Terms and Definitions

Terms and Definitions

Terms and Definitions


Documents – we use the term documents to refer to the set of items that are completed as a part of a transaction.   Documents include Sales Quotes, Sales Orders, Shipments, Sales Invoices, Cash Receipts, Cash Sales, Credit Memos, Purchase Orders, Item Receipts, Bills, Bill Payments, Purchase Returns, Bank Deposits, Bank Transfers, Bank Reconciliations, Warehouse  Transfers, Inventory Adjustments, Lots Adjustments, and Time Tracking records.


Document Definitions


Sales Quote – used to provide an cost estimate of products and/or services to potential customers.

Sales Order – a contract between you and your customer to provide goods and/or services

Shipment – used record the shipping of goods to a customer.

Sales Invoices– A request by you to your customer for payment for goods or services.

Cash Receipt – used to record payment by a customer for an invoice or a prepayment on a sales order.

Credit Memo – used to record a credit issued or a return of goods to a customer.

Purchase Order – a contract between you and your vendor for products or services

Item Receipt – records the receiving of goods from a vendor.

Bill – a request for payment from a vendor for goods or services.

Bill Payment – records the payment for a bill or prepayment on a purchase order.

Purchase Return – records the return of goods or a credit issued to you by a vendor.

Bank Deposit – records the deposit of funds into a bank account.

Band Transfer – records the movement of funds from one bank account to another.

Payment – records the payment to a vendor in the absence of a bill.

Bank Reconciliation – Reconciles the transactions from the bank records to those in CustomBooks™.

Warehouse Transfers – Records moving of inventory from one location to another.

Inventory Adjustment – changes inventory counts to properly reflect the true quantity on hand due to breakage, theft, loss or other reason.

Lot adjustments – changes inventory count of a specific lot to reflect the true quantity on hand.

Time tracking record – records time spent on a project – later can become a line item on an invoice.


Other Terms


Post – to save a transaction and record it in the General Journal.

Draft – a document that has not yet been posted to the general journal.

Pre-payment – a payment made by you on a purchase order before the bill has been presented or a payment by a customer on a sales order when the invoice has yet to be presented. These payments are considered unapplied payments and will get applied when the bill or invoice is created.


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