Glossary

Account Classification	The standard category/classification of accounts. Various types of account classifications are: Balance Sheet Income Statement Retained Earnings Example: If an account has been defined to capture vendor transactions, then this would be classified under balance sheet.
Account Code / Account / Account Number	The code identifying an account in the general ledger system to which all the transactions are posted.
Account Group	Attribute of an account that allows account codes to be grouped. Various types of account groups are: Liability – refers to the amount owed to others or third parties as on a particular date. Assets – refers to investment of enduring nature, which enhances a company’s operating ability. This could be tangible or intangible. Capital – total Amount invested in the organization. Revenue – amount realized from business transactions like Sale of goods or Sale of services and so on. This could be in the nature of Normal or extra ordinary items. Expenditure – amount incurred by an organization within a given period of time for the purpose of realization of revenue.
Account Level	The level of an account in the Reporting chart of account structure. This is applicable only in case of Multi – Level Reporting Chart of Accounts. The maximum number of levels that can be created in a chart of accounts is 99.
Activate	Activate financial year. Activate tax year. Activate financial period. Activate tax period. Activate an inactive chart of accounts. Activate an inactive account code. Activate an inactive reporting chart of accounts. Activate an inactive reporting account code
Attach	Indicates the association of an entity to another. Attach a financial or a tax calendar that has been defined for a company to other companies. Attach a chart of accounts to a company. Attach operative account codes to “Posting” finance books. Attach a reporting account code to an operative account code. Attach reporting chart of accounts to companies. Example: An operative chart of accounts that has been defined on a company can get attached to another company, say its child company. In this case, the child company can post data to the chart of accounts. Any modifications to the chart of accounts by the child company are not permitted.
Automatic Posting Account Type	Accounts in which, the financial entries made, are automatically cleared by the system. Various automatic posting account types are: Example: While receiving goods, an entry is made in the “Stock Suspense” for booking the inward stock. This entry is cleared automatically, once the goods undergo quality inspection and acceptance.

Chart of Accounts Type	Two types of chart of accounts: Operative chart of accounts – structure containing various account codes through which transactions can be recorded. Reporting chart of accounts – account that allows you to interpret the important financial information of a company by logically grouping the various accounts in which postings have been made.
Company	A commercial organization, which conducts a business. It can be an entity defined in any level of the company hierarchy, for which the Ramco iEnterprise Series 4.0 can operate. It can also be treated as a legal entity, which can independently co-exist without any transacting relationship.
Consolidation Account Code	The code identifying the account into which the consolidation of the accounts takes place. The accounts of child level companies are merged to a consolidated account code of its immediate parent, thus forming a hierarchy/group of companies.
Control Account Type	Allows specification of transactions that can be posted to an account. When an account is defined to be of a control account type, the transactions that must be posted into the account are channeled through the relevant business component. Example: An account in which the supplier transactions are posted can be of control account type “Supplier Payable”, “Supplier Prepayment” or “Supplier Deposit”.
Copy	Copy operative chart of accounts to a company. Copy reporting chart of accounts to a company. Example: An operative chart of accounts can be copied from one company to another, say from COMP1 to COMP2. Unlike the process of attaching, both COMP1 and COMP2 are permitted to modify the details of the chart of accounts.
Currency	The code identifying the currency in which a transaction takes place.

Detach

Detach a financial or a tax calendar that has attached to a company.
Detach a chart of accounts that has been attached to a company.
Detach operative chart of account codes from the “Posting” finance book.
Detach a reporting account code from an operative account code.
Detach reporting chart of accounts from companies.

Effective Period

The period in which the accounts are valid. Effective periods are defined to exercise control over accounts and restrict the account’s usage to a specific time.

Finance Book	An entity that holds financial data and acts as a source for the generation of financial statements. Finance book definition is based on the level at which the company desires to take balance sheets and income statements.
Financial Calendar	A financial calendar is termed as a combination of a financial year and its associated financial periods. Financial calendars are crucial for an accounting system because ALL accounting transactions are identified by the dates that are subsequently identified by the financial year and its dependent financial periods.
Financial Period	A period for which a business draws up its accounts. In Ramco Enterprise Series 4.0, it refers to the accounting year for which the financial periods exist.
Financial Year	The period of time covered by the financial accounts. In Ramco Enterprise Series 4.0, it refers to the periods defined for a financial year. All the accounting entries are passed in accordance with this period of a financial year.
Frequency	The frequency or time period for which the financial periods are defined. Some commonly specified frequencies are: Fortnightly Monthly Quarterly Half-yearly Frequencies can also be customized according to the user’s requirements.

Inactivate

Inactivate financial year.
Inactivate tax year.
Inactivate financial period.
Inactivate tax period.
Inactivate an active chart of accounts
Inactivate an active account code
Inactivate an active reporting chart of accounts.
Inactivate an active reporting account code

Journal Voucher Type

Three types of journal vouchers are:

Regular – indicates that the voucher is used for recording non-bank / cash transaction like transfers, rectifications, provisions or adjustments.
Reversal – indicates that the voucher needs to be automatically reversed in the specified open financial period.
Memorandum – indicates that the voucher has been created to simulate and view its impact in the books of accounts.
Recurring – indicates that the voucher is posted to record transactions which are recurring in nature.

Layout Heading

The heading describing a particular part of a financial statement. Accounts are mapped to a layout heading so that their details would appear under the specified layout heading in the financial statement.

Various layout headings are available for the following statements:

Balance Sheet
Income Statement
Cash Flow Statement

It is mandatory to map all operative account codes to Default Layout heading (predetermined headings) for the purpose of viewing Default Financial statements.

Legacy Period

Indicates a period in which migration from an old system to the new system has happened in the middle of a financial year and this period has already been completed in the earlier system. It is legacy/completed period with respect to the new system.

Operative Chart of Accounts

A structure containing various account codes through which transactions can be recorded.

An operative chart of accounts is created as an individual and unique entity and attached/copied to a company.

Parent Account	A reporting account under which accounts of similar types are classified. The structure of parent account and its child accounts can be treated as a single logical entity.
Posting Account Code	The code identifying the operative account to which the financial transactions of particular types are posted.

Reporting Chart of Accounts

An account that allows you to interpret the important financial information of a company by logically grouping the various accounts in which postings have been made.

The reporting chart of accounts is a structure, which can be defined specific to a country or to an industry, or could be defined as a multilevel structure.

Tax Calendar

A tax calendar is created for statutory purpose of publishing tax reports. A tax calendar is a combination of a tax year and its associated tax periods.

Even if a tax year is the same as the financial year, it must be defined separately. Once a tax calendar is defined for a company, it can be referred by all the other business components that are required to make tax postings.

Tax Period

A period for which a business draws up its accounts. In Ramco Enterprise Series 4.0, it refers to the accounting year for which the tax periods exist.

Tax Year

The period of time covered by the financial accounts. In Ramco Enterprise Series 4.0, it refers to the periods defined for a tax year. All the accounting entries are passed in accordance with this period of a tax year.