Glossary

Learn the terms used in Monite documentation.

Approval condition

A setting that determines the situation when an Approval policy is applied.

Approval permission

The rights of an entity user to validate payables entered into the system.

Approval policy

A set of roles and approval conditions that determines the payables that users with a specific role may approve.

Related terms: workflow, approval flow, spending policy.

BIC

Business Identifier Code (BIC) is an international standard for routing business transactions and identifying business parties.

Business logic object

Every object in the system, representing a human-world object, with which the system is expected to interact. Some examples of business logic objects are invoices, bills, and receipts.

Business service

A high-level abstraction of a service that deals with business logic objects (e.g. a cash flow business service working on top of invoices, incoming bills, and expenses.) A business service can belong to one or multiple object types.

Counterpart

A counterpart is an individual or organization that:

  • provides goods/services to an SME (supplier/vendor);

  • buys goods/services from an SME (customer).

Entity

A legal or physical representation of the partner's customers. An entity can be either an organization (including freelancers) or an individual (person). The entity registers its operations and stores financial documents (e.g. payables, bank transactions) via partner's applications. Those financial documents are stored and processed by Monite.

Entity user

An employee of the entity, when this entity is an organization. Entity users can interact with the flows based on the role assigned to them through the user hierarchy.

IBAN

The International Bank Account Number (IBAN) is an internationally agreed system of identifying bank accounts across national borders to facilitate the communication and processing of cross-border transactions with a reduced risk of transcription errors.

Invoice

Invoices are commercial documents that businesses issue to their clients to request payment for goods or services by outlining and detailing the amount of money owed, the terms of the deal, and information on the available methods of payment.

Minor unit of currency

The smallest unit of a currency, such as cents or pennies.

Most of our supported currencies have two decimals, meaning you would multiply the currency amount by 100 to get the value in minor units.

Some currencies, such as JPY and KRW, do not have minor units.

OCR

Optical Character Recognition (OCR) is a technology that recognizes text within a digital image. It is commonly used to recognize text in scanned documents and images. OCR softwares can convert a physical paper document or an image into an accessible electronic version with text.

Partner

An organization or individual who integrates Monite API into their applications or systems and provides our functionalities to their customers.

Payable

A financial document given by an entity's supplier itemizing the purchase of a good or a service and demanding payment.

Related terms: bill, incoming invoice, Accounts Payable document.

Quote

As an invoice, a quote is needed to help ensure you are paid accurately and on time.

A price quote is given before any work is started. It details how much a project or job will cost. An invoice, on the other hand, is provided after the work is complete.

Receivable

A financial document sent by an entity to a customer itemizing the sale of a good or service.

Related terms: bill, quote, outgoing invoice, Accounts Receivable document.

Recipient

A recipient is a party (person or business) with whom the SMEs may send or receive payments. A recipient can be either an entity or a counterpart.

Reconciliation

The process of matching payments (both transactions and cash payments) with documents (invoices, incoming bills, expenses, receipts).

Role

A setting that defines the entity user who has the rights to approve a submitted payable that contains figures in a specific range.

SME

Small and mid-size enterprises (SMEs) are businesses that maintain revenues, assets, or a number of employees below a certain threshold. Each country has its own definition of what constitutes an SME.

Transaction

A record of money that has moved in and out of an entity's bank account.

Related terms: bank transaction, payment.


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