Information
Business Software Glossary for UAE Companies
Software projects and UAE paperwork come with their own vocabulary, and a surprising number of misunderstandings start with a word that two people read differently. This glossary explains the terms we meet most often in ERP, CRM, accounting and compliance work in the UAE, in plain language. It is general information, not legal or tax advice; rules are set by the authorities and change, so confirm details with the relevant authority or your adviser.
A to C
| Term | Meaning |
|---|---|
| Accrual | A cost or income recorded in the month it relates to, even though the invoice or payment has not arrived yet. |
| Ageing report | A list of unpaid invoices grouped by how overdue they are, such as 1 to 30 or 31 to 60 days. |
| Audit trail | A record of who created, changed or approved something in a system, and when. |
| Authorised signatory | The person named on the trade licence or bank mandate who may sign contracts or payments for the company. |
| Bill of materials (BOM) | A list of the materials and quantities needed to make one unit of a product. |
| Bill of quantities (BOQ) | An itemised list of work and materials with quantities and prices, used to price construction and fit-out projects. |
| Chart of accounts | The structured list of accounts a company uses to record its transactions. |
| Corporate tax | A federal tax on the taxable income of businesses in the UAE, with rates, thresholds and reliefs set by law. |
| Credit note | A document that reduces or cancels an invoice you issued, for example after a return or a pricing error. |
| CRM | Customer relationship management: software that keeps leads, customers, quotations and follow-ups in one place. |
| Cut-off | The point in time after which transactions belong to the next accounting period. |
D to H
| Term | Meaning |
|---|---|
| Days sales outstanding (DSO) | The average number of days it takes to collect payment after a sale. |
| Debit note | A document that increases an amount owed, for example for an undercharge on an earlier invoice. |
| Ejari | Dubai's system for registering tenancy contracts. |
| EmaraTax | The online portal of the Federal Tax Authority for VAT, corporate tax and excise services. |
| Emiratisation | Government policy and targets to increase the employment of UAE nationals in the private sector. |
| End-of-service gratuity | A payment due to an employee on leaving, calculated from length of service and salary under labour law and the contract. |
| ERP | Enterprise resource planning: software that connects sales, purchasing, stock, accounts and other functions in one database. |
| Exempt supply | A supply on which VAT is not charged and, generally, related input VAT cannot be recovered. |
| Free zone | A designated area with its own licensing authority and rules, where companies can operate under special regimes. |
| FTA | The Federal Tax Authority, which administers federal taxes in the UAE. |
| Goods received note (GRN) | A document recording what was actually delivered against a purchase order. |
I to P
| Term | Meaning |
|---|---|
| Input VAT | VAT a business pays on its purchases, which it can often recover with a valid tax invoice. |
| Intercompany transaction | A transaction between two companies in the same group. |
| Landed cost | The full cost of getting goods to your warehouse: price, freight, insurance, duty and handling. |
| Mainland | A company licensed by an emirate's economic department, free to trade across the UAE market subject to its licence activities. |
| MOHRE | The Ministry of Human Resources and Emiratisation, which regulates private-sector employment. |
| MRP | Material requirements planning: calculating what to buy or make, and when, from orders and stock. |
| Multi-currency | The ability to record transactions in several currencies while reporting in dirhams. |
| Output VAT | VAT a business charges on its sales. |
| Post-dated cheque (PDC) | A cheque dated in the future, common in rent, supplier and customer payments. |
| Proforma invoice | A preliminary bill issued before supply or payment. It is not a tax invoice. |
| Purchase order (PO) | A document sent to a supplier confirming what you will buy and at what price. |
| PRO | Public relations officer: the person or service that handles government paperwork for a company, such as licences and visas. |
R to Z
| Term | Meaning |
|---|---|
| Reconciliation | Comparing two sets of records, such as bank statement and ledger, to explain every difference. |
| Retention | A percentage of a contractor's payment held back until the defects period ends. |
| Reverse charge | A VAT mechanism where the buyer accounts for the VAT instead of the seller, used in certain cross-border and specific cases. |
| Role-based access | Giving each user only the screens and actions their job needs. |
| SLA | Service level agreement: a promise about response and resolution times. |
| Tax invoice | The document that records a taxable supply and its VAT, which a customer needs to recover input VAT. |
| Tax period | The period covered by a VAT return, monthly or quarterly as assigned by the FTA. |
| Three-way match | Checking that purchase order, goods receipt and supplier invoice agree before paying. |
| Trade licence | The licence that permits a company to carry out specified activities in an emirate or free zone. |
| TRN | Tax registration number: the identifier a VAT-registered business must show on tax invoices. |
| UAE Pass | The national digital identity used to sign in to government and some private services. |
| Ultimate beneficial owner (UBO) | The person who ultimately owns or controls a company, which companies must declare in a register. |
| Variation order | A written change to the scope, price or timeline of a contract. |
| VAT | Value added tax, charged in the UAE at a standard rate of 5% on most supplies, with zero-rated and exempt categories. |
| Wage Protection System (WPS) | The electronic system for paying private-sector salaries through approved channels so payments can be monitored. |
| Work order | An instruction to carry out a specific job, often with materials, labour and a deadline. |
| Zero-rated supply | A supply taxed at 0%: no VAT is charged, but input VAT remains recoverable. |
Where to go next
For fuller explanations, read the UAE VAT guide, the corporate tax guide, the complete ERP guide and the resource hub. If a term here is missing, tell us and we will add it.
Last updated November 3, 2026