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glossary of terms
Finance Account Management (FAM)
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Finance Account Management: (FAM)
1. FAM has two modules as (1) Account Receivable transactions from customers and (2) Account Payable transactions to suppliers.   An unique terminology factor is that commission revenue to account receivables is invoiced from suppliers to customers as energy providers.
2. Approved people expenses are collated as transactions to account payable transactions.
3. VAT accrual is accumulated from both account receivable and account payable transactions.
4. A monthly management account is created from both account receivable and account payable transactions.   Monthly accounts are accumulated in the annual management account.

Billing:
1. Invoicing of revenue is a significant procedure that may be automated.   The ammount to be invoiced will either be a fixed amount based on contract scheduled event or a variable amount based on a consumption.
2. Proforma invoicing is a method to request actual consumption that is used to calculate a commission amount.   Commission may be a fixed percentage up front and a balance based on actual consumption at a scheduled date.

Cash Flow:
1. A cash flow statement may be viewed as a reflection of current contracts with estimated commissions and payments due on scheduled dates.   The scheduled payment dates may be defined once as tasks and billing events when a contract is started or may be dynamically deduced upon request.   A diary of all scheduled invoicing events help to minimise missed billing opportunities.
2. Revenue cash flow without payment cash flow may provide a misleading position.   Based on real supplier contracts, a payment schedule as fixed amounts or estimated amounts can be generated as tasks as payment events.   A diary of all scheduled payment events help to minimise missed payment opportunities.
3. When all invoicing events and all payment events can be viewed in a diary, then a more realistic cash flow position can be presented.

Application Service Provider:
1. The ASP is a normal supplier with a fixed monthly fee that is reviewed from year-to-year.   The financial stability is totally dependent on the amount of the fixed monthly fee that the Owner chooses to pay.
2. Where the Owner pays too much each month, then the ASP account will end up with a credit at the end of the financial year that may be repaid as a dividend.   Where the owner pays too little, then the ASP account will end up with a debit that will cause the service to fail.
  Open Book Accounting...  
3. The Bespoke Application Service only exists for the benefit of the Owner and it has no other purpose.   When the Owner chooses to terminate the service, then the financial stability of the Application Service Provider is of no concern.   While the Owner chooses to retain the service, then the financial stability of the Application Service Provider is at the discresion of the Owner.
4. The scope of the Bespoke Application Service is defined by the Owner by way of a Business Requirment Specification.   This includes continual improvements so the Bespoke Application Service can match the evolving business requirements of the Owner.   The Owner is totally responsible for the functionality and scope of their Bespoke Application Service.

Document Control.
1. Document Title: Finance Account Management.
2. Description: Bespoke Application Service: Finance Account Management.
3. Keywords: Bespoke Application Service, Finance Account Management.
4. Privacy: Shared with approved people for the benefit of humanity.
5. Edition: 1.1.
6. Issued: 2 Jan 2018.