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GEM Accounts Terminologies

ACCOUNTING - the theory and system of setting up, maintaining and auditing the books of a firm; a detailed report of the financial state or transactions of a person or entity

ACCOUNTS PAYABLE - or AP or Payables; money owed to creditors, vendors, etc.; this current liability account will show the amount a company owes for items or services purchased on credit and for which there was not a promissory note; also referred to as trade payables

ACCOUNTS RECEIVABLE - or AR or Receivables; money owed to a business; a current asset resulting from selling goods or services on credit (on account)

ACCRUAL - accounting in which amounts of money are recorded at the time something is bought or sold, although payments may not yet have been made or received

ADJUSTMENT - the act of adjusting; adaptation to a particular condition, position, or purpose; the act of bringing something into conformity with external requirements

ASSEMBLIES - these are tangible items manufactured such as goods/products (parts) that are gathered together and stocked/stored in warehouses

ASSETS - property with a cash value that is owned by a business or individual

AUDIT - the general definition of an audit is an evaluation of a person, organisation, system, process, enterprise, project or product

BALANCE SHEET - it reports the assets, liabilities and owner's or stockholders' equity at a specific point in time; also referred to as "Statement of Financial Position"

BANK ACCOUNT - is a financial account between a bank customer and a financial institution; a bank account can be a deposit account, a credit card, or any other type of account offered by a financial institution

BAR CODE - is an optical machine-readable representation of data relating to the object to which it is attached. Originally bar codes systematically represented data by varying the widths and spacing of parallel lines, and may be referred to as linear or one-dimensional (1D)

BATCH PROCESSING - is execution of a series of programs ("jobs") on a computer without manual intervention

BUSINESS - (also known as enterprise or firm) is an organization involved in the trade of goods, services, or both to consumers

CASH - a current asset account which includes currency, coins, checking accounts and undeposited checks received from customers and/or clients

CASUAL EARNINGS - or Casual Payment/Income; are the income you get from irregular work; is a non recurring income that is not likely to occur again in a year. It is an income which is earned by chance. Such income is neither anticipated nor provided in any agreement; such incomes are received at certain times.

CHEQUE ACCOUNT - or transactional account; is a deposit account held at a bank or other financial institution for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels

COA - or Chart of Accounts; is a created list of the accounts used by a business entity to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial health of the entity.

COMPANY is an association or collection of individuals people or "warm-bodies" or else contrived "legal persons" (or a mixture of both). Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.

COST - is defined as the cash amount (or the cash equivalent) given up for an asset; includes all costs necessary to get an set in place and ready for use.

CREDIT LIMITmaximum amount of open invoices and orders allowed for the account.

CREDITORis a party (e.g. person, organization, company, or government) that has a claim on the services of a second party; it is a person or institution to whom money is owed.

CURRENCYis an association or collection of individuals people or "warm-bodies" or else contrived "legal persons" (or a mixture of both). Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.

CUSTOMER(sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or other valuable consideration.

DEBTORS is an entity that owes a debt to another entity; the entity may be an individual, a firm, a government, a company or other legal person.

DEDUCTIONS is the act or process of deducting or subtracting.

DEPARTMENTS is a part of a larger organization with a specific responsibility.

DISCOUNTS an amount deducted from the usual list price; any deduction from the nominal value.

EMPLOYEE contributes labour and/or expertise to an endeavour of an employer and is usually hired to perform specific duties which are packaged into a job. Any user that requires access to Gem Accounts must be setup as an Employee. Employees can be found under the People menu. For the purpose of accessing Gem Accounts, all that is required is a Name and under 'System Login & Settings' a role needs to be selected along with a Login username and Password.

ENTITLEMENT is a guarantee of access to benefits based on established rights or by legislation. A "right" is itself an entitlement associated with a moral or social principle, such that an "entitlement" is a provision made in accordance with legal framework of a society. Typically, entitlements are laws based on concepts of principle ("rights") which are themselves based in concepts of social equality or enfranchisement.

EQUITY this is money owed to the owner or owners of a company; also known as owner's equity, risk capital or liable capital.

EXCHANGE RATE (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.

EXPENSE it is an outflow of money to another person or business to pay for an item/goods or services.

FREIGHT or cargo; is goods or produce transported, generally for commercial gain, by ship or aircraft, although the term is now extended to intermodal train, van or truck.

GENERAL LEDGERcontains all the accounts for recording transactions relating to a company's assets, liabilities, owners' equity, revenue, and expenses.

GIFI - General Index of Financial Information

GOODS is a material that satisfies human wants[1] and provides utility, for example, to a consumer making a purchase.

HOLDING ACCOUNTwould be any account set up to do a particular thing; usually is linked to other accounts and then filters money into other accounts for payments/transfers to the right places.

INCOME this term is used in several ways; some use interchangeably with revenues; others signifies as net amount; others use it referring to non-operating revenues such as interest income.

INCOME STATEMENT this is also referred to as the profit and loss statement, P&L, statement of income and the statement of operations; it reports the revenues, gains, expenses, losses, net income and other totals for the period of time shown in the heading of the statement.

INVOICE or bill is a commercial document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.

LABOUR/OVERHEADthis is also known as “operating expense. This is an ongoing expense of an operating business. This is used when grouping expenses that are necessary to the continued functioning of the business but cannot be immediately associated with the products or services being offered.

LETTERHEAD is the heading at the top of a sheet of letter paper (stationery). That heading usually consists of a name and an address, and a logo or corporate design, and sometimes a background pattern. The term "letterhead" is often used to refer to the whole sheet imprinted with such a heading.

LIABILITIES this is an obligation of a company or organization; these are amounts owed to lenders and suppliers; this often have the word payable.

MANAGER a person who has control or direction of an institution, business, etc., or of a part, division, or phase of it.

MARKUP is the difference between the cost of a good or service and its selling price.[1] A markup is added on to the total cost incurred by the producer of a good or service in order to create a profit.

PACKING LISTor shipping list, waybill or packing slip; (also known as a bill of parcel, unpacking note, packaging slip, (delivery) docket, delivery list, manifest or customer receipt), is a shipping document that accompanies delivery packages, usually inside an attached shipping pouch or inside the package itself. It commonly includes an itemized detail of the package contents and does not include customer pricing. It serves to inform all parties, including transport agencies, government authorities, and customers, about the contents of the package.

PART TIMEthese are for people who work less hours than their full-time counterparts within a specific industry, this can vary but is generally less than 16hours per week. Part-time employees within Australia are legally entitled to paid annual leave, sick leave, and having maternity leave etc. except it is covered on a 'pro-rata' (percentage) basis depending on the hours worked each week. Furthermore, as a part-time employee is guaranteed a regular roster within a workplace, they are given an annular salary paid each week, fortnight or month. Employers within Australia are obliged to provide minimum notice requirements for termination, redundancy and change of rostered hours in relation to part-time workers.
PARTS - are basically goods, products and/or tangible items of your company/business.

PAYG - is a system for businesses and individuals to pay instalments of their expected tax liability on their income from employment, business, or investment for the current income year; The system calculates an annual income on the basis of a weekly or fortnightly or monthly payment.

PAYG (F)meaning Pay as you go, Fortnightly. This is the type of deductions taken from employees’ earnings every two weeks after gross.

PAYG (M) - meaning Pay as you go, Monthly. This is being deducted monthly from employees’ earnings after gross.

PAYG (W) - meaning Pay as you go, Weekly. This is the deductions from employees’ earnings received on a weekly basis after gross.

PAYMENTS is the transfer of money from one party such as person or a company to another. Payment is usually made in exchange for the provision of goods, services or both to fulfil a legal obligation.

PAYROLL is the sum of all financial records of salaries of an employee, wages, bonuses and deductions. In accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations.

PAYSLIP or pay check is traditionally a paper document (a cheque) issued by an employer to pay an employee for services rendered. In recent times, the physical pay check has been increasingly replaced by electronic direct deposit to bank accounts. Such employees may still receive a pay slip, but any attached cheque is marked as non-negotiable and cannot be cashed.

PRICEGROUP field that classifies a company for discounts on items. This discount takes priority over Type of Business percentage.

PROFIT it is the difference between the purchase and the component costs of delivered goods and/or services and any operating or other expense.

PROFIT AND LOSS STATEMENTalso referred to as the P&L and the Income Statement.

PURCHASE ORDER  - is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer.

RECEIPTS it is a written acknowledgement that a specified article or sum of money has been received; it records the purchase of goods or service but it is not the same as invoice and is different from revenues.

RECONCILIATION refers to a process that two sets of records (usually the balances of two accounts) to make sure they are in agreement. Reconciliation is used to ensure that the money leaving an account matches the actual money spent, this is done by making sure the balances match at the end of a particular accounting period.
REMITTANCE is a transfer of money by a foreign worker to his or her home country or simply sending amount from one country to another.
REPORTS or account is any informational work (usually of writing, speech, television, or film) made with the specific intention of relaying information or recounting certain events in a widely presentable form.
RFQ - or Request for quotation; is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. RFQ, generally means the same thing as IFB (Invitation For Bid).
ROLES Roles define what a user can and cannot do within the system. Roles can be created under Setup > Company > Roles. Choose 'Add Role' to create a new Role. Enter a name for the new Role and choose the level of access from the options. Click 'Save' to finish.
SALARY is a form of periodic payment from an employer to employee. It is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in stages at fixed intervals, for example, monthly payments of one-twelfth of the annual salary. Salary is also determined by the pay rates and salary ranges established by an individual employer.

SALES a revenue account that reports the sales of merchandise; it is reported in the accounting period in which title to the merchandise was transferred from the seller to the buyer.
SALES ORDERsometimes abbreviated as SO, is an order issued by a business to a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways.
SERVICES is an intangible commodity; is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased; The benefits of such a service, if priced, are held to be self-evident in the buyer's willingness to pay for it.
SIC or Standard Industrial Classification; is a system for classifying industries by a four-digit code. Established in the United States in 1937, it is used by government agencies to classify industry areas. The SIC system is also used by agencies in other countries, e.g., by the United Kingdom's Companies House.
SUPPERANNUATION refers to the arrangements which people make in Australia to have funds available for them in retirement. In Australia, superannuation arrangements are government-supported and encouraged, and minimum provisions are compulsory for employees.
TAXES is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law.

TERMS number of days within which invoices have to be paid.
THRESHOLD the level of income or money earned above which people or companies must pay tax, or must pay a higher rate of tax; amount for invoices to be sent out.
TIME CARD  - (or time sheet) is a method for recording the amount of a worker's time spent on each job.
TRIAL BALANCEis a list of all the General ledger accounts (both revenue and capital) contained in the ledger of a business. This list will contain the name of the nominal ledger account and the value of that nominal ledger account.
VENDOR or a supplier, in a supply chain is an enterprise that contributes goods or services in a supply chain. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain.
VOUCHER is a bond which is worth a certain monetary value and which may be spent only for specific reasons or on specific goods. Examples include (but are not limited to) housing, travel, and food vouchers. The term voucher is also a synonym for receipt and is often used to refer to receipts used as evidence of, for example, the declaration that a service has been performed or that an expenditure has been made.
WAGE - is remuneration paid by an employer to an employee. This is calculated as a fixed task based amount or at an hourly rate; or based on an easily measured quantity of work done.
WAREHOUSES is a commercial building for storage of goods; are locations where stock is kept. Warehouses can be created and managed under Setup > Company > Warehouses
WAYBILL is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods; typically it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route.
WORK ORDERor job order (sometimes job ticket or work ticket, as it often has some type of ticket attached) is an order received by an organization from a customer or client, or an order created internally within the organization. A work order may be for products or services.