documentation/accounting/overview/main_concepts/terminologies.rst

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Accounting Terminologies
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.. glossary::

   Journal

     A journal is like a folder in which you record all transactions
     of the same type: all the statements of a bank account, all
     customer invoices, all supplier bills. It's used to organize
     similar transactions together.

   Payment Terms

     Payment terms describe how and when a customer invoice (or
     supplier bill) should be paid over the time. Example: 30% direct
     payment, balance due in two months.

   Bank Reconciliation

     Bank reconciliation is the process of matching transactions from your bank 
     records with existing journal items or creating new journal items on the
     fly. It is a process of verification to ensure that your bank and your 
     records in Odoo say the same thing.

   Reconciliation

     Journal items reconciliation is the process of linking several
     journal items together like an invoice and a payment. This allows you
     to mark invoices as paid. It is also useful when comparing values of 
     'goods received not invoiced' and 'goods shipped not billed' accounts.

   Deposit Ticket

     Deposit tickets group several payment orders (usually checks)
     that are deposited together at the bank at the same time. This 
     allows an easy reconciliation with the bank statement line if 
     the line has one line per deposit.

   Journal Entry

     A journal entry is an accounting transaction,
     usually related to a financial document: invoice, payment,
     receipt, etc. A journal entry always consists of at least two
     lines, described here as journal items, which credit or debit 
     specific accounts. The sum of the credits of all journal items 
     of a journal entry must be equal to the sum of their debits 
     for the entry to be valid.

   Journal Item

     A line of a journal entry, with a monetary debit or credit
     associated with a specific account.

   Analytic Accounts

     Sometimes called **Cost Accounts**, are
     accounts that are not part of the chart of accounts and that
     allow you to track costs and revenues. Analytic accounts are usually
     grouped by projects, departments, etc. for analysis of a company's 
     expenditures. Every journal item is posted in a regular account 
     in the chart of account and can be posted to an analytic account 
     for the purpose of reporting or analysis.

   Analytic Entries

     Costs or revenues posted to analytic accounts,
     usually related to journal entries.

   Sales Receipt

     A receipt or other slip of paper issued by a store
     or other vendor describing the details of a purchase (amount, 
     date, department, etc.). Sales receipt are usually used
     instead of invoices if the sale is paid in cash in a store.

   Fixed Assets

     Property owned by the company, usually with a useful life greater 
     than one reporting period. Odoo Asset management is used to manage
     the depreciation / amortization of the asset over the time. Typical 
     examples would be capital equipment, vehicles, and real estate.

   Deferred Revenues

     Are used to recognize revenues for sales of 
     services that are provided over a long period of time. If you
     sell a 3 year maintenance contract, you can use the deferred
     revenue mechanism to recognize 1/36 of the revenue every month 
     until the contract expires, rather than taking it all initially 
     or at the end.

   Fiscal Position

     Define the taxes that should be applied for a
     specific customer/vendor or invoice. Example: If some customers
     benefit from specific taxes (government, construction companies,
     EU companies that are VAT subjected,…), you can assign a fiscal
     position to them and the right tax will be selected according to
     the products they buy.