SPIS Toolbox - Finance - Glossary

Glossary

Assets	position in balance sheet which represents what a companyowns.
Capital expenditures (CAPEX)	are one-time expenses. Normally they are long-term investments in non-consumable parts of the business, for example money that is spent on pump, panels, machines, etc.
Cash Inflows	all cash receipts realized within a given period (e.g. from sales).
Cash Outflow	outgoing cash, all cash payments realized during a given period (e.g. for buying production inputs, loan installments, buying equipment).
Creditors	payable occurring from past credit (money owed to suppliers for expenses).
Collateral	property or other assets that a borrower offers a lender to secure a loan.
Credit Sales	sales made without receiving cash.]
Current Assets	cash and other assets which are expected to be converted into cash or consumed during the normal operating cycle of a business.
Debtors	receivables occurring from past credit sales.
Depreciation	a cost charged against fixed assets for their replacement. Note: “depreciation” is one of the few expenses for which there is no associated outgoing cash flow.
Expenses / expenditure	payment of cash or cash equivalent for good or services received. Cost of resources used up or consumed by the activities of the business.
Finished Good Stock	an inventory of final products ready for sale.
Financial Viability	ability to generate sufficient income to meet operating expenditure, financing needs and, ideally, to allow profit generation. Financial viability is usually assessed using the Net Present Value (NPV) and Internal Rate of Return (IRR) approaches together with estimating the sensitivity of the cost and revenue elements. Both NPV and IRR are the most commonly used decision criteria of a cost-benefit analysis.
Fixed Assets	assets required for long-term use and for physical use in the business (machinery,buildings, office equipment, cars, etc.).
Fixed Cost	costs that do not vary with the level of production.
Fixed Investment:	investment made in fixed assets (e.g. machinery).
Friction loss	The loss of pressure due to flow of water in pipe. It depends on the pipe size (inside diameter), flow rate, and length of pipe. It is determined by consulting a friction loss chart available in an engineering reference book or from a pipe supplier.
Global solar radiation (G)	The energy carried by radiation on a surface over a certain period of time. The global solar radiation is locations specific as it is influenced by clouds, air humidity, climate, elevation and latitude, etc. The global solar radiation on a horizontal surface is measured by a network of meteorological stations all over the world and is expressed in kilowatt hours per square meter [kWh/m²].
Gravity flow	The use of gravity to produce pressure and water flow, for example when a storage tank is elevated above the point of use, so that water will flow with no further pumping required.
Head	Value of atmospheric pressure at a specific location and condition. (meters): head, total (dynamic ) Sum of static, pressure, friction and velocity head that a pump works against while pumping at a specific flow rate, head loss Energy loss in fluid flow.
Insolation	The rate at which solar energy reaches a unit area at the earth measures in Watts per square meter [W/m2]. Also called solar irradiance.
Irradiation	The integration or summation of insolation (=solar irradiance ) over a time period expressed in Joules per square meter (J/m2) or watt-hours per square meter [Wh/m2]
Irrigation	Irrigation is the controlled application of water to respond to crop needs.
Irrigation efficiency	Proportion of the irrigation water that is beneficially used to the irrigation water that is applied [%].
Irrigation head	Control unit to regulate water quantity, quality and pressure in an irrigation system using different types of valves, pressure regulators, filters and possibly a chemication system.
Lateral	Pipe(s) that go from the control valves to the sprinklers or drip emitter tubes.
Latitude	Latitude specifies the north–south position of a point on the Earth's surface. It is an angle which ranges from 0° at the Equator to 90° (North or South) at the poles. Lines of constant latitude, or parallels, run east–west as circles parallel to the equator. Latitude is used together with longitude to specify the precise location of features on the surface of the Earth.
Leaching	Moving soluble materials down through the soil profile with the water.
Maximum Power Point Tracking (MPPT)	An important feature in many control boxes to draw the right amount of current in order to maintain a high voltage and achieve maximum system efficiency.
Net Irrigation Water Requirements (NIWR)	The sum of the individual crop water requirements (CWR) for each plant for a given period of time. The NIWR determines how much water should reach the crop to satisfy its demand for water in the soil.
Power (P)	s the rate at which energy is transferred by an electrical circuit expressed in watts.  Power depends on the amount of current and voltage in the system.  Power equals current multiplied by voltage (P=I x V). Pressure The measurement of force within a system. This is the force that moves water through pipes, sprinklers and emitters. Static pressure is measured when no water is flowing and dynamic pressure is measured when water is flowing. Pressure and flow are affected by each other. [bars, psi, kPa]
Photosynthesis	Photosynthesis is a process used by plants and other organisms to convert light energy into chemical energy that can later be released to fuel the organisms' activities (energy transformation).
Priming	The process of hand-filling the suction pipe and intake of a surface pump. Priming is generally necessary when a pump must be located above the water source.
Pump	Converts mechanical energy into hydraulic energy (pressure and/or flow). Submersible Pump - A motor/pump combination designed to be placed entirely below the water surface. Surface Pump - A pump that is not submersible and placed not higher than about 7 meters above the surface of the water.
Root Zone	The depth or volume of soil from which plants effectively extract water from [m]
Salinity (Saline)	Salinity refers to the amount of salts dissolved in soil water.
Solar panel efficiency	Solar panel efficiency is the ratio of light shining on the panel, versus the amount of electricity produced. It is expressed as a percentage. Most systems are around 16% efficient, meaning 16% of the light energy is converted into electricity.
Suction lift	Vertical distance from the surface of the water to the pump. This distance is limited by physics to around 7 meters and should be minimized for best results. This applies only to surface pumps.
Surface irrigation	Irrigation method where the soil surface is used to transport the water via gravity flow from the source to the plants. Common surface irrigation methods are: furrow irrigation- water is applied to row crops in small ditches or channels between the rows made by tillage implements; basin irrigation- water is applied to a completely level area sur-rounded by dikes, and flood irrigation- water is applied to the soil surface without flow controls, such as furrows or borders.
Transpiration	Water taken up by the plant's roots and transpired out of the leaves. [mm]
Voltage (V)	Voltage is the electric potential between two points, or the difference in charge between two points, expressed in Volts.