Glossary
# 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
A
Analysis Codes
Analysis Codes: A job can be broke down into categories (analysis codes). This could be very simple, e.g. Materials, Labour, Payroll or broken down into as much...
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Application for Payments
Application for Payments: The HMRC recognised way of requesting staged payments from contractors under the CIS Scheme.
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Authenticated Receipts
Authenticated Receipts: An advice note given for payments made against applications and certifications.
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B
BACS Payments
BACS Payments: Bankers Automated Clearing System, automatic link from Construction Industry Accounts (CIA) to BACS software detailing all payment information. Us...
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Balance Sheet Report
Balance Sheet Report: Report showing Assets and Liabilities.
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C
Certifications
Certifications: After an Application for payment is made, the customer then certifies the amount they are willing to pay.
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CIS (Construction Industry Scheme)
CIS (Construction Industry Scheme): The Construction Industry Scheme controls the paying of subcontractors. Whether they are paid gross, or aft...
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CIS Scheme Monthly HMRC Returns
CIS Scheme Monthly HMRC Returns: Returns made to HMRC concerning all payments made to subcontractors during the previous tax month. Comes into effect un...
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CIS Scheme Monthly Statements
CIS Scheme Monthly Statements: Statements sent to subcontractors concerning all payments made the previous tax month. Comes into effect under the ne...
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CIS Scheme Tax Deductions
CIS Scheme Tax Deductions: Deduction taken on payments made to subcontractors the CIS Scheme deems to be taxable, (tax only held on labour element of invoi...
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CIS Scheme Verification
CIS Scheme Verification: Method of ensuring a subcontractor is a valid subcontractor according to the HMRC. Comes into effect under the new CIS Scheme in April ...
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Committed Costs
Committed Costs: When a purchase order is raised for a job, the costs incurred show as a committed cost on that job (forms part of Job Costing).
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Actual Costs When a purchase invoice is booked to a job the costs incurred show as an actual cost on a job (forms part of Job Costing).
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D
Depreciation
Depreciation: Method of reducing the value of assets.
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F
Fixed Assets
Fixed Assets: Items that are owned by the company and have a long term value, e.g. Property, Plant, Vehicles.
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H
HMRC
HMRC: Her Majesty's Revenue and Customs (replacing the old Inland Revenue and Customs and Excise).
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J
Job Costing
Job Costing: The method of relating all costs to a job, whether they are purchase invoices, CIS holders invoices, stock, payroll etc.
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M
Main Contractor
Main Contractor: The main principle of a contract, working directly for a customer, they may or may not employ subcontractors under the CIS Scheme.
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N
Nominals
Nominals: Individual sections of the accounts.
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P
Payroll
Payroll: PAYE software to calculate payments to employees, whilst calculating PAYE Tax and National Insurance. Links to Job Costing.
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Profit and Loss Report
Profit and Loss Report: Report showing revenue against costs for a specified date range.
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Purchase Ledger
Purchase Ledger: Ledger where all purchase invoices and payments are recorded.
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Purchase Orders
Purchase Orders: Orders sent to suppliers detailing list of materials the customer wishes to purchase. (Can include prices, delivery address, timescale and delive...
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R
Remittance Advice
Remittance Advice: Report showing the invoices paid for a particular supplier on a particular payment run.
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Retentions
Retentions: Monies held on payments made to subcontractors, to cover potential future costs arising from problems with the subcontractors work.
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S
Sales Ledger
Sales Ledger: Ledger where all sales invoices and receipts are recorded.
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Schedule of Rates
Schedule of Rates: Listing of prices to be charged for various work, normally used with councils and insurance companies
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Self Billing
Self Billing: A status held by some companies. Allows Vat payments to be paid against application for payments and certifications (stage payments) without the need of a VA...
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Stage Payments
Stage Payments: See Application for Payments and Certifications. A construction industry specific way of receiving money regularly over the time frame of a contract.
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Stock Ledger
Stock Ledger: Ledger where all stock transactions are recorded.
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Subcontractors
Subcontractors: An individual, partnership, or company that works for a main contractor, or another subcontractor under the CIS Scheme.
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T
Trial Balance
Trial Balance: Report detailing movement in nominal ledger for a specified time period.
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V
Verification
Verification: Method of ensuring a subcontractor is a valid subcontractor according to the HMRC. Comes into effect under the new CIS Scheme in April 2007.
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W
Works Orders
Works Orders: System of notifying employees or subcontractors of work to be carried out on a particular job. Used mainly by councils and insurance companies, can log...
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