Glossary

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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).
Advanced Stock Location: This helps you to keep track off all of your stock when you have two different locations that the stock can be taken too and also released from.
Aged Debtor report: shows all of your sales invoices that our owed to you in a month by month tabular layout, or a summary of the total owed by each customer month by month.
Analysis Codes: A job can be broken down into categories (analysis codes). This could be very simple, e.g. Materials, Labour, Payroll or broken down into as much depth as is necessary (forms part of Job Costing).
Application for Payments: The HMRC recognised way of requesting staged payments from contractors under the CIS Scheme.
Audit Trail: A list of all transactions in the order that they have occurred.
Authenticated Receipts: An advice note given for payments made against applications and certifications.
Automatic Invoice Payments: paying more than one invoice for different suppliers at the same time.
BACS Payment: Bankers Automated Clearing System, automatic link from Construction Industry Accounts (CIA) to BACS software detailing all payment information. Using BACS means you don't have to re enter the details.
Balance Sheet Report: Report showing Assets and Liabilities.
Bank Reconciliation: The process of comparing your bank statement with your software to check that nothing has been missed out, or entered incorrectly.
Certifications: After an Application for payment is made, the customer then certifies the amount they are willing to pay.
CIS (Construction Industry Scheme): The Construction Industry Scheme controls the paying of subcontractors. Whether they are paid gross, or after tax has been deducted. The CIS scheme refers to all regulations concerning these payments, the records that need to be kept, and the returns that need to be made. Red more about CIS Scheme.
CIS Scheme Monthly HMRC Returns: Returns made to HMRC concerning all payments made to subcontractors during the previous tax month. Comes into effect under the new CIS Scheme in April 2007.
CIS Scheme Monthly Statements: Statements sent to subcontractors concerning all payments made the previous tax month. Comes into effect under the new CIS Scheme in April 2007.
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 invoices).
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 2007.
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).
Contract History: This is critical for any Builders Accounting Software, the Contract History allows you to look at one report and show you all transactions for one Customer and Job.
Contract History Report: The Contract History Report allows you to look at one report to show you all transaction for certain Customer and Job; this report is what any Builders Accounting Software should show.
Cost Structure: The breakdown of how your costs and sales are split out, to give you an over all view.
Customer Application Summary: The Customer Application Summary is a report that any Builders Accounting Software should produce, it is a report that will show you for each customer what applications have been sent out and will show you a break down of the applied for figure, and will show you the certified figure the retention and discount amount and the over all balance for that application.
Customer Turnover: The Customer Turnover report lists out each Customer, and then shows you the net figure and also the Vat figure of what has been invoiced to each customer between two dates.
Depreciation: Depreciation: Method of reducing the value of assets.
Fixed Assets: Items that are owned by the company and have a long term value, e.g. Property, Plant, Vehicles.
Goods received Note: This allows stock to be entered on to the software when you receive a Goods Received Note, rather than waiting until you get the invoice.
HMRC: Her Majesty's Revenue and Customs (replacing the old Inland Revenue and Customs and Excise).
Invoices Due Report: The Invoices Due Report shows you all of your Sales Invoices that are due as the selected date.
Job Costing: The method of relating all costs to a job, whether they are purchase invoices, CIS holders invoices, stock, payroll etc.
Long Term Liability: Is a long term debt – that will take longer than 12 months to be paid off.
Main Contractor: The main principle of a contract, working directly for a customer, they may or may not employ subcontractors under the CIS Scheme.
Nominals: Individual sections of the accounts.
Payroll: PAYE software to calculate payments to employees, whilst calculating PAYE Tax and National Insurance. Links to Job Costing.
Profit and Loss Report: Report showing revenue against costs for a specified date range.
Purchase Ledger: Ledger where all purchase invoices and payments are recorded.
Purchase Orders: Orders sent to suppliers detailing list of materials the customer wishes to purchase. (Can include prices, delivery address, timescale and delivery instructions.
Remittance Advice: Report showing the invoices paid for a particular supplier on a particular payment run.
Retention Diary: The Retention Diary shows you all of the retention that you’re holding for a customer or subcontractor. It shows the job that it relates too and the release date for the retention. This is critical for any Building Industry Accounts software package.
Retentions: Monies held on payments made to subcontractors, to cover potential future costs arising from problems with the subcontractors work. Every standard form of contract in the construction industry has some form of provision for retention or reserve.
Sales Invoice VAT Split: Our software will let you post on one invoice with two different VAT rates.
Sales Ledger: Ledger where all sales invoices and receipts are recorded.
Schedule of Rates: Listing of prices to be charged for various work, normally used with councils and insurance companies
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 VAT invoice.
Short Term Liability: A short term debt, that will be paid off within a year.
Stage Payments: See Application for Payments and Certifications. A construction industry specific way of receiving money regularly over the time frame of a contract. Works for both main contractors and sub contractors
Stock: The Stock module keeps tack of all stock items that you have entered, as well as the amount of stock of that you have used.
Stock Ledger: Ledger where all stock transactions are recorded.
Subcontractors: An individual, partnership, or company that works for a main contractor, or another subcontractor under the CIS Scheme.
Trial Balance: Report detailing movement in nominal ledger for a specified time period.
Unfinalised Sales Invoice: When posting on a Sales invoice, if you are unsure about any of the invoice you can save it as Unfinalised, this allows you to come back at a later date, edit it and then save it correctly so that all of the nominal’s update correctly.
VAT: Value Added Tax.
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.
Work In Progress: Work that has been started, but has not yet been billed.
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 materials used, mileage and other information.

Construction Industry Accounts Software

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