ERP Glossary - C: Capable to Promise to CIO
Capable to Promise
A more sophisticated variation of available to promise (ATP), capable to promise also considers machine capacity constraints, in addition to material constraints. This provides a more accurate estimate of availability.
A generally imprecise term relating to one of the ingredients to economic production, it encompasses all of the things that must be combined with land(raw materials), labor, and intellectual property, in order to produce goods or services. Capital can take the form of cash, production equipment, land and buildings, inventory, - most tangible assets on the balance sheet could ultimately be referred to as capital.
The process of determining how to spend operating cash over a time period; namely, how much to spend, on what, and when. This spending plan must be matched with a plan to have that much cash available, either by means of operating income, sales of stock, or borrowing with bonds.
A phrase with multiple meanings, it most often refers to machines used to create other products in a manufacturing process. In accounting terms, capital equipment meets the criteria of being a single asset, costing more than $5000, and having a useful life of more than one year.
A phrase describing the net effect of cash coming in (revenue, borrowing, sales of assets) and cash going out (raw material purchases, inventory growth, debt reduction). Managing cash can be as important and challenging as managing profitability.
Cash Flow Statement
One of the primary documents of a standard financial statement, a cash flow statement quantifies the change in available cash over a fixed period of time, by summarizing all of the activities that add to cash on hand and all of the activities that reduce cash on hand.
CEO (Chief Executive Officer)
The highest position of leadership within an organization. The CEO is responsible for an organizations performance, and reports to the Board of Directors.
certificate of compliance
A formal document that certifies that a given product or service meets one or more required standards, and often provides the test data of how the product or service tested against the standard.
CFO (Chief Financial Officer)
The highest position of financial leadership within an organization. The CFO is responsible for maintaining appropriate fiduciary controls, for the integrity of the financial statements, for arranging fair and impartial audits, and for advising the CEO on ways to improve the financial performance of the organization.
The process of communicating, educating, training, and explaining the affects of an upcoming change to everyone in the organization, from the C-level to the shop floor. Since ERP is such a dramatic change that affects so many people, effective ERP change management is one of the most crucial risk factors in an ERP implementation.
Chart of Accounts
The written list of numerical accounting codes, and what common sense name is associated with the number. Expenses and income are posted into these accounts for eventual transformation into an income statement or balance sheet. Account 4450 might be "air travel expense", account 4460 might be "hotel expense", and account 5580 might be "raw material - steel".
CIO (Chief Information Officer)
The highest position of leadership within an IT function. The CIO is responsible for data security, disaster recovery, a the long term technology plan, and advising the CEO on how to maximize the effectiveness of Business Intelligence.
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