Accounting and inventory glossary

This glossary gives a short, plain definition of the accounting, tax and inventory terms Egyptian companies meet most often, with the Arabic and English names together so teams and accountants who work in both languages use the same words.

Chart of accountsدليل الحسابات (شجرة الحسابات)

The numbered list of all accounts a company uses, grouped into assets, liabilities, equity, revenue and expenses.

Journal entryقيد اليومية

A record of one transaction with equal debits and credits. Once posted, it is corrected by a reversing entry rather than edited.

Double-entry bookkeepingالقيد المزدوج

The method in which every transaction affects at least two accounts, one debited and one credited, so the books always balance.

General ledgerدفتر الأستاذ العام

The book that holds every posted transaction by account, and each account's balance.

Trial balanceميزان المراجعة

A list of all account balances at a date. Total debits must equal total credits; if not, there is a posting error.

Income statementقائمة الدخل

The report of revenue minus expenses for a period, giving the profit or loss.

Balance sheetالميزانية (قائمة المركز المالي)

The report of assets, liabilities and equity at a specific date.

Cash-flow statementقائمة التدفقات النقدية

The report of cash coming in and going out during a period, split into operating, investing and financing activities.

Fiscal year and period closingالسنة المالية وإقفال الفترة

Closing a month or year locks it so no back-dated entries change reported figures; year-end closing moves profit to equity.

Cost centreمركز التكلفة

A tag on transactions (a branch, project or department) used to report profit or cost for that part of the business.

Depreciationالإهلاك

Spreading the cost of a fixed asset over its useful life, for example by the straight-line or declining-balance method.

Value added tax (VAT)ضريبة القيمة المضافة

A tax on sales of goods and services; the standard rate in Egypt is 14%. Registered companies file a monthly return.

Input VAT / output VATضريبة المدخلات / ضريبة المخرجات

Input VAT is paid on purchases and can usually be deducted; output VAT is charged on sales. The return pays the difference.

Withholding taxضريبة الخصم والإضافة (الخصم تحت حساب الضريبة)

An amount a payer deducts from certain payments to suppliers and pays to the Tax Authority on the supplier's behalf, as an advance on the supplier's income tax.

E-invoiceالفاتورة الإلكترونية

An invoice issued and submitted electronically to the Egyptian Tax Authority's system instead of on paper.

Inventory (stock)المخزون

Goods held for sale or for use in production.

Stock count (stocktaking)الجرد

Physically counting stock and comparing it with the system quantity, then adjusting for confirmed differences.

Cycle countالجرد الدوري

Counting a small group of items on a rolling schedule instead of the whole stock at once.

Weighted average costمتوسط التكلفة المرجّح

A stock valuation method where each item's cost is the average of what was paid for the units on hand, updated with each purchase.

Cost of goods sold (COGS)تكلفة البضاعة المباعة

The cost of the stock that was sold in a period; revenue minus COGS is gross profit.

Dead stockالمخزون الراكد

Items that have not sold for a long time and tie up cash and space.

Purchase return / sales returnمرتجع المشتريات / مرتجع المبيعات

Goods sent back to a supplier, or received back from a customer, which reverse part of the original purchase or sale.