IATA location

A location that has been registered by the IATA (International Air Transport Association) and assigned an IATA code

IATA locations are used as the basis for flight, hotel, and car rental reservations and represent the smallest geographical unit in the Travel Planning component. An IATA location can, for example, be a city, an airport or train station, or a combination.

IC elimination

The elimination of all intercompany (IC) transactions based on trade goods and services that affect the creation of consolidated financial statements.

These eliminations are broken down into

• Elimination of IC payables and receivables
• Elimination of IC revenue and expense
• Elimination of IC profit and loss

ICMS

In Brazil, a value-added tax levied at state level on the circulation of goods and services. It is applied to the purchase and sale of domestic and imported goods, interstate and intermunicipal transportation, and communications.

ICMS is a percentage-included tax, meaning that it is embedded in the price of the goods.

In Portuguese, the tax is known as Imposto sobre Circulação de Mercadorias e Serviços.

ICMS tax substitution

Known as substituição tributária in Brazil, a method of tax collection in which the manufacturer of goods submits ICMS to the fiscal authorities for the tax it incurs when it sells its goods or services to a distributor or reseller, as well as the tax it collects from the distributor or reseller on the presumed resale surcharge.

ICO number

A company identification number used in Slovakia. In Slovak, it is known as identifikacné císlo organizácie.

ICO number

A company identification number used in the Czech Republic. In Czech, it is known as identifikacní císlo organizace.

ID transaction

A business transaction, in South Korea, where you sell a product to a customer that is not yet in possession of a VAT registration number and is conducting its business provisionally under the business representative's social ID.

When you prepare the VAT summary report for the National Tax Service, these transactions are categorized as such on the return.

IDES

Internet Demo and Evaluation System.

System that contains several sample companies typifying relevant business processes. It is simple to use and has a variety of master and transaction data, and is used for demos, online/classroom training, and presentations. Potential customers use IDES to trial and test software via the Internet.

idle-capacity cost variance

The sum of the volume variance and the fixed portion of the output price variance. The following requirements must be met:

• For the activity, periodic activity prices were calculated on the basis of the capacity.
• No revaluation at actual activity prices takes place.

Idle capacity cost variances are not calculated by the SAP System directly.

immediate requirement

A quantity that is required immediately of which the vendor has not yet been notified by means of a scheduling agreement release.

immediate writeoff

A depreciation method for low-value assets.

Low-value assets can be written off to their full amount in the acquisition period or acquisition year.

import

An action that involves taking movable goods into the customs territory, that is to say in accordance with foreign trade law from overseas economic areas to domestic economic areas.

import broker

A company or person who buys foreign commodities and resells them as domestic goods.

import code

A code (from the Harmonized Commodity Description and Coding System) that provides a standard method of identifying materials for import.

Import code numbers typically contain more digits and describe goods more precisely than commodity codes.

import duties and taxes

A part of customs law.

This includes:

Customs

Import turnover tax

Excise duty

Cash removal

import license

An official certification to import foreign goods.

A license is required to import some products, such as cheese. In some cases, no license is required, but official import authorization can be necessary, such as for some petroleum products.

import turnover tax

A tax levied for the import of foreign merchandise into a customs territory for which tariffs are due.

This tax is incurred when goods are made available for domestic consumption or when customs duties are due.

importing country

The receiving country into which merchandise is shipped.

imputed interest

The interest, which represents the interest gain lost because of the capital tied up in assets.

For cost-accounting purposes, it can make sense to calculate interest on the capital tied up in assets.

In certain countries, it also required to calculate interest on the production costs of assets under construction.

inbound correspondence

An object that represents a business partner's obligation to a company or authority to present correspondence by a due date without being requested to do so.

Inbound correspondence is stored in the correspondence history.

inclusive bonus quantity

A free goods specification in which a customer only pays for part of thegoods ordered.

The rest of the goods are free.

Example:

Out of ten bottles of sparkling wine, two are free goods. If you order ten bottles, you receive ten bottles but two of them are not invoiced.

incoming inspection lot

A part of a quantity of material entering the buying entity's premises as a goods receipt, on the basis of which the quality of that material is assessed.

In vendor evaluation this is a subcriterion of the main criterion "Quality".

incoming invoice

A statement presented by an invoicing party indicating the sums due in respect of previous purchase transactions.

In the SAP system, the term "incoming invoice" technically covers both invoices and credit memos received.

incompleteness procedure

A procedure that specifies the mandatory fields when a user creates a sales document.

incompletion analysis

A process in which the system generates a list of system records or documents with missing or incomplete foreign trade data.

From this list, you can process or change data that is incomplete. You can release these documents in the FT application even if they are incomplete.

Incoterm

International commercial term

A codification of international rules for the interpretation of the commonly used terms in international trade.

An international commercial term (Incoterm) defines the terms of sale and the passing of risks for import and export of merchandise.

Incoterms include the following:

• EXW - Ex Works
• FCA - Free Carriage and Freight
• FAS - Free Alongside Ship
• FOB - Free On Board ship
• CFR - Cost and Freight
• CIF - Cost, Insurance, and Freight
• CPT - Carriage Paid To
• CIP - Carriage and Insurance Paid To
• DAF - Delivered At Frontier
• DES - Delivered Ex Ship
• DEQ - Delivered Ex Quay
• DDU - Delivered Duty Unpaid
• DDP - Delivered Duty Paid

increase in capitalization

The procedure of simultaneously increasing both the capital stock of an investee and the investment book value of an immediate parent company, without affecting the latter's investment shares.

An increase in capitalization against corporate funds is the procedure of increasing capital stock without increasing investment book value. This procedure is executed in the Consolidation system in the same way as an increase in capitalization against equity contributions.

index LIFO procedure

A procedure for the valuation of stocks of materials based on the LIFO approach.

In this case materials are valuated using a price index.

index series

A mathematical series for representing price rate increases.

Example

You can use an index series to show the evolution of values of an asset having annual price rate increases.

index-based currency

A country-specific theoretical currency used in some countries with high inflation as a comparison currency for purposes of statutory reporting.

indirect activity allocation

A method of periodic allocation to determine the input of activity indirectly allocated from the sender (cost center or activity type) from the perspective of the receiver.

If you are not able to enter the activity consumed by the receiver, or it is too time-consuming, this method can be used to distribute the total activity quantity from the sender to the receivers.

indirect quotation

A currency value expressed in units of the foreign currency per unit of local currency (compared to direct quotation).

Indirect quotation is also known as volume notation.

Example

Local currency: EUR

Foreign currency: USD

For one unit of the local currency EUR you will receive the displayed number of units of the foreign currency - that is 1.0808 USD.

individual customer requirement

A material requirement in a plant that is created by a sales order and transferred separately to materials planning (MRP).

The system creates a new line in the requirements/stock overview of the material for each document item.

individual determination

The determination of preferential duty rates for a material.

Preference determination ascertains the proof of origin for goods produced in-house. Using a BOM, the system evaluates all components used in a product produced in-house according to origin to determine whether they are originating or non-originating goods.

Preference determination can be performed for individual materials or for a group of materials.

individual purchase order

A type of purchase order in which the goods requested by the customer are not available at the vendor location and must be ordered from one or more suppliers.

After the goods are received, they are delivered and invoiced to the customer who placed the order.

Goods that arrive at the vendor location based on an individual purchase order are managed as sales order stock.

individual requirements inventory

An inventory of materials to be manufactured (or that have been manufactured) in a sales-order production environment or in an engineer-to-order environment.

Individual requirements materials are manufactured for the sales order stock or project stock. They are not placed into the make-to-stock inventory.

In contrast to individual requirements materials, collective requirements materials are carried in the make-to-stock inventory. Whether a material is an individual requirements material or a collective requirements material is specified in the material master.

individual requirements stock segment

A stock segment in which the data relevant to the valuation of individual requirements materials is updated.

Individual requirements materials are manufactured in engineer-to-order environments or in sales order production environments.

To be able to update the data in an individual requirements stock segment, you must be using a valuated sales order stock or a valuated project stock.

Example

The following data is updated in the individual requirements stock segment of an individual requirements material:

• Material number
• Sales document
• Sales document item
• Price control
• Moving price
• Standard price
• Total stock (quantity)
• Total value

individual slip

One of three printed versions of a GR/IR slip that accompanies goods movements.

In the case of the individual slip, one slip is printed for each individual item of a material document.

The other two versions are the "individual slip with quality inspection text" and the "collective slip."

individual statement

The accounting of the actual travel expenses incurred by an employee and documented by means of receipts.

individual value adjustment

The devaluation of a specific customer's account because of improbability or impossibility of collection (for example, owing to customer bankruptcy).

inflation adjustment account

A G/L account that you use for the purpose of recording inflation adjustments.

An inflation adjustment is typically posted to a balance sheet account, with the offsetting posting on a profit and loss account:

• The balance sheet account is typically the account that is adjusted, but in some cases, you may be required to record the adjustments separately on a contra account.
• The profit and loss account is often known as the inflation adjustment gain or loss account.

Example

You have UNI 1,000,000 of gold, which is to be adjusted for inflation, which is running at 20%. This gives an inflation adjustment of UNI 200,000, which you post to the gold account (or the corresponding contra account). You make the offsetting posting to an inflation adjustment gain and loss acount.

inflation adjustment amount

A sum of money, in inflation accounting, that serves to adjust a G/L account balance or line item for inflation.

Example

Assume you have a G/L account with a balance of UNI 20,000, which you adjust for inflation. The inflation rate is 5%, which means a price increase of UNI 1,000, so that the adjusted balance is now worth UNI 20,000 + UNI 1,000 = UNI 21,000.

The inflation adjustment amount is UNI 1,000.

inflation adjustment document

An accounting document whose purpose is to adjust a G/L account, asset, inventory, or other object for inflation.

inflation adjustment interval

The length of time between inflation adjustments of, for example, G/L accounts, assets, or inventory.

Example

Government regulations may require you to adjust your accounts for inflation at the end of every month, in which case the interval is the month.

inflation adjustment split

An inflation adjustment in which the SAP System splits the amount between two separate accounts, one that represents the general inflation rate, and one that represents the price level change for that G/L account.

Example

A company adjusts the balance of a G/L account for platinum, UNI 2,000,000, using a specific index, with a net change in the inflation rate of 20%, which works out at UNI 400,000. The general inflation rate, however, is running at 15% (UNI 300,000).

This means that of the UNI 400,000 increase in the value of the company's stocks, UNI 300,000 of this can be accounted for by the general increase in prices. It therefore posts UNI 300,000 to the G/L account for inflation and UNI 100,000 to the G/L account for unrealized gains (losses) on precious metals.

inflation gain or loss

An expense or revenue, in inflation accounting, arising as a result of inflation.

These items fall into several categories, depending on what is to be adjusted:

• In the case of fixed assets, the item is an unrealized holding gain or loss.
• In the case of monetary items, insofar as they are adjusted, the item is a purchasing power gain or loss.
• For items denominated in foreign currency, the item is a foreign exchange gain or loss.

inflation index

The statistics that show how much the prices of goods and services have increased over a specific period of time.

The inflation index is compiled by recording the price increases on a specific selection (or basket) of goods.

In some countries with high inflation, a company's accountants are allowed to adjust some G/L accounts when preparing financial statements to allow for the rate of inflation shown by the inflation index.

inflation index date

The date for which a government statistical agency publishes an inflation index, not to be confused with its publication date.

Example

An inflation index is published in April for March 20X1. The inflation index date is therefore 31 March 20X1.

inflation index format

The form in which the figures in an inflation index are published:

• In accumulated format (for example, 123,456,789)
• As a percentage (1.23456%)
• As a coefficient (1.234567)

inflation index value

The inflation rate for a specifc inflation index, as published at regular intervals by the government agency responsible for such matters.

When the inflation rates are published, you maintain them in the inflation indexes. The SAP System then uses them to calculate inflation adjustments.

inflation index version

A system object that allows you to define more than one set of values for an inflation index, if necessary.

In most cases, one version should suffice, but you may need to create a new version if, for example, you have run one of the inflation adjustment reports and the values that you used are incorrect. Since you cannot change values that you have already used, you would create a new version (by copying all the entries across from the old one) and use that instead.

inflation key

A system object that tells the SAP System how to adjust a G/L account for inflation, for example:

• The inflation index to be applied
• Whether the balance only is to be adjusted, or whether all the line items in the account are to be adjusted separately

You define inflation keys in Customizing and then assign them to different G/L accounts.

inflation method

A system object that controls the inflation accounting settings relating to a given company code, for example:

• The parts of a company code's accounts that are to be adjusted for inflation (Financial Accounting, Asset Accounting, or Materials Management)
• The general inflation index to use
• The time base and exposure to inflation variant to use
• The document type used to post inflation adjustment documents

informal entry

Customs clearance terminology for most imports into the USA valued at 1,250 US dollars and less.

inhabitant tax

A form of income tax in South Korea applicable to all natural and legal persons. It is a withholding tax that is collected by the local tax offices.

initial cost split

A cost component split for raw materials, which contains separate cost components for all procurement costs, such as:

• Purchase price
• Freight charges
• Insurance contributions
• Administration costs

initial entry of stock balances

An operation performed once at the start of the productive life of the system in which physical stocks on hand or book inventory balances from a legacy system are recorded as opening book balances in the SAP Inventory Management System.

No physical movement of stocks takes place in the process.

initial specifications

The basic form of project service specifications, containing all relevant data for a competitive bidding procedure. At this stage there has been no assignment to a supplier (contractor).

A set of initial specifications defines the services or work for which bids are invited, as well as the basic contractual framework.

input material

A material consumed through a single-level procurement alternative or multilevel procurement process.

input price variance

The difference between target cost and actual cost caused by differences between planned prices and actual prices of the goods consumed, or by differences between planned activity prices and actual activity prices.

Typically, input price variances are calculated by multiplying the difference between the planned value and the actual value by the quantity consumed.

input quantity

The quantity of raw materials used in the manufacturing process to produce a finished product.

input quantity variance

The difference between target cost and actual cost caused by differences between the planned and actual quantities of goods consumed.

Example

The quantity of raw materials withdrawn from inventory for a production order was higher than planned, or the activity quantity used at a cost center was less than planned.

input side

A viewpoint for analyzing variances in variance calculation, showing the debits with:

• The cost center
• The business process
• The order
• The cost object hierarchy

Variances on the input side arise from actual postings in the following components:

• Financial Accounting
• Materials Management
• Controlling
• Production Planning

Example

• Scrap variances (only in Product Cost Controlling)
• Input price variances
• Input quantity variances
• Resource usage variances
• Remaining input variances

input tax

A tax that is charged by the vendor.

A claim for refund of the deductible portion of input tax can be submitted to the tax authorities.

input type

An object that identifies whether the individual financial statement data is cumulative (year-to-date) or periodic:

• Periodic data refers to the values that belong to the current period. Thus, the values represent the changes since the last data entry.
• Cumulative data refers to the values as at the closing date. The SAP System, however, stores the values periodically after performingan automatic computation of differences to the previous balance.

installment plan

An agreement in which a business partner consents to pay off an outstanding receivable(s) in partial payments.

An installment plan represents a substitute document.

instruction key

A function used together with the country of the house bank and the payment method, in automatic payments business, to control the instructions to be sent to the participating bank regarding payment order execution.

The instruction key is used in several countries, including Germany, Austria, the Netherlands, Norway, Finland, Spain and Japan.

insurable value

The value provided to the insurer.

insurable value as new

The current insurable value of an asset for value as new insurance.

insurance type

A setting used to define the most important insurance parameters in the asset master record.

Example

The insurance type can specify whether an asset is insured for its current value (current market value insurance) or its value as new (value as new insurance).

intangible asset

An intangible component in fixed assets.

This includes the following, for example:

• Patents
• Licenses
• Purchased software

intangible goods

The nonstockable products for which costs are planned, analyzed, and settled.

Example

• Services
• Radio and television programs

integrated accounting system

A system that takes primary cost and revenue elements from the expense accounts of the profit and loss statement.

No second settlement system is constructed for cost accounting. You must therefore consider the structures and organizational units of Financial Accounting when creating cost elements.

interactive reporting

A totally screen-orientated evaluation technique.

From a highly aggregated form, you can select detailed information for the required items using the menu and function keys, such as:

• Sub-items of totals items
• Company shares
• Comparison values for user-defined comparison periods
• Standardizing and consolidation entries

In addition, you can access information in the SAP AM and FI applications, if these are installed in the same client as the Consolidation system.

intercompany clearing account

An account for clearing reconciliation postings between Controlling and Financial Accounting caused by cross-company allocations.

interest

A charge for lending capital or money.

interest amount

An amount resulting from interest calculation.

interest base amount

A total on which interest is calculated on all line items in a business transaction.

interest key

A key under which interest calculation parameters are defined such as interest calculation frequency, minimum and maximum amounts, transfer and tolerance days.

An interest key is always connected to an interest calculation rule, under which basic agreements for interest calculation are defined.

interest on arrears

The interest paid to creditors when the due date for net payment of a debt has been exceeded.

interim account

A general ledger account to which incoming payments are posted if a contract account can not be determined.

interim settlement

Settlement accounting with regard to a rebate arrangement before expiration of the validity period of the arrangement.

Interim settlement also covers conditions with regard to which settlement is not yet due because either the validity end date of the rebate arrangement or the next end date of a period has not yet been reached.

internal activity allocation

The method of internal cost allocation by which valuated activities (allocation bases) from cost centers can be assigned to cost receivers in accordance with the cause of the cost.

The activities or allocation bases represent the output of a cost center (such as production hours or machine hours). These outputs are represented in the SAP System as activity types. The activity types are valuated with prices that are either specified by the user manually or calculated by the system by means of iterative activity price calculation. To calculate iterative prices, the SAP System divides the cost center planned costs assigned to the activity types by the planned activity (or capacity, depending on how the system is configured).

In internal activity allocation, the activity produced by the cost center is multiplied by the activity price. The result is the cost to be allocated. The sender cost center is credited with this amount and the receiver object is debited.

internal calculation key

A part of the depreciation key.

The internal calculation key establishes parameters for the depreciation calculation program.

internal order

An instrument used to monitor costs and, in some instances, the revenues of an organization.

Internal orders can be used for the following purposes:

• Monitoring the costs of short-term jobs
• Monitoring the costs and revenues of a specific service
• Ongoing cost control

Internal orders are divided into the following categories:

• Overhead orders - For short-term monitoring of the indirect costs arising from jobs. They can also be used for continuous monitoring of subareas of indirect costs. Overhead orders can collect plan and actual costs independently of organizational cost center structures and business processes, enabling continous cost control in the enterprise.

• Investment orders - Monitor investment costs that can be capitalized and settled to fixed assets.

• Accrual orders - Monitor period-based accrual between expenses posted in Financial Accounting and accrual costs in Controlling.

• Orders with revenues - Monitor the costs and revenues arising from activities for partners outside the organization, or from activities not belonging to the core business of the organization.

internal supplier

The source in a company or group's organization from which materials or services are procured.

internal trading partner

A company within a group that has any type of trading relationship with another company within the group.

internal value added

An indicator of whether a business process is relevant to, or has a deciding influence on, the production of a product or service from an internal standpoint.

The degree of influence on the value added is illustrated by means of a ranking order.

International Air Transport Association

An organization that regulates who can be an IATA agent (air freight forwarder).

International Chamber of Commerce

An organization that publishes Incoterm books and establishes rules for negotiating a letter of credit (Publication 500).

Internet scheduling agreement release

A type of scheduling agreement (SA) release.

Unlike conventional SA releases, Internet releases are not sent to vendors through the traditional channels (such as the postal service, fax, or EDI). Instead, such releases can be viewed on the Internet.

A prerequisite for the use of Internet releases is that the Supplier Workplace has been installed in your SAP System, and that the relevant vendors have access to the Workplace through the Internet.

In the release creation profile, you can specify which SA release type is treated as an Internet release.

interpretation algorithm

A tool determines how the SAP System interprets the information in the note to payee lines of an electronic account statement.

The information is used to clear open itemsautomatically.

Example

• Algorithm 001 interprets the information in the note to payee field as a document number or reference number.
• Algorithm 011 interprets the information in the payee field as a check number.

interval

A division of the address list if the list contains more than 100 addresses.

For example, an address list of 1,000 entries is divided into ten intervals, each containing 100 addresses.

Address intervals simplify large address list management and address search. The interval is sorted according to the same criteria as the address list, for example, by recipient name.

intra-European Union trade statistics

The exchange of goods between European Union member nations.

in-transit entry

Customs entry permitting goods to move between ports under bond.

Example

Goods subject to customs inspection are moved to an inland port of entry such as a border crossing.

INTRASTAT customs rate

A currency conversion rate used in the European statistical offices.

This conversion rate must be used for declarations to customs authorities.

Intrastat declaration

A declaration conveying statistical information on an enterprise relating to the latter's import and export transactions within the European Union.

The Intrastat declaration is submitted to the relevant authorities in each country. In Germany, for example, this is the Federal State Office of Statistics.

INTRASTAT declaration

A means by which an enterprise submits statistical data relating to its trade with member countries of the European Union (EU).

The INTRASTAT declaration must be submitted to the appropriate authority in the relevant member country.

inventory

A detailed list of all objects in stock at a specific time, resulting from a physical inventory (stocktaking process).

inventory adjustment due to physical inventory

The correction of stock values and quantities as a result of a physical inventory in materials management.

inventory adjustment posting

Correction of the book inventory balance by the amount of the variance between book inventory and the actual quantity of stock counted during a physical inventory.

inventory costing

A costing procedure that determines how the materials in inventory are valuated before the balance sheet is prepared.

inventory management

In the SAP system, part of the Logistics process covering the following:

• Management (that is, the recording and tracking) of stocks of materials on a quantity and value basis
• Planning, entry, and documentation of stock movements such as goods receipts, goods issues, physical stock transfers, and transfer postings
• Performance of physical inventory (stocktaking)

inventory recount

The counting of one or more items of a physical inventory document again after they have already been counted once.

A recount may be initiated due to an inexplicable inventory difference.

The relevant items are transferred to a new physical inventory document created from the original document.

inverse activity allocation

A periodic allocation method that calculates what the activity output of the sender must have been based on the actual utilization of the receivers.

inverse posting

An inversion of amounts already posted to an account assignment object.

Amounts of the same value are posted as new to the same account assignment object, with inverted signs (+ or -).

investee

A company is an investee if another company (an investor) has investments in it.

Company B is also an investee if company A has a dominating influence over it, without having investments in it. A control agreement can, for example, be used to establish this dominating influence.

investment

The shares held in other companies that serve the investor's own business purposes through the creation of a long-term relationship with these companies.

An investment item appears in the financial assets section of the financial statements.

investment amortization

The activity of decreasing the investment of at least one immediate parent company without affecting the investment share or the equity of the investee company.

A simultaneous reduction of the investment share is referred to as a divestiture, and a simultaneous reduction in equity is referred to as a reduction in capitalization.

investment center

A center that can be represented by a profit center by assigning your fixed assets to profit centers

Investment centers are not defined as independent business entities in the SAP System because they can be represented by profit centers. Depending on the desired use, you can assign a number of different balance sheet items in your fixed and current assets to profit centers.

investment project

A measure for producing or obtaining new investment goods that become part of fixed assets.

investment share

The percentage of ownership that an investor has in its investee's stock.

investment structure list

A list of all companies in a subgroup that includes the chosen method of consolidation or the reason for exemption, as well as the total investment share or group share.

If required, the investment structure list can also contain the equity and net income of the companies for the year.

investment support measure

A subsidy granted by the state for investments.

The subsidy amount can be managed in a separate depreciation area in the SAP System.

Each support measure can either be managed on the liabilities side of the balance sheet, or treated as a reduction to APC (acquisition and production costs) on the assets side.

investment tax

A tax on capital investments levied in certain countries.

investor

A company is an investor if it has investments in another company.

invoice

A message to the buyer of goods or services that contains, among other things, the following information:

• Name of the goods or services
• Quantity sent
• Remuneration due

invoice

A sales and distribution document used to charge a customer for deliveryof goods or services.

invoice correction request

A sales document used in complaints processing to correct the quantity or price of one or more items in an invoice.

The system calculates the difference between the amount that was originally calculated and the corrected amount for each item.

If the request is justified, you can remove the block created by the system. If the difference in amounts is positive, the system creates a credit memo with reference to the credit memo request. If it is negative, the system creates a debit memo.

invoice date

The date on which the original document was created.

invoice date

The date on which a delivery is due for settlement.

In some firms, invoices are processed periodically with the result that all deliveries that become due at a point in time can be combined and settled in a collective invoice. As soon as the next billing date determined by the calendar is reached, the orders and deliveries are included in the billing due list and can be billed.

invoice deficit

The difference between the total invoice quantity and the total goods receipt quantity in the case of a business transaction in which the invoice quantity is smaller than the goods receipt quantity.

invoice document

A document evidencing the posting of an incoming physical or electronic invoice in the SAP System during the invoice verification process.

The invoice document can contain one or more items.

invoice document on hold

The current data entered and selections made for a vendor invoice created in the SAP System using the "Hold" function.

When you put an invoice on hold, the system does not check or update it.

You can change, park, save as complete, delete, or post documents that are on hold.

invoice quantity

The total invoiced quantity for a business transaction.

invoice receipt

A term from Invoice Verification describing the receipt of an invoice issued by a vendor (creditor).

The following types of invoice receipt are possible in the SAP system:

• Invoice receipt referencing a purchase order
• Invoice receipt referencing a goods receipt
• Invoice receipt without reference

invoice reference

An entry linking a line item to an invoice line item already posted.

It is used to copy the terms of payment between the two items, thus ensuring that they are paid together.

An invoice reference is created by entering the document number of the invoice in the line item - for example, an invoice-related credit memo.

invoice split

The creation of several billing documents from one reference document (sales order or delivery).

For example, the invoice split function can be used to split a document by material group.

invoice surplus

The difference between the total invoice quantity and the total goods receipt quantity in the case of a business transaction in which the invoice quantity exceeds the goods receipt quantity.

invoice value

A value that is calculated as follows:

The total of all previously entered item amounts from an invoice or credit memo for a PO item

- Cash discount

- Non-deductible input tax

+ Unplanned delivery costs

invoicing plan

A listing of dates on which invoices for purchase order items covering materials or services are to be entered and subsequently paid.

The invoicing plan facilitates the largely automatic creation and payment of invoices both for recurring procurement transactions such as rental or leasing payments and transactions involving settlement in stages (such as payment for the phases of a building project as they are completed).

inward delivery completed indicator

An indicator denoting a closed purchase order item for which no more goods receipts are expected.

inward processing

The customs control of imported goods, primarily raw materials and semi-finished products, that are brought into the territory.

Because these goods are intended for re-export, import duties can be waived temporarily. It is possible, however, to make such goods available for domestic consumption by paying the duties and then allow drawback at a later date, refunding part or all of the duties paid.

IPI

In Brazil, an excise tax levied at federal level on most domestic and imported manufactured goods. IPI is assessed per product and is applied to the gross price, inclusive of ICMS.

In Portuguese, the tax is known as Imposto Sobre Produtos Industrializados.

irrevocable unconfirmed

A letter of credit that cannot be amended or cancelled without prior mutual consent of all parties.

Such a letter of credit guarantees payment by the bank to the exporter if all the terms and conditions of the letter have been met. This is the most common form of letter of credit.

ISS

Imposto sobre Serviços

In Brazil, a municipal tax levied on services.

ISS is charged only to the entity that provides the service.

issue of reserved material

The issue of a material with reference to a reservation item.

If no other issues referencing this reservation item are expected, this is the final issue.

issuing bank

The institution that issues cards, receives cardholder transactions from merchants, guarantees payment, and collects the respective amounts from the cardholder.

issuing plant

In the case of a stock transfer, the plant from which materials are removed from storage.

item category

An indicator that defines the characteristics of a document item.

For example, the item category controls the type and scope of:

• Pricing
• Billing
• Delivery
• Inventory posting
• Transfer of requirements

Items in stock, and value and text items are item categories.

item category

An identifier indicating the characteristics of an item.

The item category determines whether the following are mandatory or permitted for an item:

• Material number
• Additional account assignment
• Inventory management in the SAP system
• Goods receipt
• Invoice receipt

item category group

A group specified in the material master record.

The system uses the item category group and the sales document type to determine the category of a document item. For example, in the SAP standard version the item category group NORM is defined for all materials kept in stock.

item interest calculation

The interest calculated for the period between the due date and the payment an item.

item proposal

A grouping of material combinations and quantities frequently ordered.

When entering a sales order, the user can refer to and copy information from a product proposal, or the system proposes items established in the product proposal for a customer.

item selection list

A list containing all the items of a document (a purchase order, for instance) that are relevant for a processing task.

The user can use the item selection list to choose the items to be processed.

itemization

A holder of detailed information on a costing item.

Example

The following information on a material is stored here:

• Material and text
• Plant
• Quantity used
• Price

The following information on an internal activity is stored here:

• Cost center and text
• Quantity used
• Activity type
• Activity price

item-wise release

A procedure in which the items of a purchase requisition are approved individually for conversion into follow-on documents.

Item-wise release can result in several purchase orders being created for one requisition.

iterative calculation step

An individual action in any procedure or formula used for determining prices or quantities as part of indirect activity allocation.