Glossary

ERP & finance, defined.

Clear definitions of the terms we use — from ERP and IFRS to the Iraqi Unified Accounting System and dual-currency accounting.

ERP (Enterprise Resource Planning): ERP (Enterprise Resource Planning) is integrated software that unifies a company's core operations — accounting, inventory, sales, purchasing, and human resources — into one shared database. Instead of separate disconnected systems, teams work from consistent, real-time data. This reduces manual entry, improves reporting, and supports better decisions. Popular ERP platforms include Odoo and Oracle NetSuite, which Moashirat implements for businesses in Iraq.
Odoo: Odoo is an open-source ERP suite made up of integrated business applications covering accounting, sales, CRM, inventory, manufacturing, POS, and human resources. Its modular design lets companies start with a few apps and add more as they grow, making it flexible for small and mid-sized firms. Moashirat is a certified Odoo Silver Partner and implements and customizes Odoo for businesses in Iraq.
Oracle NetSuite: Oracle NetSuite is a cloud-based ERP platform that manages accounting, financials, inventory, order management, and CRM in a single system accessed through a web browser. As a fully cloud solution, it suits growing and multi-entity companies that need consolidated reporting across locations. Moashirat, a member of the Oracle PartnerNetwork, helps organizations in Iraq evaluate and deploy NetSuite for their operations.
IFRS: IFRS (International Financial Reporting Standards) are globally recognized accounting rules issued by the IASB that govern how companies prepare and present their financial statements. They aim to make reports transparent, consistent, and comparable across countries, which helps investors, lenders, and auditors. Businesses in Iraq adopting IFRS often need to reconcile it with local requirements such as the Unified Accounting System.
Iraqi Unified Accounting System: The Iraqi Unified Accounting System (UAS) is the standardized national accounting framework used in Iraq, prescribing a uniform chart of accounts, account coding, and reporting formats for entities across the economy. It aims to standardize financial data for statistical and regulatory purposes. Companies often must comply with the UAS while also meeting international standards like IFRS, so mapping between the two is a common accounting task Moashirat supports.
Dual-currency accounting (IQD/USD): Dual-currency accounting is the practice of recording and reporting transactions in two currencies — commonly the Iraqi dinar (IQD) and the US dollar (USD). Businesses in Iraq often price, invoice, or hold balances in both, so their ERP must handle exchange rates, currency conversion, and gains or losses on foreign-currency positions. Accurate dual-currency setup ensures reliable financial statements and compliance with local reporting.
Chart of accounts: A chart of accounts is the organized list of all accounts a business uses to record its financial transactions, grouped into categories such as assets, liabilities, equity, revenue, and expenses. Each account has a name and code, giving every transaction a consistent home. A well-structured chart of accounts is the foundation of any ERP setup and, in Iraq, is often aligned with the Unified Accounting System's coding.
General ledger: The general ledger is the central accounting record that holds every financial transaction of a business, organized by account. It aggregates entries from subsidiary records such as sales, purchases, and cash, and forms the basis for the trial balance and financial statements. In an ERP system the general ledger updates automatically as transactions occur, giving management an accurate, real-time view of the company's financial position.
Withholding tax: Withholding tax is an amount that a payer deducts from a payment — such as to a supplier, contractor, or employee — and remits directly to the tax authority on the recipient's behalf. It ensures tax is collected at the source rather than later. In Iraq, withholding on certain contracts and payments is a common compliance requirement, and ERP systems must calculate, record, and report these deductions accurately.
Statutory audit: A statutory audit is a legally required, independent examination of a company's financial statements to confirm they present a true and fair view. In Iraq, registered companies must have their accounts audited by a licensed external auditor and file audited statements with authorities such as the tax administration and Companies Registrar. The auditor issues a formal opinion, giving shareholders, banks, and regulators assurance the accounts are reliable.
Internal audit: Internal audit is an ongoing, independent review carried out within an organization to evaluate the effectiveness of internal controls, risk management, and governance. Unlike a statutory audit, it serves management and the board rather than external parties, helping detect fraud, inefficiency, and control weaknesses. Internal auditors examine processes such as procurement, payroll, and inventory, then recommend improvements to strengthen accountability and protect company assets.
Month-end close: Month-end close is the accounting routine of finalizing all transactions for a month so accurate financial statements can be produced. It includes reconciling bank accounts, posting accruals and adjustments, matching receivables and payables, and reviewing the trial balance. ERP systems like Odoo and Oracle NetSuite automate much of this work, shortening the close cycle and giving management timely, reliable figures for decision-making.
Data migration: Data migration is the process of transferring existing business data, such as customers, suppliers, chart of accounts, opening balances, and inventory, from legacy systems or spreadsheets into a new ERP. It involves cleaning, mapping, and validating records so information arrives complete and accurate. Careful migration is critical during an ERP implementation, since errors in opening balances or master data can distort reports and disrupt operations after go-live.
Go-live: Go-live is the moment a new ERP or software system becomes fully operational and staff begin using it for real daily business instead of the old system. It follows configuration, data migration, testing, and user training. A successful go-live is usually supported by a cutover plan and a period of close monitoring, so issues are resolved quickly and business processes such as invoicing and inventory continue without interruption.
Functional currency: Functional currency is the primary currency of the economic environment in which a business mainly operates and generates cash. Under IFRS, a company keeps its accounts and measures results in this currency, then translates other currencies into it. In Iraq, where the Iraqi dinar and US dollar are both widely used, choosing the correct functional currency and handling exchange differences is essential for accurate financial reporting.
Financial consolidation: Financial consolidation is the process of combining the financial statements of a parent company and its subsidiaries into a single set of accounts that presents the group as one economic entity. It requires eliminating intercompany transactions and balances, translating foreign-currency subsidiaries, and accounting for minority interests. Under IFRS, groups prepare consolidated statements, and ERP systems help automate the process across multiple entities and currencies.
Feasibility study: A feasibility study is a structured analysis that assesses whether a proposed project or investment is viable before committing resources. It examines market demand, technical requirements, costs, expected revenues, financing, and risks, often producing projected cash flows and profitability measures. Banks, investors, and business owners rely on feasibility studies to decide whether to proceed, and they are frequently required to support loan applications or new-venture approvals.
Segregation of duties: Segregation of duties is an internal-control principle that divides responsibility for a transaction among different people so no single individual can both execute and conceal an error or fraud. For example, the person who approves a payment should not also record it and reconcile the bank account. ERP systems enforce this through role-based access and approval workflows, strengthening accountability and reducing the risk of misstatement or theft.