Glossary

This glossary defines terms used in Microsoft Office Accounting 2009, as well as some general accounting terms and computer terms.

To locate a term, click a letter.

To see the definition, click the term.

You can also click Show All to expand the entire list and show all of the definitions or Hide All to collapse the entire list.

A  B  C   D   E  F  G  H   I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z

1099 category

A category for payments to 1099 vendors, set by the federal government. You must report the annual sum of payments to a vendor that exceeds the threshold of the category on tax form 1099-MISC. You may also send 1099-MISC forms to vendors with whom you spend less than the threshold amount in a year.

1099 Category List

One of the Office Accounting 2009 support tables: a list of 1099 categories.

1099 Detail report

A report that lists the details for all payments made to 1099 vendors over the threshold for the category over a selected period of time.

1099 Summary report

A report that summarizes payments made to 1099 vendors during the last calendar year.

1099 vendor

A vendor from whom goods and services worth $600 or more have been purchased within a calendar year. A vendor to whom you send federal 1099-MISC tax forms.

A

account

The type of record — asset, liability, revenue, expense, or owner's equity — traditionally used for recording individual transactions in an accounting system.

account balance

The difference between the debit amount and the credit amount of an account.

account record

The location for storing account information, including information that is entered on the Account form, linked records, and history items.

account register

A list of transactions for a single financial account.

Accountant role

A role in Accounting 2009 that allows full access to all product features except managing users.

accounting

The process of recording, classifying, reporting, and interpreting financial information for a company or business.

Accounts Payable (A/P) accounts

A group of posting accounts that show the amounts owed to suppliers or creditors for goods, supplies, or services purchased on credit.

Accounts Receivable (A/R) accounts

A group of posting accounts that show the amounts customers owe for services or sales made on credit.

accrual basis accounting

The reporting of all accounting activity in the period in which it occurs, regardless of whether cash has been paid or received.

activate

To verify that your software product is a legal copy and is installed in compliance with the Microsoft Software License Terms.

actual balance

The amount equal to the opening balance of an account plus transactions through today's date. The balance today.

adjustment

A change to an account to correct or update the balance. For example, you can adjust the quantity or value of inventory for damaged items by charging cost of goods sold.

aging

The categorization, by time period, of amounts that are due to a company after a specific invoice date or bill date. Common aging periods are under 30 days, 31-60 days, 61-90 days, and so on.

A/P

Accounts Payable. A group of posting accounts that show the amounts owed to suppliers or creditors for goods, supplies, or services purchased on credit.

A/P Aging Detail report

A report that gives an in-depth view of the amounts your company owes its vendors as of a selected date.

A/P Aging Summary report

A report that displays all your company's outstanding debt to vendors by the number of days outstanding as of a selected date.

A/R

Accounts Receivable. A group of posting accounts that show the amounts customers owe for services or sales made on credit.

A/R Aging Detail report

A report that gives an in-depth view of the amounts your customers owe your company at a selected date.

A/R Aging Summary report

A report that displays all the amounts owed to your company, by customer and by the number of days outstanding at a selected date.

asset

Anything owned or controlled by a business, tangible or intangible, that has monetary value and was acquired at a measurable cost.

B

backup file

A file in Accounting 2009 with the extension .sbb that contains a copy of your company's data. A file containing a copy of the program data on your device. This file does not include settings and information stored in read-only memory (ROM), such as factory-installed software. Use your backup file to return your device to its previous state if your device data is damaged or destroyed, or if you clear memory. A backup file can be kept in a remote, secure location for protection from hardware or software failure.

balance

The difference between the debit amount and the credit amount on an account.

Balance Sheet report

A financial report that shows a company's financial position on a particular date, often the last day of the year. The balance sheet shows company assets (resources owned), liabilities (debts owed), and the owner's equity (the difference between assets and non-shareholder liabilities) at a specific point in time.

bank account

A record for a type of financial relationship that a company or person has with a bank.

Bank Charge account

An Expense account for fees your company pays to the bank, for example: checking account fees, transfer charges, or not sufficient funds (NSF) fees for returned checks.

Bank Transactions report

A report that lists all transactions for all your bank accounts over a selected period of time.

Banking Services

Access to a variety of banking products and services through the Accounting 2009Banking menu.

bill

A request for payment from a vendor for products or services sold.

Bill/Item Receipt List

A list, accessed from the Find list on the Vendors home page, on which you can find all bills, item receipts, cash purchases, and vendor credit memos.

box

A space in an on-screen form where you can enter a specific item of information.

budget

A statement that estimates projected income and expenses for a period of time. A tool used to plan and control the use of resources. Budgets also are used to show the business objectives for all or a group of accounts, reflecting company projections for sales and overall growth. Budgets commonly are based on past experience and can be adjusted for future expectations.

Business Services

Access to a variety of business products and services through the Accounting 2009Company menu.

business template

An XML file that you select when creating an Accounting 2009 company to customize the company for your business. A business template sets company preferences and creates specific accounts that are typical for a specific type of business. You can modify these options later if you choose to.

C

Cash account

An account for a category of cash that is not held in a financial institution, such as a Petty Cash account or an Undeposited Funds account.

cash back

An amount of cash you retain when depositing customer payments.

cash basis accounting

An accounting method that recognizes revenues when they are received and expenses when they are paid, as opposed to accrual basis accounting.

cash discount

A discount that is offered to a purchaser for paying early or paying with cash.

Cash Discount Given account

An account that reduces total income for early payment discounts given to customers.

Cash Discount Taken account

An account that reduces the total Cost of Goods Sold account for early payment discounts from vendors, which your company takes when paying bills.

Cash Flow Forecast report

An estimate of future cash flow on particular dates, based on current data or budget data. A tool for projecting future cash balances based on estimated cash receipts and estimated cash disbursements.

Cash Flow Statement report

A financial statement that shows the sources of the cash flowing into your business and the destination of the cash flowing out. The report is divided into Operating Activities, Investing Activities, and Financing Activities.

Cash Purchase form

A receipt for a purchase from a vendor in which the items or services sold are paid for at the time of the sale.

Cash Sale form

A receipt for a sale to a customer in which the items or services sold are paid for at the time of the sale.

Change Log report

A report that displays all changes to the company master records, such as preferences, accounts, customers, vendors, and supporting tables.

Chart of Accounts

A structured list of a company's general ledger accounts.

Chart of Accounts report

A report showing the name, type, and balance for each account.

check

A written order for a bank to pay a sum of money from funds in an account. Checks show the name of the company or individual receiving payment, the signature and account number of the person issuing the check, the payment amount and the current date. Checks usually are numbered in sequence.

Check Detail report

A report that lists all checks issued from your bank accounts over a selected period of time.

class

A classification within a company, such as a department or region. Classes are used to track the transactions, such as sales and expenses, that are generated by each grouping.

Class List

One of the Accounting 2009 support tables: a list of classes.

clear

To turn a setting off or to remove a value.

COA

Chart of Accounts. In Accounting 2009, there is a Chart of Accounts list and Chart of Accounts report.

COD

Collect on delivery. A payment term specifying that payment is to be received when goods or services are delivered.

COGS

Cost of goods sold. The Cost of Goods Sold account tracks the cost of goods, materials, or services entered into inventory and sold.

Collect on delivery (COD)

A payment term specifying that payment is to be received when goods or services are delivered.

company

A commercial organization; a business.

company data file

A file in Accounting 2009 with the extension .sbc that contains all the information for a company.

Company Setup

A feature in Accounting 2009 that gathers information and then sets up your company according to your answers.

consultant

A person who provides expert assistance. You can find an accounting or software professional to help you set up Accounting 2009 through the Resource Center menu.

contra-account

An account that offsets or reduces an account to produce the correct book value.

contract

  1. A written agreement between two or more parties.

  2. A term used in some industries for what Accounting 2009 calls a job.

Cost of Goods Sold (COGS) account

An account that tracks the cost of goods, materials, or services entered into inventory and sold.

Country/Region code

A code for a country/region for online services.

Country/Region List

One of the Accounting 2009 support tables: a list of country/region codes.

credit

An account entry that typically increases liabilities, owners' equity, or income, and decreases assets or expenses.

Credit Card account

An account that tracks credit card purchases, bills, and liabilities.

Credit Card Charge form

A form, accessed from the Banking menu, on which you can enter information about a credit card purchase.

credit card processing

A service offered through Accounting 2009 that authorizes and settles credit card transactions. Authorization verifies that the account is valid and has sufficient funds for the transaction. Settlement transfers the funds.

credit card processor

The company that processes credit card transactions.

credit card transaction

A financial transaction, such as a purchase or charge, that uses a credit card.

credit memo

A document that states an amount for a return or refund. You create a customer credit memo when you are crediting a customer; you create a vendor credit memo when a vendor is crediting you.

credit rating

A level of creditworthiness. The highest rating is usually AAA, and the lowest is D.

Credit Rating List

One of the Accounting 2009 support tables: a list of credit ratings.

creditor

A business or person that lends money or extends credit to another business or person.

current assets

Assets that currently are in the form of cash, or assets that can be sold or consumed within a short period of time, usually one year or less.

current liabilities

Obligations due within a short period of time, usually one year or less, and that will be paid out of current assets.

customer

An individual who expects to gain a business value from the solution. Also, the recipient of a service or product.

customer credit memo

A document that states an amount a company owes a customer for a return or refund.

customer group

A classification of customers that share key characteristics. Customer groups can be used for filtering on reports, but groups can be used outside of reports simply as categoric information about a customer or group of customers.

Customer Group List

One of the Accounting 2009 support tables: a list of customer groups.

Customer form or record

A form or record that shows all the information you need to conduct sales transactions, such as address information, billing and shipping instructions, credit history, and other data for that customer.

Customer List

A list, accessed from the Find list on the Customers or Company home page, on which you can find all customer records.

customer payment

Funds received from a customer to be applied to one or more invoices.

Customer Services

Access to a variety of customer products and services through the Accounting 2009Customers menu.

customer statement

A form that can be sent to customers that includes the customer's balance and amount due for the statement period.

Customer Transaction History report

A report that displays all transactions with your customers for a selected date range.

D

Data Utilities

Accounting 2009 utilities, accessed from the File menu, that you can use to back up and restore all your company data; to attach, detach, rebuild, repair, or delete a company data file; or to specify your server connection.

debit

An entry that typically increases asset or expense accounts and decreases liabilities, owners' equity, or income accounts.

default

A predefined setting. You can accept the default option settings, or you can change them to suit your own preferences.

deposit

Funds added to a bank account.

Deposit Detail report

A report that lists all deposit transactions for your bank accounts for a selected period of time.

direct connect

A method of online banking by which you can pay bills and transfer funds from within Accounting 2009. You can also download bank files directly into Accounting 2009. This method of online banking is also known as two-way banking.

discount

A reduction in the selling price of products or services usually offered by the seller when the buyer agrees to meet specific conditions.

download transactions

To copy records of account transactions from your online bank account into Accounting 2009.

E

earning code

A term used in some businesses for what Accounting 2009 calls a pay type.

Employee form or record

A form or record in Accounting 2009 that includes all the information about an employee.

Employee List

A list, accessed from the Find list on the Employees or Company home page, on which you can find all employee records.

Employee Services

Access to a variety of employee products and services through the Accounting 2009Employees menu.

employee time record

A record in Accounting 2009 that tracks an employee's time by the day (Time Entry form) or by the week (Timesheet form).

equity

The owners' rights or claims to the assets of a business. An owner's interest; the starting or ending balances that reflect your company's net worth. Equity equals assets minus liabilities.

estimate

A term used in some businesses for what Accounting 2009 calls a quote.

expense

A cost incurred by a business in an attempt to obtain revenue. An amount spent on products or services related to your normal business operations, such as phone or rent.

export

To copy your Accounting 2009 company data to a file of a different format for use in a database, a spreadsheet, or another program.

F

federal tax ID

A nine digit number issued by the U.S. government to identify an entity (company or person) at the federal level. The federal tax ID is formatted according to the kind of tax that is reported by the entity (in U.S. government terms, the tax ID type). Examples are employer identification number (EIN), Social Security number (SSN), or taxpayer identification number (TIN).

FIFO

First-in, first-out. An inventory valuation method that assumes that oldest items are sold first. The cost of the oldest item is assigned to the first item sold; the cost of the newest item is assigned to inventory. Other methods are last-in, first-out (LIFO) and weighted average.

filter

A feature you can use to narrow the range of data on a report.

finance charge

A charge to a customer for carrying a balance beyond the payment date for the invoice.

financial statement

A statement of a company's financial state as of the end of a defined period. A financial statement may include an operating statement (an income statement showing the results in terms of profit and loss of normal business activities), a balance sheet (assets and liabilities), and other financial information.

Financing Activities category

A category of the Cash Flow Statement report that lists the sources and uses of cash to run a business, such as long-term liabilities and transactions with owners (equity).

Find list

A list on the left side of each Accounting 2009 home page with links to lists of records specific to that area.

first-in, first-out (FIFO)

An inventory valuation method that assumes that oldest items are sold first. The cost of the oldest item is assigned to the first item sold; the cost of the newest item is assigned to inventory. Other methods are last-in, first-out (LIFO) and weighted average.

fiscal year

A span of time during which the financial activities of an organization are calculated. A fiscal year is divided into fiscal periods, typically defined as semesters, quarters, or months. The organization determines the dates that begin and end its fiscal year, which may not correspond to a traditional calendar year.

fixed assets

Depreciable assets purchased for use by your company, rather than for resale, that are not likely to be converted into cash within a year, such as a piece of equipment or furniture.

foreign currency

Any form of money in public circulation that is not your base (local) currency.

form

A printable document with fill-in blanks, or boxes, for entering information, that may or may not generate a financial transaction. Forms provide a method for collecting and distributing the information electronically. For example, you use a Purchase Order form to order supplies or an Invoice form to request payment.

Form Layouts List

One of the Accounting 2009 support tables: a list of form layouts.

form letter

A custom letter you can send to a number of selected customers, employees, or vendors.

form template

A file that contains the structure and tools for shaping the style and page layout of a form.

G

General Ledger accounts

The collection of accounts that contains a company's complete financial information, from which the financial statement can be derived.

GL

General ledger. The General Ledger accounts are a collection of accounts that contains a company's complete financial information, from which the financial statement can be derived.

GL entry

A journal entry, through which you can enter a business transaction into any account except Inventory Asset accounts. In Accounting 2009, you select a customer to change accounts receivable, select a vendor to change accounts payable, or select a tax code to change sales tax payable.

gross margin

The difference between the total revenue from the sale of goods and the cost of producing the goods. An indicator of a company's efficiency in producing its revenues: sales revenue minus the cost of goods sold. Stated as a percentage, gross margin is the same as gross profit. Other indicators are profit margin and net margin.

gross profit

An indicator of a company's efficiency in producing its revenues: sales revenue minus the cost of goods sold (gross margin), stated as a percentage.

group

A set of records associated with each other for running reports. You can use the support tables to manage groups.

H

Help

Information you can use to learn more about a computer system and how to use it. In Accounting 2009, select an option from the Help menu, or for information about a specific page, form, report, list, dialog box, or wizard, press F1.

home page

  1. In Accounting 2009, the main page within a functional area (Company, Customers, Vendors, Employees, Banking, Online Sales, Reports, or Resource Center).

  2. The start page of a Web site.

I

import

To copy data from word processing, spreadsheet, or database programs into your company data file in Accounting 2009.

income

Revenue from the sale of products and services to your customers.

inventory

A record of the number and value of products purchased or produced for sale.

inventory asset

A product purchased or produced for sale and entered into inventory.

inventory item

A product for which a company maintains a record of quantity and that is reflected in the Balance Sheet report.

Inventory Stock Status by Item report

A report that lists, for each item, the quantity in stock, as well as the reorder point, the quantities on purchase orders and sales orders, and the dates of next deliveries and shipments.

Inventory Valuation report

A report that lists all transactions affecting each inventory item and their impact on the number and value of stock on hand.

Investing Activities category

A category of the Cash Flow Statement report that lists the sources and uses of cash for the purchase of long-term assets, such as fixed assets.

invoice

A request for payment to a customer for products or services sold.

Invoice List

A list, accessed from the Find list on the Customers home page, on which you can find all invoices, cash sales, and customer credit memos.

item

A product or service that a company buys from a vendor or sells to a customer.

item group

A set of items associated with each other because they fit into some common group with respect to the business. Item groups can be used for filtering on reports, but groups can be used outside of reports simply as categoric information about an item or group of items.

Item Group List

One of the Accounting 2009 support tables: a list of item groups.

Item List

A list, accessed from the Find list on the Customers or Vendors home page, on which you can find all item records.

Item Price List report

A report that shows the current price for all your product and service items as of a selected date. It also includes item names, numbers, groups, prices, and comments.

Item Profitability report

A report that calculates the profit margin from the sale of items over a selected period of time.

Item Receipt form

A form to be completed when purchased items arrive. It lists the quantity received for each item.

item tax

A user-defined code that identifies whether, and why, an item your company sells is taxable or non-taxable.

J

job

A sales agreement between a company and a customer. Payment can be based either on a fixed price or on consumption of time and materials. Job fields appear on forms only if you select Use jobs in the Preferences dialog box.

job cost invoice

An invoice that includes time and materials, that is, expenses and items, that have been charged to a job.

Job Estimates vs. Actuals Detail report

A report that compares quoted estimates with invoiced amounts and costs for each item in each job type.

Job Estimates vs. Actuals Summary report

A report that compares quoted estimates with invoiced amounts and costs for each job for customers.

job group

A set of jobs associated with each other because they fit into some common group with respect to the business. Job groups can be used for filtering on reports, but groups can be used outside of reports simply as categoric information about a job or group of jobs.

Job Group List

One of the Accounting 2009 support tables: a list of job groups.

Job List

A list, accessed from the Find list on the Customers or Company home page, on which you can find all job records.

Job Progress Invoices vs. Quotes report

A report that compares the amount invoiced to customers to the amount quoted for jobs.

Job Resell account

An Income account that is applied to an invoice for an item bought for resale on a job.

journal entry (GL entry)

An entry to a company account to record a business transaction.

Journal Entry List

A list, accessed from the Find list on the Company home page, on which you can find all the transactions recorded in your company's accounts using a journal entry.

K

kit

A collection of sale items created for quick entry into forms, such as quotes. Kits are commonly used for a group of related items that are frequently sold together.

L

last-in, first-out (LIFO)

An inventory valuation method that assumes that newest items are sold first. The cost of the newest item is assigned to the first item sold; the cost of the oldest item is assigned to inventory. Other methods are first-in, first-out (FIFO) and weighted average.

late payment

A payment that is received after the invoice's due date.

liability

A debt. Something owed, such as accounts payable, sales taxes, loans, and deferred items. Liabilities equal assets minus equity.

LIFO

Last-in, first-out. An inventory valuation method that assumes that newest items are sold first. The cost of the newest item is assigned to the first item sold; the cost of the oldest item is assigned to inventory. Other methods are first-in, first-out (FIFO) and weighted average.

log file

A file with extension .log that records activity.

Long–Term Liability account

An account that tracks obligations that are scheduled to be paid over periods longer than one year, such as loans or mortgages.

M

match transactions

To update your records by selecting the downloaded online transactions that correspond to those in your account register.

menu

A list of commands that appears when you click a menu name (for example, File, Edit, View, Company, Customers, Vendors, Employees, or Banking) on the menu bar at the top of the Accounting 2009 window.

menu bar

The horizontal bar below the title bar on a window that contains the names of menus.

merge accounts

To combine two active records of the same type (customers, vendors, items, or accounts). After they are combined, they cannot be separated.

migrate

To move data from one software product to another.

Missing Checks report

A report that shows all numbered transactions that are missing from the check sequence for the selected period, arranged by bank account.

N

navigation buttons

Links in the Navigation Pane for the home pages: Company, Customers, Vendors, Employees, Banking, Online Sales, Reports, and Resource Center.

Navigation Pane

The pane on the left side of the Accounting 2009 window that includes the Start a Task list, the Find list, and the navigation buttons.

net margin

The ratio of net income to net sales. The net margin is an indicator of a company's ability to generate income while controlling its operating costs.

non-inventory item

A product that a company buys or sells but for which it does not maintain inventory. A non-inventory item is not reflected in the Balance Sheet report.

NSF check

Not sufficient funds check. A check from an account with a balance insufficient to cover the check amount. Check writers are often charged a fee for NSF checks.

O

Office Manager role

A role in Accounting 2009 that allows full access to all product features, including managing users.

one-way banking

A method of online banking by which you can log on to your bank's Web site from within Accounting 2009 and download bank files to your computer. After you download your bank files, you can import them into Accounting 2009. This method of online banking is also known as Web connect.

online banking

Banking over the Internet. You can set up your bank accounts in Accounting 2009 to work directly with your bank or financial institution.

online payee

A vendor that you pay through online banking.

online payroll

Payroll for Microsoft Office Accounting, an online service that is available by subscription.

opening balance

The balance in each account when a company begins using Accounting 2009 or opens an account.

Opening Balances account

An Equity account containing the offset to account balances as of the start date for your company or for a new account.

opening date

The date on which an opening balance is entered.

Operating Activities category

A category of the Cash Flow Statement report that lists the sources and uses of cash for operations and short-term transactions.

Other Asset account

An account that tracks assets that are neither current assets nor fixed assets, such as long-term notes receivable.

Other Current Assets account

An account that tracks assets that are likely to be converted to cash or used up within one year, such as petty cash, notes receivable due within a year, prepaid expenses, and security deposits.

Other Expense account

An account that tracks amounts spent on products and services outside of normal business operations, such as interest expense on debt.

Other Income account

An account that tracks revenue received for something outside of normal business operations, such as interest income.

Owner role

A role in Accounting 2009 that allows full access to all product features, with responsibility for setting up the company and managing users. This role is assigned to the person who installs Accounting 2009 on the computer.

P

pane

A portion of a software window bounded by and separated from other portions by vertical or horizontal bars and having a separate function.

partial invoice

An invoice that covers only the part of an order that is fulfilled, when the rest is back ordered or will be delivered later.

pay item

A payment or deduction of one type, such as overtime or vacation, on an employee's pay slip. A pay item is categorized by a pay type, which indicates the type of payment or deduction.

pay run

A periodic processing of payroll.

pay slip

The documentation given to the employee every payday that shows each pay item and the calculations for the payment.

pay stub

A term used in some businesses for what Accounting 2009 calls a pay slip.

pay type

A category of pay that is directly linked to an hourly pay rate. Examples of pay types are normal hours, vacation, and sickness. Pay types are set up in the payroll service.

Pay Type List

One of the Accounting 2009 support tables: a list of pay types.

payee synchronization

The process of adding the vendors that you pay through online banking as vendors in Accounting 2009.

payment

A customer payment. Funds received from a customer to be applied to one or more invoices.

Payment List

A list, accessed from the Find list on the Company home page, on which you can find all customer payments.

payment terms

A set of conditions for payment: the due date and the discount, if any, for early payment.

Payment Terms List

One of the Accounting 2009 support tables: a list of payment terms.

payroll

The list of employees and all the information related to paying them: wages, state and federal taxes, FICA, unemployment insurance, and any deductions for health plans, insurance, and other employer-sponsored benefit plans.

Payroll for Microsoft Office Accounting 2009

Services offered through Accounting 2009 to manage and process a company's payroll.

Pending Item Receipts account

A Current Liability account for amounts owed for products or services that have been received before the vendor bill.

permission

An authorization to access an Accounting 2009 feature associated with a role. Roles and permissions ensure that sensitive data is not visible to those who should not view it, and that only authorized users can perform specific business functions.

Physical Inventory Worksheet report

A printable form that can be used to take a physical count of inventory. It lists each item currently in stock and its quantity, according to your company data as of a specific date, and contains spaces in which you can enter a count.

PO

Purchase order. A request from a company to a vendor, usually for purchasing stock items. A purchase order can be sent to the vendor or only used internally by the company.

point of sale (POS)

A place in a business where a customer can pay for a purchase.

POS

Point of sale. A place in a business where a customer can pay for a purchase.

post

To enter a debit or a credit into an account.

Preferences dialog box

Options for customizing Accounting 2009 to best suit the needs of your company. Preferences relate to areas such as accounts, jobs, taxes, numbering on forms, and reminders.

price level

A standard price adjustment for all items sold to a customer, based on a percentage change (plus or minus).

Price Level List

One of the Accounting 2009 support tables: a list of price levels.

product

A physical item for sale or purchase. One of two types of items; the other is a service.

product template

A file that contains the structure and tools for shaping the style and page layout of a Sales Order or a Cash Sale form for a product. Unlike a service template, it has shipping information.

Profit and Loss report

A financial statement that calculates the net income for your business from income, cost of goods sold, and expense accounts listed in the chart of accounts.

profit margin

An indicator of a company's operating success over a period of time, usually expressed as a percentage of earnings to revenues. Other indicators are gross margin and net margin.

profitability

The ability to generate a profit. Profitability is based on a company's ability to generate revenues that exceed the costs incurred producing those revenues and the cost of operating the business over a specified period of time.

Profitability by Customer Detail report

A report that calculates and details the profit margin for each customer for a selected period of time.

Profitability by Customer Summary report

A report that displays the profit made from each customer for a selected period of time.

Profitability by Job Detail report

A report that calculates and details the profit margin for each item in each job your company does for its customers.

Profitability by Job Summary report

A report that displays sale amounts and margins of jobs in dollar and percentage format and grouped by customer.

progress invoice

A partial invoice to a customer for a percentage of work completed on a job.

project

A term used by some businesses for what Accounting 2009 calls a job.

projection

Expected profit or loss for a specific time period that is defined in a budget. During the fiscal period, you can run the Budget for Profit and Loss report to compare projections to actual amounts.

purchase order (PO)

A request from a company to a vendor, usually for purchasing stock items. A purchase order can be sent to the vendor or only used internally by the company.

Purchase Order List

A list, accessed from the Find list on the Vendors home page, on which you can find all purchase orders.

Purchases by Item Detail report

A report that lists the payment status of each item received for a selected period of time.

Purchases by Item Summary report

A report that summarizes item purchases by item type for a selected period of time.

Purchases by Vendor Detail report

A report that lists items received from each vendor for a selected period of time.

Purchases by Vendor Summary report

A report that summarizes items received from each vendor for a selected period of time.

Q

quote

A proposed sales agreement between a company and a customer. When a quote is accepted, the company must follow its terms. In Accounting 2009, an accepted quote can be converted into a sales order or an invoice.

Quote List

A list, accessed from the Find list on the Customers home page, on which you can find all quotes.

R

receive payment

To enter a payment received from a customer for one or more invoices into Accounting 2009.

reconcile

The process of identifying and accounting for differences between a bank statement and the transactions recorded in a company's account register.

Reconciliation Detail report

A report that lists all cleared and uncleared transactions and the book balance as of the statement date, plus all post-statement deposits and checks and the balance as of the current date, for your bank accounts.

record

A computer program's collection of data about a particular thing. A record is made up of fields.

refund

A return of a payment or a credit for an overpayment or a purchase return.

register

  1. A list of the transactions for an account.

  2. To provide your name and contact information so you can receive information about Accounting 2009 updates and special offers from Microsoft.

reminder

A notification you can set up in the Preferences dialog box to appear on your Company home page when you need to perform a task.

reorder point

In Accounting 2009, the point at which a warning symbol appears in the Item List to remind you to reorder inventory items, and a reminder appears on the Company home page if you set it.

Retained Earnings account

An Equity account for balances from income and expense accounts at the close of the fiscal year.

returned check

A not sufficient funds (NSF) check.

revenue

The value received from a third party, such as a customer, when an asset is transferred to that party.

role

A set of permissions for Accounting 2009 functions that are related to jobs, such as the Office Manager role, Owner role, or Salesperson role.

S

Sales by Customer Detail report

A report that lists all items sold, by customer and job, for a selected period of time.

Sales by Customer Summary report

A report that summarizes the total sales made, by customer, for a selected period of time.

Sales by Item Detail report

A report that lists all sales transactions for each item for a selected period of time.

Sales by Item Summary report

A report that summarizes total sales by item for a selected period of time.

Sales by Salesperson Detail report

A report that lists net sales (before taxes) of items by each salesperson for a selected period of time.

Sales by Salesperson Summary report

A report that summarizes each salesperson's total sales to customers for a selected period of time.

sales invoice

A term used in some businesses for what Accounting 2009 calls an invoice.

sales order

A sales agreement between a company and a customer. In Accounting 2009, a sales order can be created from a quote and converted to an invoice. It can be used for a back order and partial invoicing and as a work order in service-based companies.

Sales Order List

A list, accessed from the Find list on the Customers home page, on which you can find all sales orders.

sales tax

A state or local tax on products or services, based on a percentage of the sales price.

sales tax agency

The government institution to which your company pays the taxes you collect from sales to customers.

sales tax code

The rate set by a tax agency as of a specific date that is applied to taxable transactions.

sales tax group

A set of sales tax codes that can be applied to one or more customers.

Sales Tax Liability report

A report that lists sales tax funds collected from customers and owed to each tax agency.

Sales Tax Payable account

A Current Liability account for sales taxes owed.

Salesperson role

A role in Accounting 2009 that allows full access to sales and accounts receivable, purchases and accounts payable, inventory, and other company information, except banking, employee, and payroll records.

sample company

A company data file provided with Accounting 2009, which you can use to familiarize yourself with the product.

saved report

A standard report with custom changes to either the appearance or the content of the data.

service

Work performed for sale or purchase, such as consulting or design. One of two types of items; the other is a product.

service template

A file that contains the structure and tools for shaping the style and page layout of a Sales Order or a Cash Sale form for a service. Unlike a product template, it does not have shipping information.

settle

  1. To apply a payment or credit to an invoice.

  2. To transfer funds to complete a transaction.

shipping method

A means of transport for order deliveries (both sales to customers and purchases from vendors).

Shipping Method List

One of the Accounting 2009 support tables: a list of shipping methods.

shipping term

An agreement for customer payment of shipping and handling.

Shipping Term List

One of the Accounting 2009 support tables: a list of shipping terms.

Standard toolbar

A toolbar that contains buttons you can use to perform some of the most common tasks in a Microsoft Office program, such as opening, saving, and printing files.

Start a Task list

A list on the left side of each Accounting 2009 home page that contains the primary tasks specific to that area.

start date

The earliest date on which you start entering transactions into Accounting 2009, typically the beginning of a fiscal year or the beginning of a month.

statement

A document that summarizes the status of an account.

support lists

Accounting 2009 tables that contain the standard data, for example, groups and terms, you can use to manage sales to customers and purchases from vendors.

system accounts

The basic financial accounts in Accounting 2009, which cannot be deleted or changed: Opening Balances, Accounts Receivable, Accounts Payable, Sales Tax Payable, Cash Discount Given, Cash Discount Taken, Payroll Liability, Undeposited Funds, Bank Charge, Retained Earnings, Pending Item Receipts, Job Resell, Write Off, Employee Expense, and Default Cash.

system administrator

The person who administers the Windows operating system on your computer. The person who installs Accounting 2009 on your computer must belong to the Windows Administrator group on that computer.

T

task

A piece of work. In Accounting 2009, tasks appear on the Start a Task list.

tax agency

In Accounting 2009, the government institution to which your company pays the taxes you collect from sales to customers.

tax code

The rate set by a tax agency as of a specific date that is applied to taxable transactions.

Tax Payable account

A Current Liability account for sales taxes owed.

template

A Microsoft Office Word template, a service template, or a product template.

Time Entry form or record

A form or record of an employee's work hours for one day.

Time Entry List

A list, accessed from the Find list on the Employees home page, on which you can find all employee time entry records.

Time report

A report that shows how your employees are accounting for their recorded hours.

timecard

A term used in some businesses for what Accounting 2009 calls a Time Entry form.

Timesheet form or record

A form or record of an employee's work hours for one week.

title bar

A horizontal bar at the top of a software program window or dialog box that shows the name of the document, program, or dialog box.

toolbar

A horizontal bar at the top of a software program window that contains buttons and options you can use to carry out commands. If a button appears dimmed, the command is unavailable.

transaction

A deposit, a withdrawal, or another exchange that changes the financial position of a business. Transactions are recorded in a journal and are then posted to a ledger.

Transaction Detail by Account report

A report that lists all transactions for each account over a selected period of time and reflects their impact on the account balance.

Transaction Detail by Tax Code report

A report that lists all transactions relevant to taxes over a selected period of time, arranged by tax vendor and tax code.

Transaction Journal report

A report that provides a detailed, chronological view of the events occurring in the general ledger accounts over a selected period of time.

transaction list

A term used in some businesses for what Accounting 2009 calls a register.

transfer funds

To move money from one account to another.

Trial Balance report

A listing of all account balances from the chart of accounts at a specific point in time. Total debit balances must equal total credit balances.

two-way banking

A method of online banking by which you can pay bills and transfer funds from within Accounting 2009. You can also download bank files directly into Accounting 2009. This method of online banking is also known as direct connect.

U

Undeposited Funds account

A Cash account for amounts received from customers but not yet deposited to any other account.

unsettled

Not matched against another document, for example, a customer payment that is not matched to an invoice.

user name

A string of characters that identify a user and, together with a password, allow access to a computer system or sensitive files that are restricted for security.

V

vendor

A person or company from whom your company buys products or services.

vendor bill

A request for payment from a vendor for products and services sold to a company.

vendor credit memo

A document that states an amount a vendor owes your company for a return or refund.

Vendor form or record

A form or record in Accounting 2009 that includes all the information about a vendor.

vendor group

A set of vendors associated with each other because they fit into some common group with respect to the business. Vendor groups can be used for filtering on reports, but groups can be used outside of reports simply as categoric information about a vendor or group of vendors.

Vendor Group List

One of the Accounting 2009 support tables: a list of vendor groups.

Vendor List

A list, accessed from the Find list on the Vendors home page, on which you can find all vendor records.

Vendor Services

Access to a variety of vendor products and services through the Accounting 2009Vendors menu.

Vendor Transaction History report

A report that shows all vendor transactions in a selected time period and calculates the vendor balance.

view

One of the various arrangements or formats for looking at information.

void

To invalidate a posted document. You can view voided documents in a list by selecting the appropriate Current View.

W

Web connect

A method of online banking by which you can log on to your bank's Web site from within Accounting 2009 and download bank files to your computer. After you download your bank files, you can import them into Accounting 2009. This method of online banking is also known as one-way banking.

weighted average

An inventory valuation method that uses an average cost. Item cost is assigned by dividing the total cost by the number of items. Other methods are first-in, first-out (FIFO) and last-in, first-out (LIFO).

wizard

A feature that gathers information and then creates an item, such as a form, based on your information.

Word template

A file that contains the structure and tools for shaping the style and page layout of an Office Word document.

write off

To cancel an amount that is owed, but will not be paid, and transfer it to the Write Off account.

Write Off account

An offset to income for amounts deducted from a total amount owed.

X

(no entries)

Y

(no entries)

Z

(no entries)

Share Facebook Facebook Twitter Twitter Email Email

Was this information helpful?

Great! Any other feedback?

How can we improve it?

Thank you for your feedback!

×