Page 4 - New Employee Glossary

Glossary 4

Accounting Transactions

Batch entries are made in Project Accounting and Auto Accounting rules generate the
accounting to be recorded as journals in the General Ledger

Accounts Payable (AP)

(1) Money a company owes, such as invoices and bills, to vendors for products and services.
(2) Team responsible for the routing, validation, and payment of invoices and bills from
vendors to the company.

Accounts Receivable (AR)

(1) Money owed to a company by a customer for products and services. Usually in the form
of invoices sent to customers, accounts receivable reflect work that has already been
completed and delivered. (2) Team responsible for the recording and collection of cash
payments due to the company.

Accrual Accounting

Recognition of revenue when earned and expenses when incurred, even though cash may
not have been received or paid.

Accrued Expense

An accounting expense recognized in the books before it is paid for. It is a liability, and is
usually current. Accrued expense is a liability whose timing or amount is uncertain because
an invoice has not yet been received. The uncertainty of the accrued expense is not
significant enough to qualify it as a provision.

Active Pharmaceutical Ingredient (API)

Active substance that goes into the drug product

Actuals

Actual dollars spent as recognized by Finance for reporting purposes

Administrative Assistant (AA)

An individual who provides various kinds of administrative support to people and groups in
the business