Glossary of Terms in the Financials Area in Dynamics GP

The following table explains the terminology used in the Financials area in Dynamics GP.

Term	Definition
1099 Statement	A report required by the US Internal Revenue Service for each vendor from whom goods and services worth $600 or more have been purchased within a calendar year. There are three possible formats for a 1099: miscellaneous (1099-MISC), interest (1099INT), and dividend (1099-DIV).
Account alias	A “short name” for a posting account in the chart of accounts. If the account format has a large number of segments, using aliases can speed data entry.
Accounting period	A subdivision of the fiscal year. Common periods are months or quarters.
Active customer	A customer with whom you’re currently doing business on a regular basis.
Active vendor	A vendor with whom business is being conducted on a regular basis.
ADTP (Average days to pay)	An average based on the number of invoices a customer has and the time taken to pay each invoice. The formula for calculating the average days to pay is: ADTP = (Current ADTP) x (Number of Invoices) + (Number of Days Taken to Pay Most Recent Invoice) / (Number of Invoices + 1).
Aged Trial Balance	The Aged Trial Balance shows the balances for each aging period as of the last aging date. You can print the Aged Trial Balance to view the current aging status of accounts.
Aging	The process that determines the maturity of an account from the transaction date or due date, indicating how many days each account has been outstanding. Aging places each posted transaction in the appropriate current, past-due, or days old aging period.
Aging period	A specified number of days to age your accounts by. For example, your aging periods might be from 0 to 30 days, 31 to 60 days, and so on. Up to seven aging periods can be used for open item accounts and two periods (current and non-current) for balance forward accounts.
Alert message	A message that appears when inappropriate, inadequate, or unclear data or instructions are issued, when data is not accessible or when a confirmation is sought.
Alignment form	A document printed to ensure text is properly aligned before you print actual statements.
Alternate currency	Any currency that is not a functional currency.
Apply	The process of linking a payment amount to one or more documents being paid.
Audit trail	A series of permanent records that you can use to track a transaction to the point it was originally entered in Microsoft Dynamics GP. You can use the audit trail to verify the accuracy of sales records by outside accountants or auditors.
Audit trail code	A code providing a precise record of each transaction and its origin within the Microsoft Dynamics GP system.
Auto apply	Applies selected cash receipts, credit memos, and returns to a customer’s oldest documents. During setup you can select whether to apply the amounts to documents with the oldest due dates or those with the oldest document dates. See also Apply.
Background processing	Background processing enables users to continue working while transactions are being posted or reports are being printed.
Backing up	The process of storing data on a secondary medium, usually diskettes or magnetic tape, to minimize the difficulty of recovering from data loss. Backups should be performed routinely.
Balance	The difference between the debit amount and the credit amount of a particular account.
Balance brought forward	Balance for each account that is carried forward to the next period.
Balance forward account	An account type that records all documents entered during the current period and the balance brought forward amount for prior periods. Cash receipts are applied to the oldest balance, not to specific transactions.
Bank card	A card for which payments might be treated as cash by the business receiving the payment.
Bank reconciliation	The process of making the cash balance shown on the bank statement and the cash balance entered in Bank Reconciliation match as of a certain date.
Bank statement	A statement issued by a bank describing the activities in checking accounts and other bank accounts over a period of time.
Batch	A group of transactions identified by a unique name or number. Batches are used in computerized accounting to conveniently group transactions, both for identification purposes and to speed up the posting process.
Batch frequency	An option that determines how often a recurring batch will be posted, such as weekly, monthly, or quarterly.
Batch inquiry	A window that shows the users that are currently working with batches and the statuses of those batches.
Batch posting	An option used to post batches—groups of transactions identified by a unique name or number—within a module one at a time.
Batch-level posting	A posting method that enables transactions to be saved in batches that can be posted whenever convenient. There are three types of batch-level posting: batch posting, series posting, and master posting.
Breakout of due to/due from accounts	Detail created by Dynamics GP showing the distribution account you enter and the offset due to account or due from account for each intercompany distribution. This breakout prints only on edit lists (in Payables Management) and posting journals (in General Ledger and Payables Management).
Beginning balance	Those balances either entered during the setup of your Microsoft Dynamics GP system or carried forward from the preceding fiscal year.
Calendar year	An accounting cycle beginning on January 1 and ending on December 31.
Calendar-year history	A record of transactions by calendar months.
Cash receipt	A document used to record payments and deposits received from customers.
Check	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.
Check card	A type of credit card. When purchases are made with a check card, the amount of purchase will immediately be withdrawn from the user’s bank account. Check cards also are known as debit cards.
Checkbook	An account that keeps a currency balance and tracks the receiving and disbursing of cash.
Child customer ID	Customers assigned to a national account parent. Typically, invoices originate with the child customers of the national account.
Class	Enables customers, vendors, users, or items to be grouped according to common characteristics. For example, a customer class could be created to group customers according to credit limit or location.
Cleared amount	The amount a bank statement shows a transaction cleared for.
Cleared difference	The difference between what you entered for a transaction in your checkbook and the amount the transaction cleared for on the bank statement.
Comma-delimited field	The standard comma-separated ASCII character format used when exporting a report so database programs can read it.
Commission	The amount, usually a percentage of the sale amount, paid to the salesperson who made the sale.
Consolidating	A period-end procedure that draws together individual transaction amounts into a single summary transaction balance. Typically, this procedure is used for balance forward account types before a balance is brought forward to the next period.
Credit limit	A limit on the amount a customer can purchase on account.
Credit memo	A document that credits a customer’s account and explains the reason for the credit.
Credit receipt	See Credit memo.
Credit terms	Conditions agreed upon when credit is granted.
Customer ID	An alphanumeric identification assigned to customers using the Customer Maintenance window. You can use the customer ID to sort information on reports.
Debit memo	A document that debits a customer’s account and explains the reason for the debit.
Decrease adjustment	An entry that decreases the checkbook amount.
Default class	A class whose values are used for the creation of new classes.
Default entry	A value displayed in a window automatically; used unless a different value is entered.
Deposit	Money added to an account.
Deposit slip	A form that shows the date and the items that make up a deposit, including receipt and payment information, the currency, check, and coin totals, and the amount of cash received.
Deposit in transit	Deposit that has been entered but hasn’t cleared the bank.
Destination company	A company that will be the recipient of an intercompany transaction.
Discount available	A reduction in the amount receivable, offered if the payment is made by a certain date.
Discount date	The date an invoice must be paid in order for a discount to be valid.
Discount taken	The discount amount customers take from their available payment terms discount. See also Discount available.
Distributing	The process of allocating to separate accounts a percentage or part of transaction amounts.
Distribution account	An account designated to receive a percentage or part of a posted transaction.
Distribution history	A record of the debits and credits for each document distributed to individual posting accounts.
Document	All the information entered for a single, complete transaction, including distribution amounts.
Document number	The number assigned to any document recorded in Receivables Management, such as sales, credit memos, and payments.
Document type	An option that identifies a document’s purpose and how document amounts will be posted. In Receivables Management, the document types include sales/invoices, debit memos, finance charges, services/ repairs, warranties, credit memos, returns, and cash receipts.
Due to/due from accounts	General Ledger accounts used by Dynamics GP to track amounts to be paid or to be collected among companies. The due to/due from accounts are often called Intercompany Payable and Intercompany Receivable in the Chart of Accounts.
EFT (Electronic Funds Transfer)	A service provided by banks in conjunction with businesses to have money moved in and out of an account.
Exchange rate	The rate of exchange between two currencies on a particular date and time.
Exchange rate source	The service, publication, or institution exchange rates are obtained from. For example, you can use rates from a local bank, a financial journal, or an electronic service such as CompuServe.
Exchange rate table	A table used to store exchange rates for a unique combination of currencies and rate types. These tables also are used to define selections for determining the exchange rate that will be used when the currency for a table is entered on a multicurrency transaction.
Euro	A trading currency for participating countries/regions in the European Union.
Exchange rate	The rate of exchange between two currencies on a particular date and time.
Expansion button	A button used to open a window where information for the field next to the button can be added, changed, or viewed.
Finance charge	The cost of borrowing money; usually a charge assessed to overdue accounts. Also a document type used to record a finance charge.
Financial year	See Fiscal year.
Fiscal year	An accounting cycle composed of up to 54 consecutive periods. In Australia and New Zealand, this is referred to as a financial year.
Fiscal-year history	A record of sales, commission amounts, and other transactions organized by fiscal periods.
Functional amount	The equivalent transaction amount in the functional currency for a transaction amount that was entered using an originating currency. This amount sometimes is referred to as the functional equivalent of the originating amount.
Functional currency	The primary currency a company keeps its financial records in. Typically, the functional currency is the currency for the country/region where the company is located.
Functional equivalent	See Functional amount.
Grace period	A period of days added to end-of-month (EOM) terms to prolong the payment due date for purchases made during the last few days of the month. For example, with a grace period of five days, a purchase made on December 28 or later would not be due until the end of January.
Group printing	Saving and printing reports in groups. For example, you can create a report group used to print the Salesperson Commission Summary and Sales Territory Commission Summary before closing a fiscal year. You can create groups of reports within the same series and groups of series report groups, such as to print the Checkbook Register Report and the Undeposited Receipts Report.
GST (Goods and Services Tax)	A tax on the consumption of goods and services used in Canada, New Zealand, and other countries/regions.
Historical Aged Trial Balance	A Receivables Management report that projects the balances in each aging period by aging the accounts; for reporting purposes only. See also ADTP (Average days to pay).
History	Transaction activity from a previous year. Maintaining history files enables users to print detailed reports, comparing currentyear activity to activity in a previous year.
Hold	A restriction that prevents certain types of transactions from being entered for a specified record. For example, you can place a customer with a past due balance on hold.
HTML (Hypertext Markup Language)	A format that you can view using a web browser. Use this format for reports placed on your company’s intranet.
Inactivate	The process of making customer cards inactive. If you inactivate customer cards, you won’t be able to post any of their transactions—sales or payments.
Inactive customer	A customer with whom business isn’t being conducted any longer. Typically, records for these customers can’t be deleted because historical records are being kept.
Increase adjustment	An entry that increases the checkbook amount.
Inquiry	Enables you to view open-year and historical information.
Intrastat statistics	The system for collecting statistics on the trade of goods between European Union countries/regions.
Intercompany transaction	Any transaction that contains distributions to another company.
Intercompany-generated transaction	Any transaction that originated in another company.
Invoice	A document that records the prices and other details of goods and services sold or supplied.
Journal	A chronological list of transactions, in the form of debits and credits, for a particular account or group of accounts, such as sales or cash disbursements.
Journal entry	A transaction recorded in a formalized manner by entering an account and the amounts to be debited and credited.
Last reconciled balance	The balance of a checkbook on the bank statement. This is the amount to reconcile to.
Lockbox	A place where bills that are paid every month are stored at a bank. The bank locks this money away to pay certain bills.
Lookup window	A window that displays a list of accounts, customers, documents, or other items in the Microsoft Dynamics GP system. Lookup windows for a specific field are displayed by choosing the magnifying glass button next to the field.
Master posting	A posting process in which marked batches from different series can be posted simultaneously.
Miscellaneous charge	A charge that isn’t part of a normal purchasing process. A miscellaneous charge might be a service charge such as installation or repair of merchandise, or a shipping and handling fee on a credit card purchase.
Multiple addresses	Locations in addition to a company’s main location. For example, a business with several stores can specify an address for each location.
Multiple companies	Companies separate data folders have been established for. Enables you to keep a separate set of financial information for each company you operate.
National account	A combination of related customers that make up a single organization. The parent customer is the controlling customer of the national account. This parent customer has child customers, and is usually the customer who distributes payments on behalf of the child accounts.
NSF (Non-sufficient funds)	The process of assessing a charge to payments, such as checks, with insufficient funds. If you mark a payment as NSF, the system unapplies the payment, backs out the distributions, and increases the amount in the Receivables account while decreasing the amount in the Cash account.
Open item account	An account type that shows details of all transactions not fully applied. Open item accounts enable cash receipts to be applied to specific invoices.
Open transaction	A posted transaction. You can apply or unapply this transaction.
Origin	A transaction entry window within a specific Microsoft Dynamics GP module. You can select certain options, such as closing fiscal periods, for each transaction origin. The transaction origin appears as part of the audit trail code on all posting reports in Microsoft Dynamics GP.
Originating amount	The transaction amount in the currency that the transaction was entered in. Originating amounts are posted along with their corresponding functional amounts, also referred to as functional equivalents.
Originating company	The company in which you initiate (or originate) an intercompany transaction.
Originating currency	The currency a multicurrency transaction was conducted in.
Outstanding check	Check that has been written, entered, and sent to payees but hasn’t yet been received, paid, and canceled by the bank.
Paid transaction removal	A procedure used to transfer paid transactions to history and to consolidate balance forward account balances. If you’re not keeping history, this procedure deletes paid transactions from your records.
Parent customer ID	The controlling customer of a national account; has child customers. The parent customer usually distributes payments on behalf of the child customers.
Payment terms	Conditions for payment agreed upon when a sales transaction takes place. Payment terms might include a discount to the selling price if the payment is received within a certain time period.
Postal code	See ZIP code.
Posting	A procedure that makes temporary transactions a part of your business records; permanent records are updated with the amount of these transactions. In manual accounting, to transfer journal totals to the appropriate accounts in a ledger.
Posting account	A financial account that tracks assets, liabilities, revenue, or expenses. Amounts posted to these accounts appear on the Profit and Loss Statement, the Balance Sheet, and other financial reports if you use General Ledger.
Posting date	The date a specific transaction was posted to your company’s posting accounts.
Posting journal	A report printed following the posting process that shows the detail for each transaction that’s been posted. Posting journals include the audit trail code, which provides a precise record of where each transaction has been posted within Microsoft Dynamics GP.
PST (Provincial Sales Tax)	A tax set by each Canadian province.
QST (Québec Sales Tax)	The Provincial Sales Tax for the province of Québec. See also PST (Provincial Sales Tax).
Range	An option used to narrow the amount of records printed on a report. For example, a selected range of customer IDs could be those between Acme Company and Limited, Inc.
Rate calculation method	A mathematical operation (multiply or divide) specified for calculating functional and originating equivalents on a transaction, or for displaying amounts in summary or inquiry windows. The exchange rate on the exchange rate table is used in the calculation. The operation is used to calculate a functional currency amount from the originating currency amount using a specified exchange rate.
Rate frequency	The frequency you should enter new exchange rates for an exchange rate table. The rate frequency is used to determine the length of time an exchange rate is valid. For example, you can mark a rate as valid for a single day, week, month, quarter, or year. The rate frequency determines the expiration date for each rate, based on the day the rate is entered.
Rate type	An option used to identify different exchange rate tables for one currency that are used for different purposes. For example, you might set up exchange rate tables with a Buy rate type for sales transactions and a Sell rate type for purchasing transactions. You also can use rate types to distinguish the posting accounts that are used for realized gains and losses and rounding differences.
Rate variance	A range you can specify to limit the amount the exchange rate can fluctuate when you enter a new exchange rate in an exchange rate table or during the transaction entry. For example, if the default exchange rate is 0.68450 and the rate variance is 0.01000, you could enter an exchange rate between 0.67450 and 0.69450.
Real-time posting	See Transaction-level posting.
Realized gain	Gain realized due to the difference in exchange rates between when the receipt was posted and when the receipt was deposited.
Realized loss	Loss realized due to the difference in exchange rates between when the receipt was posted and when the receipt was deposited.
Receipt	Any type of payment a business might receive.
Reconciling	A procedure used to verify that Receivables Management data is accurate. The reconcile process verifies, and recalculates if necessary, the accuracy of the account balances and document ages in each aging period.
Recurring batch	A batch that will be posted repeatedly, according to the selected frequency. An example of a recurring batch would be one to record monthly rent expense. In Australia and New Zealand, transactions entered in a recurring batch are referred to as standing transactions.
Recurring transaction	Transactions, such as membership dues, that occur repeatedly over time. In Australia and New Zealand these transactions are referred to as standing transactions.
Refund check	A transaction used to transfer receivables balances to Payables Management. Receivables debit documents and payables miscellaneous charge documents are created for each customer that refund checks are created for.
Removing history	A procedure used to erase ranges of account or transaction history that are no longer useful.
Report option	A collection of entries that specify the amount or type of information that will appear on a report. You can create multiple report options.
Removing history	A procedure that erases ranges of account or transaction history. Removing history will remove ranges of history that are no longer useful, making additional hard disk space available.
Report Writer	A Microsoft application that can be used to create customized reports.
Reporting currency	The currency used to convert functional currency amounts to another currency on inquiries and reports.
Return	A transaction that records the return of merchandise after the invoice for the sale has been posted. Returns are applied to the original invoice (for open item customers) or to the customer’s balance (for balance forward customers).
Roll down	Applies changes you’ve made to a class record to all customer records within the class. For example, if you change the payment terms for the class from Net 30 to 2%-10/Net 30, you can roll down the change to all records in the customer class.
Rounding difference account	A multicurrency posting account that recognizes a difference between debit and credit amounts for originating transaction amounts. The difference might be because of how accounts are split to update posting accounts using the exchange rate for the transaction.
Sales tax detail	See Tax detail.
Sales tax schedule	See Tax schedule.
Sales territory	A division of the regions a company’s products are sold in, separated from other divisions oftentimes by geographical location. In Microsoft Dynamics GP, you can track sales and commissions for each sales territory.
Salesperson	A person who sells a company’s goods or services.
Sample data	Data that you can use to practice Microsoft Dynamics GP procedures by entering the information listed in the online lessons. You can use sample data using the lesson company.
Series	A group of Microsoft Dynamics GP modules that form an interrelated set of applications.
Series posting	A posting process in which marked batches from the same series can be posted simultaneously.
Service/Repair	A document that records the charges for services or repairs provided.
Short name	A shortened version of a customer name that you can print on reports when full names are too long.
Single-use batch	A batch posted only once, then deleted.
Source document code	A code that identifies the type of journal or entry that you can examine for more information about a specific transaction. For example, you could use the source document code BRDEP for Bank Reconciliation deposits.
Splitting commissions	A method of dividing commission amounts or percentages among two or more salespeople.
Spot rate	The exchange rate used for the day.
Standing transaction	See Recurring transaction.
Statement	A record of customer activity including aging period information, the total amount due, and payments received.
Statement name	A name printed on statements that replaces the customer’s name as it appears in the Customer Name field. Statement names often are used to print the customer’s first name first on the statements. For example, the customer name Goodwin, Gayle could be printed as Gayle Goodwin on statements.
Tab-delimited field	The tab-separated ASCII character format used when exporting a report.
Tab-delimited format	A tab-separated ASCII character file format used when exporting a report so that it can be read by programs that use this format.
Table	A collection of related records, such as transactions or accounts. All the accounting information you enter in Microsoft Dynamics GP is stored in tables. Formerly referred to as file or data file.
Tax detail	A definition of each tax that might apply to customers. Tax details are grouped into tax schedules. See also Tax schedule.
Tax schedule	Groups of tax details. When you assign tax schedules to customers, Microsoft Dynamics GP calculates the applicable taxes during transaction entry. See also Tax detail.
Text file (text only)	A file format that saves reports as text without formatting. This option should be used when the application you’re converting the document to is unable to read any of the other file formats.
Text-only format	A file format that saves reports as text without formatting. This format is used when exporting reports to applications that are unable to read other formats available in Dynamics GP.
Trade discount	A discount a customer always receives. The rate is calculated at the time of a sale and is given in addition to any payment terms discounts that also might be offered.
Transaction	An event or condition that is entered in asset, liability, expense, revenue, or equity accounts. Checks and withdrawals are two types of transactions.
Transaction history	A record of the transactions that have been entered and fully paid in Receivables Management. If you’re not keeping history, the paid transaction removal deletes paid transactions from your records.
Transaction-level posting	A posting method in which you can enter and post transactions without having to create a batch. Also known as real-time posting.
Transfer	A transaction used to enter a transfer of funds from one checkbook to another.
Typical balance	Yhe type of balance, either debit or credit, an account has under ordinary circumstances. Asset and expense accounts normally have debit balances, while liability, revenue, and equity accounts normally have credit balances.
Trial Balance	A Receivables Management report that illustrates the outstanding balances and the aging periods for each customer account.
Unapply	A procedure that reverses the entries that applied amounts to documents.
Unrealized gain	Gain because of the difference in exchange rates between the transaction date and the revaluation date for an account with multicurrency activity.
Unrealized loss	Loss because of the difference between the transaction date and the revaluation date for an account with multicurrency activity.
User-defined field	Two fields in the Customer Maintenance window that you can define to track information specific to your business.
VAT (Value-added Tax)	A tax on goods and services used throughout Europe and elsewhere in the world.
Voiding	The process of recording an equal and opposite transaction to undo the effects of a posted transaction.
Waiving	To remove a finance charge that already was assessed.
Warranty	A document that records a service or repair charge covered by a warranty.
Withdrawal	A removal of cash from a checkbook for business or personal use.
Writeoff	A process used to adjust small differences between an invoice amount and a payment.
Year-end closing	The process used to transfer current-year amounts to last-year amounts.
ZIP code	In the United States, the postal code assigned to business and residential addresses. In other countries/regions, it might be referred to as post code or postal code.