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Glossary of OFBiz Terms and Concepts

This glossary is intended to help beginners with OFBiz terms and concepts. Most of them come from the Data Model Resource Book some are OFBiz specific. (NOTE:Not sure that the Data Model Resource is good as a reference for end users... More technical people or functional yes - but general end users probably not....)


You can also find a glossary which defines the terms used by the Apache Software Foundation


Concept or Term




User, person, organisation or other entity (where entity is not an OFBiz "Entity" but rather entity in the legal sense) implied in at least one process modelled and implemented by OFBiz.


(from HR glossary) In OFBiz a party is a term used to simplify collecting information that used in a common manner by different people and things. The most common party types are people and groups. Both people and groups have contact information. A party is identified by a unique Party Id. Using this id OFBiz can collect and find contact (and other information and processes) for both people and groups in the same way. This is why you will often see Party Id as a field in a form or a filter as you work in OFBiz.

eg : administrator of the website; a company dealing goods and/or services via the website; an OFBiz customer assigned a unique party identifier, etc.

Party Id

The unique identifier for a party. The id is stored as text so in some cases you will see an id that helps you identify the party it is linked to (e.g. Party Id DemoEmployee, or DemoSupplier). Generally by default where the id is created by OFBiz, it will be a number that starts from the sequence 10000.



An acronym for Enterprise Resource Planning, an ERP is basically a category of software used for managing a business. It is often a package containing several individual, but integrated, applications. Some of those applications might be Accounts Receivable, Accounts Payable, General Ledger, or Point of Sale.

Apache OFBiz, OpenBravo, Odoo


Customer Relationship Management






The buying and selling of goods or services over electronic systems.



Material Requirements Planning



Supply Chain Management






Role of a party that sells something with the system



Role of a party that something if purchased from



An OFBiz component is a directory used by the OFBiz framework to specify and load application server resources necessary to execute an OFBiz instance. Each OFBiz component must have a unique name (typically the name of the root directory for the component) and a configuration file called: "ofbiz-component.xml". Component resources may include, but are not limited to: webapps, Java source/classes, classpath resources, scripts, entity definitions, entity data files, service definitions, service and entity ECA rules, test suites, and encryption keystores. A component contains applications and/or the lower level tools and definitions needed by applications. A component can be used for self-contained extensions, including applications and logic/data modifications, to the suite of tools and applications that come with OFBiz.

NOTE: This definition is too technical for end users. Might be OK in a tech glossary but not here


A part of Component (at the user level) beginning with the ~webapp directory. A single component may contain several applications each mounted on a unique URL. Within each component, the "ofbiz-component.xml" file defines the available applications and how those applications shall be mounted on URLs.

Examples: OOTB the Accounting component has three applications: Accounting, AP and AR.

AgreementAn agreement is a way of recording a business arrangement or contract that your business makes with other companies or individuals.Examples: Customer or Supplier payment terms (eg.30 days to pay),  Discounts (e.g products or volome), Commissions, Customer Contracts (agreement to sell x number of widgets for y price, or sell at y price for a certain time frame)


These are all of the non-inventory "things" that the enterprise owns.

These are items of value owned by the business. There are different types of assets (fixed, current, intangible) In accounting assets are shown as balance sheet accounts.

Examples :Furniture, computer or manufacturing equipment, vehicles, bank accounts, investments and goodwill.

Asset MaintenanceAny expense incurred during the process of maintaining an asset.Real Estate assessor fees, stock broker fees, vehicle maintenance costs

Accounts Payable

These are the debts that your business owes to suppliers. It is also called 'A/P' for short or 'Creditors'. 
Accounts Receivable

These are the outstanding debts that your customers owe to your business. It is also called 'A/R' for short or Debtors.

Accounts Payable InvoiceAP invoice is a document raised by the customer and sent to the company with the details of the items sent, qty sent, price and other details. The company will enter this invoice details in the Payable module and then pay the customer according to the credit terms. This invoice may come along with the consignment or may be sent to the company separately. 
Accounts Receivable InvoiceAR Invoice is a document raised by the company and sent to the customer with the details of items sold, qty sold, price, tax and other details. Based on this invoice, the customer will send the payment in case of credit sales. 
Accrual Based AccountingThis is a method where you record the income when the sale occurs and not necessarily when you receive the payment. Also you record an expense when you receive goods or services, even though you may not pay for them until later. 
Balance SheetThis is like a financial snapshot of your business at a certain point in time. It lists your assets, liabilities and the difference between the two which is the net worth (or equity) of the business. The balance sheet is also called the 'Statement of Financial Position' 
BudgetA budget is used to track spending in the company for a future period of time. The company may have one or more budgets depending on the requirements  A budget has a status, type and is composed of budget line items.Examples:  Operating Budget, Capital Budget.
Budget IdThe unique identifier for a budget. 
Budget ItemDescribes an item in a budget. It may have a type, amount and purpose. 
Budget Role  
CapitalThis is money invested in the business by the owners. It is also called equity. 
Cash Based AccountingThis method is when you record income only when you receive the cash from your customers. You also only record an expense when you actually pay your suppliers. 
Chart of AccountsThis is a list or hierarchy of account descriptions that you use to keep the accounting records for your business. 
Cost of Goods SoldThis is the amount it costs you to provide your product or services sold to your customers. It is often called and abbreviated to 'COGS' 
CreditorThis is a company or an individual that you owe money to. 
CreditsOne component of every accounting transaction (journal entry) is a credit. Credits increase liabilities and equity but decrease assets. 
Current AssetsNormally these are things that the business owns that are in the form of cash or will generally be converted to cash or used up within a year.Examples: Accounts Receivable (because people owe you money that you expect will pay you), Inventory and money in your company bank account
Current LiabilitiesNormally these are debts that the business owes that are generally payable within a year.Examples: Accounts Payable, Taxes and Payroll
DebitsOne component of every accounting transaction (journal entry) is a debit. Debits increase assets but decrease liabilities and equity. 
DebtorThis is a company or an individual that owes you money. 
DepreciationThis is a write-off of a portion of the cost of fixed assets, such as vehicles and equipment. It is usually done annually but can be done more frequently. Depreciation is also listed as part of the expenses on the 'Profit & Loss' or 'Income Statement' 
Double Entry AccountingIn this method every transaction has two entries: a debit and a credit (also called a journal entry). Debits must always equal credits. Most if not all accounting software use double entry accounting. 
End of Year RolloverAt the end of the financial year the Profit & Loss accounts totals are reset to zero and the balance sheet accounts totals are carried forward into the next financial year. 
EmployeeAn employee is a person who has an employment relationship with your Company. They will also be a 'party'. 

Employee Position Type

Employee Positions Type is a name that describes a position. You can define your own position types in Global HR Settings > Position Types.Examples: Business Analyst, Programmer and System Administrator are position types in the demo data



In OFBiz an Employment defines the relationship between your Company and a person who is an employee. The employment relationship tracks employee benefits, preferences, pay history, and unemployment claims and agreements. 

In OFBiz the term entity represents the important business concept of data structure used to store records in the database.

EquityThis is the net worth of your business. It is also called 'Capital' or 'Owner's Equity. Equity is made up of investment in the business by the owners plus any profits that the business has made that hasnt been taken out. 
Fixed AssetsThese are assets that are generally not going to be converted to cash within a year.Example: Manufacturing equipment or vehicles.
FulfillmentIn the Human Resources application, a fulfillment associates a person with a position. A person can fulfill more then one position and a position can have more then one person. 
General LedgerThis is a collection of different types of accounts (balance sheet, income, expense) that are used to keep the accounting records of a business. A general ledger works with double entry accounting and journal entries for each transaction. 
Income AccountsThese are the accounts that are used to keep track of your sources of income.Examaple: Sales, Consulting Income or Interest.
Income StatementThis is also called a Profit and Loss Statement' or a 'P&L'. It lists the income, expenses, and net profit (or loss) for the business. The net profit (or loss) is equal to the total income minus the total expenses. 
Intangible AssetThis is something of value that is owned by the business that cannot be touched physically. Examples: A trademark, patent or goodwill
Internal Organization

An Internal organization is a special term in OFBiz that allows you to flag the main accounting company that is being setup. It can also be used to highlight relationship between your company and any of your any departments, business units or subsidiaries.

InventoryThese are goods are held for sale to customers. Inventory is also referred to a Stock. Inventory can be items that are bought for resale or it can be products that are manufactured and sold to the customer. 
Invoice DateThis is the date that the invoice was created. Normally this will be based on when products were shipped or services were provided 
Invoice Due DateThis is the last possible date that payments can be made or received for an invoice without triggering any late payment penalties 
JournalThis is a detailed accounting transaction that is recorded (or posted) in the general ledger. It can also be referred to as a Journal Entry. It is made up of a debit and a credit component. 
Journal EntryThis is a detailed accounting transaction that is recorded (or posted) in the general ledger. It can also be referred to as a Journal. It is made up of a debit and a credit component. 
LiabilitiesThese are the debts that your business owes to its suppliers, banks or the government.Examples can be taxes or loans.
Long Term LiabilitiesThese are debts that a business owes to its suppliers that are not generally due to be paid off within a year.An example would be a mortgage payment.
Net IncomeThis is also called 'Profit' or 'Net Profit'. It is the total income minus the total expenses 
PersonIn OFBiz a person is a human being as distinguished from a party group which is an generally an organization. Human beings and organizations have different attributes i.e. People have first and last names while groups have group names. Both person and party group are types of parties and share information and processes common to parties. 
PositionA position is a job that can be filled by more then one person over time or at the same time. Positions are defined by a type of work. For example there may be 20 positions in an organization for a secretary. Each position is related to a department in the organization. A position can me thought of as a full-time equivalent employee (FTE). So an FTE may be assigned to one or more positions and position can be assigned to more then one FTEs (job sharing). 
Profit & Loss StatementThis is also called the 'Income Statement' or 'P&L'. It is the total income minus the total expenses for the business. 
Retained EarningsThese are profits from the business that have been kept or 'retained' in the business and not paid out to the owners. 
ResponsibilityIn the Human Resources application responsibilities define duties assigned to a position. 
StockThese are goods are held for sale to customers. Stock is also referred to as Inventory. Stock can be items that are bought for resale or it can be products that are manufactured and sold to the customer. 
Security Group

A  security group is a collection (or a set) of application privileges that can be assigned to a user login id. A user can be assigned to multiple security groups

Termination ReasonIn the Human Resources application,this is a name describing the cause related to a termination typeExample:Found new job,
Termination TypeIn the Human Resources application, this is a name for the kind of terminationExample:Resigned, Fired, layoff
Trial BalanceThis is a list of the general ledger accounts showing the debits in one column and the credits in another. The main objective of a trial balance is to ensure that the total credits and total debits balance (eg. total debits = total credits). It also validates that the double entry accounting is working correctly. 
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