Glossary

Glossary – Organization Setup

Bank Clearing No	The unique number allotted to the bank by the central bank of the country. This number is used while carrying out inter-bank transactions at a check clearing center.
Bank Reference	A unique number identifying a bank.
Bank Type	A bank could be of many types. For example “Foreign”, “Local” and so on.
Base Currency	The base currency in which a company maintains its finance books. Most of the company’s transactions will take place in the base currency and hence it establishes a restriction over the company to transact in a different currency. When there is a necessity for the company to transact in a different currency, the transaction amount would be automatically converted to the base currency using appropriate exchange rate.
Business Function Group (BFG)	It’s the logical grouping of business components that have related business functionality.
Business Unit / BU	A logical division of an organization having similar sets of policies and procedures. A business unit could be an operations entity made up of a set of closely inter-dependant organization units which have significant commonality in terms of materials used, manufacturing resources, operational control, planning, policy setting etc.

Child Company	A company, which is controlled by a parent company and is present at a lower level in the company hierarchy.
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 Enterprise Series 4.0 can operate. It can also be treated as a legal entity, which can independently co-exist without any transacting relationship.
Currency Denominations	The denominations, which are defined for a currency. For example, Dollars are available in the denominations of 1, 5, 10, 20, 50, 100 and so on.
Currency Sub Units	The number of smaller units of denomination, which when grouped together forms one unit of a currency. For example, “Cents”, “Quarters”, “Dime” could be the sub units of a US Dollar.
Currency Symbol	The symbol identifying the currency as defined by the International Standards Organization (ISO).

Deployment

The installation of an entity or business component in an organization unit.

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 generate balance sheets and income statements.

Finance Book Types

There are three different types of finance books – Posting finance book, Main finance book and Consolidation finance book

Posting finance book is the entity in which the financial transactions are captured. A company must have at least one posting finance book.
Main finance book is the entity in which the transactions of the posting finance books are consolidated. A company must have a unique main finance book.
Consolidation finance book is the entity in which the main finance books of the child companies are consolidated. A group company must have a unique consolidation finance book.

Group Company

A company with one or more child companies. Group companies are used to ascertain the financial position of a group of companies.

Identifier

A unique reference by which a company or product is identified in the collaborative business environment. These identifiers expedite the alignment of business process between trading partners. Identifiers can be created for locations, tax identification reference, company identification reference or supply chain reference.

For example, the company identification number could be the nine-digit D-U-N-S number, a worldwide standard for company identification, which is used for distinguishing unique business locations around the globe. This number is assigned and maintained by Dun and Bradstreet (D&B). The product identification number could be the 14-digit GTIN number using an EAN / UCC company prefix which is globally unique to a manufacturer or a supplier. This number is used to identify the product instead of using the internal item code.

ISO Country

The country that has been defined adhering to the standards set by the International Standards Organization (ISO).

ISO Currency

The currency adhering to the standards defined by the International Standards Organization (ISO).

Login Organization Unit	The login ID of the organization unit that is currently active in the application.
Logistics Organization (LO)	A higher-level operational entity with multiple business units. A logistics organization could be a step above the company in the hierarchy level or it could be on the same level as that of the company. Most commonly used information like that of the customer, supplier or inventory could exist in this level.

Numeric ISO Currency

The numeric depiction of a currency adhering to the standards defined by the International Standards Organization (ISO).

Organization Unit

A combination of business function and role. Organization units are defined on the basis of the organization structure, which defines the responsibilities of various roles in an enterprise.

Parallel Base Currency	The additional currency in which the company’s finance books can be maintained. This currency is maintained based on the requirement of the parent company. This is helpful for reporting and consolidating.
Parent Company	A company, which has a controlling, interest in another company through a majority shareholding. This company must have subordinate / child companies under it in the company hierarchy.
Permitted Currencies / Assigned Currencies	The currencies other than the base currency and the parallel base currency that has been assigned to a company in which the transactions can take place.

Registered Office	The official business home of a company in which the company records for public inspection is maintained.
Registration Date	The date on which the company was chronicled with the statutory authorities of the home country.

Segment

A logical grouping of various posting finance books, which facilitates MIS reports generation.

Segment Type

A segment could be of two types – a business segment and alternate segment.

Business segment is a logical grouping of finance books for a product or geography. A finance book can be a part of only one business segment.
Alternate segment is similar to a business segment. An organization can have multiple alternate segments. A finance book can be a part of multiple alternate segments.

SWIFT No

The unique number used while carrying out transactions with international banks. This SWIFT number is necessary during file transfer of payments and receipts.