Key terms and concepts for procurement, document processing, and AI automation in Microsoft Dynamics 365 Business Central.
Accrued Expenses, Days Payable Outstanding (DPO), Days Sales Outstanding (DSO), Dunning, Early Payment Discount, Goods Received Not Invoiced (GRNI), Invoice Exception, Maverick Spend, PO Flip, Procure to Pay (P2P), Purchase Requisition, Remittance Advice, Segregation of Duties (SoD), Self-Billing, Spend Under Management, Straight-Through Processing (STP), Touchless Invoice Processing, Two-Way Matching
Account Schedule, Accounting Period, Aged Accounts Payable, Aged Accounts Receivable, Bank Reconciliation, Cash Receipt Journal, Chart of Accounts, Currency Exchange Rate, Customer Ledger Entry, Deferral, Dimensions, Financial Reports, Fixed Asset, G/L Budget, General Journal, General Ledger, Intercompany Transactions, Payment Journal, Payment Terms, Posting Date, Posting Group, Posting Preview, Recurring Journal, Reversing Entry, Trial Balance, Vendor Ledger Entry
Approval Workflow, Blanket Order, Drop Shipment, Goods Receipt, Incoming Documents, PunchOut Catalog, Purchase Credit Memo, Purchase Invoice, Purchase Order, Purchase Prepayment, Requisition Worksheet, Three-Way Matching, Vendor (Supplier)
Customer, Customer Price Group, Payment Discount, Payment Method, Reminder, Sales Credit Memo, Sales Order, Sales Quote, Sales Return Order, Salesperson, Shipment Method
Adjust Cost - Item Entries, Bin, Costing Method, Item Charge, Item Journal, Item Ledger Entry, Item Reference, Item Tracking, Item Variant, Location Code, Physical Inventory Journal, Reordering Policy, Safety Stock, Stockkeeping Unit, Transfer Order, Unit of Measure, Value Entry, Warehouse Receipt, Warehouse Shipment
Assembly Order, Item Category, Production BOM, Production Order, Routing, Work Center
Default Dimension, Dimension Set Entry, E-Document, Reverse Charge VAT, Shortcut Dimension, VAT Posting Setup, VAT Registration No.
AL Extension (Business Central App), API Page, Configuration Package, Job Queue Entry, Number Series (No. Series), OAuth 2.0 Delegated Access, Permission Set, Role Center
cXML (Commerce XML), Document Capture (OCR), EDI (Electronic Data Interchange)
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An account schedule is a user-defined report layout in Business Central that turns G/L balances into rows and columns, for example a balance sheet.
An accounting period is one posting period of a fiscal year in Business Central, usually a month, with the first period of the year flagged as a new fiscal year.
Accrued expenses are costs incurred in a period but not yet invoiced, recognised through a journal entry so the period reflects the true cost.
Adjust Cost - Item Entries is the Business Central batch job that carries later cost changes through to related item entries so inventory value is correct.
Aged Accounts Payable is a report listing open vendor balances at a chosen date, split into aging buckets such as current, 1 to 30 days and 31 to 60 days.
Aged Accounts Receivable is a report listing open customer balances at a chosen date, grouped into aging buckets such as current, 1 to 30 and 31 to 60 days.
A custom application built in the AL programming language that extends Business Central functionality.
An API page is a Business Central page object of type API that exposes a table as a JSON REST endpoint, used by integrations instead of the user interface.
Business Central's built-in system for routing purchase orders and invoices through configurable approval chains before posting.
A lightweight order type in Business Central that combines components into a finished item using an assembly BOM, without the full manufacturing module.
The process of matching bank account ledger entries in Business Central against the bank statement, done on the Bank Acc. Reconciliation page.
A bin is the smallest storage place inside a Business Central location, identified by a bin code, with quantities tracked per item in bin contents.
A framework agreement with a vendor for recurring purchases over time, used to lock in prices and terms for multiple deliveries.
The Business Central journal for registering incoming customer payments and applying them to open sales invoices.
The structured list of general ledger accounts in Business Central that categorizes all financial transactions.
A configuration package defines tables and fields you export to Excel, fill in and import back, to load master data and setup into a Business Central company.
The Costing Method field on an item tells Business Central how to value outbound movements: FIFO, LIFO, Specific, Average or Standard.
A currency exchange rate is a dated record telling Business Central how to convert a foreign currency amount into local currency when a document is posted.
A Customer is the Business Central master record for a buyer, holding the address, posting groups, payment terms and credit limit used on every sales document.
The transaction record in Business Central tracking every posted invoice, payment, and credit memo for a customer, where open entries show what is still owed.
A Customer Price Group in Business Central gathers customers who share the same negotiated sales prices, so prices are maintained once per group, not per customer.
An XML-based protocol for B2B e-commerce transactions, commonly used in traditional PunchOut catalog integrations.
Days Payable Outstanding is the average number of days a company takes to pay suppliers: accounts payable divided by cost of sales, times days in the period.
Days Sales Outstanding is the average number of days taken to collect payment after a sale: accounts receivable divided by revenue, times days in the period.
A Default Dimension is a dimension value that Business Central copies automatically onto documents and journal lines for a given customer, vendor, item or account.
A Business Central feature that spreads revenue or expense over the periods it belongs to, using deferral templates and schedules.
A Dimension Set Entry is one dimension code and value inside a dimension set, the combination a line or entry points to through its Dimension Set ID.
Tags applied to BC transactions for multi-dimensional analysis, such as department, project, or cost center.
The process of extracting structured data from documents (invoices, receipts) using AI or OCR technology.
A Business Central flow where your vendor ships goods directly to your customer, handled through a linked sales order and purchase order.
Dunning is the structured escalation of payment reminders sent to customers with overdue invoices, from a polite notice to fees, interest and collection.
The Business Central framework for sending and receiving structured electronic invoices in formats such as PEPPOL BIS, XRechnung, and Factur-X.
An early payment discount is a price reduction a supplier grants when an invoice is paid before its due date, commonly expressed as terms such as 2/10 net 30.
A standard for exchanging business documents (POs, invoices, shipping notices) between trading partners electronically.
Business Central's built-in report builder for P&L, balance sheet, and other G/L statements, combining reusable row and column definitions.
A long-lived asset tracked on a Fixed Asset Card in Business Central, with depreciation books controlling how acquisition and depreciation are posted.
A G/L budget is a named set of expected amounts entered per G/L account and period; it posts nothing and is used only for comparison with actual figures.
The General Journal is the Business Central page where you post balanced transactions straight to general ledger, customer, vendor, bank or fixed asset accounts.
The core accounting record in Business Central where all financial transactions are ultimately posted and stored.
The process of recording received items against a purchase order in Business Central, updating inventory and triggering accruals.
Goods received not invoiced is the accrued liability for deliveries already received but not yet billed, held in an interim account until the invoice arrives.
A Business Central feature that stores received files like vendor invoices and turns them into documents or journal lines, keeping the file linked to the posted result.
Transactions between related legal entities in Business Central, automatically creating corresponding documents in the partner company.
An invoice exception is a supplier invoice that fails automatic matching or validation and has to be routed to a person before it can be approved and posted.
An item category is a hierarchical grouping used in Business Central to classify items, carry attributes and filter lists, independently of posting groups.
A Business Central mechanism that adds costs like freight, customs, or insurance to the inventory value of items you bought or sold.
The Item Journal is the Business Central page used to post inventory quantity and cost changes that do not come from a purchase, sales or production document.
An item ledger entry is the record Business Central creates for each posted quantity movement of an item: receipts, shipments, transfers and adjustments.
A cross-reference in Business Central that maps external product codes (vendor SKUs, barcodes) to internal BC item numbers.
Business Central's system for assigning and tracking serial numbers, lot numbers, and package numbers on items.
An item variant is a version of an existing item, for example a colour or a size, that shares the item number but whose stock is tracked separately.
A Payment Discount is the reduction a customer or your company may deduct when an invoice is paid before the discount date defined by the payment terms.
The Business Central journal for paying vendors, with automatic payment suggestions, application to open invoices, and payment file export.
A Payment Method code in Business Central records how a customer or vendor settles a document, and can post the settlement automatically through a balancing account.
Codes defining when and how vendor invoices must be paid, such as Net 30 or 2/10 Net 30, configured on vendor cards.
A permission set is a named group of read, insert, modify, delete and execute rights on Business Central objects, assigned to users to control what they can do.
The Physical Inventory Journal is where you compare the quantity counted in the warehouse with the quantity Business Central calculated, then post the difference.
A PO flip is the conversion of an existing purchase order into the supplier invoice, so the invoice reuses the order data instead of being keyed in again.
The date that decides which accounting period a Business Central transaction lands in, distinct from the document date and the VAT date.
Setup records in Business Central that determine which G/L accounts a transaction is posted to, based on who and what is involved.
Posting Preview simulates a posting and shows the ledger entries it would create, then rolls everything back so nothing is actually posted.
Procure to pay is the end to end cycle that runs from identifying a need to paying the supplier invoice, covering requisition, order, receipt, invoice and payment.
A production BOM is the certified list of components and quantities needed to make one unit of a manufactured item in Business Central.
A production order is the Business Central document that plans and records the manufacture of a quantity of an item, from component consumption to finished output.
A supplier's online catalog that connects to a buyer's ERP system via cXML or OCI protocol, allowing direct cart data transfer.
A document used to reverse or correct a posted purchase invoice, handling returns, price adjustments, or billing errors.
A document recording a vendor's bill for goods or services received, used for accounts payable processing in Business Central.
A formal document sent to a vendor to order goods or services, with agreed quantities, prices, and delivery terms.
An advance payment made to a vendor before goods or services are delivered, tracked against the purchase order in BC.
A purchase requisition is the internal request to buy something, raised by the person who needs it and approved before a buyer turns it into a purchase order.
A Business Central general journal whose lines persist after posting, used for repeating entries with recurring methods, frequencies, and allocations.
A Reminder in Business Central is a document that lists a customer's overdue invoices and can add reminder fees or interest according to a reminder terms setup.
A remittance advice is the note a payer sends with a payment telling the supplier which invoices, credit notes and deductions the transferred amount covers.
Reordering Policy is the field on an item or stockkeeping unit that tells Business Central which planning method to use when it proposes replenishment.
A planning tool in Business Central used to create purchase suggestions and consolidate demand before issuing purchase orders.
Reverse Charge VAT is a VAT calculation type where the buyer accounts for the tax instead of the vendor charging it on the invoice.
A reversing entry is an equal and opposite posting that cancels an earlier journal posting in Business Central while keeping both entries visible for audit.
The Role Center is the home page a Business Central user lands on after signing in, built from a profile and showing the tiles, lists and links for that role.
A routing is the ordered list of operations, work or machine centers and times that Business Central uses to schedule and cost the manufacture of an item.
Safety Stock Quantity is the buffer quantity Business Central adds to demand so that planning keeps a reserve against demand peaks and late deliveries.
The Business Central document that corrects or refunds a posted sales invoice, reversing revenue, VAT, and the customer balance.
A Sales Order records what a customer buys in Business Central. It posts in two steps: the shipment reduces inventory, the invoice creates the receivable.
A Sales Quote is a non-posting offer to a customer in Business Central that can be turned into a sales order or a sales invoice once the customer accepts.
A Sales Return Order is the Business Central document used to take goods back from a customer and credit them, posting a return receipt and a sales credit memo.
A Salesperson code in Business Central identifies the person responsible for a customer or a document, and carries onto entries for commission and sales analysis.
Segregation of duties splits a business process so that no single person can create, approve and pay a transaction without a second pair of hands.
Self-billing is an arrangement where the buyer issues the invoice for a supply on the supplier's behalf, under a prior agreement between the two parties.
Shipment Method is a code on customers, vendors and sales documents stating the delivery terms, for example EXW or DAP. It carries no posting logic of its own.
Shortcut Dimensions are the up to eight dimensions Business Central shows as direct fields on journal and document lines instead of behind the Dimensions page.
Spend under management is the share of total third party spend that procurement actively governs through contracts, preferred suppliers and a defined channel.
A stockkeeping unit is a per location, and optionally per variant, version of an item card holding its own replenishment, planning and lead time settings.
Straight-through processing means a transaction moves from initiation to settlement entirely by system rules, with people involved only when a rule rejects it.
A verification process that compares the purchase order, goods receipt, and vendor invoice to ensure accuracy before payment.
Touchless invoice processing means a supplier invoice is captured, matched, approved and posted without a person typing or clicking on it.
A transfer order moves inventory between two locations of the same company, through an in-transit location, with a separate shipment posting and receipt posting.
A trial balance lists every G/L account with its debit and credit movement and closing balance for a period, with total debits equal to total credits.
Two-way matching checks a supplier invoice against its purchase order alone, comparing price and quantity ordered, with no separate proof of delivery.
A value entry carries the amount of an inventory movement: expected cost, actual cost, adjustments, item charges and revaluations, linked to an item ledger entry.
The Business Central matrix of VAT business and product posting group combinations that determines VAT rates, calculation types, and VAT accounts.
The VAT Registration No. is the tax identification number stored on a customer, a vendor or your own company record and printed on Business Central documents.
A company or person from whom you purchase goods or services, represented as a Vendor Card in Business Central.
The detailed transaction log in BC recording every financial event related to a vendor, invoices, payments, and credit memos.
A warehouse-level document in BC for receiving goods, used when advanced warehouse management features are enabled.
A warehouse shipment is the warehouse document used to pick and post outbound quantities for released source documents at a location that requires shipment.
A work center in Business Central is a capacity resource, such as a team or an area, with a calendar, costs and efficiency that routings consume when scheduled.