Glossary
Plain-English definitions of accounting and ERP terms used throughout the Fateh ERP documentation.
- Accounts Payable (AP)
- Money your company owes to suppliers for goods or services received but not yet paid for. Tracked as a liability on your balance sheet.
- Accounts Receivable (AR)
- Money owed to your company by customers for goods or services you've invoiced but not yet received payment for.
- Chart of Accounts
- The complete list of financial accounts used by your business, organised in a tree structure. Every financial transaction is recorded against one or more of these accounts.
- Credit Note
- A document that reduces the amount a customer owes you — used for returns, discounts applied after invoicing, or to correct overcharges.
- Debit Note
- A document that increases the amount a customer owes you — used when additional charges apply to a transaction that was already invoiced.
- General Ledger (GL)
- The master record of all financial transactions in chronological order. Every entry in Fateh ERP ultimately writes to the general ledger.
- Input VAT
- VAT you pay to your suppliers on purchases. You can claim this back from ZATCA when filing your VAT return, reducing your net VAT liability.
- Invoice
- A document requesting payment from a customer for goods or services. In Fateh ERP, once submitted, invoices are locked and sent to ZATCA automatically.
- Item
- A product or service that you buy or sell. Items form the line entries on invoices, quotations, and purchase orders.
- Journal Entry
- A manual accounting entry that records a transaction directly against specific accounts. Used for transactions that don't go through the invoice workflow (e.g., depreciation, bank charges).
- Output VAT
- VAT you charge your customers on sales. You collect this on behalf of ZATCA and pay it to them in your VAT return.
- Payment Terms
- The agreed time frame in which a customer must pay an invoice. Common examples: Net 30 (pay within 30 days), Immediate (pay on receipt).
- Purchase Invoice
- A bill received from a supplier for goods or services you've purchased. Recording it in Fateh ERP creates an accounts payable entry.
- Quotation
- A formal price offer sent to a customer before a sale is confirmed. Can be converted to a Sales Order or Sales Invoice once accepted.
- Sales Order
- A confirmed customer order that authorises you to start fulfillment. Sits between a Quotation and a Sales Invoice in the workflow.
- Stock Item
- An item where Fateh tracks physical inventory levels (quantity in stock). Non-stock items (like services) don't have inventory levels.
- Supplier
- A company or individual from whom you purchase goods or services.
- Trial Balance
- A report showing the closing balance of every account at a specific date. Debits must equal credits — if they don't, there's an accounting error.
- UOM (Unit of Measure)
- How a quantity of an item is expressed. Examples: Nos (pieces), Kg, Box, Hour, Day.
- VAT Return
- A periodic report filed with ZATCA showing your output VAT (from sales), input VAT (from purchases), and net VAT payable or refundable.
- ZATCA
- Zakat, Tax and Customs Authority — the Saudi government body responsible for tax collection, including VAT and e-invoicing compliance.
- ZATCA Clearance
- ZATCA Phase 2 process where a B2B invoice is submitted to ZATCA before being shared with the customer. ZATCA validates and digitally signs the invoice.