MB-310 flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Chart of accounts

A structured list of main accounts used by an organization, shared across legal entities, with account structures and advanced rules defining valid main account and financial dimension combinations.

Account structure

Defines valid main account and financial dimension combinations for a ledger; it must include the main account and at least one dimension and can be active for multiple legal entities.

Posting profile

A setup that maps a transaction type, such as a customer or vendor posting, to specific ledger summary accounts for a legal entity, controlling how subledger entries post to the general ledger.

Financial dimension

A data element such as department or cost center attached to ledger accounts, used to analyze transactions and combined into dimension sets and account structures.

Intercompany accounting

Setup that posts balancing due to and due from entries when transactions cross legal entities; it requires intercompany account pairs and relationship chains between legal entities.

Fiscal calendar

A ledger calendar of periods and years used for posting and reporting; a legal entity can share a calendar or use a unique one with its own period statuses.

Ledger settlement

A process that settles ledger transactions against each other, such as correcting a posting, and posts penny differences to defined ledger accounts without altering subledger records.

Customer posting profile

Defines the ledger summary accounts used when customer transactions post, including receivables, cash discount, write-off, interest, and collection letter accounts for a legal entity.

Terms of payment

Setup that determines due dates and cash discount calculations on customer and vendor invoices, including payment days, day-of-month rules, and installment schedules.

Credit limit check

A control that compares a customer's balance plus new transaction amounts to the credit limit and raises a warning or error based on credit management parameters.

Aging period definition

Configuration of aging buckets, such as 30, 60, and 90 days, used to classify overdue customer balances in aging snapshots, collection letters, and collections reports.

Collection letter

A document generated from a collection letter sequence, using aging balances and fee or interest codes, to notify customers about overdue receivables.

Recurring free text invoice

A subscription billing template that generates free text invoices on a defined recurrence, with start and end dates, invoice amounts, and a posting profile.

Customer payment journal

A journal used to record customer payments, which can be posted directly or matched to open invoices through settlement, and can generate cash discount postings.

Three-way matching

Vendor invoice matching that compares purchase order, product receipt, and invoice quantities and prices before posting, controlled by vendor matching policy and tolerances.

Invoice total tolerance

The allowed difference between the invoice total and the expected purchase order total; exceeding the tolerance prevents posting or requires approval workflow.

Payment proposal

A batch process that selects vendor invoices eligible for payment based on due date, cash discount, and method of payment, producing a payment journal for review and posting.

Vendor prepayment

A payment made to a vendor before goods or services are received, recorded against a prepayment ledger account and later applied to vendor invoices.

Expense management policy

Rules applied to expense reports, such as category limits, per diem, mileage rates, receipt requirements, and violation handling, evaluated during expense entry and approval.

Positive pay

A bank fraud-prevention file that lists issued checks and their amounts so the bank can reject presented items that do not match the submitted list.

Budget model

A container that groups budget register entries and budget codes, used to track and report budgets separately, for example original budget versus revised budget.

Budget control

Configuration that checks available budget before posting or approving transactions and blocks or warns when budget funds available would fall below zero.

Budget funds available

Calculated as original budget plus budget revisions plus actual expenditures plus encumbrances; budget control compares this amount to the transaction being submitted.

Budget register entry

The record used to enter budget amounts, transfers, or revisions against a budget model, budget code, and financial dimensions, and then update budget balances.

Budget planning process

A workflow-driven cycle of budget plan stages and scenarios that lets organizations collect, review, approve, and transfer budget plans into budget register entries.

Budget transfer

A budget register entry with a transfer budget code that decreases budget on one dimension combination and increases it on another within the same budget model.

Depreciation profile

Defines the depreciation method, such as straight line or declining balance, and the convention used to calculate periodic depreciation for fixed asset books.

Depreciation convention

Determines how much depreciation is taken in the first and last periods of an asset's life, for example half-year, full month, or mid-quarter.

Fixed asset book

A set of depreciation settings for an asset, including depreciation profile, service life, and convention; an asset can have multiple books with different settings.

Asset acquisition journal

A fixed asset journal entry that records the cost of a new asset and posts it to the acquisition ledger accounts defined in the fixed asset posting profile.

Straight line depreciation

A method that spreads depreciable cost, the acquisition cost minus salvage value, evenly across the asset's service life in each depreciation period.

Asset disposal

A transaction that removes an asset and its accumulated depreciation from the books, calculating gain or loss against the asset's net book value.