Glossary

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A

Account Budget

Defined for all the account codes except the control accounts and is fixed only on account currency.

Account budgets are defined for budgeting / exercising control actions on the balances without taking the opening balance into account. Account limits are defined for open financial year or financial period.

Account Group

Attribute of an account that allows account codes to be grouped. You can group the accounts under

  • Liability – which refers to the amount owed to others or third parties as on a particular date.

  • Assets – which refers to investment of enduring nature, which enhances a company’s operating ability. This could be tangible or intangible.

  • Capital – which is the total amount invested in the organization.

  • Revenue – which is the 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 – which is the amount incurred by an organization within a given period of time for the purpose of realization of revenue.

Actuals

The actual amounts that have been posted in the selected accounts. Actuals are used for comparison and analysis against the budget amounts.

 

 

 

 

 

 

 

 

 

B

Base Amount

The balance amount in base currency of the company.

Business Function Group (BFG)

Logical grouping of business components that have related business functionality.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C

Currency

The currency in which a transaction takes place / balances are represented.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

F

Finance Book

An entity that holds financial data and acts as a source for the generation of financial statements. A finance book is defined at a level in the organization structure where the company desires to take balance sheets and income statements.

Finance Book Type

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.

Financial Period

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

Financial Statement

A financial statements shows the financial status of a company. A financial statement can be generated for a specific date in a financial year. The following financial statements can be generated by a company - Balance Sheet, Cash Flow Statement and  Income Statement.

Financial Year

The period of time covered by the financial accounts. In Ramco Enterprise Series, 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.

 

 

 

 

 

 

 

 

 

 

 

 

T

Tax Book

Taxes due at the end of a financial year are usually paid based on the calculations made in the tax book of the company.