used for reporting purposes that contains all transactions for assets that are valid for that book.

depreciation convention

A rule for calculating depreciation in the year of the acquisition of the asset and the year of the disposal of the asset.

derived depreciation book

A specific book used to copy transactions entered for a value model to the specific depreciation book. Can be used when assets are acquired so that the acquisition transaction needs to be entered only once instead of for each value model and depreciation book.

derived production

A subproduction order that is created based on the main production order.


A structural attribute of a cube, which is an organized hierarchy of categories (levels) that describe data in the fact table. These categories typically describe a similar set of members upon which the user wants to base an analysis. For example, a geography dimension might include levels for Country, Region, State or Province, and City.


An attribute that further defines an entity.

direct delivery

The delivery of goods directly from the vendor to the customer. Direct delivery is also known as a drop shipment.

direct mail

A mail message that is targeted toward specific users that meets the specific requirements of a direct mail campaign.


A reduction in the selling price of products or services, usually offered by the seller when the buyer agrees to meet specific conditions.


To plan, allocate, and send out technicians, spare parts, and special equipment to solve a service problem.

display field

A field that appears in a form, report, or class and that contains and displays data but is not stored as a record in a table. A display field can be calculated data.

disposal date

The date that an asset is sold or discarded.


The process of managing the flow of goods and services from the producer to the customer.

doing business as (DBA) name

The registration of an assumed, fictitious, or trade name under which a business operates, which must be included on U.S. tax reports. In the U.S., any business that operates under a name other than a personal or corporate legal name must register a DBA name with the appropriate government agency.


Within the borders of one's own country.


A preliminary version.


To prepare a bill of exchange or a promissory note.

drill down

To start at a top-level menu, directory, or Web page and pass through several intermediate menus, directories, or linked pages, until the file, page, menu command, or other item being sought is reached. Drilling down is common practice in searching for files or information on the Internet, where high-level Gopher menus and World Wide Web pages are frequently very general and become more specific at each lower level.

drop shipment

The delivery of goods directly from the vendor to the customer. Also known as direct delivery.


A tax on the import, export, or use and consumption of goods.


See Other Term: European Free Trade Association (EFTA)


See Other Term: employer identification number (EIN)

electronic banking

The use of electronic technologies, such as automated teller machines (ATMs), direct payroll deposits, automatic bill payments, and debit cards, to perform financial transactions. Electronic banking replaces paper transactions and visits to brick-and-mortar facilities.

Electronic Product Code (EPC)

A standard for electronically marking products so that they can be tracked by using radio frequency identification (RFID). An EPC is 96 bits divided into four partitions: header, manager number, object class, and serial number.

electronic signature

A symbol, or a series of symbols, compiled by a computer and authorized by an individual to be the legally binding equivalent of the individual's handwritten signature.

employer identification number (EIN)

In the United States, a 9-digit number that identifies a business entity to the government. A business must have an EIN if it has employees or meets other criteria specified by the federal government. Also known as federal tax identification number.


A company or entity that participates in a business-to-business (B2B) or application-to-application (A2A) data exchange. An endpoint can be an in-house independent system, in the case of A2A.

endpoint action data policy

A policy that determines which XML elements in a document are valid for a particular action associated with an endpoint.

endpoint action policy

A policy that determines which actions are valid for a particular endpoint.

enterprise portal

A Web site that provides a single point of entry for internal and external users of an organization to access a wide variety of business information.

entity key

A reference to an entity of a specific entity type. In Microsoft Dynamics AX, an entity key is the key for a document. In the case of a document that has a compound key, the key is "flattened" to display a simple string with each element of the compound key separated by commas.


See Other Term: Electronic Product Code (EPC)


The owners' rights or claims to the assets of a business.


A payment order with reference number in Swiss banking. In Germany, ESR is known as Einzahlungsschein mit Referenznummer.

EU sales list

A value-added tax (VAT) report required in EU member countries. The EU sales list reports the value of goods that were sold to VAT-registered customers in other EU member countries.


The internationally accepted currency code that represents the Euro currency.


A trading currency for participating countries in the European Economic and Monetary Union.

European Free Trade Association (EFTA)

A group of European countries (including Iceland, Liechtenstein, Norway, and Switzerland) that have agreed to free trade among themselves.

European Union (EU)

The union of European countries into one single market established under the Treaty of Rome in 1957. (Formerly known as the European Community or EC.) Directives have been developed to standardize Europe into a common market by removing the frontier fiscal barriers between member states.

exchange adjustment

The process of recalculating an account balance to reflect a change in the exchange rate for transactions in foreign currencies. The gain (profit) or loss is considered unrealized if the adjustment is calculated for reporting purposes alone, and realized if the debt is paid or the revenue is received.

exchange rate

The value of one currency expressed in terms of another on a particular date and time.

expiry date

The end of a term specified in a contract or agreement.


To determine the total quantities of components needed for a manufactured item. To explode a bill of materials, the quantity ordered is multiplied by the quantity used for each of its components. Exploding continues throughout the bill of materials, so component requirements for subassemblies are also calculated.


The process of determining the total quantities of components needed for a manufactured item.

external customer

An outside organization or individual that submits a sales order for goods or services.

external project

A project with a direct customer relation. As opposed to an internal project, an external project is funded by the customer and has revenue and invoices. An external project can be of the fixed price or time and material type.

factor depreciation method

A method of depreciation used for progressive or digressive depreciation using a factor. For example, if the factor is >50, the depreciation is progressive, which means that the amount of depreciation increases each depreciation period. If the factor is <50, the depreciation is digressive, and the amount of depreciation decreases each depreciation period.


See Other Term: Food and Drug Administration (FDA)

federal tax ID

A number issued by the U.S. government to identify an entity (company or person) at the federal level. The federal tax ID is formatted according to the kind of tax that is reported by the entity (in U.S. government terms, the tax ID type). Examples are employer identification number (EIN) and Social Security number (SSN).

See Also: taxpayer identification number (TIN)

federal tax identification number

See Other Term: employer identification number (EIN)

fee transaction

A transaction that registers revenue with no matching cost.

FIFO inventory valuation

See Other Term: first in, first out (FIFO) inventory valuation


A pattern or mask through which data is passed to separate specified items. A filter can define which records or columns are returned from a query. A filter always limits the outcome.

financial statement

A statement of a company's financial state as of the end of a defined period. A financial statement may include an operating statement (an income statement showing the results in terms of profit and loss of normal business activities), a balance sheet (assets and liabilities), and other financial information.

finite capacity

The capability of a resource (worker, machine, work center, plant, or organization) to produce output within a specified period of time without exceeding the available capacity. Finite capacity applies to resource scheduling and produces a schedule that accounts for the capacity already reserved on the resource.

finite loading

See Other Term: finite scheduling

finite material

A method for scheduling resources that assumes that all the component materials needed for production are available when the production process starts.

See Also: infinite material

finite property

A method for scheduling resources that considers limits to the type of work a work center can perform at a given time. Finite property specifies the type of products or operations to be carried out at the same time at a work center.

finite scheduling

A scheduling method that assumes that limited capacity for labor and machines is available.

firm planned order

An order that is generated to fulfill an item requirement and that cannot be modified as to quantity or time.

first in, first out (FIFO) inventory valuation

A method of inventory valuation in which inventory is assumed for accounting purposes to move in the order it was received, regardless of its actual physical movement.

fiscal period

A division of a fiscal year that is reflected on financial statements. Common accounting periods are days, weeks, months, quarters, or years.

fiscal year

A span of time during which the financial activities of an organization are calculated. A fiscal year is divided into fiscal periods, typically defined as semesters, quarters, or months. The organization determines the dates that begin and end its fiscal year, which may not correspond to a traditional calendar year.

fixed asset

A company possession that is expected to have a long-term useful life and that is used to conduct company business. The monetary value of a fixed asset is typically adjusted or depreciated periodically.

fixed asset group

A set of characteristics that are assigned to a fixed asset. The fixed asset inherits the characteristics (such as type, number sequences, and default value models) from the group.

fixed cost

A cost that remains the same regardless of production or sales volume. Fixed costs can include things such as depreciation, rent, and interest expense.

fixed exchange rate

A set, non-floating rate at which one currency converts to another.

fixed-price project

An external project that is billed at an agreed upon set price, regardless of the cost.

fixed-rate agreement

An exchange rate that is frozen for the entire project period. A customer pays a bank to freeze the exchange rate, and the bank pays for any fluctuations that occur in the rate during the project period.

Food and Drug Administration (FDA)

A U.S. governmental agency that is responsible for protecting public health by regulating things such as food, drugs, medical devices, and biological products.

forecast plan

A long-range plan for estimating capacity, quantities of finished goods to be sold, and quantities of components needed, and for establishing financial priorities.

foreseeable loss

An expected loss on a project that is treated as an expense transaction because it is likely that the total project cost will exceed the total project revenue or capitalization limit.

forward scheduling

A method for determining a production schedule by beginning with the production starting date and working forward to determine the production completion date. Also known as forward planning.

See Also: backward scheduling

futures date

An order due date, generated by master scheduling, that is based on lead times for all levels of an item.


See Other Term: Good Automated Manufacturing Practice (GAMP)


See Other Term: Good Clinical Practice (GCP)

general ledger

The collection of accounts that contains a company's complete financial information, from which the financial statement can be derived.


See Other Term: bank giro

global search

A search operation that targets a string or record located anywhere in an application, document, or set of files.

global trade identification number (GTIN)

A 14-digit data structure used to uniquely identify trade items, products, and services at a unit level.


See Other Term: Good Laboratory Practice (GLP)


See Other Term: Good Manufacturing Practice (GMP)

Good Automated Manufacturing Practice (GAMP)

Guidelines, originally developed for the pharmaceutical industry and used in the healthcare industry, for validating that automated systems meet agreed-upon specifications and comply with regulations.

Good Clinical Practice (GCP)

A standardized set of best practices and principles for the design, conduct, performance, monitoring, auditing, recording, analysis, and reporting of clinical trials.

Good Laboratory Practice (GLP)

A standardized set of best practices and principles for conducting non-clinical laboratory studies.

Good Manufacturing Practice (GMP)

Current good manufacturing practices for the manufacture, packaging, and holding of finished pharmaceuticals and drugs.


Non-physical company assets that contribute to the value of the company. Goodwill might include things such as good customer relationships or tax credits.

grace days

See the definition for: grace period

grace period

A period of days added to a due date during which a customer can delay a payment without incurring interest or a late fee. A grace period can also specify the period of time during which a customer can qualify for a cash discount.

gross amount

The total amount of anything before any deductions or additions are applied.

gross margin

The difference between the total revenue from the sale of goods and the cost of producing the goods.


See Other Term: global trade identification number (GTIN)

GxP critical record

An electronic record considered critical by the FDA.

GxP Predicate Rules

FDA rulings that are observed within the pharmaceutical industry. GxP predicate rules cover GAMP, GCP, GLP, and GMP.


An information structure that precedes and identifies the information that follows. The header of a message contains message routing information, for example, source and destination endpoints.

honored bill

A bill of exchange that has been settled.

horizontal solution

An add-on software solution that complements the functionality of a product and that focuses on specific business processes.

hour transaction

A transaction that registers employee costs based on number of hours.


See definition for: International Bank Account Number

idempotency check

A check to ensure that each unique document is received once and only once.

inbound dock

An area in a warehouse where items are stored when they are received in inventory.

independent software vendor (ISV)

A third-party software developer; an individual or an organization that independently creates computer software.


A value multiplied by the base price to calculate a subscription price.

infinite material

A method for scheduling resources that assumes that all the component materials needed for production are available at the time they are needed. See Also: finite material

input area

See Other Term: inbound dock


The examination of a good or service to ensure that it complies with specifications.

intangible cost

A cost that cannot be physically measured, such as the cost of poor quality.

intangible fixed asset

A non-physical fixed asset that a company uses to conduct its business.


Relating to interactions between two or more internal companies.

intercompany account

An account used to post intercompany transactions.

intercompany customer

An internal company that acts as a customer to another internal company. When a company does not satisfy an original sales order, that company becomes an intercompany customer when it directs a purchase order to another internal company to satisfy the original sales order.

intercompany master plan

A master plan that is used for intercompany master scheduling.

intercompany master scheduling

The master scheduling across several internal companies to calculate requirements and generate planned intercompany orders. Intercompany master scheduling is carried out over a specified number of iterations.

intercompany payment journal

A journal that is used to post intercompany payments.

intercompany purchase order

A purchase order created by a company that receives a sales order that it directs to another internal company in order to meet the needs of this original sales order.

intercompany purchase order invoice

A purchase order invoice that is created from an intercompany purchase order and posted to an intercompany account.

intercompany sales invoice

A sales invoice that is created from an intercompany sales order and posted to an intercompany account.

intercompany sales order

A sales order that is created by one internal company acting as a vendor for another internal company acting as a customer. An intercompany sales order is created automatically from an intercompany purchase order.

intercompany trade

Trade between subsidiaries or distribution centers within the same enterprise.

intercompany vendor

An internal company that acts as a vendor to another internal company. When an internal company receives an intercompany purchase order to satisfy an original sales order, it becomes an intercompany vendor.


The cost of borrowing money.

interest note

A document that informs a customer that an interest transaction has been posted to the customer's account.

internal company

A company that is part of an intercompany organization and that is linked to other internal companies within the same organization, either as a customer or as a vendor.

internal lead time

The lead time for an intercompany sales order. Internal lead time is calculated as the sum of the issue margin and receipt margin from the coverage group, plus the sum of the issue margin and the receipt margin from the static master plan (if present).

internal project

A project without a direct customer relation. As opposed to an external project, an internal project is funded by the company itself and has no revenue and no invoices. An internal project can be of the cost, investment, or time project type.

International Bank Account Number (IBAN)

An account number scheme that is recognized by banks internationally to facilitate credit transfers across national borders.


The system for collecting statistics on the trade of goods between European Union (EU) countries.


Goods produced or purchased to use or sell at a later time.

inventory management

The branch of management that plans and controls the holding of inventory. Inventory management does not manage the inventory itself, but rather plans for such things as levels to maintain.

inventory on hand

See Other Term: on-hand inventory

inventory order

A request for items from inventory. Items might be requested by a sales order or by production.

inventory receipt

A transaction for the acceptance of items into inventory. An inventory receipt increases inventory on hand.

inventory transaction

A transaction for items moving to inventory (receipts) or from inventory (issues).

inventory turnover

The number of times in a year that a company turns inventory (sells an amount of product equal to the average investment in the product). Inventory turnover is calculated by dividing the annual cost of goods sold by the average inventory investment. Inventory turnover measures the performance of inventory.

investment project

A project that has no immediate earnings and that is used to track and control costs. An investment project includes item, hour, and expense costs.


An order that has been billed. It is also a record of a sale to an account, including details about the products or services purchased.

invoice project

A set of projects that are invoiced from the same invoice proposal. An invoice project includes invoicing information, for example, for accounts payable and terms of payment.

invoice register

A journal in which vendor invoices are entered as they arrive.

invoiced revenue

Revenue from an hour, expense, fee, or item transaction. Invoiced revenue is posted to the ledger when it is invoiced.


To release an item, or items, from inventory.

issue margin

A number of days added to issues from inventory, such as sales order transactions, to protect against unplanned delays.


See Other Term: independent software vendor (ISV)


A product or service sold by a company.

item consumption

See Other Term: consumption

item discount group

A grouping of items to which the same discount structure applies.

item group

A user-defined description in supply chain management that is used to classify a group of items that have common characteristics.

item number

A number that identifies one type of inventory item.

item requirement

The reservation of items from inventory for a project. One item requirement can include multiple items.

item sales tax group

A group of one or more sales tax codes that define sales tax (including duty) for an item. A sales tax group and an item sales tax group must be connected to each transaction that is subject to sales tax. Sales tax is calculated only for the sales tax codes that are included in both the sales tax group and the item sales tax group.


A series of business activities that, when completed, will fulfill a high-level objective. In Microsoft Dynamics AX, a job is a specific task that is performed at a work center. A job is part of a scheduled operation.

job card

A mechanism to provide feedback about the production process. A job card lists the individual job numbers of a specific operation, along with actual consumption statistics.

job schedule

The optimal dates and times for performing jobs at a work center.

job type

A classification of jobs based on the sequence in which they occur, from the time a job enters the work center to the time it leaves the work center.


A chronological list of transactions, in the form of debits and credits, for a particular account or group of accounts.

journal entry

A transaction recorded in a formalized manner by entering an account and debit and credit amounts.

journal line

An entry in a journal.


A group of finished items that compose a set. A kit is a single item with an item number; it consists of one or more component items from inventory.

kit item

See Other Term: kit

kit line

An individual item that is a component of a kit.

last in, first out (LIFO) inventory valuation

An inventory valuation method in which inventory that is received most recently is considered sold or used first for accounting purposes.

lead time

The minimum amount of time required for production of an item.


A group of accounts used by a business to record its financial transactions.

ledger account

An account in the general ledger that records financial transactions, balances, or totals that pertain to assets, liabilities, revenues, expenses, and owner equity.

ledger reconciliation

The balancing and resolution of out-of-balance conditions in ledger accounts. During ledger reconciliation, ledger transactions are reconciled with other transactions, such as customer, vendor, or inventory transactions.

ledger settlement

The balancing of a transaction, such as a payment, in one ledger account with a transaction, such as invoice, in the same or another ledger account.

ledger update transaction

A system transaction that tracks and reports what has been posted to the ledger.


A debt owed to a creditor.

LIFO inventory valuation

See Other Term: last in, first out (LIFO) inventory valuation

limited capacity

See Other Term: finite capacity

limited material

See Other Term: finite material

limited properties of work centers

See Other Term: finite property

line discount

A discount for each line item and/or item discount group that is applied for a customer, customer price group, or all customers.

line property

A code that specifies which transactions in a journal are chargeable and which are non-chargeable.

liquid asset

An asset that is cash or easily converted into cash.


The ability of a company to maintain a cash flow to pay debts and expenses as they come due.

liquidity account

A ledger account that records cash transactions for a particular bank or for cash held at the company. For some companies, a liquidity account records transactions in liquid investments that can be sold from day to day.

liquidity ratio

The proportion of total assets that can be easily converted to cash.


The total amount of work - planned work and released work - to be performed at a particular resource for a specified time. Load is typically expressed as hours of work.


A specific, delimited physical place, such as a bin, shelf, rack, or aisle.


A group of goods that are produced at one time using the same materials and specifications. The goods produced in a lot are identified by a lot ID and share production costs. Also known as batch.

lot ID

See Other Term: lot number

lot number

A unique identifier that is assigned by the manufacturer for a quantity of material produced as a single lot or batch.

magnetic ink character recognition (MICR) line

A line of characters that is encoded with a special type of ink that can be magnetized and then translated into characters. MICR lines are used on bank checks to identify the bank, account, and check.

main quotation

The primary quotation issued to a customer. When multiple, competing quotations are issued to a customer, for example, the main quotation might be the one most likely to result in a sales order. A main quotation links all competing quotations.

mandatory field

A field that must contain a value if a record is updated or inserted into the database.

manual depreciation method

A method of depreciation where depreciation amounts are entered manually into a schedule instead of being calculated from a table.

market segment

A classification of customers or potential customers based on shared traits, such as geography, demographics, or other personal characteristics, for the purpose of targeting products and services.


An amount added to the current or standard cost that is used to determine the price of various items.

master scheduling

The process of calculating item net requirements at all levels and automatically generating planned orders to fulfill these requirements.

master planning

A planning process that encompasses many manufacturing activities, such as demand management, production and resource planning, and master scheduling.

matching principle

A rule that specifies whether matching cost and revenue on a fixed-price project should be handled as one transaction (sales value) or as two transactions (production + profit).

matrix organization

An organizational structure in which employees report to multiple managers for different purposes, such as to one manager for administrative purposes and to another for project purposes.

maximum capitalization

The maximum WIP value that can be posted to an investment project.


An individual unit of data transported between endpoint locations. A message consists of a document plus a header (information about the transfer).

MICR line

See Other Term: magnetic ink character recognition (MICR) line


Software that sits between two or more types of software, such as between an application and a database management system, and translates information between them.

min/max method

An item replenishment policy used in the master scheduling calculation. When the projected inventory level falls below the specified minimum quantity, a planned order is generated to bring the inventory level back up to the specified maximum quantity.

minimum inventory

The minimum desired inventory level. Inventory is replenished when it reaches the minimum level so that on-hand inventory stays above the minimum.

miscellaneous charge

An additional charge, not related to quantity, for an item.

Modified Accelerated Cost Recovery System (MACRS)

A method of accelerated depreciation permitted by tax codes that classifies depreciable assets into one of several recovery periods, and each recovery period has a designated pattern of allowable depreciation.

multiline discount

A discount granted if the combination of one or more lines fulfill some predefined conditions.

multiline purchase

An order that consists of multiple items.

negative balance

A quantity or amount that has fallen below zero.

negative inventory

A temporary negative quantity of an item, such as may occur when items have been purchased and received but for which a packing slip has not yet been processed. Negative inventory can be physical negative inventory or financial negative inventory.

negotiable instrument

A formal written document that unconditionally promises to pay money and that can be transferred from one person to another.


The remainder after all deductions, charges, or losses are subtracted from a total.

net amount

The remaining amount after all deductions are applied. For sales orders and purchase orders, net amount is the balance after the discount is deducted.

net book value

The net value of a fixed asset, which is cost minus accumulated depreciation.

net change master scheduling

A master scheduling principle in which net requirements are calculated only for items that have had a change in demand since the last master schedule was calculated.

nonchargeable transaction

A transaction that cannot be included on an invoice and charged to a customer.

not sufficient funds (NSF)

The lack of enough funds in an account to cover a payment or withdrawal.


See the definition: not sufficient funds (NSF)

OCR line

See the definition: optical character recognition line

offset account

In double-entry accounting, the account used to balance a transaction so that debits equal credits.

offset transaction

An accounting entry that balances a debit with a credit or a credit with a debit.


See Other Term: online analytical processing (OLAP)

on order

Having the status of being ordered but not yet delivered.

on-account statement

A report of invoiced on-account transaction amounts for a project.

on-account transaction

A transaction for a fixed installment that is agreed upon as part of a payment plan.

on-hand inventory

Items that are physically in stock and available to be used or sold.

online analytical processing (OLAP)

A technology that uses multidimensional structures to provide rapid access to data for analysis. The source data for OLAP is commonly stored in data warehouses in a relational database.

open order

An order that has not yet been posted to the ledger.

open period

An accounting period during which a company can continue to post transactions and adjustments.


A specific task in the manufacturing process. An operation is carried out at a work center.

operations network

An organization of operations that synchronizes the dependencies between operations based on starting/ending times, costs, and other criteria. The organization forms a network that follows the manufacturing process from beginning to end. The three types of networks are simple network, simultaneous operations network, and complex network.

optical character recognition (OCR) line

A line of characters that is read by special character recognition equipment and translated into computer text.

optimizing on capacity

In a limited capacity situation, production is scheduled around existing reservations for work centers. Production begins when capacity becomes available.

optional field

A field that need not contain a value when a record is updated or inserted into the database.


A confirmed request for delivery of goods and services based on specified terms.

order entry

The process of accepting and validating customer orders.

order header

The part of a sales order or purchase order that applies to the entire order.

order line

The part of a sales order or purchase order that specifies the detailed information about a requested item.

original sales invoice

A sales invoice that is created from an original sales order.

original sales order

A normal sales order that is created in an intercompany company for an external customer and that automatically generates intercompany orders.

outbound dock

The platform in a warehouse where goods are loaded for shipment out of the warehouse.


A part, subassembly, or product that is produced by a manufacturing process or resource (as opposed to throughput). See Also: throughput


A limit, specified as a percentage of quantity ordered, for how much the purchaser will accept over the amount ordered. Overdelivery typically applies to bulk items.


A method of scheduling production so that one operation begins at one work center while another operation is still incomplete at another work center. An overlapping schedule optimizes production by reducing lead time and increasing throughput.

P&L statement

See Other Term: profit and loss statement

packaging material

The material used to bundle goods for protection during shipment.

packing slip

A document that displays the items and quantities that are included in a specific parcel for shipment.

packing unit

The way an item is bundled for shipment. A packing unit consists of packaging materials and one or more items or components of items.


A portable platform that is used to hold and move materials and goods in places such as work centers and warehouses.

pallet transport

A system that moves items in bulk by using a pallet.

parent project

A project that has one or more subprojects.

parts requisition

A request for a specified amount of an item to be pulled from inventory. Also known as requisition.

See Also: purchase requisition


Goods carried by a vehicle that are not essential to the vehicle's operation. Payload is usually expressed in terms of weight.

payroll statement

A report of payroll allocation amounts.


The process of identifying either the transaction that is the source of a requirement or the transaction that fulfills the requirement, depending on the selected transaction.

performance analysis

The assessment of actual performance against an established standard.

performance management

The modification of a process or task to improve performance to meet an established standard.

performance test

A procedure used to assess performance.

petty cash

The cash kept on hand for small purchases.

phantom bill of materials

A bill of materials used to describe the components of a parent part that will be built as part of a higher-level parent part. The term "phantom" is used to indicate that the part never really exists as a stocked item, but is built along with the production of the higher-level part that is driving an overall production order. Creating bills of materials as phantoms allows the manufacturing order picking list and the Material Requirements Planning (MRP) features to explode through the phantom item down to the lower-level parts.

phantom BOM

See Other Term: phantom bill of materials

phantom explosion

The process of calculating the demand for the materials required for a non-stocked subassembly that is built during the production process of the parent component. Phantom explosion allows the items that make up the phantom item to be shown in the production BOM.

physical date

The date a transaction physically occurred, such as the date that an item was received.

physical inventory

The actual count of inventory on hand.


To withdraw items from inventory for production or distribution.

picking list

A list of the items, along with their quantities and locations, that are required to fill a manufacturing order or shipping order.

picking route

The prescribed sequence for withdrawing the required components from inventory for manufacturing a product.


Work that is paid per unit made or completed.


A software infrastructure that defines and links together one or more stages of a business process, running them in sequence to complete a specific task. Each stage of a pipeline contains one or more pipeline components that can be configured to work with the unique requirements of the site. In Microsoft Dynamics AX, a pipeline transforms XML documents as they flow into and out of the system.

See Also: sales pipeline

PivotTable report

An interactive table that quickly combines and compares large amounts of data. You can rotate its rows and columns to see different summaries of the source data, and you can display the details for areas of interest.

place in service date

The date that an asset is ready and available for service.

planned order

An order generated to fulfill an item requirement. A planned order is the output of a master scheduling calculation. A planned order can be a planned production order, a planned purchase order, or a planned transfer order.

planned production order

An order proposal generated by a master scheduling calculation to fulfill a requirement for a produced item.

planned purchase order

An order proposal generated by a master scheduling calculation to fulfill a requirement for a purchased item.

planned transfer order

An order proposal generated by a master scheduling calculation to fulfill a requirement for a transferred item.

planned work

Work that is anticipated for planned orders.


See Other Term: purchase order


A group of items, such as invoices, sales orders, or productions, that have characteristics in common and are to be handled in a similar fashion.


To make temporary transactions a part of a business's permanent ledger and update accounts by transaction amounts. In manual accounting, posting transfers journal entries to the proper accounts in a general ledger.

posting date

The date that a transaction is recorded in General Ledger.

posting profile

A specification that defines which ledger accounts are to be updated by specific transaction types.


An amount paid for something that is not yet received. For example, a payment by a customer or vendor before an invoice is issued.


A value, usually a currency amount, that is assigned to goods or to services.

price unit

The quantity of items for which a price is set.

pro forma invoice

An invoice prepared in advance to describe items to be purchased.


A collection of activities that yield a result, product, or service; usually a continuous operation. A series of actions or operations designed to achieve an end.


An item you can sell. Also a finished good.

product group

A collection of products used for presentation, sales campaigns, or e-business.

product model

A specification of how items are to be customized. A product model can be used for sales orders, purchase orders, or production orders.


The process of creating usable goods from raw materials and/or parts.

production lead time

The time required to produce an item, starting from the time the order is released to production until the item is moved to inventory or shipped to the customer.

production line

The part of a production order that specifies detailed information about the components included in the order. Also known as production order line.

production order

A request for a specific part or product to be manufactured. A production order contains all information associated with the item to be produced, including information from the BOM, work centers, routes and operations.


The earnings that result from selling goods and services for more than their cost to the company.

profit and loss account

A revenue or expense account whose balance will be transferred to a retained earnings account at the end of a fiscal year. Balances in profit and loss accounts determine the net income or net loss for the year.

profit and loss statement

A report that summarizes a company's costs, expenses, and revenues for a specific accounting period. A profit and loss statement is part of a company's financial statement.


A temporary endeavor undertaken to meet or exceed stakeholder expectations. A project has a definite beginning and an end.

project group

A classification of projects that have characteristics in common, primarily for specifying the ledger accounts to use for posting.

project quotation

A preliminary offer or quote issued by the company to a business relation for services, which can include sales items. An accepted project quotation becomes a project.

project type

A classification that determines how a project is posted to the ledger. Project type identifies an external project as fixed price or time and materials and an internal project as cost, investment, or time.

projected depreciation

The forecasted allocation of the cost of an asset over a period of time for accounting and tax purposes.

promissory note

A written agreement in which the maker of the note promises to pay a certain amount at a certain time.


A potential customer.

protested bill of exchange

A drawn bill of exchange that a customer has refused to pay.

purchase ceiling

An upper limit on the amount a person or business entity is permitted to purchase during a specified period of time.

purchase invoice

The bill that an organization receives when a purchase is made.

purchase order

A formal request for goods or services. The purchase order shows the quantity of goods or services ordered, expected receipt date, and supplier name. The purchase order may also include other information pertaining to the delivery of the goods or services.

purchase order line

See Other Term: order line

purchase requisition

A paper or electronic request made to the purchasing department to acquire a specified amount of goods or services from external suppliers and vendors.

See Also: requisition


The practice of holding items from use until it has been determined that they conform to quality or other standards.

quarantine management

The process and procedures for handling items that move to and from quarantine.

quarantine order

A request to move items to or from quarantine.

quarantine warehouse

The place where items are stored while in quarantine.


A group of documents held in temporary storage as they await processing. A typical example is the outbound gateway queue in which messages are stored until they are picked up by the appropriate adapter.

queue time

The number of hours spent waiting for an operation to begin. Queue time is one component of total production lead time.

queue time after

The part of queue time spent waiting for the next operation.

queue time before

The part of queue time spent waiting for the current operation to begin.


See Other Term: quote

quotation management

The process of creating, adjusting, issuing, processing, and tracking a quotation from beginning, when customer information is collected, to ending, when the quotation is lost, canceled, or accepted.


A formal offer for products or services, proposed at specific prices and related payment terms.


A storage system with multiple tiers that can accommodate pallets or other standardized containers. Typically, a rack holds pallets in vertical sections, but some can also be more than one pallet deep.

radio frequency identification (RFID)

A technology that uses radio frequencies to identify goods. An RFID-capable product has an RFID tag that can transmit information, such as serial number, to an RF reader, which converts the information into digital data that can be sent to a computer.

raw materials

Unrefined or processed materials that are used to manufacture products or components. Depending on the industry, raw materials can be individual items such as screws or diodes, specific chemicals or ingredients, or subassemblies.

realized loss

The actual decrease in the amount of money in the base currency, due to exchange rate fluctuations.

realized profit

The actual increase in the amount of money in the base currency, due to exchange rate fluctuations.


The acceptance of items into inventory.

receipt date

The date transferred goods are received in a warehouse. Receipt date applies to transfer orders.

receipt margin

A number of days added to receipts to inventory, such as purchases, to protect against unplanned delays.


To compare data from two sources and make corrections for any discrepancies. An example is to reconcile differences between a ledger account and a bank statement.

redrawn document

A document that is recreated to resolve a problem or reflect a change, such as a protested bill of exchange or an honored promissory note.

reducing balance depreciation

A method of calculating the depreciation of a fixed asset as a fixed percentage of its net book value at the start of each depreciation period.


To send a production order from the estimation and scheduling stage to the shop floor so that production can begin.

released order

An order that has been authorized for production.

released work

Work that is authorized for released orders.

reorder margin

A number of days added to normal procurement time for items to protect against unplanned delays.

replacement cost

A method for determining the value of an item based on the cost to replace it today at current prices, rather than on its original cost.

report model

A metadata description of business data used for creating ad hoc reports in Report Builder.

request for quote (RFQ)

An invitation for competitive bids for a specific good or service.

requested receipt date

The date a customer or vendor requests that goods be received.

requested ship date

The date the selling company should ship the goods to meet the customer's or vendor's requested receipt date.

required element

An element that is required to be present to satisfy a schema. Required elements for an XML document often correspond to mandatory fields in the database. An example of an exception is a mandatory field that can be assigned a default value.


See Other Term: parts requisition


The designation of a quantity of inventory on a purchase order for a specific sales order or production schedule.

return materials authorization (RMA) number

A reference number that is used to authorize and track goods returned for repair or refund. A return materials authorization is issued by a sales entity that authorizes a buying company to return goods.

return on equity

A measurement of how effectively a company creates income for its shareholders or owners. Return on equity is calculated by dividing net income by net worth.

returned item

Goods or merchandise that a customer returns to the place of purchase or that a borrower returns to a lender.


An adjustment of the value of something. A revaluation of a fixed asset is an adjustment to the net book value to ensure that the value reflects the market value of the fixed asset.


The income generated as the result of buying or selling goods and services.


See Other Term: radio frequency identification (RFID)

RMA number

See Other Term: Return Materials Authorization (RMA) number


A detailed set of instructions that describes how to create a particular item. A route includes operations to be performed, the scheduling sequence, machines and work centers involved, and hours required for setup and run times. A route also can include information about tooling, operator skill level, inspection needs, testing requirements, and so on.

route group

A classification of routes that share certain production characteristics, such as queue time, setup time, and run time.

route job

A detailed list of all the jobs for each operation, including setup, process, queue and transportation times. A route job is printed out on the shop floor after the order is released.

route operation

A step in the process of manufacturing an item.

routing number

A unique bank registration number that a bank uses to identify itself.

run time

The time it takes for a physical manufacturing operation, excluding setup time, queue time, and move time.

safety margin

A time buffer, specified in days, that is added to order due dates to protect against unplanned delays in the item lead time.

safety stock

The planned minimum inventory level.

sales forecast

An estimate of sales revenue that typically spans a specific period such as a month, quarter of a year, one half of a year, or a full year.

sales invoice

The bill that an organization gives a customer in connection with a sale.

sales order

An agreement between two parties for the sale of goods or services.

sales order line

See Other Term: order line

sales pipeline

A potential sales transaction in process.

sales price

The amount that a business charges for goods or services.

sales price model

A model that defines whether the calculation of sales price is based on quantity or on a markup amount or percentage of the cost price.

sales quotation

A preliminary offer or quote issued by the company to a business relation for a sale. An accepted sales quotation becomes a sales order.

sales quotation template

A model for creating sales quotations. The template includes common information so that it does not need to be entered each time a quotation is created.

sales tax

A tax on the sale of goods and services. A sales tax may be a fixed amount (typically fees and duties), a percentage of a sales price (such as a value-added tax or a state sales tax), or a percentage of another sales tax.

sales tax book

A record of sales and purchase transactions for sales tax reporting in Italy.

sales tax code

A user-defined code that uniquely identifies a specific sales tax and defines its characteristics, such as the percentage or amount, tax authority, terms of payment, and ledger accounts used for posting.

See Also: sales tax

sales tax exempt

A sale or purchase transaction for which no sales tax is calculated.

sales tax group

A group of one or more sales tax codes that define sales tax (including duty) for customers, vendors, projects, and ledger accounts. A sales tax group and an item sales tax group must be connected to each transaction that is subject to sales tax. Sales tax is calculated only for the sales tax codes that are included in both the sales tax group and the item sales tax group.

sales tax jurisdiction

A government unit or subdivision that imposes taxes within a state. A geographical area within a state can be taxed by several jurisdictions: town, county, and state.

sales tax settlement period

A division of the year when the business reports and pays collected sales tax to the tax authorities.

sales unit

A team of salespersons responsible for a common sales target.

salvage value

The expected cash value of the asset at the end of its useful life. Also known as scrap value.

schema mapping

A special kind of transformation whereby an XML document is converted from one XML schema to another. An example of schema mapping is when a Purchase Order is converted to a Sales Order.


Waste that occurs during the manufacturing process. Scrap can occur from mistakes in measuring, as well as from leftover pieces due to trim work or other processes.

secondary quotation

A quotation that competes with other quotations for the same good or service and is linked to a primary quotation.

section 179

A section of the U.S. Internal Revenue Service tax code that permits some property (fixed assets) to be expensed in the year it is purchased rather than depreciated over a number of years.

serial number

A number assigned to a specific inventory item to identify it and differentiate it from similar items with the same item number.

Serial Shipping Container Code (SSCC)

A standardized 18-digit label that uniquely identifies each unit to be transported or stored.

service agreement

An agreement between a service provider and a customer that specifies the amount and type of service the provider will deliver.

service agreement line

An itemization of tasks that are covered by a service agreement.

service life

The time that an asset will provide a benefit to the business.

service object

The component or product that is covered by a service agreement.

service order

A request for a single service visit by one or more service technicians.

service order line

The part of a service order that specifies detailed information about the requested service.

service task

An action to be taken by a service technician as part of a service order.

setup time

The number of hours needed to prepare the work area prior to the operation.

ship date

The date that goods are shipped from a shipping point. In Microsoft Dynamics AX, ship date applies to transfer orders.

See Also: requested ship date and confirmed ship date

shipping calendar

The days that the selling company can ship goods.

shop floor control

A system that uses information from the manufacturing area and elsewhere to communicate status about production orders and work centers for planning and management purposes. Shop floor control encompasses a variety of functions for managing personnel, materials, and processes, and supports planning, scheduling, and costing systems.

short-term debt

Debts that are due within one year.


An image of a legally-binding signature that is stored and printed on checks as appropriate. A signature is valid for any amount up to a specified maximum.

simple network

A type of operations network in which one operation is started and completed before the next operation begins.

simultaneous operations

A type of operations network in which multiple operations take place at the same time and must be completed before moving on to the next operation.


See Other Term: stock keeping unit (SKU)

social security number (SSN)

In the United States, a number assigned to citizens and some noncitizens. The number is required for anyone to obtain work or to receive governmental benefits, such as social security payments after retirement.

solvency ratio

An indicator of a company's ability to meet its long-term financial obligations, calculated by dividing net worth by total assets.


See Other Term: Serial Shipping Container Code (SSCC)


See Other Term: social security number (SSN)

standard cost price

The normal or ideal cost that is used as a comparison to the actual cost. For manufactured items, standard cost price includes labor, materials, and overhead. For purchased items, standard cost price includes purchase price plus transportation and other fees.


A report of the current balance and recent activities for an account. A statement can be produced for many types of accounts, such as a customer account or a payroll account.

See Also: financial statement

stock keeping unit (SKU)

An inventory dimension.


Insufficient goods or materials to meet current needs.

store area

A section of a warehouse used for inventory items with similar characteristics, such as an input area for items when they are received in inventory.

store zone

A classification of store areas. Store zones provide a way to order and prioritize store areas for items as they arrive in inventory.

straight line depreciation

A method of depreciation that calculates the depreciation of a fixed asset as a fixed amount in each depreciation period.

straight-line service life depreciation method

A method of depreciation that calculates the depreciation of a fixed asset as a fixed amount in each depreciation period.

straight-line service life remaining depreciation method

A method of depreciation that calculates the depreciation of a fixed asset as a fixed amount in each depreciation period. There will be a difference in the depreciation amount calculated between straight-line service life remaining and straight-line service life when there is an adjustment posted to the asset.

strengths, weaknesses, opportunities, and threats (SWOT) analysis

An analysis of the internal and external environmental factors performed as part of developing the organizational strategy.

sub-bill of materials (BOM)

A bill of materials that makes up a component of another bill of materials.


See Other Terms: sub-bill of materials (BOM)


A subdivision of a larger campaign.


An individual or organization that fulfills all or part of a contract from another contractor or subcontractor.


A forecasting model that can be used as a component of another model.


A project that is a component of another project.


A route that makes up a component of another route.


An agreement in which a customer prepays for periodic or regular services.

subscription group

A classification of subscriptions used for pricing, posting, and otherwise managing subscriptions.

subscription transaction

A transaction that modifies a subscription. There are four types of subscription transactions: regular subscription, non-regular subscription, price change, and reduction days.

summary project

A parent project that is used only for structuring information and against which no transactions are registered.

supplementary item

An extra item that is added to the sales or purchase order lines when a certain quantity of an item is sold or purchased.

supplementary item group

A user-defined classification of supplementary items that have similar characteristics.

SWOT analysis

See Other Terms: strengths, weaknesses, opportunities, and threats analysis

synchronous data exchange

A style of processing where an application requests that an event occurs and waits for the event to complete, so that the application is certain of the result of its request before it proceeds. In Microsoft Dynamics AX, synchronous data exchange occurs when an application requests that a document be sent or received and then waits for it.


A marker used to identify a physical object. An RFID tag is an electronic marker that stores identification data.

tare weight

The weight of an empty container and packing material, which is deducted from gross weight to determine the weight of the goods.

tax exempt number

An identification number that is issued by a tax authority to indicate that a company is not required to pay sales tax.

tax liability

Any outstanding tax that a company owes.

taxpayer identification number (TIN)

A 9-digit number used to identify an entity (company or person) for tax reporting purposes in the U.S. There are several different types of tax identification numbers, such as employer identification number (EIN), Social Security number (SSN), individual taxpayer identification number (ITIN), and adopted taxpayer identification number (ATIN).


The total amount of output produced by a resource.

See Also: output

time and material project

An external project that is invoiced as work progresses based on the consumption of hours, expenses, items, fees, and on-account transactions.

time and materials

A type of contract in which the final price paid is based on the amount of time it took to complete the project and the cost of the materials used.

time fence

A time interval, specified in days, that defines and limits which data are included in a master scheduling calculation.

time project

An internal project for which only hour transactions are registered. A time project tracks the hours consumed on a task or project.

time stamp

A record of the time that a document was created and modified.


See Other Term: taxpayer identification number (TIN)


To track an inventory dimension to show its related receipts and issues.

trading partner

An external or internal organization with which your organization exchanges electronic data. For example, a trading partner could be a supplier, a customer, or an internal department.


An event or condition that is recorded in any type of business account.

transaction text

A description for a journal line. Transaction text stays with the journal line until an event causes new transaction text to be added, such as when the transaction is settled.

transfer order

A request to move items between warehouses. A transfer order keeps track of the items shipped out of one warehouse and received into another warehouse.

transfer order line

The part of a transfer order that specifies detailed information about a request to transfer a specific item to a different warehouse.

transfer price

The price charged for goods or services provided by one unit of a company to another unit in the same company.


The process of converting an XML document that conforms to one schema into an XML document that conforms to another schema, often changing the document structure in the process.

transit warehouse

An intermediate location between a "from" warehouse and a "to" warehouse for warehouse transfers. Items in a transit warehouse are in the process of being transferred to a different warehouse (transfer order) and therefore cannot be picked for other orders.


A mechanism for moving data from one point to another. Examples of transports in Microsoft Dynamics AX are file system, Microsoft Message Queuing (MSMQ), and Web services.

transport adapter

See Other Term: adapter

transport address

The transport-specific identification for the location to which messages are sent or from which messages are received.

transport calendar

The days the carrier can pick up and transport goods.

transport days

The number of days required by the carrier to pick up and deliver goods.

transport time

The amount of time it takes to transfer items between two warehouses.

trial balance

An initial part of the process for closing accounting books at the end of a fiscal year. The debit and credit amounts for each account are totaled and should balance.


The conversion method required when converting from the denomination currency through the euro currency or to the denomination currency through the euro currency.


A company's annual sales volume.


A limit, specified as a percentage of quantity ordered, for how much the purchaser will accept under the amount ordered. Underdelivery typically applies to bulk items.


A measurement that specifies in what quantity a product will be sold.

unit conversion factor

The factor used to convert from one unit of measure to another unit of measure, such as from centimeters to meters.

unit price

The amount per unit that you sell an item for.

United Parcel Service (UPS) zone

A geographical division used by the U.S.-based carrier, UPS, to determine shipping time and costs.

unlimited material

See Other Term: infinite material

unrealized loss

Loss due to the difference in exchange rates between the transaction date and the exchange rate adjustment date.

unrealized profit

Gain due to the difference in exchange rates between the transaction date and the exchange rate adjustment date.

UPS zone

See Other Term: United Parcel Service (UPS) zone

use tax

A tax on goods that have been obtained to be used (as opposed to sold) and for which tax was not paid at the time the goods were obtained. Use tax is primarily a U.S. state tax.

user group

A collection of users that have been assigned identical access permissions.


The process of confirming that data passing into the system is correct and complies with predefined rules, definitions, or parameters. All data, whether entered manually or received electronically, must be validated before it can be accepted into the database and before processing can proceed.

value mapping

The translation of field data values based on business rules. An example of value mapping is the translation of internal item numbers to vendor-specific item numbers or industry standard numbers, depending on the trading partner.

value model

A method of changing the monetary value of a fixed asset over time for different purposes, such as accounting depreciation, tax depreciation, revaluation, and disposal.

value substitution

A string substitution performed on XML elements as a document passes through the pipeline.

variable consumption

Specification that the volume or quantity of a component used in a finished item is proportional to the number of items produced or reported as finished.

See Also: constant consumption

variable cost

A cost that varies based on production or sales volume.


The difference between two values, such as the difference between estimated and actual expenses.


A person or company providing goods or services in return for payment.

vertical solution

An add-on software solution that complements the functionality of a product and that focuses on industry-specific needs.


To record an equal and opposite transaction to reverse the effect of a posted transaction.


A record of a vendor transaction, including the vendor's name and address, description of goods or services received, document number, terms of payment, due date, and amount due.

voucher number

A unique identifier for a transaction or group of transactions.


A building or structure where materials or goods are stored on an interim basis until they are transferred to their destination.

Web application

A software program that uses Hypertext Transfer Protocol (HTTP) for its core communication protocol and that delivers Web-based information to the user in the Hypertext Markup Language (HTML) language. Also called a Web-based application.

Web service

A unit of application logic that provides data and services to other applications that can be invoked using standard Internet transport protocols such as Hypertext Transfer Protocol (HTTP), Simple Mail Transfer Protocol (SMTP), or File Transfer Protocol (FTP). Web services can perform functions ranging from simple requests to complicated business processes.


A class that generates content in HTML code so that Web applications can display active, current content and data.


See Other Term: work in process (WIP)

WIP statement

A report of the value of work in process.

withholding tax

Funds deducted from salary or other income to cover tax liability.

work center

A self-contained unit of the manufacturing process, or an entire plant. A work center might be an assembly area, a shipping and receiving area, or a painting area. Machines and employees are the main components of work centers.

work in process (WIP)

The value (hours) posted to the balance sheet as a project progresses. The WIP calculation applies to fixed-price projects, time and material projects, and investment projects.


Material that is in some stage of the manufacturing process, from raw material issued to a production order to a manufactured product ready for acceptance into inventory.

working time calendar

A calendar that defines the capacity and work time in a production system, for use in managing work centers or work center groups.

write-down adjustment

An adjustment to decrease the value of a fixed asset for accounting purposes.

write-up adjustment

An adjustment to increase the value of a fixed asset for accounting purposes.

XML schema

A formal specification, written in XML, that defines the structure of an XML document, including element names and rich data types, which elements can appear in combination, and which attributes are available for each element.

Z order

A stack of overlapping windows. Each window has a unique position in the Z order.


A physical or logical division within a warehouse, defined for efficient resource utilization. A zone might be identified by type of materials stored, by type of equipment used, or by assigned picker.