General Notation and Terminology

Account 

A class of items for which money or the equivalent is spent or received.

Account Group 

A group of accounts with the same financial and accounting characteristics.

Approved Journal 

A checked and verified journal that is registered in the general ledger

Balance currency 

The base currency that is used in all transactions for the given company or organization.

Client 

A recipient (individual or organization) of goods or services in return for monetary or other valuable considerations.

Client Group / Supplier Group 

A group of clients/suppliers with the same or similar attributes or relations. Account receivable, prepayment and overpayment accounts can be redefined for every group.

Exchange rate 

The rate at which a given currency will be exchanged for a balance currency. Exchange rates are uploaded automatically from the European Central Bank (ECB) on a daily basis. If current rate is not yet available on a given transaction date then the latest available rate will be applied. PayTraq uses indirect quotation for exchange rates - a currency quotation in the foreign exchange markets that expresses the amount of foreign currency required to buy or sell one unit of the domestic currency (balance currency).

Journal ID 

A unique journal number under which the transaction is registered by system in the general ledger. Journal ID consist of a date (YYYYMMDD) and a sequential number within this date.

Journal Type 

A type of operation that is defined at the time of transaction by which journals in general ledger can be categorized and classified.

Offsetting 

A counter settlement of obligations: Sales Invoice <-> Purchase Invoice, Sales Invoice <-> Sales Credit Note, Purchase Invoice <-> Purchase Credit Note. PayTraq uses a transit account to record offset transactions.

Operation Type 

The type of sales/purchase operation that will be used in document form. Depending on the selected type, document item list may include products, services or other records.

Period Lock Date 

The date before which (inclusive) you can not create, edit and delete transactions. Period Lock Date can be applied for the period that does not contain unapproved transactions. If necessary, this date can be rolled back.

Product Name 

A unique name for each product by which the product is distinguished from others.

Product Group / Service Group 

A group of products/services with the same or similar attributes or characteristics. Income, cost of sale and fixed asset accounts can be redefined for every group.

Reconciliation 

The process of ensuring that two sets of records (bank statement lines and journal entries) are in agreement.

Realized Foreign Exchange Gain/Loss 

A difference between the exchange rates at the date of invoice and the date of payment. It is calculated at the time of payment.

Service Name 

A unique name for each service by which the service is distinguished from others.

SKU (Product/Service Code) 

A product stock-keeping unit, a unique identifier for each distinct product and service that can be purchased or sold in business.

Standard cost 

A planned (estimated) cost of the goods that will be applied to the sale to post a journal entry on cost of goods sold. COG account balance will be adjusted when the actual product cost is calculated.

Tax Key 

A key that can be applied to amount for VAT / Sales Tax calculation. It takes part in generation of tax journal entries. A tax key can be implicitly defined for client/supplier and product/service or can be explicitly set for the selected entry directly in the document or journal.

Unapproved Journal 

A journal in the "Waiting for approval" status that requires additional check and verification from accountant or any other responsible person with a special permission. Accounting reports can be filtered by approved journals only.

Unrealized Foreign Exchange Gain/Loss 

A gain or loss that is calculated on revaluation of liabilities and cash accounts in foreign currency. It is calculated on a given date for every business partner and money account balance. Later if a change of document date affects the calculated gain or loss then the affected journal entries will be deleted. Realized foreign exchange gain/loss, in turn, is calculated at the time of payment.

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